Question 1

The term switch trading refers to the use of a specialized third-party trading house in a countertrade arrangement.

Accepted Answer

A) True 
 B)False

Question 2

The Export-Import Bank _____.

Accepted Answer

A)  is an international financial institution that provides loans for capital programs 
B)  provides finance to facilitate trade between United States and other countries 
C)  is an independent agency of the United Nations 
D)  focuses on policies that have an impact on the exchange rate and the balance of payments 
A)  is an international financial institution that provides loans for capital programs 
B)  provides finance to facilitate trade between United States and other countries 
C)  is an independent agency of the United Nations 
D)  focuses on policies that have an impact on the exchange rate and the balance of payments

Question 3

Nearly every state in the U.S.maintains active trade commissions to promote exports.

Accepted Answer

A) True 
 B)False

Question 4

What are the typical problems that novice exporters face when trying to export?

Accepted Answer

Novice exporters run into significant pr

Question 5

Explain why barter is viewed as the most restrictive counter-trade arrangement.

Accepted Answer

The simplest form of countertrade is bar

Question 6

The great promise of exporting is that _____.

Accepted Answer

A)  large revenue opportunities are often found in foreign markets 
B)  it provides more opportunities to smaller firms than larger firms 
C)  international trade is protected against exchange risks 
D)  it reduces the need for insuring businesses against political risks 
A)  large revenue opportunities are often found in foreign markets 
B)  it provides more opportunities to smaller firms than larger firms 
C)  international trade is protected against exchange risks 
D)  it reduces the need for insuring businesses against political risks

Question 7

Explain how switch trading works.

Accepted Answer

Switch trading refers to the use of a sp

Question 8

Barter is a reciprocal buying agreement that occurs when a firm agrees to purchase a certain amount of materials back from a country to which a sale is made.

Accepted Answer

A) True 
 B)False

Question 9

In theory,the advantage of EMCs is that they are _____.

Accepted Answer

A)  managed by governments that provide export subsidies 
B)  not-for-profit organizations that provide free service 
C)  subsidized by the Department of Commerce 
D)  experienced specialists who can help the neophyte exporter. 
A)  managed by governments that provide export subsidies 
B)  not-for-profit organizations that provide free service 
C)  subsidized by the Department of Commerce 
D)  experienced specialists who can help the neophyte exporter.

Question 10

In a letter of credit transaction,the importer secures the letter of credit _____.

Accepted Answer

A)  before product shipment 
B)  after product shipment 
C)  from the exporter's bank 
D)  after receiving the product 
A)  before product shipment 
B)  after product shipment 
C)  from the exporter's bank 
D)  after receiving the product

Question 11

Ex-Im Bank has a direct lending operation under which it lends dollars to foreign borrowers.

Accepted Answer

A) True 
 B)False

Question 12

_____ is a reciprocal buying agreement and occurs when a firm agrees to buy a certain amount of materials back from a country to which a sale is made.

Accepted Answer

A)  Counterpurchase 
B)  Barter 
C)  Offset 
D)  Switch trading 
A)  Counterpurchase 
B)  Barter 
C)  Offset 
D)  Switch trading

Question 13

What is an export management company? What are its advantages and disadvantages?

Accepted Answer

An export management company is an expor

Question 14

A counterpurchase gives exporters more flexibility than an offset.

Accepted Answer

A) True 
 B)False

Question 15

An importer obtains a letter of credit from a bank in the exporter's country in a typical international transaction.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is a common difficulty that traders face when exporting goods or services to other countries?

Accepted Answer

A)  Small firms tend to be more aggressive than larger firms in global trade. 
B)  Governments do not provide much assistance to exporters. 
C)  Growth opportunities are often limited in global markets. 
D)  Exporters often face voluminous paperwork and complex formalities. 
A)  Small firms tend to be more aggressive than larger firms in global trade. 
B)  Governments do not provide much assistance to exporters. 
C)  Growth opportunities are often limited in global markets. 
D)  Exporters often face voluminous paperwork and complex formalities.

Question 17

Proactive firms do not consider exporting until their domestic market is saturated.

Accepted Answer

A) True 
 B)False

Question 18

A banker's acceptance _____.

Accepted Answer

A)  is payable to the drawee immediately on presentation in a bank 
B)  is a time draft that has been drawn on and accepted by a bank 
C)  is a sight draft that can be used as a negotiable instrument in banks 
D)  allows a buyer possession of the merchandise without signing any formal documents 
A)  is payable to the drawee immediately on presentation in a bank 
B)  is a time draft that has been drawn on and accepted by a bank 
C)  is a sight draft that can be used as a negotiable instrument in banks 
D)  allows a buyer possession of the merchandise without signing any formal documents

Question 19

Discuss the disadvantages of countertrade.

Accepted Answer

There are several reasons why a firm mig

Question 20

Why do so many firms take a reactive approach to exporting rather than a proactive approach?

Accepted Answer

There are several reasons why firms do n

The term switch trading refers to the use of a specialized third-party trading house in a countertrade arrangement.

The Export-Import Bank _____.

Nearly every state in the U.S.maintains active trade commissions to promote exports.

What are the typical problems that novice exporters face when trying to export?

Explain why barter is viewed as the most restrictive counter-trade arrangement.

The great promise of exporting is that _____.

Explain how switch trading works.

Barter is a reciprocal buying agreement that occurs when a firm agrees to purchase a certain amount of materials back from a country to which a sale is made.

In theory,the advantage of EMCs is that they are _____.

In a letter of credit transaction,the importer secures the letter of credit _____.

Ex-Im Bank has a direct lending operation under which it lends dollars to foreign borrowers.

_____ is a reciprocal buying agreement and occurs when a firm agrees to buy a certain amount of materials back from a country to which a sale is made.

What is an export management company? What are its advantages and disadvantages?

A counterpurchase gives exporters more flexibility than an offset.

An importer obtains a letter of credit from a bank in the exporter's country in a typical international transaction.

Which of the following is a common difficulty that traders face when exporting goods or services to other countries?

Proactive firms do not consider exporting until their domestic market is saturated.

A banker's acceptance _____.

Discuss the disadvantages of countertrade.

Why do so many firms take a reactive approach to exporting rather than a proactive approach?

Globalization

National Differences in Political Economy, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Trade Pacts Give the Mexican Auto Industry an Edge

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Global Production and Supply Chain Management

Global Marketing and Rd

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 16: Exporting, importing, and Countertrade

The term switch trading refers to the use of a specialized third-party trading house in a countertrade arrangement.

The Export-Import Bank _____.

Nearly every state in the U.S.maintains active trade commissions to promote exports.

What are the typical problems that novice exporters face when trying to export?

Explain why barter is viewed as the most restrictive counter-trade arrangement.

The great promise of exporting is that _____.

Explain how switch trading works.

Barter is a reciprocal buying agreement that occurs when a firm agrees to purchase a certain amount of materials back from a country to which a sale is made.

In theory,the advantage of EMCs is that they are _____.

In a letter of credit transaction,the importer secures the letter of credit _____.

Ex-Im Bank has a direct lending operation under which it lends dollars to foreign borrowers.

_____ is a reciprocal buying agreement and occurs when a firm agrees to buy a certain amount of materials back from a country to which a sale is made.

What is an export management company? What are its advantages and disadvantages?

A counterpurchase gives exporters more flexibility than an offset.

An importer obtains a letter of credit from a bank in the exporter's country in a typical international transaction.

Which of the following is a common difficulty that traders face when exporting goods or services to other countries?

Proactive firms do not consider exporting until their domestic market is saturated.

A banker's acceptance _____.

Discuss the disadvantages of countertrade.

Why do so many firms take a reactive approach to exporting rather than a proactive approach?

Globalization

National Differences in Political Economy, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Trade Pacts Give the Mexican Auto Industry an Edge

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Global Production and Supply Chain Management

Global Marketing and Rd

Global Human Resource Management

Accounting and Finance in the International Business

Filters