Exam 14: Exporting and Countertrade

Small Business Intermediaries (Scenario) Mary's Mosaics is a small business in California that creates custom-designed decorative items from mosaic tiles and glass. The international e-commerce created for Mary's Mosaics generates the majority of the firm's business, although the firm also sells items to U.S. retailers for domestic sale. Mary Boyd, the CEO of Mary's Mosaics, recently received an order from a Spanish retailer for $20,000 worth of mosaic items. Similar orders have been placed from importers in Australia, England, and Canada. Mary needs to identify appropriate foreign intermediaries for each market. -Which of the following forms of countertrade involves payments in a combination of cash and goods?

________ is a type of countertrade in which the seller agrees to supply technology or equipment to construct a facility and receives payment in the form of goods produced by the facility.

Which of the following is the first stage of internationalization?

Which of the following is an example of a pull factor for a focal firm?

Which of the following makes a letter of credit the most popular method of payment in export transactions?

During the global market opportunity assessment phase, managers will most likely ________.

Exporting and importing collectively refer to international trade.

Relational assets is defined as ________.

Cash in advance is the most secure method of getting paid in international business.

In a short essay, explain why receiving payment can be more complicated in international business, and explain how countertrade can be both a method of payment and a form of foreign market entry.

Countertrade refers to an international business transaction in which full or partial payments are made in kind rather than cash.

In a short essay, describe the four primary factors that influence the ability of an exporter or importer to obtain financing for export sales.

Which of the following methods of payment is the LEAST popular among foreign buyers?

The World Bank Group is an example of a ________.

Which of the following services cannot be exported?

In a short essay, describe the importance of relational assets to a firm's success in international trade. How do managers develop relational assets with intermediaries?

Global sourcing and exporting can be classified as equity or ownership-based international business activities.

Firms that internationalize their operations in order to reap the profits of a high-growth market are exhibiting a proactive business strategy.

In a short essay, describe how intermediaries facilitate indirect exporting and direct exporting, and explain why international managers go to great lengths to build relational assets with their key intermediaries.

Countertrade is an elaborate and international form of the bartering system, and it accounts for one-third of all global trade.