INTL BUS Quiz 12: exam 4

The government organization that employs 76 district international trade officers and 10 regional international trade officers throughout the United States as well as a 10-person international trade staff in Washington, D.C. to help potential exporters is the a) Small Business Administration. b) U.S. Commercial Service. c) sogo shosha d) Federal Trade Commission. e) International Trade Administration.

a) Small Business Administration

Due to the complexity and diversity of foreign markets, firms sometimes hesitate to seek export opportunities. These firms can best overcome ignorance by a) collecting information. b) outsourcing decisions. c) creating revenue. d) shortening production runs. e) lowering unit costs.

a) collecting information.

Which of the following is a way in which the U.S. Department of Commerce helps potential exporters? a) It coordinates a nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters. b) It assembles a "comparison shopping service" for countries that are major markets for U.S. exports. c) It starts exporting operations for firms until they are well established. d) It oversees volunteers with international trade experience and directs them to provide one-on-one counseling to active and new-to-export businesses. e) It provides export specialists who act as the export marketing departments or international departments for their client firms.

b) It assembles a "comparison shopping service" for countries that are major markets for U.S. exports

Which of the following is a common pitfall that novice exporters come across? a) poor understanding of the opportunities in the domestic market b) low unit costs c) familiar distribution systems d) problems securing financing e) increased economies of scale

d) problems securing financing

Japan's great trading houses are referred to as a) kanban. b) guanxi. c) kaizen. d) sogo shosha. e) zaibatsu.

d) sogo shosha

Which of the following institutions within the U.S. Department of Commerce is dedicated to providing businesses with intelligence and assistance for attacking foreign markets? a) Small Business Administration b) Federal Trade Commission c) Bank of New York d) Bureau of Competition e) International Trade Administration

e) International Trade Administration

Which of the following is true of medium-sized and small firms? a) They explore foreign markets to see where the opportunities lie for leveraging their technology. b) They are proactive about seeking opportunities for profitable exporting. c) They are not intimidated by the complexities of foreign legal systems. d) They have a high degree of familiarity with foreign market opportunities. e) They consider exporting only after their domestic market is saturated.

e) They consider exporting only after their domestic market is saturated

A lack of trust between two parties engaged in international trade is exacerbated by the a) possibility of doing business with someone with whom they have been associated for a long time. b) narrowing distance between the two parties due to technological advances. c) similar preferences of the parties regarding how a transaction should be configured. d) saturation of the domestic market. e) problems of using an underdeveloped international legal system to enforce contractual obligations.

e) problems of using an underdeveloped international legal system to enforce contractual obligations

Exporting is nearly always a way to increase the revenue and profit base of a company because a) it does not involve wasting resources on paperwork. b) international markets are less complex than their domestic counterparts. c) foreign governments encourage imports from other countries. d) there is little competition in the international market. e) the international market is much larger than the domestic market.

e) the international market is much larger than the domestic market

When a time draft is presented to a drawee, he or she signifies acceptance of it by a) delivering the goods immediately. b) selling the draft to an investor at a discount from its face value. c) paying the draft amount immediately. d) providing a collateral for the amount specified in the bill. e) writing or stamping a notice of acceptance on its face.

e) writing or stamping a notice of acceptance on its face

Compared to a decade ago, commercial banks and major accounting firms are rarely willing to assist small firms in starting export operations due to high default risks. T/F

false

German and Japanese firms are relatively more information-disadvantaged than U.S. firms. T/F

false

In international commerce, a sight draft allows for a delay in payment. T/F

false

Issued by a bank at the request of an importer, a bill of lading states that the bank will pay a specified sum of money to a beneficiary, normally the exporter, on presentation of particular, specified documents. T/F

false

Only large companies have benefited significantly from the moneymaking opportunities of exporting. T/F

false

While small firms tend to be proactive about seeking opportunities for profitable exporting, large firms are very reactive. T/F

false

A letter of credit may reduce an importer's ability to borrow funds for other purposes. T/F

true

For U.S. firms, the most comprehensive source of information on export opportunities is the U.S. Department of Commerce. T/F

true

Lack of trust in international trade is exacerbated by the distance between the two parties in space, language, and culture. T/F

true

Reactive firms do not consider exporting until their domestic market is saturated. T/F

true