Chapter 13

False

A company that exports products on behalf of an indirect exporter is called an export trading company (ETC).

False

A revocable letter of credit allows the bank issuing the letter to modify the terms of the letter only after obtaining the approval of both exporter and importer.

False

Because of the cash outlays involved, countertrade is not an option for smaller companies

True

Commonly licensed intangible property includes patents, copyrights, special formulas and designs, trademarks, and brand names.

False

Direct exporters do NOT employ either local sales representatives or distributors

False

Franchising is most common in manufacturing industries, whereas licensing is primarily used in service industries.

True

Generally, a joint venture exposes fewer of a partner's assets to risk than would a wholly owned subsidiary.

False

In a backward integration joint venture, the parties choose to invest together in downstream business activities

True

Letters of credit are popular among traders because banks assume most of the risks.

True

The biggest advantage of an export management company (ETF) is usually a deep understanding of the cultural, political, legal, and economic conditions of the target market