Question 1

The bill of lading can function as collateral against which funds may be advanced to the exporter by its local bank.

Accepted Answer

A) True 
 B)False

Question 2

What is the Foreign Credit Insurance Association?

Accepted Answer

The Foreign Credit Insurance Association...

Question 3

What type of firms are most likely to engage in countertrade? Why?

Accepted Answer

Countertrade is most attractive to large...

Question 4

Which of the following is an advantage of countertrade?

Accepted Answer

A)   Countertrade uses instruments such as time draft and sight draft.
B)   It is an effective way of doing business with developing nations.
C)   It provides exporters and opportunity to obtain direct revenue.
D)   Countertrade prevents exchange of unusable or poor-quality goods.E) A) and B)
F) A) and C)

Question 5

EMCs are governmental agencies that help the U.S.Department of Commerce to promote export in the United States.

Accepted Answer

A) True 
 B)False

Question 6

A draft is simply an order written by an exporter instructing an importer to pay a specified amount of money at a specified time.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is true of exporting?

Accepted Answer

A)   It increases the trade deficit that nations have.
B)   Exporting leads to diseconomies of scope.
C)   It helps a firm achieve economies of scale
D)   Exporting is not beneficial to a country's economy.E) A) and B)
F) A) and C)

Question 8

Firms commonly employ a reputable bank as third party in international transactions.

Accepted Answer

A) True 
 B)False

Question 9

Counterpurchase occurs when a firm agrees to purchase a certain amount of materials back from a country to which a sale is made.

Accepted Answer

A) True 
 B)False

Question 10

Through its _____ program,the SBA oversees about 850 volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses.

Accepted Answer

A)   matchmaker
B)   SCORE
C)   ELAN
D)   trade fairE) A) and D)
F) B) and C)

Question 11

The bill of lading is a product guarantee issued by the exporter to the importer.

Accepted Answer

A) True 
 B)False

Question 12

_____ is viewed as the most restrictive countertrade arrangement and is primarily used for one-time-only deals in transactions with trading partners who are not creditworthy or trustworthy.

Accepted Answer

A)   Switch trading
B)   Offset
C)   Barter
D)   BuybackE) None of the above
F) A) and B)

Question 13

A _____ states that the bank will pay a specified sum of money to a beneficiary,normally the exporter,on presentation of particular,specified documents.

Accepted Answer

A)   bill of exchange
B)   bill of lading
C)   letter of credit
D)   bank statementE) All of the above
F) None of the above

Question 14

Explain countertrade and its purpose.

Accepted Answer

When conventional means of payment are difficult,costly,or nonexistent,firms may turn to countertrade as an alternative means of structuring an international sale.Countertrade denotes a whole range of barter-like agreements; its principle is to trade goods and services for other goods and services when they cannot be traded for money.Countertrade can be used when a government restricts the convertibility of its currency to preserve its foreign exchange reserves so they can be used to service international debt commitments and purchase crucial imports.

Question 15

Japan's great trading houses are called Samurai houses.

Accepted Answer

A) True 
 B)False

Question 16

A _____ is issued to the exporter by the common carrier transporting the merchandise and serves as a receipt,a contract,and a document of title.

Accepted Answer

A)   bill of lading
B)   sight draft
C)   time draft
D)   letter of creditE) A) and D)
F) C) and D) A

Question 17

What is the main attraction of countertrade?

Accepted Answer

The main attraction of countertrade is that it can give a firm a way to finance an export deal when other means are not available.Many developing nations have problems raising the foreign exchange necessary to pay for imports.Countertrade may be the only option available when doing business in these countries.Even when other options exist,many countries prefer countertrade to cash deals.

Question 18

Japan's great trading houses are called _____.

Accepted Answer

A)   sogo shosha
B)   kaizen
C)   MITI
D)   SamuraiE) B) and D)
F) None of the above

Question 19

_____ is the direct exchange of goods and/or services between two parties without a cash transaction and is the simplest arrangement.

Accepted Answer

A)   Counterpurchase
B)   Barter
C)   Offset
D)   Switch tradingE) C) and D)
F) None of the above

Question 20

The Foreign Credit Insurance Association does not provide coverage against political risks faced by exporters.

Accepted Answer

A) True 
 B)False

Exam 16: Exporting, importing, and Countertrade

The bill of lading can function as collateral against which funds may be advanced to the exporter by its local bank.

Correct Answer
verified

What is the Foreign Credit Insurance Association?

Correct Answer
verified
The Foreign Credit Insurance Association...
View Answer

What type of firms are most likely to engage in countertrade? Why?

Correct Answer
verified
Countertrade is most attractive to large...
View Answer

Which of the following is an advantage of countertrade?

Correct Answer
verified

EMCs are governmental agencies that help the U.S.Department of Commerce to promote export in the United States.

Correct Answer
verified

A draft is simply an order written by an exporter instructing an importer to pay a specified amount of money at a specified time.

Correct Answer
verified

Which of the following statements is true of exporting?

Correct Answer
verified

Firms commonly employ a reputable bank as third party in international transactions.

Correct Answer
verified

Counterpurchase occurs when a firm agrees to purchase a certain amount of materials back from a country to which a sale is made.

Correct Answer
verified

Through its _____ program,the SBA oversees about 850 volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses.

Correct Answer
verified

The bill of lading is a product guarantee issued by the exporter to the importer.

Correct Answer
verified

_____ is viewed as the most restrictive countertrade arrangement and is primarily used for one-time-only deals in transactions with trading partners who are not creditworthy or trustworthy.

Correct Answer
verified

A _____ states that the bank will pay a specified sum of money to a beneficiary,normally the exporter,on presentation of particular,specified documents.

Correct Answer
verified

Explain countertrade and its purpose.

Japan's great trading houses are called Samurai houses.

Correct Answer
verified

A _____ is issued to the exporter by the common carrier transporting the merchandise and serves as a receipt,a contract,and a document of title.

Correct Answer
verified
A

What is the main attraction of countertrade?

Japan's great trading houses are called _____.

Correct Answer
verified

_____ is the direct exchange of goods and/or services between two parties without a cash transaction and is the simplest arrangement.

Correct Answer
verified

The Foreign Credit Insurance Association does not provide coverage against political risks faced by exporters.

Correct Answer
verified

Exam 16: Exporting, importing, and Countertrade

The bill of lading can function as collateral against which funds may be advanced to the exporter by its local bank.

Correct AnswerverifiedShow Answer

What is the Foreign Credit Insurance Association?

Correct AnswerverifiedThe Foreign Credit Insurance Association...View AnswerShow Answer

What type of firms are most likely to engage in countertrade? Why?

Correct AnswerverifiedCountertrade is most attractive to large...View AnswerShow Answer

Which of the following is an advantage of countertrade?

Correct AnswerverifiedShow Answer

EMCs are governmental agencies that help the U.S.Department of Commerce to promote export in the United States.

Correct AnswerverifiedShow Answer

A draft is simply an order written by an exporter instructing an importer to pay a specified amount of money at a specified time.

Correct AnswerverifiedShow Answer

Which of the following statements is true of exporting?

Correct AnswerverifiedShow Answer

Firms commonly employ a reputable bank as third party in international transactions.

Correct AnswerverifiedShow Answer

Counterpurchase occurs when a firm agrees to purchase a certain amount of materials back from a country to which a sale is made.

Correct AnswerverifiedShow Answer

Through its _____ program,the SBA oversees about 850 volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses.

Correct AnswerverifiedShow Answer

The bill of lading is a product guarantee issued by the exporter to the importer.

Correct AnswerverifiedShow Answer

_____ is viewed as the most restrictive countertrade arrangement and is primarily used for one-time-only deals in transactions with trading partners who are not creditworthy or trustworthy.

Correct AnswerverifiedShow Answer

A _____ states that the bank will pay a specified sum of money to a beneficiary,normally the exporter,on presentation of particular,specified documents.

Correct AnswerverifiedShow Answer

Explain countertrade and its purpose.

Japan's great trading houses are called Samurai houses.

Correct AnswerverifiedShow Answer

A _____ is issued to the exporter by the common carrier transporting the merchandise and serves as a receipt,a contract,and a document of title.

Correct AnswerverifiedA

What is the main attraction of countertrade?

Japan's great trading houses are called _____.

Correct AnswerverifiedShow Answer

_____ is the direct exchange of goods and/or services between two parties without a cash transaction and is the simplest arrangement.

Correct AnswerverifiedShow Answer

The Foreign Credit Insurance Association does not provide coverage against political risks faced by exporters.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
The Foreign Credit Insurance Association...
View Answer

Correct Answer
verified
Countertrade is most attractive to large...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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A

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