Ch 16- Exporting, Importing and Counter Trade

A draft A.Is a document requesting payment B.Is to the same as a letter of credit C.Is a reciprocal buying agreement D.Gives title to shipped goods

A

All of the following are true of the Export-Import Bank except A.It provides total coverage against political risks B.It is an independent agency of the U.S. government C.It is also known as Eximbank D.It has a direct lending operation

A

In a letter of credit transaction, the exporter receives its payment from A.The importer B.The importer's bank C.The exporter's bank D.The government

A

In a letter of credit transaction, the exporter ships the product A.After the letter of credit is issued B.Before the letter of credit is issued C.Upon receipt of payment D.With the bill of lading

A

In a letter of credit transaction, the importer secures the letter of credit A.Before product shipment B.After product shipment C.From the exporter's bank D.After receiving the product

A

Japanese exporters get assistance in identifying export opportunities from A.MITI B.The Japanese Outreach Program C.Guanxi D.Chaebol

A

Unlike their German and Japanese competitors, U.S. firms are _____ when they see export opportunities. A.Information-disadvantaged B.Money-strapped C.Regulation-bound D.Much better prepared

A

Which of the following is true of exporting? A.It helps firm achieve economies of scale B.It creates diseconomies of scale C.It increases unit costs D.It creates diseconomies of scope

A

Which of the following is true of reactive firms? A.They may not even consider exporting until their domestic market is saturated B.They create excess productive capacity and actively hunt for opportunities in foreign markets C.Almost all large firms fall under this category D.They systematically scan foreign markets for profitable export opportunities

A

Which of the following statements about the SBA is false? A. It is the most comprehensive source of export opportunities information B.It employs 10 regional international trade officers throughout the United States C.It employs a 10-person international trade staff in Washington, D.C. D.It oversees some 850 volunteers to provide one-on-one counseling to active and new-to-export businesses

A

_____ involves trading goods and services for other goods and services when they cannot be traded for money. A.Countertrade B.Forfeiting C.A sight draft D.A time draft

A

A "best prospects" list A. Gives the names and addresses of potential distributors in the domestic market B. Is provided by the United States and Foreign Commercial Service Agency C. Can provide a firm free, customized market research survey on any product D. Provides information gathering, technical assistance, and export subsidies

B

A _____ allows for a delay in payment. A.Bill of lading B.Time draft C.Banker's acceptance D.Sight draft

B

A draft is also known as a A.Bill of attainder B.Bill of exchange C.Bill of lading D.Bill of sale

B

EMC's A.Are import legal assistance specialists B.Act as the export marketing department for their client firms C.Serve as the national department for their buyer firms D.Normally accept one type of export assignment

B

For U.S. firms, the most comprehensive source of export opportunities information is the A.Small Business Administration B.U.S. Department of Commerce C.Federal Trade Commission D.Foreign embassy

B

Great trading houses in Japan are called A.Kaizen B.Sogo shosha C.MITI D.Gaunxi

B

The Department of Commerce has a _____ program, in which department representatives accompany groups of U.S. businesspeople abroad to meet with qualified agents, distributors, and customers. A.Best prospects B.Matchmaker C.Trade events D.Comparison shopping

B

The bill of lading serves all of the following purposes except A.It is a receipt B.It is a bank note C.It is a contract D.It is a document of title

B

The most restrictive form of countertrade is A.Switch trading B.Barter C.Buyback D.Counter-purchase

B

Through its _____ program, the SBA oversees some 850 volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses. A.EMC B.SCORE C.ELAN D.L/C

B

When a firm builds a plant in a country and agrees to take a certain percentage of the plant's output as a partial payment for the contract, the firm is involved in a(n) _____ arrangement. A.Counter purchase B.Buyback C.Switch trading D.Offset

B

Which of the following statements about exporting is false? A. A firm needs to be proactive about seeking export opportunities B. Exporting is almost always an end in itself C.It is important for the exporter to retain the option of local production D.Localization can lead to greater market acceptance

B

A "comparison shopping service" A.Provides information only on services B.Is held regularly in major cities worldwide C.Provides names of potential sales representatives D.Has been assembled by the Department of Commerce for 40 countries

C

A _____ is payable on presentation to the drawee. A.Time draft B.Bill of lading C.Sight draft D.Trade acceptance

C

A banker's acceptance A.Is payable immediately on presentation to the drawee B.Allows a buyer possession of the merchandise without signing a formal document C.Is a time draft that has been drawn on and accepted by a bank D.Is the same as a sight draft

C

A firm can increase the probability of exporting successfully by taking which of these steps? A.Avoiding hiring EMCs to lower head counts B.Hiring only home country personnel to build commitment C.Entering on a small scale D.Waiting for the export opportunities to come

C

Asian firms that did not have access to export credits to finance their international trade after the1997 crisis turned to A.U.S. backed loan payments B.Foreign direct investment C.Countertrade D.Domestic market expansion

C

In terms of international comparisons, which of the following statements is false? A.Japanese firms can draw on the large reservoirs of experience of its export-oriented institutions B.The United States has been a relatively self-contained continental economy until recently C.Many German firms are relatively blind when they seek export opportunities D.Japan has long made its living as a trading nation

C

One drawback of relying on EMCs is that A.They are not conversant with the ins and outs of the exporting process B.They have no knowledge of different business mores C.The company can fail to develop its own exporting capabilities D.The company is unable to avoid common pitfalls

C

The person or business initiating a draft is known as the A. Beneficiary B. Drawee C. Maker D. Trustor

C

This is a nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters. A.EMC B.SBA C.ELAN D.SCORE

C

What is the biggest advantage of using a letter of credit system? A.The exporter is guaranteed pre-export financing B.It allows the importer time to resell the merchandise before requiring payment C.The trust established, for the importer and exporter, because of a reputable bank D.It guarantees the importer extra funds for other purposes

C

When conventional means of payment are difficult, costly, or nonexistent, a firm is more likely to use A.A letter of credit B.A time draft C.Countertrade D.A sight draft

C

When one party agrees to purchase goods and services with a specified percentage of the proceeds from the original sale, and it can fulfill the obligation with any firm in the country to which the sale is being made, it is a(n) A.Barter B.Counter purchase C.Offset D.Buyback

C

Which of the following helps explain why exporters still account for only a tiny percentage of U.S. firms? A.Lack of export opportunities buoyant demand within U.S B.Tariffs/ FDI restrictions C.Unfamiliarity/ intimidation by the complexities D.Regulatory burden, barriers to free trade

C

Which of the following states that the bank will pay a specified sum of money to a beneficiary on presentation of particular, specified documents? A.A draft B.A bill of lading C.A letter of credit D.A promissory note

C

A bill of lading A.Is the same as a letter of creditB.Is received from the importer prior to product shipment C.Is a financial note issued by a bank D.Gives title to the goods

D

A firm that uses a specialized third-party trading house in a counter trade arrangement is involved in A.A barter B.A counter purchase C.An offset D.Switch trading

D

A key challenge facing export and import financing is A.Limited market opportunities B.Lack of export assistance C.Lack of qualified EMCs D.The lack of trust

D

In terms of seeking export opportunities, studies have shown that A.Almost all small firms tend to be proactive about seeking profitable export opportunities B.Most large firms tend to be reactive about seeking export opportunities C.Most small firms systematically scan foreign markets to see where the opportunities lie D.Many medium-sized and small firms are very reactive

D

In theory, the advantage of EMCs is that they A.Provide export subsides to the exporting firms B.Are not-for-profit organizations, hence provide free service C.Are subsidized by the Department of Commerce D.Are experienced specialists who can help the neophyte exporter

D

The U.S. Department of Commerce agencies provides the potential exporter with all of these services except A.Matchmaker programs B.Trade events and exhibitions C.Best prospects lists D.Export subsidies

D

What is the drawback of using a letter of credit system? A.The exporter is no longer entitled to pre-export financing B.The importer no longer trusts the exporter C.The exporter is not guaranteed any payment D. The importer must pay the bank a fee for the letter of credit

D

_____ is an export specialist who acts as the export marketing department or international department for its client firm. A.An Eximbank B.An import trading company C.A sogo shosha D.An export management company

D