Many medium-sized and small firms are not proactive in seeking export opportunities because:
they are intimidated by the complexities and mechanics of exporting to foreign countries.
When a time draft is drawn on and accepted by a bank, it is known as a _____.
banker's acceptance
The _____ refers to a nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters.
Export Legal Assistance Network
_____, a type of countertrade, occurs when a firm agrees to purchase a certain amount of materials back from a country to which a sale is made.
Counterpurchase
Which of the following is a drawback of relying on an export management company (EMC)?
The exporting company can fail to develop its own exporting capabilities.
Organizations resort to countertrade of goods and services when:
the goods and services cannot be traded for money.
Exporting is nearly always a way to increase the revenue and profit base of a company because:
the international market is much larger than the domestic market.
The lack of a letter of credit exposes the exporter to the risk that the foreign importer will default on payment. The exporter can insure against this possibility by:
buying export credit insurance.
A(n) _____ occurs when a firm builds a plant in a country and agrees to take a certain percentage of the plant's output as partial payment for the contract.
buyback
A range of barterlike agreements by which goods and services are traded for other goods and services when they cannot be traded for money is known as _____.
countertrade
Which of the following drafts allows for a delay in payment?
time draft
A drawback of countertrade is that:
it may involve the exchange of poor-quality goods that cannot be disposed of profitably.
A _____ is issued by a bank, and it indicates that the bank will make payments under specific circumstances.
letter of credit
Firms that do not export often:
lose out on significant opportunities for cost reduction.
The two categories of drafts (or bills of exchange) are:
sight drafts and time drafts.
Which of the following drafts is payable on presentation to the drawee?
slight draft
Countertrade is most likely to be used when:
the conventional means of international trade transaction are difficult.