Question 1

Import documents are of two different types: those that determine whether customs will release the shipment and those that contain information for

Accepted Answer

duty assessment and statistical purposes

Question 2

The U.S. Department of Commerce reports that nearly ________ of U.S. companies that export are small businesses.

Accepted Answer

65 percent

Question 3

Which of the following factors does not motivate a company such as Grieve to build export linkages?

Accepted Answer

option to concentrate risk

Question 4

There are two types of imports, those that provide industrial and consumer goods and services to individuals and companies that are not related to the foreign exporter and those that provide intermediate goods and services to ________.

Accepted Answer

companies that are part of the firm\'s global supply chain

Question 5

A situation in which an exporter sells products to a foreign country along with its promise to make a future purchase of a specific is known as ________.

Accepted Answer

counter-purchase

Question 6

Which of the following is an example of a trigger that leads a company to begin exporting by serendipity rather than by design?

Accepted Answer

Personal travels abroad lead to the discovery of new market options.

Question 7

An import strategy may be driven by the fact that companies ________.

Accepted Answer

cannot buy goods or services needed in their production processes from local companies

Question 8

The primary duties of the ________ are the assessment and collection of all duties, taxes, and fees on imported merchandise, the enforcement of customs and related laws, and the administration of certain navigation laws and treaties.

Accepted Answer

U.S. Customs Service

Question 9

Countertrade is an alternative means of structuring an international sale when ________.

Accepted Answer

conventional forms of payment are difficult, costly, or nonexistent

Question 10

Countertrade generally increases in countries whose economies ________.

Accepted Answer

are experiencing widespread economic problems

Question 11

Small and medium sized companies account for a ________ of U.S. exporters.

Accepted Answer

large percent

Question 12

Which of the following is typically true of an export management company?

Accepted Answer

It operates on a contractual basis for a manufacturer by helping obtain orders for its clients\' products.

Question 13

A(n) ________ operates on a contractual basis and provides exclusive representation for an exporter\'s goods and services in a well-defined foreign territory.

Accepted Answer

export management company

Question 14

An import strategy may be driven by the fact that companies ________.

Accepted Answer

cannot buy goods or services needed in their production processes from local companies

Question 15

Common pitfalls to successful export operations include all of the following except which one?

Accepted Answer

Managers run into problems getting qualified export counseling.

Question 16

Which of the following questions do companies not need to consider before deciding to begin the export process?

Accepted Answer

What is the variability of the home country\'s import tariffs?

Question 17

As a company designs its import strategy, it typically begins by ________

Accepted Answer

studying potential markets to pinpoint possible overseas suppliers

Question 18

________ refers to any one of several different arrangements that parties negotiate so that they can trade goods and services with limited or no use of currency.

Accepted Answer

Countertrade

Question 19

All of the following are mistakes companies new to exporting frequently make except which one?

Accepted Answer

neglecting domestic business when export business booms

Question 20

In designing an export strategy, managers typically do all of the following except ________.

Accepted Answer

look to extend customary forms of financial support to new markets

Question 21

A situation in which goods are traded for goods due to a shortage of foreign exchange is known as ________.

Accepted Answer

barter

Question 22

The Internet supports more companies\' effort to launch a direct selling strategy by ________.

Accepted Answer

providing faster and cheaper delivery of information

Question 23

Export intensity, the measure of the relative importance of exports to total sales for a company, ________.

Accepted Answer

is independent of company size

Question 24

Research indicates that a company\'s propensity to export, strongly influenced by the size of the firm, is also strongly influence by the ________.

Accepted Answer

management\'s attitude about business risk

Question 25

Exporters who opt for direct selling in foreign markets most commonly do so ________.

Accepted Answer

operate through independent sales representatives

Question 26

Increasingly, we see newly formed companies begin exporting sooner in their life cycle, led by a new generation of entrepreneurs and managers with a keen awareness of export opportunities. These sorts of firms are generally referred to as ________.

Accepted Answer

born global

Question 27

In ________, the exporter sells goods directly to or through an independent domestic intermediary in the exporter\'s home country that exports the products to foreign markets.

Accepted Answer

indirect selling

Question 28

A company that starts out with a global focus because of the international experience and education of its founders is called a ____

Accepted Answer

born-global company

Question 29

Which of the following is true of export trading companies in the United States?

Accepted Answer

They have been a successful form of export intermediary in recent years

Question 30

Countertrade is an inefficient way of doing business because it ________.

Accepted Answer

threatens free market forces with protectionism and price fixing

Question 31

Small- and medium-sized U.S. companies can rely on the Export Assistance Center of the International Trade Administration (ITA) of the U.S. Department of Commerce to help deal with major parts of their export strategy, including ________.

Accepted Answer

identifying potential sales agents

Question 32

A company\'s experience in export and import, along with its ________, significantly influence its inclination for indirect selling

Accepted Answer

range of financial and management resources

Question 33

A situation in which an exporter sells goods for cash but then undertakes to promote exports from the importing country in order to help it earn foreign exchange is known as ________.

Accepted Answer

offset trade

Question 34

The part of export strategy that trips up many companies, particularly smaller ones that are experimenting with export, is ________.

Accepted Answer

selecting a foreign market

Question 35

The company that opts for a direct selling strategy to manage its exports is usually responding to competitive pressures ________.

Accepted Answer

to more fully exploit its core competencies

Question 36

The basis for designing an effective strategy for exporting begins with __

Accepted Answer

identifying how the company can potentially leverage its core competency into international sales

Question 37

Imports and exports play ________ in the U.S. economy than they did 20 years ago

Accepted Answer

the same role for manufacturing but a much lesser role for services

Question 38

________ refers to any one of several different arrangements that parties negotiate so that they can trade goods and services with limited or no use of currency.

Accepted Answer

Countertrade

Question 39

A freight forwarder, the so called \"travel agents of cargo,\" performs which of the following functions?

Accepted Answer

is the largest export intermediary in terms of value and weight handled

Question 40

Which of the following is not a function of the U.S. Department of Commerce?

Accepted Answer

act as an export marketing department or international department for their client firms

Question 41

Which of the following is a major pitfall of exporting?

Accepted Answer

pursuing orders from around the world instead of establishing a base of profitable operations

Question 42

As management weighs the decision of whether to export, an example of a strategic concern would be which of the following?

Accepted Answer

Is exporting consistent with the company\'s mission and goals

Question 43

Companies are most likely to use export to products abroad in all of the following situations except

Accepted Answer

when they want to use the riskiest method to engage in international trade

Question 44

In designing an export strategy, managers typically do all of the following except ________.

Accepted Answer

look to extend customary forms of financial support to new markets

Question 45

Which of the following is true of export trading companies in the United States?

Accepted Answer

They have been a successful form of export intermediary in recent years.

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