8

Officially, the EU tariffs on Chinese and Vietnamese shoe imports are known as:

Antidumping duties.

After the aftermath of the tragedy involving fire in garment factories in Bangladesh, it was found that the buildings were inspected by:

Business Social Compliance Initiative (BSCI).

In the post-September 11 business environment in the United States, imports have come under increased security. One of the initiatives taken in the interest of national security is:

C-TPAT.

Which of the following refers to a system of farm subsidies in Europe?

CAP

According to percent market share of the top ten apparel exporting countries to the United States, which country ranked as number one in 2011?

China

The furniture industry has become one of the fastest-growing sectors of China's economy. Furniture imports are flooding into the United States from China. This can be attributed to:

China's low labor rates translate into reasonable prices for consumers.

________ is an independent marketing intermediary that acts as the export department for two or more manufacturers whose product lines do not compete with each other.

Export management company

Which of the following was a major U.S. tax incentive for exporters that the WTO recently ruled was an illegal subsidy?

FSC

"Export selling" involves tailoring various elements of the marketing mix to global market requirements.

False

"Piggyback exporter," "cooperative exporter," and "export vendor" are all terms used to describe an export broker.

False

CVDs are additional duties levied by exporting countries on imported videodiscs.

False

Foreign purchasing agents are also referred to as jobbers.

False

In general, the greater the distance between the product source and the target market, the greater the time delay for delivery and the lower the transportation cost.

False

Outsourcing means shifting undesirable jobs or work assignments to another company to cut costs. When the outsourced work moves to another country, the terms "global outsourcing" or "offshoring" are used.

False

Tariffs can be thought of as the "three R's" of global business: rules, rigor, and regulations of individual countries.

False

The Common Agricultural Policy (CAP) determines the level of subsidies granted to farmers in Latin America.

False

The Harmonized Tariff System (HTS) has eliminated virtually all problems associated with assigning tariff classifications to new products.

False

The terms "export selling" and "export marketing" are interchangeable.

False

________ are licensed specialists in traffic operations, customs clearance, and shipping tariffs and schedules. They can be considered as the travel agents for handling export goods.

Freight forwarders

Which of the following establishes classification numbers that must be used by importers and exporters?

HTS

Developed under the auspices of the Custom Cooperation Council (now the World Customs Organization) the system which took effect is referred to as:

Harmonized tariff.

Agricultural subsidies are particularly controversial because, although they protect the interests of farmers in some countries, they work to the detriment of farmers in countries such as:

India

The United States have given Normal Trade Relations (NTR) status to some 180 countries. In actuality only four countries are excluded from this status which includes all of the following countries except:

Iraq.

The Ministry of International Trade and Industry (MITI) has helped devise export strategies for companies in:

Japan

Which of the following correctly states the role of banks in import/export transactions involving a letter of credit (L/C)?

The exporter's bank is the advising and/or confirming bank; the importer's bank is the issuing bank.

Which of the following incorrectly states the role of banks in import/export transactions involving a letter of credit (L/C)?

The importer's bank is the advising and/or confirming bank.

Which of the following is not true about a personal visit to size up the market firsthand and begin the development of an actual export-marketing program?

To have a face-to-face meeting and avoid going to trade shows.

A nontariff barrier (NTB) is a hidden trade barrier which is a deterrent or obstacle to the sale of products in a foreign market.

True

According to the recent import regulations in the United States, action figures that represent non-human creatures such as monsters or robots are categorized as toys and qualified for lower duties than human figures that are classified as dolls.

True

After the research effort has zeroed in on potential markets, there is no substitute for a personal visit to size up the market firsthand and begin the development of an actual export marketing program.

True

An ad valorem duty is expressed as a percentage of the value of goods.

True

Duty drawback refers to refunds of duties paid on imports that are processed or incorporated into other goods and then reexported.

True

For every one yen increase relative to the American dollar, Canon's operating income declines by 6 billion yen.

True

In an effort to facilitate exports, countries are designating certain areas as "free trade zones" (FTZ) or "special economic zones" (SEZ).

True

In an export/import transaction requiring a letter of credit (L/C), the exporter's (seller's) bank can be known as the "advising" bank, the "confirming" bank, or both.

True

It was found by research that even the most experienced exporters express lack of confidence in their knowledge about shipping arrangements, payment procedures, and regulations.

True

Potential export problems include packaging, government red tape, warehousing, advertising, and trade restrictions.

True

Representatives of the apparel, footwear, and textile industries in many countries are deeply concerned about the impact increased trade with China will have on these sectors.

True

Switzerland exports 51 percent of their GDP, compared to the United States which exports only 14 percent.

True

Tax incentives, subsidies, export assistance, and free trade zones are common support provided by governments to firms that engage in exporting.

True

The Buy American Act of 1933, which stipulates that U.S. federal agencies must buy articles produced in the United States unless domestically produced goods are not available, is an example of discriminatory procurement policies.

True

The Customs Trade Partnership Against Terrorism (C-TPAT) recognizes that U.S. Customs and Border Protection (CBP) is responsible for screening import cargo transactions.

True

The Fly American Act is an example of a nontariff barrier.

True

The Harmonized Tariff System (HTS) is currently the dominant system for determining the correct classification number.

True

The four tigers-Singapore, South Korea, Taiwan and Hong Kong-learned from the Japanese experience and built strong export-based economies of their own.

True

Volkswagen's business environment includes a significant wage differential between Mexico and Germany.

True

When Honda's U.S. manufacturing subsidiaries purchase parts from Japan, customs authorities in the United States have the right to scrutinize the transfer price to make sure it is a fair reflection of market value.

True

The international standard by which letters of credit (L/Cs) are interpreted is known as the ________ 500.

UCP

Which of the following offers a company the best assurance of being paid for exported goods?

a letter of credit

A number of explanations have been offered for the low level of U.S. exports relative to other countries. All of the following can be considered as reasons for low level of exports except:

a strong U.S. dollar translates into less affordable prices in export markets.

A duty that represents a certain percentage of the value of a particular product is a(n):

ad valorem duty.

A nontariff barrier (NTB) includes all of the following except:

ad valorem duty.

An irrevocable letter of credit transfers the payment obligation for an export deal from the buyer to the buyer's:

bank

Which set of documents generally represents the minimum documentation required to clear a shipment through customs?

bill of exchange, commercial invoice

Which of the following documents represents title to goods in an export transaction?

bill of lading

Which of the following completely eliminates the risk of nonpayment by an importer or a bank in an international transaction?

cash in advance

Which of the following arranges export financing payment methods in descending order starting with the most secure/reliable and ending with the least secure/reliable?

cash in advance→documentary credit (L/C)→documentary collection (draft)→sales on open account

Restrictive administrative and technical regulations can create barriers to trade which may take all of the following forms except:

common agricultural policies.

Which of the following types of duties would be imposed on a company whose home-country government provided export subsidies?

countervailing duty

The sale of merchandise in export markets at unfair prices is known as:

dumping.

Which of the following receives a fee for bringing together an exporter and a buyer in another country?

export broker

Which of the following is sometimes referred to as a "buyer for export" or an "export commission house" and operates on behalf of a buyer from a foreign country?

foreign purchasing agent

Governmental actions that discourage imports and block market include all of the following except:

free trade zones.

The export and import process can entail red tape and bureaucratic delays. In an effort to facilitate exports, countries are designating certain areas as:

free trade zones.

Direct representation, as opposed to representation by independent intermediaries for exporting in the market country, has several advantages which do not include:

helps selling products directly to the consumer in the market country.

The only marketing mix element that is applicable in the export selling is:

place.

In an effort to attract assembly operations, Brazil allows certain product components to be imported at reduced tariff rates. This is an example of:

preferential tariffs.

Export marketing requires all of the following except:

reaching retail customers.

Research has shown that exporting is essentially a developmental process that proceeds in different stages. Before a firm reaches stage 4, it must do one of the following activities:

receive unsolicited export orders.

The chief executives of Swiss Swatch Group and Japanese Canon would like to:

retain a majority, if not all, of the manufacturing in their home country.

Which of the following financing methods would be used by an exporter that enjoys good relations with a buyer in a well-established market?

sales on open account

Which of the following methods of financing would be used if the exporting and importing parties had a strong, long-standing relationship?

sales on open account

If the dollar, the yen, or the euro becomes seriously overvalued, a company with a production capacity in other locations can achieve competitive advantage by:

shifting production among different sites.

The organizational decision to purchase production inputs, components, or finished goods from domestic or foreign producers is known as the ________ decision.

sourcing

Which of the following is described as the three R's of global business: rules, rate schedules, and regulations?

tariffs

After the aftermath of the tragedy involving fire in garment factories in Bangladesh, Walmart implemented a "zero-tolerance policy." The Workers Rights Consortium, International Labor Organization and other groups monitoring labor issues are stepping up pressure on the companies that participate in the global garment supply chain due to the following reasons, except:

those auditing facilities are audited by BSCI's qualified engineers.

The possible arrangements of the responsibilities for handling exports include all of the following except:

through an export department of an embassy in a foreign country.

Sweden applies a system to certain categories of imported agricultural products which is referred to as:

variable import levies.

Governments commonly use activities to support and encourage firms that engage in exporting. Such activities include all of the following except:

voting rights.

In which of the following forms of export financing does a bank assume a financial obligation?

with a documentary collection but not an L/C