Export and Import Exam 1,2,3

Fast food companies seek out markets with large numbers of young consumers. This is an example of focusing on the _______________ of a foreign market.

Demographics

Dollars and Euros are often in short supply in Nigeria. This is an example of which difference between foreign markets and the United States?

Availability of foreign exchange

Global trade in ___________________________ is projected to increase in the future.

Both goods and service

To determine if their products are subject to EAR, exporters should refer to the____________________.

Commerce Control List

Which of the following will the Bureau of Industry and Security (BIS) most likely NOT do:

Create a complete Export Management and Compliance Program (EMCP) for you from scratch

A product designated EAR99 __________________.

Falls under the jurisdiction of the U.S. Department of Commerce and is not listed on the Commerce Control List (CCL)

Exports from the United States are _____________________.

Growing overall

The greatest information needs of potential exporters are ____________________.

How to choose the best markets for their products and services and to meet people to purchase them

Advantages of secondary data include:

It may be easy to obtain

A possible advantage of an emerging market to a cosmetics exporter considering that country as a potential market is ________________.

Less competition

Which is NOT among the positive associations with products made in the United States and their companies?

Low quality, flimsy, and unsafe

NLR means _______________ for certain Export Administration Regulations (EAR) shipments.

No License Required

The U.S. Census Bureau provides statistics on _______________

Product exports from the United States. The U.S. Census Bureau provides statistics at census.gov/foreign-trade on product exports to various countries which provide a reliable indicator of where U.S. exports are currently being shipped.

When Japanese Fuji Film entered the United States, Kodak (an American company) decided to enter the Japanese market. This is a good example of exporting in order to _______________.

Smooth business cycles or Defend the domestic market

Detergent commercials in the United States often depict a wife and mother winning the approval of her husband and children through clean clothes. Similar commercials in Japan feature a wife and mother winning the approval of her mother-in-law. This is an example of which difference between foreign markets and the United States?

Social and cultural factors

____________________________maintain lists of persons and entities that are subject to trade restrictions.

The Department of the Treasury's Office of Foreign Assets Control (OFAC) and the Department of Commerce's Bureau of Industry and Security (BIS)

The U.S. government prohibition against exporting to or importing from North Korea is an example of which difference between foreign markets and the United States?

The U.S. government prohibition against exporting to or importing from North Korea is an example of political risk. Both the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) and BIS administer and enforce economic and trade sanctions. Varying amounts of purchasing power, Lower wage costs, or Availability of foreign exchange

A solid export plan should begin by focusing on ____________________

The company's commitment to and resources for exporting

The _________________ provides regional export promotion programs in Asia, Europe, the Middle East, North America and South America and also offers country-specific and industry-specific resources.

U.S. Commercial Service

The ___________________________ can help find intermediaries with expertise in specific markets for a potential exporter.

U.S. Commercial Service

The _____________________________ can collect primary data for a potential exporter and help analyze it.

U.S. Commercial Service

Whether or not an export from the United States requires a license depends on _______________.

all of the factors listed

Business Matchmaking is ____________________.

an important service offered by the US government.

The World Trade Agreement compels the World Trade Organization (WTO) to

facilitate the flow of goods and services across borders and reduce the costs involved in international trade

The World Trade Agreement compels the World Trade Organization (WTO) to ________________________.

facilitate the flow of goods and services across borders and reduce the costs involved in international trade

95% of exports from the United States require a US export license.

false

By 2030, the number of people in the middle class globally will shrink to 2 million, meaning fewer will be able to afford imported goods from the United States.

false

Exporting is only feasible for a large multinational.

false

Free trade agreements, such as the NAFTA, serve primarily to ensure that domestic companies are heavily favored compared to foreign companies competing in the regions.

false

One of the advantages of using a freight forwarder is the opportunity to completely shift responsibility for export compliance to them.

false

Secondary data research has the advantage of being tailored to your company's needs and provides answers to specific questions, but the collection of such data on your own is time consuming and expensive and may not be comprehensive.

false

Using the fulfillment centers of an e-commerce platform is usually more expensive than shipping items individually from an exporter's place of business in the United States.

false

Which of the following is NOT a goal of a free trade agreement, such as the Central America and Dominican Republic FreeTrade Agreement (CAFTA-DR):

stifling the service sector

Business to consumer e-commerce is projected to grow the fastest in _______________.

the Asia-Pacific region

Because a radio navigation system has both commercial and military applications, it is considered dual use and thus subject to the Export Administration Regulations (EAR).

true

Companies that export are 17% more profitable than those that do not.

true

District Export Councils in the local area may be a viable source for obtaining secondary data on a foreign market under consideration.

true

Interviews with private and government officials may provide useful information on foreign market.

true

Some e-commerce platforms include the option of using their fulfillment warehouses.

true

The Bureau of Industry and Security (BIS) requires the filing of electronic export information in AES, regardless of value or destination, for certain types of exports listed in Section 758.1 of the EAR.

true

The European Union and Asia-Pacific region represent 30% of global trade.

true

The International Traffic in Arms Regulations (ITAR) control the sale of military defense related items and services.

true

Trade shows in the United States are often a conduit to meeting international buyers.

true

Unique products often enjoy a competitive advantage in overseas markets.

true

When researching potential markets, it is important to consider competing companies and products.

true

____________________ may decrease opportunities to export from the United States.

A significant appreciation of the dollar. When the dollar appreciates (gets stronger), it makes U.S. exports more expensive.

A written export compliance plan is __________________.

Advisable if a company plans to export many different products

Benefits of having a written export plan may include:

All of the factors listed

Product compete internationally and domestically by relying on some type of competitive advantage. An example might include___________________.

All of the factors listed

Whether or not an export from the United States requires a license depends on _______________.

All of the factors listed

Benefits of having a written export plan may include:

All of the factors listed.

Sources of market research include:

All of the possible responses listed

With a web presence, a company can _________________.

All possible responses listed are correct