Question 1

Which of the following terms refers to the use of a specialized third-party trading house in a countertrade arrangement?

Accepted Answer

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

Question 2

Which of the following is a major drawback of engaging in countertrade?

Accepted Answer

A)  Countertrade is not useful when trading with developing nations. 
B)  Financing is difficult when engaging in a countertrade. 
C)  It is not attractive to small organizations. 
D)  Countertrade may involve the exchange of unusable goods. 
A)  Countertrade is not useful when trading with developing nations. 
B)  Financing is difficult when engaging in a countertrade. 
C)  It is not attractive to small organizations. 
D)  Countertrade may involve the exchange of unusable goods.

Question 3

Which of the following statements is true of export credit insurance?

Accepted Answer

A)  Exporter will require more insurance if a letter of credit is used in transactions. 
B)  The FCIA provides coverage against commercial risks and political risks. 
C)  Private associations cannot offer export insurance in the United States. 
D)  Organizations do not receive coverage against political risks of global trade. 
A)  Exporter will require more insurance if a letter of credit is used in transactions. 
B)  The FCIA provides coverage against commercial risks and political risks. 
C)  Private associations cannot offer export insurance in the United States. 
D)  Organizations do not receive coverage against political risks of global trade.

Question 4

Time drafts cannot be sold to investors at a discount from its face value.

Accepted Answer

A) True 
 B)False

Question 5

Exporters often face voluminous paperwork and complex formalities.

Accepted Answer

A) True 
 B)False

Question 6

SCORE is a nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters.

Accepted Answer

A) True 
 B)False

Question 7

Foreign Credit Insurance Association is a part of the U.S Department of Commerce and guides the activities of the Export-Import Bank.

Accepted Answer

A) True 
 B)False

Question 8

The bank promises to pay on behalf of the importer when a bank is used as third party in international transactions.

Accepted Answer

A) True 
 B)False

Question 9

Foreign borrowers can avail loans from Ex-Im Bank to pay U.S.suppliers.

Accepted Answer

A) True 
 B)False

Question 10

Bank charges on letter of credit will depend on the _____.

Accepted Answer

A)  exporter's creditworthiness 
B)  size of the transaction 
C)  exporter's means of finance 
D)  time taken to approve sale 
A)  exporter's creditworthiness 
B)  size of the transaction 
C)  exporter's means of finance 
D)  time taken to approve sale

Question 11

As a receipt,the bill of lading indicates that the carrier _____.

Accepted Answer

A)  provides a written promise of payment before releasing the merchandise 
B)  has obtained the merchandise described on the face of the document 
C)  receives payment from a third-party such as a bank or trading house 
D)  is obligated to provide a transportation service in return for a certain charge 
A)  provides a written promise of payment before releasing the merchandise 
B)  has obtained the merchandise described on the face of the document 
C)  receives payment from a third-party such as a bank or trading house 
D)  is obligated to provide a transportation service in return for a certain charge

Question 12

Describe the three purposes of a bill of lading.

Accepted Answer

The bill of lading is issued to the expo

Question 13

A draft is the instrument normally used in international commerce to effect payment.

Accepted Answer

A) True 
 B)False

Question 14

Discuss the importance of the Export-Import Bank,its goals,and its operations.

Accepted Answer

The Export-Import Bank,often referred to

Question 15

Compare and contrast time drafts and sight drafts.

Accepted Answer

Drafts fall into two categories,sight dr

Question 16

A _____ allows for a delay in payment.

Accepted Answer

A)  bill of lading 
B)  time draft 
C)  sight draft 
D)  letter of credit 
A)  bill of lading 
B)  time draft 
C)  sight draft 
D)  letter of credit

Question 17

A bill of lading serves as a receipt,a contract,and a document of title.

Accepted Answer

A) True 
 B)False

Question 18

In a(n)_____,one party agrees to purchase goods and services with a specified percentage of the proceeds from the original sale and this party can fulfill the obligation with any firm in the country to which the sale is being made.

Accepted Answer

A)  switch trade 
B)  offset 
C)  barter 
D)  buyback 
A)  switch trade 
B)  offset 
C)  barter 
D)  buyback

Question 19

Compare and contrast counterpurchase agreements and offset arrangements.Why might an exporter prefer an offset to a counterpurchase deal?

Accepted Answer

A counterpurchase agreement is a recipro

Question 20

Which of the following statements is true of reactive firms?

Accepted Answer

A)  Reactive firms consider a variety of markets for selling their products and services. 
B)  They consider exporting only after their domestic market is saturated. 
C)  They systematically scan foreign markets for profitable export opportunities. 
D)  They create excess productive capacity and actively hunt for opportunities in foreign markets. 
A)  Reactive firms consider a variety of markets for selling their products and services. 
B)  They consider exporting only after their domestic market is saturated. 
C)  They systematically scan foreign markets for profitable export opportunities. 
D)  They create excess productive capacity and actively hunt for opportunities in foreign markets.

Which of the following terms refers to the use of a specialized third-party trading house in a countertrade arrangement?

Which of the following is a major drawback of engaging in countertrade?

Which of the following statements is true of export credit insurance?

Time drafts cannot be sold to investors at a discount from its face value.

Exporters often face voluminous paperwork and complex formalities.

SCORE is a nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters.

Foreign Credit Insurance Association is a part of the U.S Department of Commerce and guides the activities of the Export-Import Bank.

The bank promises to pay on behalf of the importer when a bank is used as third party in international transactions.

Foreign borrowers can avail loans from Ex-Im Bank to pay U.S.suppliers.

Bank charges on letter of credit will depend on the _____.

As a receipt,the bill of lading indicates that the carrier _____.

Describe the three purposes of a bill of lading.

A draft is the instrument normally used in international commerce to effect payment.

Discuss the importance of the Export-Import Bank,its goals,and its operations.

Compare and contrast time drafts and sight drafts.

A _____ allows for a delay in payment.

A bill of lading serves as a receipt,a contract,and a document of title.

In a(n)_____,one party agrees to purchase goods and services with a specified percentage of the proceeds from the original sale and this party can fulfill the obligation with any firm in the country to which the sale is being made.

Compare and contrast counterpurchase agreements and offset arrangements.Why might an exporter prefer an offset to a counterpurchase deal?

Which of the following statements is true of reactive firms?

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

Which of the following terms refers to the use of a specialized third-party trading house in a countertrade arrangement?

Which of the following is a major drawback of engaging in countertrade?

Which of the following statements is true of export credit insurance?

Time drafts cannot be sold to investors at a discount from its face value.

Exporters often face voluminous paperwork and complex formalities.

SCORE is a nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters.

Foreign Credit Insurance Association is a part of the U.S Department of Commerce and guides the activities of the Export-Import Bank.

The bank promises to pay on behalf of the importer when a bank is used as third party in international transactions.

Foreign borrowers can avail loans from Ex-Im Bank to pay U.S.suppliers.

Bank charges on letter of credit will depend on the _____.

As a receipt,the bill of lading indicates that the carrier _____.

Describe the three purposes of a bill of lading.

A draft is the instrument normally used in international commerce to effect payment.

Discuss the importance of the Export-Import Bank,its goals,and its operations.

Compare and contrast time drafts and sight drafts.

A _____ allows for a delay in payment.

A bill of lading serves as a receipt,a contract,and a document of title.

In a(n)_____,one party agrees to purchase goods and services with a specified percentage of the proceeds from the original sale and this party can fulfill the obligation with any firm in the country to which the sale is being made.

Compare and contrast counterpurchase agreements and offset arrangements.Why might an exporter prefer an offset to a counterpurchase deal?

Which of the following statements is true of reactive firms?

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