Question 1

Some EMCs appear to add little value to the exporting company.

Accepted Answer

A) True 
 B)False

Question 2

The _____ guarantees repayment of medium and long-term loans U.S.commercial banks make to foreign borrowers for purchasing U.S.exports.

Accepted Answer

A)  United Nations
B)  Central Bank
C)  World Bank
D)  Ex-Im BankE) A) and D)
F) C) and D)

Question 3

Identify a drawback to countertrade.

Accepted Answer

A)  It fails to give firms a way to finance an export deal.
B)  It may involve the exchange of unusable or poor-quality goods that the firm cannot dispose of profitably.
C)  It is detrimental to the economy of the importing country.
D)  Developing nations may have trouble raising the foreign exchange necessary to pay for imports.E) None of the above
F) A) and C)

Question 4

The direct exchange of goods and/or services between two parties without a cash transaction is referred to as:

Accepted Answer

A)  switch trading.
B)  counterpurchase.
C)  barter.
D)  offset.E) All of the above
F) C) and D)

Question 5

Offset refers to the use of a specialized third party trading house in a countertrade arrangement.

Accepted Answer

A) True 
 B)False

Question 6

Between 30 and 40 percent of world trade by value is now in the form of countertrade.

Accepted Answer

A) True 
 B)False

Question 7

The Foreign Credit Insurance Association (FCIA) is an association of private commercial institutions operating under the guidance of the

Accepted Answer

A)  Federal Mediation and Conciliation Service.
B)  U.S.Department of Commerce.
C)  Export-Import Bank.
D)  International Trade Administration.E) A) and C)
F) A) and B)

Question 8

Which of the following is a drawback of countertrade?

Accepted Answer

A)  It fails to give firms a way to finance an export deal.
B)  It is detrimental to the economy of the importing country.
C)  Developing nations may have trouble raising the foreign exchange necessary to pay for imports.
D)  It requires the firm to invest in an in-house trading department dedicated to arranging and managing deals.E) None of the above
F) B) and D)

Question 9

Great trading houses in Japan are called:

Accepted Answer

A)  kaizen.
B)  sogo shosha.
C)  MITI.
D)  guanxi.E) C) and D)
F) A) and B)

Question 10

When a specialized third-party trading house is used in a countertrade arrangement,it is called:

Accepted Answer

A)  a counterpurchase.
B)  an offset.
C)  switch trading.
D)  a buyback.E) B) and C)
F) A) and D)

Question 11

The _____ program has about 850 volunteers with international trade experience providing one-on-one counseling to active and new-to-export businesses.

Accepted Answer

A)  Export Legal Assistance Network (ELAN) 
B)  Service Corps of Retired Executives (SCOR
E)  
C)  International Trade Veteran's (ITV) 
D)  Network of Foreign Trade Executives (NFT
E)  E) A) and C)
F) A) and D)

Question 12

Which of the following is a drawback of relying on an EMC?

Accepted Answer

A)  They do not provide references and have no antecedents.
B)  The exporting company can fail to develop its own exporting capabilities.
C)  They do not constitute of expert specialists to help the neophyte exporter identify opportunities.
D)  They typically lack knowledge about the local business regulations.E) A) and B)
F) B) and D)

Question 13

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) None of the above
F) All of the above

Question 14

A draft is sometimes referred to as a:

Accepted Answer

A)  bill of exchange.
B)  letter of credit.
C)  bill of lading.
D)  counterpurchase.E) All of the above
F) A) and B)

Question 15

List the forms of government-backed assistance that can help finance export programs for potential U.S.exporters?

Accepted Answer

Prospective U.S.exporters can draw on tw...

Question 16

Which of the following is an advantage of the letter of credit system to the importer?

Accepted Answer

A)  Payment for merchandise is made only after receiving the documents.
B)  It facilitates the obtaining of preexport financing.
C)  Lower price for goods.
D)  Lower shipping costs.E) B) and C)
F) A) and B)

Question 17

Describe each of the five distinct types of countertrading arrangements.

Accepted Answer

The five distinct types of counter tradi...

Question 18

Which organization is affiliated with the Service Corps of Retired Executives?

Accepted Answer

A)  Foreign Credit Insurance Association
B)  International Trade Administration
C)  Small Business Administration
D)  U.S Department of CommerceE) B) and C)
F) A) and D)

Question 19

The person or business initiating a draft is known as the drafter and the party to whom the draft is presented is known as the draftee.

Accepted Answer

A) True 
 B)False

Question 20

Estimates of the percentage of world trade covered by some sort of countertrade agreement range from about _____ percent.

Accepted Answer

A)  2 to 10
B)  15 to 20
C)  30 to 40
D)  50 to 60E) A) and B)
F) C) and D)

Exam 13: Exporting,Importing,and Countertrade

The _____ guarantees repayment of medium and long-term loans U.S.commercial banks make to foreign borrowers for purchasing U.S.exports.

Correct AnswerverifiedShow Answer

Identify a drawback to countertrade.

Correct AnswerverifiedShow Answer

Describe each of the five distinct types of countertrading arrangements.

Correct AnswerverifiedThe five distinct types of counter tradi...View AnswerShow Answer

Some EMCs appear to add little value to the exporting company.

Correct AnswerverifiedShow Answer

A draft is sometimes referred to as a:

Correct AnswerverifiedShow Answer

The direct exchange of goods and/or services between two parties without a cash transaction is referred to as:

Correct AnswerverifiedShow Answer

Which of the following is a drawback of countertrade?

Correct AnswerverifiedShow Answer

The _____ program has about 850 volunteers with international trade experience providing one-on-one counseling to active and new-to-export businesses.

Correct AnswerverifiedShow Answer

The person or business initiating a draft is known as the drafter and the party to whom the draft is presented is known as the draftee.

Correct AnswerverifiedShow Answer

Great trading houses in Japan are called:

Correct AnswerverifiedShow Answer

List the forms of government-backed assistance that can help finance export programs for potential U.S.exporters?

Correct AnswerverifiedProspective U.S.exporters can draw on tw...View AnswerShow Answer

Which of the following is a drawback of relying on an EMC?

Correct AnswerverifiedShow Answer

When a specialized third-party trading house is used in a countertrade arrangement,it is called:

Correct AnswerverifiedShow Answer

Which organization is affiliated with the Service Corps of Retired Executives?

Correct AnswerverifiedShow Answer

Between 30 and 40 percent of world trade by value is now in the form of countertrade.

Correct AnswerverifiedShow Answer

Estimates of the percentage of world trade covered by some sort of countertrade agreement range from about _____ percent.

Correct AnswerverifiedShow Answer

Offset refers to the use of a specialized third party trading house in a countertrade arrangement.

Correct AnswerverifiedShow Answer

The Foreign Credit Insurance Association (FCIA) is an association of private commercial institutions operating under the guidance of the

Correct AnswerverifiedShow Answer

Countertrade is most attractive to:

Correct AnswerverifiedShow Answer

Which of the following is an advantage of the letter of credit system to the importer?

Correct AnswerverifiedShow Answer

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The five distinct types of counter tradi...
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Prospective U.S.exporters can draw on tw...
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