export final
Which of the following best describes an example of foreign direct investment? A. a mongolian company constructs a new stadium in their capital city of ulaanbaatar B. an american company hires a new agent in tanzania, africa C. a danish company builds an automotive plant in montana, USA D. a japanese company facilitates the purchase of 200 boeing airplanes from Illinois, USA
C. A Danish company builds an automotive plant in Montana, USA
Which of the following best describes the purpose and function of a schedule b number? A. a code that helps a US importer accurately describe a product for customs. B. A code that persists US exporters to sell their products abroad C. A code that informs US customs officials what the exporter is shipping abroad D. A code that US customs uses to assess duty on products coming into the US
C. A code that informs a US customs officials what the exporter is shipping abroad
Which of the following products would the most likely to be affected by the wee directive? A. aquatic equipment in Uruguay B. racecars in Mexico C. A refrigerator in France D. shipping containers around the world
C. A refrigerator in France
Which of the following is not information you are likely to find in the country commercial guide? A. the key issues currently acing the country's government. B. how U.S. companies generally sell products into the country C. A registry of known distributors across industries D. The types of taxes and duties applied to import
C. A registry of known distributors across industries
Which one of the following is not a reason for a company to be ready to go global? A. management Commitment B. In-depth experience with the product or service C. Adequate travel budget D. Capacity and capability to produce international products or services
C. Adequate travel budget
Which of the following, if not obtained, is a possible reason fro exclusion of selling to the european market? A. Tuv-gs markt B. GOST-R C. CE mark D. UL certification
C. CE Mark
Which of the following statements about ohio exports is true? A. a majority of the state's exporters are large companies B. exports directly support over a million jobs statewide C. Cumulatively, ten countries buy about 75% of ohio's exports D. Ohio exports total about $260m per year
C. Cumulatively, ten countries buy about 75% of Ohio's exports
A company in the U.K. wishes to quote selling terms in which they buyer pays all freight and the seller clears the goods for export. The U.K. company's warehouse is located in london and the nearest ocean port is Southhampton. How should the freight term be quoted in the sales quote? A. DDP Southhampton B. CPT Southhampton C. FOB London D. FCA London
C. FCA London
The tariff applied to any product imported into the united states is determined b its? A. schedule be number B. eccn C. HTS number D. SED
C. HTS number
What best describes the situation for infinite wheel? A. since the foreign national is registered at an american university they are eligible to do an internship w/o any concern. B. IW can probably hire the student but will require that student become certified by the Bureau of industry and security C. IW should consider not allowing the student onsite until they've determined their level of compliance risk. D. The foreign national, if seceded to intern at IW, has to first register with the DDTC
C. IW can probably hire the student but will require that student become certified by the Bureau of Industry and Security
The Payment method is generally more secure for the seller than A. Open account, documentary collection B. Open account, Letter of Credit C. Letter of credit, documentary collection D. Documentary collection, Cash in Advance
C. Letter of Credit, Documentary Collection
As a Company considers whether to enter a particular country, the level of enforcement of intellectual property rights within a specific country would be classified as? A financial risk B. commercial risk C. political risk D. economic risk
C. Political Risk
Which term best describes patrick's export practice? A. Proactive market entry B. dynamic market selection and entry C. Reactive market selection D. exclusive distribution selection
C. Reactive market selection
The tariff on goods entering country are calculated of the? A. ad Hoc value of the goods b. the currency insurance and freight value of the goods C. The commercial invoice value of goods D. the Ad valorum/CIF value of the goods
C. The Ad Valorum/CIF value of the goods
A company based in Costa Rica sells outdoor fans throughout Central America, including through distributors in derby countries like Panama and El Salvador, Consumers in Haiti have found it to be cheaper to buy the Costa Rican fans through the Panamanian distributor than directly from the producer. What is happening here? A. The costa rican company needs to set up distribution in Haiti B. the Haitian consumers are probably violating the law by buying from Panama C. The Costa Rican company has created a parallel market due to their pricing practices D. the Panamanian company is probably cheating the Haitian Customers
C. The Costa Rican company has created a parallel market due to their pricing practices
If an export license for a particular product is not required A. You would use EAR22 with the EEI B. an import license would also not be required C. the requirement to check the Denied Parties List is not waived. D. the harmonized code is only listed to the six digit level.
C. The requirement to check the Denied Parties list is not waived.
A company in the U.K. sells a product to a company in Australia with no sales contract only using an invoice. A dispute arises between the buyer and the seller regarding the terms of sale. As possible recourse, the parties should refer to the? A. Paris convention B. Madrid convention C. UNCISG D. UCP500
C. UNCISG
Find the trade statistics between argentina and astral, which of the following would be most useful? A. UsatradeOnline B. Country Commercial guide C. Uncomtrade D. PIERS
C. Uncomtrade
Which of these may be a good indication of a short-term orientation country? A. A country where all people speak one language B. a country where all citizens have private health care C. A country where smoking rates exceed world averages D. a country where many citizens ride trains
C. a country where smoking rates exceed world averages
Which of the following best described as an example of primary research? A. Indexing harvard business review case studies for every instance of beet farming B. reviewing archived interviews of Swiss bee keepers collected by a research agency C. Counting passengers in a train station in Montreal D. creating a spread sheet pivot table of all the trade in coal from the US to all import countries from 2016-2018
C. counting passangers in a train station in Montreal
Which of the following reasons explains why everyone was jealous of brian office at fifth third? A. he has a mini fridge in his office B. his office is right next to the free coffee bar C. his office gets to watch basketball during March Madness D. his office is the largest on the floor
C. his office gets to watch basketball during March Madness
The main function of the BIS commerce country chart is to? A. establish which countries re allowed to import from the USA B. direct US exporters to the countries who are best suited to buy goods C. indicate the countries where an export license may be required D. establish the countries that are under sanction by the US government
C. indicate the countries where an export license may be required
A company that exports via a domestic purchaser is conducting? A. licensing exporting B. is not exporting C. indirect exporting D. WOFE
C. indirect exporting
With which of the following international market entry methods would most companies typically start off when expanding internationally? A. subsidiary B. agent C. indirect exporting D. licensing
C. indirect exporting
The international plant protection convention established what common practice that affects international shipping? A. international standards for shipping plants B. international standards for agricultural transportation C. international standards for treating wood packaging D. international standards for sustainable logging for wood materials
C. international standards for treating wood packaging
Assume there are two possible harmonized code classification headings for a particular product, and both seem equally plausible. what should be done next? A. use the heading that occurs first in the sequence. B. Use the heading as advised by the government of the country of exportation C. review the section and chapter notes for each heading for possible clarification D. List both on any documentation
C. review the section and chapter notes for each heading for possible clarification
Which statement best reflects what margaret should do next? A she should issue the certificate stating that all the product is made in either Thailand or the USA B. she shouldn't issue any certificate since this order will not fall under the NAFTA guidelines C. she should evaluate if any of the products on the order are made in the USA, and then made she can issue a certificate D. she should check with the Thailand-based producers and request they send the NAFTA certificate for her to use.
C. she should evaluate if any of the products on the order are made in the USA, and then made she can issue a certificate
The ease of doing business index can be a helpful place to learn what kind of insightful information? A. The marginal tariff rate for every country B. the transparency of every country's banking system C. The relative costs and administration each country places on clearing customs D. the ease of starting an import-export company in every country
C. the relative costs and administration each country places on clearing customs
The MPC in Norman, Oklahoma manufactures equipment used in public pools and splash parks. The company is conducting due diligence to evaluate one product's price competitiveness in the caribbean nation of Antigua. An MCP sales manager created the table below of the relevant prices and rates. Using this table, select the scenario that best summarizes MegaPool's competitive pricing position in Antigua if the next competitor, who is also based in the USA, has a landed cost of $6,000 A. MPC will have to compete on value to make up for their price disadvantage B. MPC will be able to compete on their lower price point C.MPC will have to rely on other value add like service or quality since they have no price advantage. D. MPC will have to lower their price point to be competitive with the other company
C.MPC will have to rely on other value add like service or quality since they have no price advantage
Assume a letter of credit in the amount of $10,000 is issued in France and states that all charges outside of France are for account of the beneficiary. It is reasonable that the cost of the Letter of Credit to the applicant is? A. $30 B. $100 C.$150 D.$400
D. $400
Which of the following is not a reason a company might consider limiting how many of their product they would offer to international buyers? A. controlling administrative burdens B. limiting their exposure to certification requirements C. simplifying packaging requirements D. Limiting currency exposure
D. Limiting currency exposure
Which of the following is not a primary purpose of good packaging for international shipments? A. protecting integrity of goods B. facilitating the ease of warehouse workers to move the goods C. presenting a good image to customers D. matching goods with the accompanying customs documentation
D. Matching goods with the accompanying customs documentation
A bill of lading can act as both and a? A. proof of insurance, contact for the transportation of the goods B. packing list, contract for the transportation of the goods C. recipe for cargo, proof of insurance D. receipt fro cargo, contract for the transportation of the goods
D. Receipt for cargo, contract for the transportation of the goods
A typical global business plan would include which of the following? A. Euqity analysis B. stock price projections C. Retained earnings D. SWOT analysis
D. SWOT analysis
When a company is considering their export compliance obligations which is true? A. a company should be most concerned with who ends up buying the product. B. A company should be most concerned with which country the end buyer is located in. C. a company should be most concerned with why a product or technology is controlled D. a company needs to consider all of the above equally
D. a company needs to consider all of the above equally
A great way to understand your products' competitive price point in a market is to conduct? A. A segment analysis B. a competitive analysis C. a SWOT analysis D. a landed cost calculation
D. a landed cost calculation
which of the following is not a reason for the utility of schedule b codes? A. aiding trade research B. providing tariff information for foreign custom officials C. determining instances of possible quota or trade compliance violations D. aiding the search for possible security breaches at ports of trade
D. aiding the search for possible security breaches at ports of trade
The term Substantial transformation as it is used in international business, would apply to which situation? A. identifying the appropriate country of origin for a product. B. Finding the east point a product takes on its essential character C. Usually coincides with the stage in developing a product that is most expensive D. all of the above
D. all of the above
What set of factors found below should be considered from a product-offering perspective when developing your market priority research? A. number of products to offer, product life cycle, product modification needs B. cost of shipping, development of owners' manuals, certification costs C. cost of conducting administrative paperwork to fulfill orders D. all of the above
D. all of the above
Which of the following typically happens when a company appoints multiple distributors in the same country? A. the company creates a marketing office to oversee country-wide promotion B. the company has to play a bigger role in negotiating pricing conflicts C. the company has to play a bigger role in managing after-sales service D. all of the above
D. all of the above
Risk associated with Currency exchange is? A. avoidable as long as you only accept payments in your own currency B. something that gets transferred to the party that operates in a currency other than the denomination of the transaction. C. can be reduced if the company institutes FX hedging measures D. b and c
D. b and c
Which of the following would be a common element found in most distributor agreements? A. incoterm clause B. logistics clause C. Tariff clause D. exclusivity or non-exclusivity clause
D. exclusivity or non-exclusivity clause
An infrequent exporter is experiencing particularly high freight costs when exporting products by air freight and contracting the freight directly with air carriers. As a possible solution, they should? A. be sure not to include insurance and quote an incoterm without insurance B. change to CIF incoterm C. get container quotes from the airline D. get a quote from a freight forwarder for possible consolidation savings
D. get a quote from a freight forwarder for possible consolidation savings
Which of the following best describes a key difference of the CE mark vs. other requirements like it? A. it only applies to safety, electronic, and customs regulations B. it requires in-country testing by certain laboratories C. once a manufacturer has obtained CE certification it supersedes all other regulations for the country D. it can be self-certified by a manufacturer
D. it can be self-certified by a manufacturer
A company conducts a consumer focus group in a potential foreign market to gain insights into the consumer's opinion of what a successful life means in their culture. This is an example of A. secondary research B. segmentation analysis C. quantitative research D. qualitative research
D. qualitative research
Why is FOB such a confusing incoterm? A. the definition of FOB has been revised more than 20 times in its history, so people today are unsure which version applies to most transactions. B. FOB is the only term that can be applied regardless of mode of transportation C. the term, which stands for freedom of Bill, means the transaction is not subject to an incoterm. D. the same term is also used domestically to indicate the buyer is paying for the whole freight from the warehouse.
D. the same term is also used domestically to indicate the buyer is paying for the whole freight from the warehouse.
Which shipping situation may constitute the issuing of a nafta certificate of origin? A. A distribution company in little rock AR, shipping jewelry produced in Guadalajara to St. John's, Newfoundland B. A inning company in Cote d'Ivoire shipping to a buyer in Los Angeles US C. A buyer in Mexico City purchasing European-made transistors from an Ohio-based distributor D. An exporter in vancouver, washington sending a birthday cake to a recipient in Vancouver, british Columbia
A. A distribution company in little rock AR, shipping jewelry produced in Guadalajara to St. John's, Newfoundland
To gain insight on tips for U.S. companies selling products or services into a particular foreign country, a U.S. company should research which resource? A. Commercial service country commercial guide B. coffee country report C. Uncomtrade D. world bank - world development indicators
A. Commercial Service Country Commercial Guide
If a company is not comfortable with the risk associated with the foreign bank issuing a letter of credit, they would ask for their local bank to? A. Advise the L/C B. Confirm the L/C C. Authenticate the L/C D. Swift the L/C
A. Confirm the L/C
A seller has offered its foreign buyer payment terms of documentary collection. It would be important the sight draft be? A. Consigned to the bank B. Consigned to the freight forwarder C. limited to payment within 90 days D. limited to payment within 180 days
A. Consigned to the bank
A U.S. company needs to determine if its commercial invoice should be translated into Spanish when shipping to Costa Rica. Which resource may be helpful? A. Country Commercial Guide B. World FactBook C. USATradeOnline D. Country Background Notes
A. Country Commercial Guide
A Brazilian company filed and received a Brazilian patent against a particular technology it created. Without any further action or filings, which of the following is true? A. Its patent will not be protected in the U.S. B. according to WTO rules, its patent is registered and protected in the U.S. C. According to the Rome Treaty, its patent is registered and protected in the U.S. D. Due to the Mercosur trade agreement. Its patent is protected in the U.S.
A. Its patent will not be protected in the U.S.
Where should a company go when they need to obtain an export license under the EAR? A. Snap-R B. Snap-Q C. DDTC D. the USDOC licensing center
A. Snap-R
Which of the following offers rules and guidelines often used for Letters of Credit? A. Ex-Im B. IMF C. UCP D. ECCN
A. UCP
Typically the laws a company complies with in their home country apply when put into international business context A. only when those laws pertain to corruption and ethics. B. only when they apply to labor standards C. only when they apply to production capacity D. only when the home country falls under Common Law governance
A. only when those laws pertain to corruption and ethics
If a company charges different prices for the same product in different foreign markets, it may be encouraging which of the following market conditions for its product? A. parallel market B. market exchange C. white market D. blue market
A. parallel market
What products did our guest speaker mike stevenson's company produce? A. sight glasses used to observe mixing processes in industrial vats B. gears used in automative crushing machines C. plates that are attached to the landing gear of airplanes D. noise cancelling devices
A. sight glasses used to observe mixing processes in industrial vats
Which of the following is the central difference between a foreign agent and a forging distributor? A. the agent, unlike the distributor, does not take possession of the goods B. the distributor, unlike the agent, does not take possession of the goods C. the agent, unlike the distributor, will not now the end-customer D. the distributor, unlike the agent, will never handle after-sales service
A. the agent, unlike the distributor, does not take possession of the goods
When a product is made of exactly equal parts of two distinct components, and therefore could be classifiable under two separate headings, which would be the correct next step to determine the right classification according to the general rules of interpretation? A. The product should be classified under the heading that is last numerically B. The product should be listed with two tariff codes C. The product should default to a set of generic miscellaneous codes D. the product does not qualify for any tariff code assignment
A. the product should be classified under the heading that is last numerically
Which of the following best describes CCC? A. A company in China that oversees the safety laws of that country B. A certificate that OEMs must obtain in order to sell certain products in China C. A certificate that Chinese manufacturers must obtain in order to sell products to the USA D. A customs registration that agents in China must obtain to represent US companies
B. A certificate that OEMs must obtain in order to sell certain products in China
Which of the following best describes what is meant by the term hub country? A. a country that is a prominent center of global trade shows B. A country that is logistically linked to a prominent geographical region C. a country that hosts a dense number of global companies D. a country that attracts a high number of prominent immigrant groups
B. A country that is logistically linked to a prominent geographical region
Which of the following set of action items would you recommend she work on, based on our in-class discussions? A. Find her HTS code, review the trade stats for her product, go over her budget, and start a tour to visit all her existing customers B. Gather information from all her existing customers, review trade stats and sales indicators, create a risk-reward matrix for countries including trade barriers and tariffs, and pick the countries that strike a balance that favors best ROI C. list all the countries her company has sold to recently, locate the cluster of countries closest to her, and hire staff that is capable of setting up a distribution outpost in a hub country in that cluster. D. Contact her local state SBA office to review their list of in-country consulates for free referrals to al known buyers within their regions and set up a schedule to visit the highest rated companies they turn up
B. Gather information from all her existing customers, review trade stats and sales indicators, create a risk-reward matrix for countries including trade barriers and tariffs, and pick the countries that strike a balance that favors best ROI
Jose garcia runs a small business selling hi-performance industrial fans used in testing military jets. He wants to know his product's tariff code. What steps should he take to getting the right code? A. Jose should call the US international trade administration and submit a request for them to identify the product's code for him. B. Jose should refer to the hTS binding ruling database, run a keyword search, read the chapter notes and explanatory notes. C. Jose should analyze the tariff codes of all parts that are assembled into his fan, run a calculation of the content of us parts, and then cross reference that to the nafta product code database D. Jose should cross reference the US military and munitions list for their product commodity code analyzer for items related to military jet testing equipment
B. Jose should refer to the hTS binding ruling database, run a keyword search, read the chapter notes and explanatory notes.
In a non-confirmed letter of credit, the risk of non-payment to the exporter is with? A. the applicant B. the applicant's bank C. the advising bank D the confirming bank
B. The applicants bank
Which US agency enforces trade embargoes? A. U.s. department of state B. U.S. Treasury C. U.S. commerce department D. Office of U.S. Trade representative
B. U.S. treasury
Which of these is the best indication of a high context country? A. a country where public debating is common B. a country where speaking directly about matters is frowned upon C. a country where nonverbal gestures and indirect cues are frequently misunderstood D. a country that has a high rate of poverty
B. a country where speaking directly about matters is frowned upon
The harmonized code system is harmonized globally A. at the four-digit level B. at the six-digit level C. at the eight-digit level D. At the ten-digit level
B. at the six-digit level
when considering new market entry timing, which variables will be the most important you need to consider? A. risk and market size B. control and risk C. resources and market size D. country type and control
B. control and risk
Which f the following is a principle goal when countries sign free trade agreements? A. create free trade zone between two or more countries where goods are not subject to duty. B. creates duty-reducing guidelines between two or more countries that rewards value-adding work done in those countries C creates a set subsidies for exporters in countries that sign the agreement D. establishes mutually operated free trade zone along the borders of two or more countries
B. creates duty-reducing guidelines between two or more countries that rewards value-adding work done in those countries
The PIERS database is useful for? A. Researching tariffs in non-U.S. countries B. Global trade statistics C. Researching non-tariff barriers in non-U.S. countries D. Researching the import or export activities of specific companies
B. global trade statistics
The Hannover Trade Fair offers a chance for companies across a wide variety of industries to exhibit. This type of even is an? A. vertical trade show B. horizontal trade show C. horizontal trade mission D. vertical trade mission
B. horizontal trade show
What factor is the most significant sign that an executive is demonstrating a willingness to commit to being an international player? A. Starting a patent and trademark registration process for all their products. B. requisition an analysis of the company's production capacity to meet international specifications C. researching product names that translate well into other languages D. Launching a cash-flow audit
B. requesting an analysis of the company's production capacity to meet international specifications
To adequately conduct a market priority study, what set of factors best describe those needing to be addressed with the company first? A. cash-flow strength of website, employees with foreign language ability B. support of leadership, level of risk aversion, ability to serve C. government programs supportive of export, cash reserves, leadership commitment D. country-ready employee base, risk indicators, production capacity
B. support of leadership, level of risk aversion, ability to serve
As a company moves from one market entry method to a more sophisticated method what usually takes place? A. the time investment in marten and government regulations rise B. the amount of risk and control rise for the company C. the amount of monetary liability and currency rates rise for the company D. the amount of executive buy pin increases, and the profitability of the market increases
B. the amount of risk and control rise for the company
Cash in advance payment option is usually favored by which party? A. the buyer B. the seller C. the buyer and seller are equally favored D. neither seller nor the buyer prefer
B. the seller
