QUESTION The mission of the Foreign Credit Insurance Association is to provide financing aid that will facilitate exports, imports, and the exchange of commodities between the United States and other countries Indicate whether the statement is true or false. ANSWER FALSE It is the mission of the Export-Import Bank, often referred to as Ex-Im […]
QUESTION Offset refers to the use of a specialized third-party trading house in a countertrade arrangement Indicate whether the statement is true or false. ANSWER FALSE An offset, a type of countertrade, is similar to a counterpurchase insofar as one party agrees to purchase goods and services with a specified percentage of the proceeds […]
QUESTION Export credit insurance protects an exporter against the possibility of a foreign importer’s default on payment when there is a lack of a letter of credit Indicate whether the statement is true or false. ANSWER TRUE The lack of a letter of credit exposes an exporter to the risk that a foreign importer […]
QUESTION Barter is primarily used with trading partners who are not creditworthy or trustworthy Indicate whether the statement is true or false. ANSWER TRUE Barter is the direct exchange of goods and/or services between two parties without a cash transaction. It is primarily used for one-time-only deals in transactions with trading partners who are […]
QUESTION Countertrade’s main attraction is that it can give a firm a way to finance an export deal when other means are not available. Indicate whether the statement is true or false. ANSWER TRUE Countertrade’s main attraction is that it can give a firm a way to finance an export deal when other means […]
QUESTION The principle of countertrade is to trade goods and services for money Indicate whether the statement is true or false. ANSWER FALSE Countertrade denotes a whole range of barterlike agreements; its principle is to trade goods and services for other goods and services when they cannot be traded for money
QUESTION Firms that do not export often: A. face problems of currency conversion. B. lose out on significant opportunities for cost reduction. C. are able to reduce their unit costs. D. are not intimidated by the business practices of foreign countries. E. explore foreign markets to see where they can leverage their technology. ANSWER […]
QUESTION While seeking opportunities for profitable exporting, large firms generally tend to be: A. passive. B. risk averse. C. wary. D. proactive. E. neutral. ANSWER D
QUESTION Exporting is nearly always a way to increase the revenue and profit base of a company because: A. there is little competition in the international market. B. foreign governments encourage imports from other countries. C. international markets are less complex than their domestic counterparts. D. the international market is much larger than the domestic […]
QUESTION Which of the following is true of medium-sized and small firms? A. They are proactive about seeking opportunities for profitable exporting. B. They consider exporting only after their domestic market is saturated. C. They are not intimidated by the complexities of foreign legal systems. D. They have a high degree of familiarity with foreign […]
