Question 1

According to surveys, the most common concern regarding international trade is a shortage of working capital to finance exporting activities.

Accepted Answer

A) True 
 B)False

Question 2

A driving factor for the growth in imports is the impact of ________.

Accepted Answer

A) government programs 
B) labor specialization 
C) consumer preferences 
D) social trends 
A) government programs 
B) labor specialization 
C) consumer preferences 
D) social trends

Question 3

The benefits of retaining a core competency within a company and purposefully threading that core competency through the value chain are referred to as ________ advantages.

Accepted Answer

A) internalization 
B) domestic 
C) location 
D) ownership 
A) internalization 
B) domestic 
C) location 
D) ownership

Question 4

Which of the following types of agents moves international cargo, facilitates shipment tracking, and handles product returns for exporters and importers?

Accepted Answer

A) trade intermediaries 
B) third party logistics 
C) customs brokers 
D) freight forwarders 
A) trade intermediaries 
B) third party logistics 
C) customs brokers 
D) freight forwarders

Question 5

Why is countertrade considered inefficient?

Accepted Answer

Countertrade is an inefficient way of do

Question 6

This spring break you are planning to leave the United States and visit London, where you will stay in a hotel for 10 days.The London hotel will be performing a(n)________.

Accepted Answer

A) indirect merchandise export 
B) merchandise export 
C) service export 
D) service import 
A) indirect merchandise export 
B) merchandise export 
C) service export 
D) service import

Question 7

Companies are likely to export products abroad in all of the following situations EXCEPT ________.

Accepted Answer

A) when their average cost per unit of home country production declines substantially by increasing output 
B) when they want to use the riskiest but most profitable method to engage international trade 
C) when they aim to increase degree of market diversification 
D) when they are new to international business 
A) when their average cost per unit of home country production declines substantially by increasing output 
B) when they want to use the riskiest but most profitable method to engage international trade 
C) when they aim to increase degree of market diversification 
D) when they are new to international business

Question 8

Why are financial risks a key concern of SMEs considering international trade?

Accepted Answer

Financial constraints are arguably the g

Question 9

According to the research described in your text, which of the following is among the factors that would increase a firm's probability of exporting?

Accepted Answer

A) low domestic productivity 
B) high domestic labor costs 
C) high level of efficiency 
D) high R & D demands 
A) low domestic productivity 
B) high domestic labor costs 
C) high level of efficiency 
D) high R & D demands

Question 10

All of the following are common problems associated with exporting and importing EXCEPT ________.

Accepted Answer

A) managing financial risks 
B) finding reliable intermediaries 
C) matching foreign rivals' prices 
D) establishing distribution networks 
A) managing financial risks 
B) finding reliable intermediaries 
C) matching foreign rivals' prices 
D) establishing distribution networks

Question 11

Federal, state, and local governments that recognize the benefits of international trade, actively aid the efforts of potential and active exporters and ________.

Accepted Answer

A) ensure the quality of exported products 
B) establish barriers to punish foreign rivals 
C) collect a fee for each successful export sale 
D) protect the interests of struggling importers 
A) ensure the quality of exported products 
B) establish barriers to punish foreign rivals 
C) collect a fee for each successful export sale 
D) protect the interests of struggling importers

Question 12

An Australian company makes athletic wear for women, men, and children.After several years of successfully exporting its products to the U.K.and the U.S., the company began exporting to Japan.This is an example of ________.

Accepted Answer

A) a born-global company 
B) a location advantage 
C) third-party exporting 
D) incremental internationalization 
A) a born-global company 
B) a location advantage 
C) third-party exporting 
D) incremental internationalization

Question 13

Iverson Products is a U.S.firm that is considering expanding internationally by exporting.Which of the following is the LEAST likely benefit for Iverson?

Accepted Answer

A) boosting marketplace flexibility 
B) improving economies of scale 
C) facing lower business risk compared to other foreign market entry options 
D) requiring fairly few resources 
A) boosting marketplace flexibility 
B) improving economies of scale 
C) facing lower business risk compared to other foreign market entry options 
D) requiring fairly few resources

Question 14

Jordan Jewelry is a U.S.firm that designs, manufactures, and sells inexpensive jewelry and accessories.Executives at the firm believe that Jordan Jewelry could significantly increase its profitability by exporting products to foreign markets.Before engaging in international trade, Jordan executives need to develop an export plan.Which of the following questions is LEAST relevant to this activity?

Accepted Answer

A) Would Jordan's resources be better utilized developing business in the United States? 
B) How much will it cost to get Jordan's products to the targeted markets? 
C) What marketing campaign would be best for Jordan's foreign markets? 
D) Is exporting consistent with Jordan's long-term goals? 
A) Would Jordan's resources be better utilized developing business in the United States? 
B) How much will it cost to get Jordan's products to the targeted markets? 
C) What marketing campaign would be best for Jordan's foreign markets? 
D) Is exporting consistent with Jordan's long-term goals?

Question 15

The Internet supports more companies' efforts to launch a direct exporting strategy by ________.

Accepted Answer

A) providing information quickly and inexpensively 
B) eliminating the need for highly detailed export plans 
C) letting software take over customer service responsibilities 
D) countering the power of electronic data interchange systems 
A) providing information quickly and inexpensively 
B) eliminating the need for highly detailed export plans 
C) letting software take over customer service responsibilities 
D) countering the power of electronic data interchange systems

Question 16

Advocates of exporting e-waste assert that the activity helps entrepreneurs in developing countries create value by recovering and recycling scarce resources such as copper.

Accepted Answer

A) True 
 B)False

Question 17

What is the most likely reason that firms avoid aggressively seeking export opportunities?

Accepted Answer

A) Exporting is an activity best left to large, resource-rich firms. 
B) Firms are unaware of opportunities in foreign markets. 
C) Foreign customers cannot easily communicate their needs. 
D) Firms are reluctant to adjust their established business practices. 
A) Exporting is an activity best left to large, resource-rich firms. 
B) Firms are unaware of opportunities in foreign markets. 
C) Foreign customers cannot easily communicate their needs. 
D) Firms are reluctant to adjust their established business practices.

Question 18

Procter & Gamble exchanges cleaning products for machinery with Russia and Hungary.The nature of this transaction indicates that Procter & Gamble is engaging in ________.

Accepted Answer

A) third-party logistics 
B) freight forwarding 
C) countertrade 
D) e-commerce 
A) third-party logistics 
B) freight forwarding 
C) countertrade 
D) e-commerce

Question 19

The primary responsibilities of the ________ are the assessment and collection of all duties, taxes, and fees on imported merchandise, the enforcement of customs and related laws, and the administration of certain navigation laws and treaties.

Accepted Answer

A) U.S. Customs and Border Protection 
B) U.S. Secret Service 
C) Internal Revenue Service 
D) Food and Drug Administration 
A) U.S. Customs and Border Protection 
B) U.S. Secret Service 
C) Internal Revenue Service 
D) Food and Drug Administration

Question 20

Export intensity, the percentage of total revenues coming from exports, is not always correlated with company size.

Accepted Answer

A) True 
 B)False

According to surveys, the most common concern regarding international trade is a shortage of working capital to finance exporting activities.

A driving factor for the growth in imports is the impact of ________.

The benefits of retaining a core competency within a company and purposefully threading that core competency through the value chain are referred to as ________ advantages.

Which of the following types of agents moves international cargo, facilitates shipment tracking, and handles product returns for exporters and importers?

Why is countertrade considered inefficient?

This spring break you are planning to leave the United States and visit London, where you will stay in a hotel for 10 days.The London hotel will be performing a(n)________.

Companies are likely to export products abroad in all of the following situations EXCEPT ________.

Why are financial risks a key concern of SMEs considering international trade?

According to the research described in your text, which of the following is among the factors that would increase a firm's probability of exporting?

All of the following are common problems associated with exporting and importing EXCEPT ________.

Federal, state, and local governments that recognize the benefits of international trade, actively aid the efforts of potential and active exporters and ________.

An Australian company makes athletic wear for women, men, and children.After several years of successfully exporting its products to the U.K.and the U.S., the company began exporting to Japan.This is an example of ________.

Iverson Products is a U.S.firm that is considering expanding internationally by exporting.Which of the following is the LEAST likely benefit for Iverson?

The Internet supports more companies' efforts to launch a direct exporting strategy by ________.

Advocates of exporting e-waste assert that the activity helps entrepreneurs in developing countries create value by recovering and recycling scarce resources such as copper.

What is the most likely reason that firms avoid aggressively seeking export opportunities?

Procter & Gamble exchanges cleaning products for machinery with Russia and Hungary.The nature of this transaction indicates that Procter & Gamble is engaging in ________.

The primary responsibilities of the ________ are the assessment and collection of all duties, taxes, and fees on imported merchandise, the enforcement of customs and related laws, and the administration of certain navigation laws and treaties.

Export intensity, the percentage of total revenues coming from exports, is not always correlated with company size.

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

According to surveys, the most common concern regarding international trade is a shortage of working capital to finance exporting activities.

A driving factor for the growth in imports is the impact of ________.

The benefits of retaining a core competency within a company and purposefully threading that core competency through the value chain are referred to as ________ advantages.

Which of the following types of agents moves international cargo, facilitates shipment tracking, and handles product returns for exporters and importers?

Why is countertrade considered inefficient?

This spring break you are planning to leave the United States and visit London, where you will stay in a hotel for 10 days.The London hotel will be performing a(n)________.

Companies are likely to export products abroad in all of the following situations EXCEPT ________.

Why are financial risks a key concern of SMEs considering international trade?

According to the research described in your text, which of the following is among the factors that would increase a firm's probability of exporting?

All of the following are common problems associated with exporting and importing EXCEPT ________.

Federal, state, and local governments that recognize the benefits of international trade, actively aid the efforts of potential and active exporters and ________.

An Australian company makes athletic wear for women, men, and children.After several years of successfully exporting its products to the U.K.and the U.S., the company began exporting to Japan.This is an example of ________.

Iverson Products is a U.S.firm that is considering expanding internationally by exporting.Which of the following is the LEAST likely benefit for Iverson?

The Internet supports more companies' efforts to launch a direct exporting strategy by ________.

Advocates of exporting e-waste assert that the activity helps entrepreneurs in developing countries create value by recovering and recycling scarce resources such as copper.

What is the most likely reason that firms avoid aggressively seeking export opportunities?

Procter & Gamble exchanges cleaning products for machinery with Russia and Hungary.The nature of this transaction indicates that Procter & Gamble is engaging in ________.

The primary responsibilities of the ________ are the assessment and collection of all duties, taxes, and fees on imported merchandise, the enforcement of customs and related laws, and the administration of certain navigation laws and treaties.

Export intensity, the percentage of total revenues coming from exports, is not always correlated with company size.

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