BusM430 Chapter 13

question

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

conventional forms of payment are difficult, costly, or nonexistent.
question

According to the research described in your text, which of the following is among the factors that would increase a firm’s probability of exporting?
answer

High level of efficiency
question

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

target promising markets evaluate the fit of current resources with long-term needs assess their products’ potential for export sales
question

Which of the following is a major pitfall of exporting?
answer

Reacting to orders from around the world rather than designing a purposeful sales strategy
question

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?
answer

Importing
question

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

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

Which of the following is an example of barter?
answer

Indonesia supplies Thailand with agricultural supplies in exchange for rice grown in Thailand.
question

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

by working with a foreign distributor.
question

Which of the following is usually not a factor that triggers companies to look to exports to boost total sales?
answer

Promote economic development in underdeveloped markets
question

The perspective of ________ holds that as a company gains experience, resources, and confidence, it progressively increases its exports.
answer

incremental internalization
question

A freight forwarder, the so-called “travel agent of cargo,” performs which of the following functions?
answer

Arranging the fastest and cheapest transportation of products to and from foreign suppliers
question

As companies initiate their activities in export markets with a preference for an indirect selling strategy, they tend to ________.
answer

use external specialists to assist in the export process.
question

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 ________.
answer

counter purchase
question

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.
answer

Bureau of Customs and Border Protection
question

A driving factor for the growth in imports is the impact of ________.
answer

The specialization of labor
question

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 ________.
answer

offset trade
question

The probability of being an exporter ________.
answer

increases with firm size
question

An exporter that opts for a(n) ________ strategy will develop its own international marketing capability.
answer

direct selling/exporting
question

All of the following are primary duties of the Bureau of Customs and Border Protection.
answer

protecting the US from threatening imports policing smuggling operations assessing all duties, taxes, and fees on imported merchandise
question

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

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

A(n) ________ operates on a contractual basis and provides exclusive representation for an exporter’s goods and services in a foreign market.
answer

export management company
question

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.
answer

indirect selling/exporting
question

________ 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.
answer

Countertrade
question

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?
answer

exporting
question

Companies are likely to export products abroad in all of the following situations.
answer

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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