BusM430 Chapter 13 – Flashcards
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Which of the following refers to the purchase of goods or services produced by a company based in one country from sellers that reside in a different country?
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Importing
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Which of the following is typically true of an export management company?
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It operates on a contractual basis for a manufacturer by helping obtain orders for its clients' products.
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Which of the following is an example of barter?
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Indonesia supplies Thailand with agricultural supplies in exchange for rice grown in Thailand.
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Exporters who opt for direct selling in foreign markets most commonly do so ________.
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by working with a foreign distributor.
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Which of the following is usually not a factor that triggers companies to look to exports to boost total sales?
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Promote economic development in underdeveloped markets
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The perspective of ________ holds that as a company gains experience, resources, and confidence, it progressively increases its exports.
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incremental internalization
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A freight forwarder, the so-called "travel agent of cargo," performs which of the following functions?
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Arranging the fastest and cheapest transportation of products to and from foreign suppliers
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As companies initiate their activities in export markets with a preference for an indirect selling strategy, they tend to ________.
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use external specialists to assist in the export process.
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A situation in which an exporter sells products to a foreign country along with its promise to make a future purchase of a specific product made in that country is known as ________.
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counter purchase
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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.
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Bureau of Customs and Border Protection
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A driving factor for the growth in imports is the impact of ________.
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The specialization of labor
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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 ________.
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offset trade
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The probability of being an exporter ________.
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increases with firm size
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An exporter that opts for a(n) ________ strategy will develop its own international marketing capability.
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direct selling/exporting
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All of the following are primary duties of the Bureau of Customs and Border Protection.
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protecting the US from threatening imports policing smuggling operations assessing all duties, taxes, and fees on imported merchandise
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An import strategy may be driven by the fact that companies ________.
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cannot buy goods or services needed in their production processes from local companies
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A(n) ________ operates on a contractual basis and provides exclusive representation for an exporter's goods and services in a foreign market.
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export management company
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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.
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indirect selling/exporting
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________ 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.
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Countertrade
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Which of the following refers to the sale of goods or services produced by a company based in one country to customers that reside in a different country?
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exporting
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Companies are likely to export products abroad in all of the following situations.
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when their average cost per unit of home country production declines substantially by increasing output when they are new to international business when they aim to increase degree of market diversification
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