Exam 16: Export and Import Management

An open account sale has no evidence of debt (promissory note, draft, etc.) and the payment may be unenforceable.

Three conditions are necessary for gray markets to develop.The conditions include: Availability of products in other markets, (b) limited trade barriers, and (c) _____.

Indirect exporting has high credit risk.

When import duties are paid, the _____ duty is a specified amount per unit weight or other quantity of the merchandise.

Gray market channels are also known as parallel imports.

The Japan External Trade Organization (JETRO) which helps foreign businesses to export to Japan is affiliated with Japan's _____.

The Coca-Cola Company markets essentially one Coke worldwide.

A shipper's order bill of lading is used in prepaid transactions.

In terms of internal operations and specific operations performed, an export sales subsidiary differs very little from an export department.

_____ risk refers to the chances that payment will not be made due to the importer's inability to obtain U.S.dollars and transfer them to the exporter.

One of the biggest advantages the United States has in importing is that U.S.companies can:

_____ exporting involves the use of independent U.S.middlemen to market the firm's products overseas.

With respect to shipments entering the United States, a(n) _____ is a guarantee by someone that the duties and any potential penalties will be paid to the customs of the importing country.

Exporting is the first mode of foreign entry used by many companies.

A bill of lading is a contract between the exporter and the shipper indicating that the shipper has accepted responsibility for the goods and will provide transportation in return for payment.

_____ channels refer to the legal export/import transaction involving genuine products into a country by intermediaries other than the authorized distributors.

The grouping of countries and regions among countries enables a firm to link various geographical areas into one heterogeneous market segment.

Which of the following is an example of a large trading company?

Not all currency is convertible to US dollars.

A general license permits exportation within certain limits without requiring that an application be filed or that a license document be issued.