Chapter 13 Practice Quiz Questions

Selling goods or services that are paid for, in whole or part, with other goods or services is called ________.
indirect exporting
countertrade
licensing
a joint venture

countertrade

Which of the following is true of distributors?
Selected Answer:
The use of distributors increases the exporter's control over the price buyers are charged.
They are compensated with a fixed salary plus commissions based on the value of their sales.
They

They can stunt the growth of the exporter's market share by charging very high prices.

A(n) ________ exports products on behalf of an indirect exporter.
local distributor
subsidiary
sales representative
export management company

export management company

Which of the following allows a country to earn back some of the currency it pays out for imports?
switch trading
counterpurchase
buyback
barter

counterpurchase

Scenario: Wang's Techno Toys
Ann Wang has been successfully running Wang's Techno Toys that sells high-tech toys in the domestic market. Continually increasing and stiff competition at home has now forced Wang's Techno Toys to enter international markets

barter

Which of the following is the most common method of buying and selling goods internationally?
Answers:
exporting and importing
countertrade
a turnkey project
A merger or an acquisition

exporting and importing

Gro-Tru, a maker of chemical fertilizers and pesticides, sees enormous growth potential in Central Europe. The company has received several inquiries from potential importers in the region, but in most cases, the potential importers have expressed difficu

countertrade

Herb Graham is vice president of Sports Stuff Inc., a business that develops, manufactures, and markets sports products. The company is looking to expand its operations into the European market. Herb believes that if the company expands its product line t

joint venture

In a backward integration joint venture, the parties choose to invest together in downstream business activities.
True or false

False

Advance payment is commonly used for export/import financing when ________.
two parties are unfamiliar with each other
the buyer has obtained credit for the transaction
the transaction is for a relatively high amount
the buyer has good credit rating at ba

two parties are unfamiliar with each other