Question 1

Japan's _____ have offices all over the world, and they proactively, continuously seek export opportunities for their affiliated companies large and small.

Accepted Answer

A)   sogo shosha
B)   kaizen
C)   MITI
D)   Samurai

Question 2

A _____ is payable on presentation to the drawee.

Accepted Answer

A)   bill of lading
B)   time draft
C)   sight draft
D)   letter of credit

Question 3

Describe a typical international trade transaction.

Accepted Answer

The typical international trade transact...

Question 4

The Export-Import Bank:

Accepted Answer

A)   is an international financial institution that provides loans for capital programs.
B)   provides finance to facilitate trade between United States and other countries.
C)   is an independent agency of the United Nations.
D)   focuses on policies that have an impact on the exchange rate and the balance of payments.

Question 5

Which of the following is a major drawback of engaging in countertrade?

Accepted Answer

A)   Countertrade is not useful when trading with developing nations.
B)   Financing is difficult when engaging in a countertrade.
C)   It is not attractive to small organizations.
D)   Countertrade may involve the exchange of unusable goods.

Question 6

Countertrade is least attractive to large, diverse multinational enterprises.

Accepted Answer

A) True 
 B)False

Question 7

What type of firms is most likely to engage in countertrade? Why?

Accepted Answer

Countertrade is most attractive to large...

Question 8

Hiring an EMC will help a novice exporter identify opportunities and navigate the paperwork involved in exporting.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements is true of countertrade?

Accepted Answer

A)   Countertrade reduces the profitability of competing firms and is considered an unethical practice.
B)   Countertrade is a conventional means to pay exporters.
C)   Smaller organizations commonly use countertrade in international transactions.
D)   Countertrade occurs when goods and services are traded for other goods and services.

Question 10

Bank charges on letters of credit will depend on the:

Accepted Answer

A)   exporter's creditworthiness.
B)   size of the transaction.
C)   exporter's means of finance.
D)   time taken to approve the sale.

Question 11

In the _____ program organized by the U.S. Department of Commerce, department representatives accompany groups of U.S. businesspeople abroad to meet with qualified agents, distributors, and customers.

Accepted Answer

A)   best prospects
B)   SCORE
C)   capital assistance
D)   matchmaker

Question 12

A banker's acceptance:

Accepted Answer

A)   is payable to the drawee immediately on presentation in a bank.
B)   is a time draft that has been drawn on and accepted by a bank.
C)   is a sight draft that can be used as a negotiable instrument in banks.
D)   allows a buyer possession of the merchandise without signing any formal documents.

Question 13

Which of the following is true of exporting?

Accepted Answer

A)   A common pitfall of exporting is a poor understanding of competitive conditions in the foreign market.
B)   Securing financing is rarely a problem for exporters.
C)   A common pitfall of exporting is trying too hard to customize a product offering rather than "sticking with what you know."
D)   Most exporters have a very good understanding of the competitive conditions in the foreign market.

Question 14

Nearly every state in the U.S. maintains active trade commissions to promote exports.

Accepted Answer

A) True 
 B)False

Question 15

A(n)  _____ occurs when a firm supplies technology, equipment, training, or other services in a country and agrees to take a certain percentage of the resultant output as partial payment for the contract.

Accepted Answer

A)   counterpurchase
B)   offset
C)   barter
D)   buyback

Question 16

Compare and contrast counterpurchase agreements and offset arrangements. Why might an exporter prefer an offset to a counterpurchase deal?

Accepted Answer

A counterpurchase agreement is a recipro...

Question 17

Which of the following is a reason that firms take a reactive approach to exporting rather than a proactive approach?

Accepted Answer

A)   Most firms are familiar with the foreign market opportunities and therefore do not need to utilize proactive approaches.
B)   They are intimidated by the complexities and mechanics of exporting to countries where business practices, language, culture, legal systems, and currency are very different from the home market.
C)   Most firms already know where the market potential and opportunities are and they do not need to be proactive.
D)   They are not intimidated by the complexities and mechanics of exporting to foreign countries and can, therefore, use the same reactive approaches that work in their home market.

Question 18

When a time draft is drawn on and accepted by a business firm, it is called a trade acceptance.

Accepted Answer

A) True 
 B)False

Question 19

What are the typical problems that novice exporters face when trying to export?

Accepted Answer

Novice exporters run into significant pr...

Question 20

Ex-Im Bank has a direct lending operation under which it lends dollars to foreign borrowers.

Accepted Answer

A) True 
 B)False

Exam 16: Exporting, Importing, and Countertrade

A(n) _____ occurs when a firm supplies technology, equipment, training, or other services in a country and agrees to take a certain percentage of the resultant output as partial payment for the contract.

Correct AnswerverifiedShow Answer

A banker's acceptance:

Correct AnswerverifiedShow Answer

Ex-Im Bank has a direct lending operation under which it lends dollars to foreign borrowers.

Correct AnswerverifiedShow Answer

In the _____ program organized by the U.S. Department of Commerce, department representatives accompany groups of U.S. businesspeople abroad to meet with qualified agents, distributors, and customers.

Correct AnswerverifiedShow Answer

Which of the following is a major drawback of engaging in countertrade?

Correct AnswerverifiedShow Answer

Nearly every state in the U.S. maintains active trade commissions to promote exports.

Correct AnswerverifiedShow Answer

Japan's _____ have offices all over the world, and they proactively, continuously seek export opportunities for their affiliated companies large and small.

Correct AnswerverifiedShow Answer

Describe a typical international trade transaction.

Correct AnswerverifiedThe typical international trade transact...View AnswerShow Answer

What are the typical problems that novice exporters face when trying to export?

Correct AnswerverifiedNovice exporters run into significant pr...View AnswerShow Answer

Compare and contrast counterpurchase agreements and offset arrangements. Why might an exporter prefer an offset to a counterpurchase deal?

Correct AnswerverifiedA counterpurchase agreement is a recipro...View AnswerShow Answer

Which of the following statements is true of countertrade?

Correct AnswerverifiedShow Answer

Hiring an EMC will help a novice exporter identify opportunities and navigate the paperwork involved in exporting.

Correct AnswerverifiedShow Answer

What type of firms is most likely to engage in countertrade? Why?

Correct AnswerverifiedCountertrade is most attractive to large...View AnswerShow Answer

Which of the following is a reason that firms take a reactive approach to exporting rather than a proactive approach?

Correct AnswerverifiedShow Answer

Bank charges on letters of credit will depend on the:

Correct AnswerverifiedShow Answer

Countertrade is least attractive to large, diverse multinational enterprises.

Correct AnswerverifiedShow Answer

When a time draft is drawn on and accepted by a business firm, it is called a trade acceptance.

Correct AnswerverifiedShow Answer

The Export-Import Bank:

Correct AnswerverifiedShow Answer

Which of the following is true of exporting?

Correct AnswerverifiedShow Answer

A _____ is payable on presentation to the drawee.

Correct AnswerverifiedShow Answer

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The typical international trade transact...
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Novice exporters run into significant pr...
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A counterpurchase agreement is a recipro...
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Countertrade is most attractive to large...
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