Exam 16: Exporting, importing, and Countertrade

In a typical international trade transaction,the _____.

_____ is an alternative means of structuring an international sale when conventional means of payment are difficult,costly,or nonexistent.

A buyback occurs when a direct exchange of goods or services occur between two parties without a cash transaction.

_____ denotes a whole range of barter-like agreements and its principle is to trade goods and services for other goods and services when they cannot be traded for money.

A _____ is simply an order written by an exporter instructing an importer,or an importer's agent,to pay a specified amount of money at a specified time.

A _____ is payable on presentation to the drawee.

A sight draft allows for a delay in payment.

Countertrade denotes a whole range of agreements that involve financial exchanges.

Countertrade is an alternative means of structuring an international sale when conventional means of payment are difficult,costly,or nonexistent.

Exporters usually issue a letter of credit to importers in international transactions.

Which of the following is a disadvantage of using a letter of credit (L/C)?

A(n)_____ occurs when a firm builds a plant in a country and agrees to take a certain percentage of the plant's output as partial payment for the contract.

A draft used in international transactions _____.

Which of the following is a major advantage of using a letter of credit?

Describe the information sources that are available to American companies to learn about export opportunities?

Describe the process involved in financing imports and exports using a letter of credit.Why has this system developed? What is the advantage of using this system?

Explain the problem of trust that persists in international business.

A time draft is payable on presentation to the drawee

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

U.S.organizations can get financing aid from the Export-Import Bank.