Which of the following is true of exporting?
It helps firm achieve economies of scale
In terms of seeking export opportunities, studies have shown that:
many medium-sized and small firms are very reactive.
Which of the following is true of reactive firms?
They may not even consider exporting until their domestic market is saturated
Which of the following helps explain why exporters still account for only a tiny percentage of U.S. firms?
Unfamiliarity; intimidation by the complexities
Japanese exporters get assistance in identifying export opportunities from:
MITI
Great trading houses in Japan are called:
sogo shosha
Unlike their German and Japanese competitors, U.S. firms are _____ when they see export opportunities.
information-disadvantaged
In terms of international comparisons, which of the following statement is false?
Many German firms are relatively blind when they seek export opportunities.
For U.S. firms, the most comprehensive source of export opportunities information is the:
U.S. Department of Commerce
The agencies of the U.S. Department of Commerce provide the potential exporter with all of these services except:
export subsidies.
A "best prospects" list:
is provided by the United States and Foreign Commercial Service Agency.
Which of the following is not provided by the Department of Commerce?
It coordinates the Export Legal Assistance Network (ELAN), a nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters.
The Department of Commerce has a _____ program, in which department representatives accompany groups of U.S. businesspeople abroad to meet with qualified agents, distributors, and customers.
matchmaker
Which of the following statements about the SBA is false?
It is the most comprehensive source of export opportunities information.
Which of the following is a nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters?
ELAN
Through its _____ program, the SBA oversees some 850 volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses.
SCORE
_____ is an export specialist who acts as the export marketing department or international department for its client firm.
An export management company
In theory, the advantage of EMCs is that they:
are experienced specialists who can help the neophyte exporter
One drawback of relying on EMCs is that:
the company can fail to develop its own exporting capabilities.
A firm can increase the probability of exporting successfully by taking which of these steps?
Entering on a small scale
Which of the following is not true about exporting?
Exporting is almost always an end in itself
A key challenge facing export and import financing is:
the lack of trust.
Which of the following states that the bank will pay a specified sum of money to a beneficiary on presentation of particular, specified documents?
A letter of credit
Which of the following is also referred to as a "bill of exchange"?
A draft
A draft:
is a document requesting payment.
In a letter of credit transaction, the importer secures the letter of credit
before product shipment.
In a letter of credit transaction, the exporter ships the product
after the letter of credit is issued.
In a letter of credit transaction, the exporter receives its payment from
the exporter's bank.
What is the biggest advantage of using a letter of credit system?
The trust is established, for the importer and exporter, because of a reputable bank.
What is the drawback of using a letter of credit system?
The importer must pay the bank a fee for the letter of credit
The person or business initiating a draft is known as the:
maker.
A _____ is payable on presentation to the drawee.
sight draft
A _____ allows for a delay in payment.
time draft
A banker's acceptance:
is a time draft that has been drawn on and accepted by a bank.
The bill of lading serves all of the following purposes except:
it is a bank note.
A bill of lading:
gives title to the goods.
All of the following are true of the Export-Import Bank except:
it provides total coverage against political risks.
_____ involves trading goods and services for other goods and services when they cannot be traded for money.
Countertrade
When conventional means of payment are difficult, costly, or nonexistent, a firm is more likely to use:
countertrade.
The most restrictive form of countertrade is:
barter.
When one party agrees to purchase goods and services with a specified percentage of the proceeds from the original sale, and it can fulfill the obligation with any firm in the country to which the sale is being made, it is a(n):
offset.
A firm that uses a specialized third-party trading house in a countertrade arrangement is involved in:
switch trading.