International Business Test 3 – Flashcards

Which of the following is a major drawback of engaging in countertrade?

A _____ is simply an order written by an exporter instructing an importer, or an importer's agent, to pay a specified amount of money at a specified time.

_____ is payable on presentation to the drawee.

Which of the following is a common difficulty that traders face when exporting goods or services to other countries?

Which of the following statements is true of export credit insurance?

Bank charges on letter of credit will depend on the ____.

In a(n) ____, one party agrees to purchase goods and services with a specified percentage of the proceeds from the original sale and this party can fulfill the obligation with any firm in the country to which the sale is being made.

A _____ is issued to the exporter by the common carrier transporting the merchandise and serves as a receipt, a contract, and a document of title.

_____ is an alternative means of structuring an international sale when conventional means of payment are difficult, costly, or nonexistent.

_____ denotes a whole range of barter-like agreements and its principle is to trade goods and services for other goods and services when they cannot be traded for money.

Which of the following is a disadvantage of using a letter of credit (L/C)?

_____ is a reciprocal buying agreement and occurs when a firm agrees to buy a certain amount of materials back from a country to which a sale is made.

Which of the following is NOT a successful exporting strategy used by 3M?

In theory, the advantage of EMCs is that they are __________________.

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.

The great promise of exporting is that ____.

A _____ states that the bank will pay a specified sum of money to a beneficiary, normally the exporter, on presentation of particular, specified documents.

As a receipt, the bill of lading indicates that the carrier ____.

Which of the following is a document used to give the title of the products to a bank?

Through its _____ program, the SBA oversees about 850 volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses.

Which of the following statements is true of countertrade?

Which of the following statements is true of reactive firms?

Which of the following is an advantage of countertrade?

A banker's acceptance ____.

Which of the following is a nationwide group of international trade attorneys who provide free initial consultations to miniature businesses on export-related matters?

Which of the following statements is true of exporting?

_____ is the direct exchange of goods and/or services between two parties without a cash transaction and is the simplest arrangement.

A draft used in international transactions ____.

Which of the following statements is true about Small Business Administration (SBA)?

Which of the following is a major advantage of using a letter of credit?

In an international transaction involving bank as a third party, the exporter ships the product after ____.

Which of the following terms refers to the use of a specialized third-party trading house in a countertrade arrangement?

_____ is viewed as the most restrictive countertrade arrangement and is primarily used for one-time-only deals in transactions with trading partners who are not creditworthy or trustworthy.

In a letter of credit transaction, the importer secures the letter of credit ____.

A _____ allows for a delay in payment.

Which of the following is a factor that transforms a low-cost location to a high-cost location?

Which of the following is a hidden cost associated with basing production in a foreign location?

Which of the following products will most likely have high value-to-weight ratios?

An advantage of engaging in in-house production of products and components is that _____.

At Six Sigma, a production process would be highly accurate and create just _____.

Before a firm is allowed access to the European marketplace, the European Union requires that the quality of the firm's manufacturing processes and products be certified under a quality standard known as _____.

RSA is a bicycle manufacturing company. Which of the following is a make-or-buy decision that the company will have to make?

Which of the following is a technological factor that affects international business?

The idea that valuable knowledge does not reside just in a firm's domestic operations but can also be found in its foreign subsidiaries is called _____.

How has the adoption of just-in-time inventory systems, computer-aided design, and computer-aided manufacturing impact firms' associations with suppliers?

Which of the following makes being dependent on one location particularly risky?

According to the concept of economies of scale, as plant output expands, _____.

Identify an advantage of adopting a low minimum efficient scale.

The Six Sigma methodology _____.

Which of the following statements is true of Web-based EDI systems?

The major cost saving associated with JIT systems comes from _____.

When a company's product has a low value-to-weight ratio, the company should _____.

With a(n) _____ system, suppliers, shippers, and the purchasing firm can communicate with each other with no time delay.

Just-in-time inventory systems _____.

An advantage of buying component parts, or even an entire product, from independent suppliers is that _____.

_____ allows the company to produce a wider variety of end products at a unit cost that at one time could be achieved only through the mass production of a standardized output.

A _____ is an asset whose value is contingent upon a particular relationship persisting.

Deming, the proponent of total quality management, argued that _____.

Logistics is the activity that controls the _____.

Central to the concept of economies of scale is the idea that the best way to achieve high efficiency, and hence low unit costs, is through the _____.

A(n) _____ is a grouping of various types of machinery, a common materials handler, and a centralized cell controller.

Which of the following is a drawback of a just-in-time system?

Dynamic capabilities describe skills that _____.

Make-or-buy decisions are decisions about _____.

The benefits of making all or part of a product in-house seem to be greatest when the firm _____.

Concentration of production is appropriate when _____.

Which of the following is a desired outcome of flexible manufacturing technology?

Which of the following statements is true of Six Sigma?

The term _____ has been coined to describe the ability of companies to use flexible manufacturing technology to reconcile the goals of low cost and product personalization.

Which of the following statements is true of products with high value-to-weight ratios?

Which of the following is a major source of the improvement in the capabilities of a foreign site?

Tight cross-functional integration between R&D, production, and marketing can help a company to ensure that all of the following take place except:

The ____ industry is often thought of as one in which global standardization of the marketing mix is the norm.

Contrary to Levitt's suggestions, consumers in the most developed countries are often:

____ occurs whenever a firm sells a product for a price that is less than the cost of producing it.

A firm that depends more on mass media advertising to communicate the marketing message to potential consumers is using a:

Which of the following statements is true?

____ refers to the expertise, competencies, and skills of established retailers in a nation, and their ability to sell and support the products of international businesses.

The way a product is delivered is determined by:

Which of the following countries has a concentrated retail system?

Which of the following is an example of a positive source effect?

Which of the following statements about retail systems is true?

The set of choices the firm offers to its targeted market is known as the ____.

The identification of distinct groups of consumers whose purchasing behavior differs from others in important ways is known as ____.

Which of the following is one of the important factors in determining the elasticity of demand for a product in a given country?

The continuing persistence of ____ differences between nations acts as a major brake on any trend toward global consumer tastes and preferences.

When a firm emphasizes personal selling rather than mass media advertising in the promotional mix, the firm is using a:

In order for price discrimination to be successful:

The extent to which the place of manufacturing influences product evaluations is known as ____.

A ____ retail system is one in which there are many retailers, no one of which has a major share of the market.

Research has long maintained that a major factor of success for new products is the closeness of the relationship between:

In a country where competition is limited, ____.

The means a firm chooses for delivering the product to the consumer is its ____.

Many firms pursuing a(n) ____ pricing strategy on an international scale will price low worldwide in attempting to build global sales volume as rapidly as possible, even if this means taking large losses initially.

In the 1960s, the Swedish vacuum manufacturer Electrolux successfully marketed vacuums in the United Kingdom with the slogan "Nothing sucks like an Electrolux". The informal US meaning of the word 'sucks' was already well known in the UK at the time, and the company hoped the slogan, with its possible double entendre, would gain attention. When this slogan was used in the American market, it was a catastrophe. This is an example of:

A(n) ____ distribution channel is one that is difficult for outsiders to access.

Which of the following is one of the four elements that constitute a firm's marketing mix?

According to Levitt, which of the following statements is true?

To overcome cultural barriers, companies should:

A push strategy is appropriate when:

The most important aspect of a country's cultural differences, particularly important in foodstuffs and beverages, is the impact of ____.

If market segments transcend national borders:

Consumers in highly developed countries value ____ as compared to their counterparts in less developed nations.

When a channel is exclusive:

____ refers to the fact a firm's pricing strategy in one market may have an impact on its rivals' pricing strategy in another market.

Which of the following statements about barrier to international communication is true?

Which of the following statements about price discrimination is true?

Which of the following statements about the choice of distribution strategy is true?

What kind of retail systems do rural India and China have?

____ pricing is the use of price as a competitive weapon to drive weaker competitors out of a national market.

Which of the following statements about fragmented retail systems is true?

In a concentrated retail system: