Exam 16: Exporting, Importing, and Countertrade

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

Exporters often face voluminous paperwork and complex formalities.

A _____ states that the bank will pay a specified sum of money to a beneficiary,normally the exporter,on presentation of particular,specified documents.

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.

_____ is viewed as the most restrictive countertrade arrangement and is primarily used for one-time-only deals in transactions with trading partners who are not creditworthy or trustworthy.

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

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

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

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

Explain countertrade and its purpose.

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

Explain how switch trading works.

The Export-Import Bank is an independent agency of the World Trade Organization.

Counterpurchase occurs when a firm agrees to purchase a certain amount of materials back from a country to which a sale is made.

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

_____ 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.

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

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

Which of the following statements is true of EMCs?

The great promise of exporting is that _____.