Question 1

Countertrade is most attractive to:

Accepted Answer

A)  small exporters.
B)  large multinational enterprises.
C)  only U.S. firms.
D)  any firm in democratic nations.
E)  new companies.F) B) and C)
G) A) and E)

Question 2

What is an Ex-Im Bank? What is its mission and how does it pursue it?

Accepted Answer

The Export-Import Bank, often referred t...

Question 3

The Small Business Administration oversees almost 11,500 volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses through its program known as the:

Accepted Answer

A)  Export Legal Assistance Network.
B)  Service Corps of Retired Executives.
C)  International Trade Veteran's Group.
D)  Network of Foreign Trade Executives.
E)  Export Management Company.F) All of the above
G) None of the above

Question 4

Which of the following is true of barter as a countertrade arrangement?

Accepted Answer

A)  It is a very complex arrangement.
B)  It is primarily used with trading partners who are not creditworthy or trustworthy.
C)  It involves cash transactions.
D)  When goods are exchanged simultaneously, one partner ends up financing the other.
E)  It is the most flexible countertrade arrangement.F) C) and E)
G) A) and B)

Question 5

The type of countertrade where a firm agrees to purchase a certain amount of materials back from a country to which a sale is made is called:

Accepted Answer

A)  barter.
B)  counterpurchase.
C)  compensation.
D)  switch trading.
E)  buyback.F) A) and C)
G) D) and E)

Question 6

It often makes sense for a firm to enter a foreign market on a large scale to reduce the costs of any subsequent failure.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is a characteristic of a time draft?

Accepted Answer

A)  It has no value given the deferred nature of the document.
B)  It is generally not preferred in international transactions.
C)  It is a negotiable instrument.
D)  It is also known as a bill of lading.
E)  It cannot be sold by an exporter.F) A) and B)
G) C) and D)

Question 8

Exporting is nearly always a way to increase the revenue and profit base of a company because:

Accepted Answer

A)  there is little competition in the international market.
B)  foreign governments encourage imports from other countries.
C)  international markets are less complex than their domestic counterparts.
D)  the international market is much larger than the domestic market.
E)  it does not involve wasting resources on paperwork.F) B) and C)
G) All of the above

Question 9

To cater to the growing demand for luxury cars, Terabithia Republic agreed to buy 5,000 cars from MotoSporto Inc. in exchange for 5,000 gallons of oil. Due to a lack of trust, Terabithia decided to make it a one-time-only deal. Which of the following forms of countertrade is the country most likely to use?

Accepted Answer

A)  Counterpurchase
B)  Offset
C)  Switch trading
D)  Barter
E)  BuybackF) B) and D)
G) A) and B)

Question 10

Firms engaged in international trade deal with people they may have never seen, who live in different countries, who speak different languages, and who abide by different legal systems. These factors result in:

Accepted Answer

A)  easy tracking of the parties involved.
B)  a lack of trust between the parties.
C)  strict enforcement of contractual obligations.
D)  rapid acculturation.
E)  better understanding of how transactions should be configured.F) C) and D)
G) B) and E)

Question 11

A type of countertrade where a third-party trading house buys the firm's counterpurchase credits and sells them to another firm that can better use them is called:

Accepted Answer

A)  barter.
B)  switch trading.
C)  offset.
D)  buyback.
E)  compensation.F) D) and E)
G) A) and B)

Question 12

Which of the following is an advantage of having a letter of credit?

Accepted Answer

A)  It allows payment for merchandise after its delivery.
B)  It facilitates an exporter to obtain pre-export financing.
C)  It allows an exporter to get a higher price for his or her goods.
D)  It helps exporters incur lower shipping costs.
E)  It does not require the importer to pay any fee.F) A) and E)
G) A) and B)

Question 13

Describe the pros and cons of countertrade.

Accepted Answer

Countertrade's main attraction is that i...

Question 14

Export management companies (EMCs) start exporting operations for a firm with the understanding that the firm will take over operations after they are well established.

Accepted Answer

A) True 
 B)False

Question 15

Firms that actively export often lose out on significant opportunities for growth and cost reduction.

Accepted Answer

A) True 
 B)False

Question 16

What is countertrade? When can it be used?

Accepted Answer

Countertrade is an alternative means of ...

Question 17

Which of the following is an advantage of a letter of credit for an importer?

Accepted Answer

A)  The importer does not have to pay for the merchandise until the documents have arrived.
B)  Obtaining pre-export financing becomes easier.
C)  It helps the importer to get goods for a lower price.
D)  It results in lower shipping costs.
E)  The importer does not have to pay the third party a fee for facilitating the transaction.F) B) and D)
G) B) and E)

Question 18

For an importer, which of the following is a disadvantage of using a letter of credit for international transactions?

Accepted Answer

A)  It results in the importer losing control over the process of trading.
B)  It reduces the exporter's level of trust in the importer.
C)  It reduces the importer's ability to borrow funds for other purposes.
D)  It requires the importer to repay the loan even before the merchandise is sold.
E)  It is not issued at the importer's request.F) C) and E)
G) A) and D)

Question 19

The principle of countertrade is to trade goods and services for money.

Accepted Answer

A) True 
 B)False

Question 20

For U.S. firms, the most comprehensive source of information on export opportunities is the U.S. Department of Commerce.

Accepted Answer

A) True 
 B)False

Exam 14: Exporting, Importing, and Countertrade

For U.S. firms, the most comprehensive source of information on export opportunities is the U.S. Department of Commerce.

Correct Answer
verified

Exporting is nearly always a way to increase the revenue and profit base of a company because:

Correct Answer
verified

Which of the following is an advantage of a letter of credit for an importer?

Correct Answer
verified

Which of the following is true of barter as a countertrade arrangement?

Correct Answer
verified

Firms engaged in international trade deal with people they may have never seen, who live in different countries, who speak different languages, and who abide by different legal systems. These factors result in:

Correct Answer
verified

For an importer, which of the following is a disadvantage of using a letter of credit for international transactions?

Correct Answer
verified

The Small Business Administration oversees almost 11,500 volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses through its program known as the:

Correct Answer
verified

Which of the following is a characteristic of a time draft?

Correct Answer
verified

A type of countertrade where a third-party trading house buys the firm's counterpurchase credits and sells them to another firm that can better use them is called:

Correct Answer
verified

It often makes sense for a firm to enter a foreign market on a large scale to reduce the costs of any subsequent failure.

Correct Answer
verified

What is countertrade? When can it be used?

Correct Answer
verified
Countertrade is an alternative means of ...
View Answer

The principle of countertrade is to trade goods and services for money.

Correct Answer
verified

Correct Answer
verified

Describe the pros and cons of countertrade.

Correct Answer
verified
Countertrade's main attraction is that i...
View Answer

Countertrade is most attractive to:

Correct Answer
verified

What is an Ex-Im Bank? What is its mission and how does it pursue it?

Correct Answer
verified
The Export-Import Bank, often referred t...
View Answer

The type of countertrade where a firm agrees to purchase a certain amount of materials back from a country to which a sale is made is called:

Correct Answer
verified

Export management companies (EMCs) start exporting operations for a firm with the understanding that the firm will take over operations after they are well established.

Correct Answer
verified

Which of the following is an advantage of having a letter of credit?

Correct Answer
verified

Firms that actively export often lose out on significant opportunities for growth and cost reduction.

Correct Answer
verified

Exam 14: Exporting, Importing, and Countertrade

For U.S. firms, the most comprehensive source of information on export opportunities is the U.S. Department of Commerce.

Correct AnswerverifiedShow Answer

Exporting is nearly always a way to increase the revenue and profit base of a company because:

Correct AnswerverifiedShow Answer

Which of the following is an advantage of a letter of credit for an importer?

Correct AnswerverifiedShow Answer

Which of the following is true of barter as a countertrade arrangement?

Correct AnswerverifiedShow Answer

Firms engaged in international trade deal with people they may have never seen, who live in different countries, who speak different languages, and who abide by different legal systems. These factors result in:

Correct AnswerverifiedShow Answer

For an importer, which of the following is a disadvantage of using a letter of credit for international transactions?

Correct AnswerverifiedShow Answer

The Small Business Administration oversees almost 11,500 volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses through its program known as the:

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of a time draft?

Correct AnswerverifiedShow Answer

A type of countertrade where a third-party trading house buys the firm's counterpurchase credits and sells them to another firm that can better use them is called:

Correct AnswerverifiedShow Answer

It often makes sense for a firm to enter a foreign market on a large scale to reduce the costs of any subsequent failure.

Correct AnswerverifiedShow Answer

What is countertrade? When can it be used?

Correct AnswerverifiedCountertrade is an alternative means of ...View AnswerShow Answer

The principle of countertrade is to trade goods and services for money.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Describe the pros and cons of countertrade.

Correct AnswerverifiedCountertrade's main attraction is that i...View AnswerShow Answer

Countertrade is most attractive to:

Correct AnswerverifiedShow Answer

What is an Ex-Im Bank? What is its mission and how does it pursue it?

Correct AnswerverifiedThe Export-Import Bank, often referred t...View AnswerShow Answer

The type of countertrade where a firm agrees to purchase a certain amount of materials back from a country to which a sale is made is called:

Correct AnswerverifiedShow Answer

Export management companies (EMCs) start exporting operations for a firm with the understanding that the firm will take over operations after they are well established.

Correct AnswerverifiedShow Answer

Which of the following is an advantage of having a letter of credit?

Correct AnswerverifiedShow Answer

Firms that actively export often lose out on significant opportunities for growth and cost reduction.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Countertrade is an alternative means of ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Countertrade's main attraction is that i...
View Answer

Correct Answer
verified

Correct Answer
verified
The Export-Import Bank, often referred t...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified