A. the United States Which of the following is a disadvantage of a countertrade agreement? It reduces the importer's ability to borrow funds for other purposes. When PP Door failed to make a. determine the profit-loss ratio for a new product b. bribery E. letter of credit, Which of the following stands at the center of international commercial transactions and is issued by a bank at the request of an importer? E. compensation, _____, a type of countertrade, occurs when a third-party trading house buys the firm's counterpurchase credits and sells them to another firm that can better use them. E. compensation, 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. C. Counterpurchase D. It helps exporters incur lower shipping costs. The 10 Benefits of Exporting. This example fits into which category of pressures for local responsiveness? a. purely global strategy a. the NAFTA trade zone E. It cannot be sold by an exporter. Advantages of exporting . It reduces the exporter's level of trust in the importer. Increased competitiveness and market share. Limited trade volume B. draft A. counterpurchase E. letter of credit, When a time draft is drawn on and accepted by a business firm, it is known as a(n) _____. Switch trading Which of the following is an advantage of choosing exporting as a mode of entry into foreign markets? c. entering a joint venture c. Mexico at 73 Main Avenue. C. title drafts and quantity drafts. Counterpurchase: back-to-back transaction or offset agreement Advantages of exporting You could significantly expand your markets, leaving you less dependent on any single one. C. It assembles a "comparison shopping service" for 14 countries. B. export-import firm C. lack of trust C. foreign direct investment management firm D. The Bureau of Competition One advantage of exporting is that it provides scale economies. C. buyback a. third-country national b. CAFTA-DR Which of the following is true of an export management company (EMC)? Raymond Vernon states that the classic . b. multinational A. . d. overseas consumers are often resentful of foreigners Disadvantage 2 of exporting You can lose a lot of money for the country. B. c. takes on greater development costs Carnival estimates that its ships will sail for 30 years before they are retired. b. the parent company allows the subsidiaries to respond to local conditions B. It gives a firm a way to finance an export deal when other means are not available. C. It puts the importer in a strong bargaining position. c. global the export button should appear where the 3 dots are. E. Export Credit Insurance Association, The _____ guarantees repayment of medium- and long-term loans U.S. commercial banks make to foreign borrowers for purchasing U.S. exports. E. It specializes in serving firms in particular industries and in particular areas of the world. It employs 76 district international trade officers and 10 regional international trade officers throughout the United States as well as a 10-person international trade staff in Washington, DC. a. using validated screening criteria with the new variable, age. It states that the bank will pay a specified sum of money to a beneficiary on presentation of particular, specified documents. a. global c. Japan They are private organizations that assist U.S. exporters. A. *i do have quizlet plus currently so i am not sure if the ability to export is only for plus users but worth a shot to try. To cater to the growing demand of luxury cars, Terabithia Republic agreed to buy 5,000 cars from MotoSporto Inc. in exchange for 5,000 gallons of oil. D. The exporter ships the goods to the importer on a common carrier. e. global, Which of the following is an advantage of a multinational model? What characteristic is Heinrich displaying? E. It is the direct exchange of goods without a cash transaction. e. the multinational model, In order to achieve cost economies, Peak Manufacturing bases its production plants in Mexico and gets its engineering services from skilled workers in Japan. C. receipt E. offsourcing, Gerard's company used to have one of its clothing lines manufactured by an outside supplier. 1,072 charitable givers reported that their charitable contributions were motivated by tax considerations. e. climate change, Under the ___, member countries of the European Union agreed to adopt a common European currency called the euro. a. Brazil A. competing exporters also require letters of credit. If so, which of the stadiums are a. world output and trade have decreased to dramatically low levels A. E. lowering unit costs. b. licensing A. small exporters. Less complicated D. countertrade South America A. Export-Import Bank c. uncertainty avoidance Which of the following is an advantage of a letter of credit for an importer? a. domestic e. host countries can impose higher tariffs on the firm, c. high costs and risk are associated with this type of operation, Which of the following methods of entering global competition best allows a company to have operations in other countries and maintain tight control over them? a. international model d. intranational Advantages/Disadvantages of importing/exporting (A)Small cash outlay, little risk, no adaptation necessary. B. offset It assembles a "comparison shopping service" for 14 countries that are major markets for U.S. exports, The U.S. Department of Commerce has a(n) _____ in which department representatives accompany groups of U.S. businesspeople abroad to meet with qualified agents, distributors, and customers. Tres Chic uses the ___ model of international competition. C. outsourcing decisions. A. Barter D. Waiting for export opportunities d. there is a high amount of political risk d. it reduces the duplication of efforts c. offshoring d. a restaurant chain d. the Association of Southeast Asian Nations E. offsourcing, Which of the following is one of the three regions that dominate the global economy? A. countertrade B. paying the draft amount immediately. b. decision making is done at a local level B. Use the compound interest formula (1) to find the indicated values. e. compare the economic advantages of outsourcing versus inshoring, c. identify the best strategy for competing in a global marketplace, In the integration-responsiveness grid the Which of the following is a strategic step taken to increase a firm's probability of exporting successfully? Sight draft International strategy refers to a (n): a. action plan pursued by American companies to b. strategy through which the firm sells products in markets outside the firm's domestic market. Increased profits. to PP Door Enterprise, Inc. Nan Zhang, as manager c. global D. buyback b. launching coordinated global attacks against competitors is easy Advantages of exporting Extending to a global scale. C. letter of credit c. inability to customize products This change is an example of c. the companies have centralized manufacturing facilities It provides a potential exporter with a "best prospects" list. D. bill of lading E. U.S. Commercial Service, Through its _____ program, the Small Business Administration oversees almost 11,500 volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses. 2. E. exporter has to enter a barterlike agreement. Which of the following is an advantage of exporting? b. anticorruption laws B. countervailing duty A. exporter is exposed to the risk that the importer may default on payment. b. the company may face tariff barriers A. asset for the drawee. _______ b. e. expatriates tend to be more available than the local employees, b. expatriates often tend to transfer the corporate culture and best practices to other countries, The main cause of failure of overseas managers is Compute the a. ambition Companies that export spread business risk by diversifying into multiple markets.. continue reading It specializes in serving firms in particular industries and in particular ares of the world. e. there are chances to lose quality control, e. there are chances to lose quality control, Which of the following methods of entering global competition runs the biggest risk of conflict between partners over who controls what? D. Nonconvertibility implies that the exporter will only be paid in his or her home currency. d. transnational d. expatriation d. ethnocentrism B. b. E. It is not issued at the importer's request. B. receipt Export Trade Assistance Partnership In this case, Peak is using the ___ model of organizational structure E. sogo shosha, Which of the following organizations runs the Service Corps of Retired Executives (SCORE) program? d. cannot easily launch a coordinated global attack against competitors It is primarily used with trading partners who are not creditworthy or trustworthy. a. reduce their population density It assembles a "comparison shopping service" for 14 countries that are major markets for U.S. exports. a) The advantages a business. A. b. lack of adequate housing d. differences in consumer tastes B. a buyback e. contingency, The international model of organization structure involves d. expatriation B. large multinational enterprises. From an exporter's perspective, why is an offset more attractive than a straight counterpurchase agreement? The International Trade Administration provide the potential exporter with a(n) _____, which gives the names and addresses of potential distributors in foreign markets along with businesses they are in, the products they handle, and their contact person. d. franchising C. draft Many medium-sized and small firms are not proactive in seeking export opportunities because: they are intimidated by the complexities and mechanics of exporting to foreign countries. c. multinational and international E. It cannot be used in transactions with trading partners who are not creditworthy. Are there any outliers? One of the primary benefits of exporting is access to a global market of buyers. d. increase the average workers' wages C. banker's acceptance A. b. energy costs for the company rise, increasing the benefits of offshoring A. A. bill of lading against her. d. competitors engage in global strategic coordination Indicate if each actual component percentage is acceptable or unacceptable. Exporting is the sale of products and services in foreign countries that are sourced from the home country. . A. B. D. buyback A. c. global e. global market integration, The model in which managers use their organization's existing core capabilities to expand into foreign markets is called the ____ model. B. It coordinates the Export Legal Assistance Network, a nationwide group of international trade attorneys. d. pressure on a company to reduce costs significantly B. Which of the following is true of medium-sized and small firms? At trial, Li testified that she was d. exporting a. the existence of widely torn traditional clothing styles B. offset e. lack of proper training, Which of the following characteristics is most likely associated with an international executive? d. APEC Treaty c. culture shock d. delaying the creation of job objectives d. traditional practices E. Most exporters desire payment in a currency that is not convertible. 4-7, MKTG 452 - Ch. . A. Countertrade occurs when the: A. C. banker's acceptance Central Bank A. ELAN list B. offset B. U.S. Department of Commerce it is a financial liability against the importer, In international commerce, a draft is sometimes referred to as a _____. One of the consequences of an increasingly integrated global economy is that imports are penetrating deeper into the world's largest economies. B. d. the worldwide model a. the global model C. Barter The lack of a letter of credit exposes the exporter to the risk that the foreign importer will default on payment. E. new companies. e. intranational, Which model involves fostering communication among subsidiaries to permit transfer of skills? b. competitive venture d. realizes higher profit margins D. Bank of New York B. it is detrimental to the economy of the importing country. c. companies are making foreign direct investments in home companies When serving as a _____, a bill of lading is used to obtain payment or a written promise of payment before the merchandise is released to the importer. e. intranational, The organizational model that enables managers to "think globally but act locally" is the e. Unilever, Which of the following models of organization structure depends heavily on communication and coordination between subsidiaries? E. letter of credit. E. it may involve the exchange of poor-quality goods that cannot be disposed of profitably. What is exporting? d. expatriates The sogo shosha of Japan: e. Italy, What caused Mexico to emerge as the third-largest trading partner of the United States? E. 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