Question 1

Which of the following is true of export trading companies in the United States?

Accepted Answer

A) They are like independent distributors that match buyers with buyers. 
B) They are prohibited from working with a firm's competitors due to antitrust laws. 
C) They must be established independently of the company in order to avoid a conflict of interest. 
D) They have been a successful form of export intermediation in recent years. 
A) They are like independent distributors that match buyers with buyers. 
B) They are prohibited from working with a firm's competitors due to antitrust laws. 
C) They must be established independently of the company in order to avoid a conflict of interest. 
D) They have been a successful form of export intermediation in recent years.

Question 2

The opportunity to increase profitability is the primary reason that firms decide to export.

Accepted Answer

A) True 
 B)False

Question 3

What is a born global? How has technology triggered the growth of born globals?

Accepted Answer

Rather than methodically engaging foreig

Question 4

Countertrade refers to any one of several different arrangements that parties negotiate so that they can trade goods and services with limited or no use of currency.

Accepted Answer

A) True 
 B)False

Question 5

The foreign freight forwarder is the largest export intermediary in terms of value and weight of products managed.

Accepted Answer

A) True 
 B)False

Question 6

The incremental internationalization view of exporting holds that companies first target countries that are ________ their home market.

Accepted Answer

A) different from 
B) similar to 
C) smaller than 
D) larger than 
A) different from 
B) similar to 
C) smaller than 
D) larger than

Question 7

Ultimately, countertrade is an inefficient way of doing business because it ________.

Accepted Answer

A) encourages buyers and sellers to use customs brokers to handle exchanges 
B) requires buyers and sellers to negotiate a fair value on the exchange 
C) reduces the risk that the goods sent as payment are of poor quality 
D) eliminates the potential for price and financial distortion 
A) encourages buyers and sellers to use customs brokers to handle exchanges 
B) requires buyers and sellers to negotiate a fair value on the exchange 
C) reduces the risk that the goods sent as payment are of poor quality 
D) eliminates the potential for price and financial distortion

Question 8

The probability that a business is engaged in exporting tends to ________.

Accepted Answer

A) decrease with the size of the firm 
B) increase with the product life cycle 
C) decrease with the product life cycle 
D) increase with the size of the firm 
A) decrease with the size of the firm 
B) increase with the product life cycle 
C) decrease with the product life cycle 
D) increase with the size of the firm

Question 9

All of the following are benefits of countertrade EXCEPT ________.

Accepted Answer

A) decreasing trade protectionism 
B) increasing access to innovative technology 
C) developing new trade relationships with foreign companies 
D) preserving foreign-exchange reserves 
A) decreasing trade protectionism 
B) increasing access to innovative technology 
C) developing new trade relationships with foreign companies 
D) preserving foreign-exchange reserves

Question 10

An arbitrageur is an exporter that seeks to conduct countertrade in emerging markets.

Accepted Answer

A) True 
 B)False

Question 11

According to the text, technological advances such as e-mail and VoIP have increased the appeal of international trade because it is now easy and inexpensive to manage customer needs and communicate with customers frequently.

Accepted Answer

A) True 
 B)False

Question 12

A freight forwarder performs which of the following functions?

Accepted Answer

A) arranging the fastest and cheapest transportation of products to and from foreign suppliers 
B) taking title to the goods it exports and imports from country to country 
C) acting as a sales representative in a foreign market 
D) valuing products that qualify for favorable tariffs 
A) arranging the fastest and cheapest transportation of products to and from foreign suppliers 
B) taking title to the goods it exports and imports from country to country 
C) acting as a sales representative in a foreign market 
D) valuing products that qualify for favorable tariffs

Question 13

Which of the following BEST describes the concept of serendipity in exporting?

Accepted Answer

A) modifying products to meet cultural preferences 
B) initiating global sales through e-commerce methods 
C) relying too much on exports when domestic sales suddenly increase 
D) opportunistically responding to unsolicited orders from foreign customers 
A) modifying products to meet cultural preferences 
B) initiating global sales through e-commerce methods 
C) relying too much on exports when domestic sales suddenly increase 
D) opportunistically responding to unsolicited orders from foreign customers

Question 14

A major pitfall of exporting is misclassifying products in terms of the destination country's tariff schedule, thereby incurring a higher tax or slower delivery.

Accepted Answer

A) True 
 B)False

Question 15

In conducting ________, a business sells goods directly to or through an independent domestic intermediary in the exporter's home country that exports the products to foreign markets.

Accepted Answer

A) direct exporting 
B) global marketing 
C) strategic planning 
D) indirect exporting 
A) direct exporting 
B) global marketing 
C) strategic planning 
D) indirect exporting

Question 16

Morris Lighting is a U.S.firm that wants to start exporting its high-end lighting fixtures to foreign markets.Morris Lighting should seek assistance from U.S.government agencies for all of the following EXCEPT ________.

Accepted Answer

A) organizing trade events that help potential exporters make foreign contacts and explore export opportunities 
B) understanding how to comply with domestic and foreign trade regulations 
C) acting as an export marketing department or international department for the company 
D) providing information about market demographics and product demand 
A) organizing trade events that help potential exporters make foreign contacts and explore export opportunities 
B) understanding how to comply with domestic and foreign trade regulations 
C) acting as an export marketing department or international department for the company 
D) providing information about market demographics and product demand

Question 17

As described in the opening case, SpinCent's CEO analyzed foreign markets, assessed industries, prepped his company, traveled overseas, and hired trustworthy distributors.SpinCent manages the export process including making and marketing its products for foreign buyers.The nature of these activities shows that the leadership of SpinCent is committing the company to ________.

Accepted Answer

A) countertrade 
B) direct exporting 
C) indirect exporting 
D) third party logistics 
A) countertrade 
B) direct exporting 
C) indirect exporting 
D) third party logistics

Question 18

Which of the following statements about small and medium-sized enterprises (SMEs)is true?

Accepted Answer

A) SMEs are steadily reducing their export intensity ratios. 
B) SMEs make up the majority of all U.S. exporters. 
C) SMEs are the source of more than half of the monetary value of U.S. exports. 
D) SMEs that export goods have fewer than 20 employees. 
A) SMEs are steadily reducing their export intensity ratios. 
B) SMEs make up the majority of all U.S. exporters. 
C) SMEs are the source of more than half of the monetary value of U.S. exports. 
D) SMEs that export goods have fewer than 20 employees.

Question 19

Which of the following has been the LEAST likely outcome of e-commerce on exporting?

Accepted Answer

A) enhancing supply chains 
B) triggering a rise in born globals 
C) overcoming capital limitations for SMEs 
D) expanding market opportunities for traders 
A) enhancing supply chains 
B) triggering a rise in born globals 
C) overcoming capital limitations for SMEs 
D) expanding market opportunities for traders

Question 20

________ refers to any one of several different arrangements that business parties negotiate so that they can trade goods and services with limited or no use of currency.

Accepted Answer

A) Factoring 
B) Offset 
C) Countertrade 
D) Barter 
A) Factoring 
B) Offset 
C) Countertrade 
D) Barter

Which of the following is true of export trading companies in the United States?

The opportunity to increase profitability is the primary reason that firms decide to export.

What is a born global? How has technology triggered the growth of born globals?

Countertrade refers to any one of several different arrangements that parties negotiate so that they can trade goods and services with limited or no use of currency.

The foreign freight forwarder is the largest export intermediary in terms of value and weight of products managed.

The incremental internationalization view of exporting holds that companies first target countries that are ________ their home market.

Ultimately, countertrade is an inefficient way of doing business because it ________.

The probability that a business is engaged in exporting tends to ________.

All of the following are benefits of countertrade EXCEPT ________.

An arbitrageur is an exporter that seeks to conduct countertrade in emerging markets.

According to the text, technological advances such as e-mail and VoIP have increased the appeal of international trade because it is now easy and inexpensive to manage customer needs and communicate with customers frequently.

A freight forwarder performs which of the following functions?

Which of the following BEST describes the concept of serendipity in exporting?

A major pitfall of exporting is misclassifying products in terms of the destination country's tariff schedule, thereby incurring a higher tax or slower delivery.

In conducting ________, a business sells goods directly to or through an independent domestic intermediary in the exporter's home country that exports the products to foreign markets.

Morris Lighting is a U.S.firm that wants to start exporting its high-end lighting fixtures to foreign markets.Morris Lighting should seek assistance from U.S.government agencies for all of the following EXCEPT ________.

Which of the following statements about small and medium-sized enterprises (SMEs)is true?

Which of the following has been the LEAST likely outcome of e-commerce on exporting?

________ refers to any one of several different arrangements that business parties negotiate so that they can trade goods and services with limited or no use of currency.

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor-Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

The Strategy of International Business

Country Evaluation and Selection

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters

Exam 14: Export and Import

Which of the following is true of export trading companies in the United States?

The opportunity to increase profitability is the primary reason that firms decide to export.

What is a born global? How has technology triggered the growth of born globals?

Countertrade refers to any one of several different arrangements that parties negotiate so that they can trade goods and services with limited or no use of currency.

The foreign freight forwarder is the largest export intermediary in terms of value and weight of products managed.

The incremental internationalization view of exporting holds that companies first target countries that are ________ their home market.

Ultimately, countertrade is an inefficient way of doing business because it ________.

The probability that a business is engaged in exporting tends to ________.

All of the following are benefits of countertrade EXCEPT ________.

An arbitrageur is an exporter that seeks to conduct countertrade in emerging markets.

According to the text, technological advances such as e-mail and VoIP have increased the appeal of international trade because it is now easy and inexpensive to manage customer needs and communicate with customers frequently.

A freight forwarder performs which of the following functions?

Which of the following BEST describes the concept of serendipity in exporting?

A major pitfall of exporting is misclassifying products in terms of the destination country's tariff schedule, thereby incurring a higher tax or slower delivery.

In conducting ________, a business sells goods directly to or through an independent domestic intermediary in the exporter's home country that exports the products to foreign markets.

Morris Lighting is a U.S.firm that wants to start exporting its high-end lighting fixtures to foreign markets.Morris Lighting should seek assistance from U.S.government agencies for all of the following EXCEPT ________.

Which of the following statements about small and medium-sized enterprises (SMEs)is true?

Which of the following has been the LEAST likely outcome of e-commerce on exporting?

________ refers to any one of several different arrangements that business parties negotiate so that they can trade goods and services with limited or no use of currency.

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor-Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

The Strategy of International Business

Country Evaluation and Selection

Direct Investment and Collaborative Strategies

The Organization of International Business

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters