It protects exporters from the risk that the foreign importer will default on payment. The firm does not want any foreign goods, however, so it sells the credits to a third-party trading house at a discount. c. global Why might the court agree? e. bears most of the risks associated, Bob's Better Burgers sells small business owners the rights to use the company's brand name in return for a lump-sum payment and a share of the buyer's profits. d. exporting to PP Door Enterprise, Inc. Nan Zhang, as manager C. barter the sole owner of PP Door but denied that Zhang was its manager. d. high transportation costs a. growth of developing nations d. The International Monetary Fund A. B. d. overseas consumers are often resentful of foreigners e. ASEAN, What does an integration-responsiveness grid help a manager to do? Time draft One of the consequences of an increasingly integrated global economy is that imports are penetrating deeper into the world's largest economies. D. sight drafts and time drafts. d. the subsidiaries depend completely on the parent company for new products a. it is consistent with a pure global strategy C. Counterpurchase B. b. multinational d. bribery concerns d. intranational It facilitates an exporter to obtain pre-export financing. 2. Which of the following is true of medium-sized and small firms? B. E. It is not an acceptable means of trading in most developing countries. a. expatriate What is an accurate description of countertrade? Disadvantage 2 of exporting You can lose a lot of money for the country. E. They are global export management companies. a. international Are there any outliers? B. single-party drafts and multi-party drafts. B. d. expatriation Negative effect on world market prices (D) Tariffs and taxes, high transportation costs, government restrictions. Enables firms to generate hard currency & access markets, 4 main types Which of the following is true of a letter of credit? C. exporter is unable to obtain any pre-export financing. c. inadequate access to health benefits b. multinational A. d. transnational d. decreasing consumer demand E. Compensation, A firm concludes a counterpurchase agreement with a foreign country for which it receives some counterpurchase credits for purchasing its goods. a. international Main Avenue, LLC v. PP Door Enterprise Inc., 120 Conn.App. e. centralizes functions of research and development to the parent company, d. cannot easily launch a coordinated global attack against competitors, Foam Cutters is a speedboat manufacturing company based in California. B. A _____ is issued to an exporter by a common carrier transporting the merchandise and it serves as a receipt, a contract, and a document of title. D. have monopolized the export market in the country. This illustrates the ________ model for global strategy exporter may not be paid in his or her home currency due to nonconvertibility. The United States has not yet evolved an institutional structure for promoting exports similar to that of Germany. A. A. Economies of scale. e. provides too much freedom to its subsidiaries, a. is less responsive to consumer tastes and demands, Tres Chic, a cosmetics manufacturer, assumes that all people will view and use its products in the same way. The importer applies to a trusted third party (usually a bank) for a letter of credit to be issued in favor of the exporter for the merchandise the importer wishes to buy. B. paying the draft amount immediately. C. foreign direct investment management firm E. he or she knows that the importer will default on payment. See full answer below. horizontal axis. Bank of New York D. buyback a. universal needs Great Britain A. asset for the drawee. b. aging population Which of the following is true of exporting? CT can support the development of poor countries E. It allows direct exchange of goods and/or services between two parties without a cash transaction. C. inshoring Which of the following is a strategic step taken to increase a firm's probability of exporting successfully? D. Sight draft You should weigh them up before starting to move into overseas markets. d. leads to reduced efficiency The Middle East This is an example of _____. E. Ministry of International Trade and Industry. b. Canada a. exporting B. large multinational enterprises. They consider exporting only after their domestic market is saturated. Receives payment in the form of goods produced by the facility E. Africa. D. offset A. counterpurchase c. a technical component used in electronic devices worldwide B. Which of the following forms of countertrade is the country most likely to use? c. Heineken B. d. franchising 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. B. it is detrimental to the economy of the importing country. A. It is unattractive to multinational companies due to its time-consuming and expensive nature. Greater production can lead to larger economies of scale and better margins. a. local demand E. export-import program, The _____ is a government organization that helps potential exporters. A. the importer defaults on payment. B. sogo shosha What is a common difficulty that traders face when exporting goods or services to other countries quizlet? exporter is exposed to the risk that the importer may default on payment, In the United States, export credit insurance is provided by _____, an association of private commercial institutions. B. counterpurchase b. multinational monthly payments, 73-75 Main Avenue filed a suit against PP E. countertrading opportunities. C. document of title d. the United States, the European Union, and Canada, Which of the following has become an important provider of online technological support for the United States? d. transnational B. export-import firm Firms engaged in international trade deal with people they may have never seen, who live in different countries, who speak different languages, and who abide by different legal systems. B. countervailing duty Obtaining pre-export financing becomes easier. A. counterpurchase Main advantages of direct exporting are as under: 1. D. It is useful only for small companies. b. c. multinational and international b. licensing c. exporting c. raises the standards of living Better Knowledge of Customers' Requirements: The manufacturer is in direct touch with the consumers or retailers and can possess a better understanding and knowledge of the requirements of the buyer and can modify, if needed, his product accordingly. E. Buyback, The most restrictive countertrade arrangement is _____ because if goods are not exchanged simultaneously, one party ends up financing the other for a period. C. Compensation C. It serves as a receipt, a contract, and a document of title. e. patenting, An advantage of licensing as a method of entering global competition is that the Li claimed to have Correspondingly, the importer wants to pay only upon receipt of the consignment. B. Service Corps of Retired Executives Following generally accepted accounting principles, Carnival depreciates the cost of each ship over its 30-year estimated useful life. a. international mores d. limits its subsidiaries to market and service functions The figures show an astonishing 25% surge in the UK's exports of services since the British people voted to leave the EU. 2. B. C. a counterpurchase c. culture shock C. It oversees volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses. e. political demands, Which model should a company adopt when pressures for local responsiveness are high and pressures for global integration are low? Arbitrage a. companies who use offshoring find that their travel costs decrease b. increase their level of productivity c. join venture B. D. buyback E. The importer does not have to pay the third party a fee for facilitating the transaction. a. D. International Trade Administration It gives the exporter greater flexibility to choose the goods that it wishes to purchase. A. Selling goods and services to new markets offers a sales boost and enables long-term profitability. C. the exporter is not able to get a letter of credit from a local bank. C. Unlike Japan, U.S. firms have a strong information advantage when they seek export opportunities. It gives the exporter greater flexibility to choose the goods that it wishes to purchase. A. A. kaizen Central Bank The lessor A. In this case, Peak is using the ___ model of organizational structure d. creating a joint venture A. a. international model c. FTAA Advantages of Exporting - Avoids cost of establishing manufacturing operations - May help achieve experience curve and location economies Disadvantages of Exporting - May compete with low-cost location manufacturers - Possible high transportation costs - Tariff and non-tariff barriers b. competitive venture For an importer, which of the following is a disadvantage of using a letter of credit for international transactions? D. the importer has to pay even if the conditions stated in the letter are not satisfied. d. submission If so, which of the stadiums are D. Waiting for export opportunities Time draft B. offset e. global transnational, Research suggests that regardless of nationality or religion, most people embrace a set of five core values. b. choose a price point by graphing a product's supply and demand Which of the following is a disadvantage of barter as a countertrade arrangement? b. multinational A. C. have offices concentrated in the business district of Tokyo. . Federal Mediation and Conciliation Service B. becomes established in all the markets. The following data was used to prepare adjusting entries for Hawk Company as of August 31, the end of the company's fiscal year. d. franchising (Hint: What is the estimated life of your car?). d. universal needs D. there is mutual trust between the exporter and the importer. D. Barter Avoiding the use of export management companies to contain costs a. the United States, Canada, and Mexico Which of the following is an advantage of countertrade? Firms can avoid setting up in-house trading departments. a. global and transnational There is no need to adapt the products to be exported to local conditions as they are sold as is. e. Mexico, Which of the following countries is a member of the Asia-Pacific Economic Cooperation Group? Documentation = Official forms and other paperwork required in export transactions for shipping and custom procedures. What characteristic is Heinrich displaying? E. Offset, Which of the following drafts allows for a delay in payment? c. immigrants e. rigid procedures, Companies that adopt the global model tend to base their global competitive strategy on Hawk Company records prepaid assets and unearned revenues in balance sheet accounts. C. lack of trust An advantage of _____ is that it helps in doing business in many developing nations that find it difficult to raise the foreign exchange necessary to pay for imports. Successful exporting requires that agents perform all of the following except _____. E. export management list. d. ethnocentrism D. writing or stamping a notice of acceptance on its face. B. The United States is the largest services trading country in the world. They are unfamiliar with foreign market opportunities. A. document of title Importing is the flipside of exporting. b. a wholly owned subsidiary offers too much flexibility over operations The mission of the _____ is to provide financing aid that will facilitate exports, imports, and the exchange of commodities between the United States and other countries. c. global model e. it is inconsistent with a pure global strategy, ___ is an arrangement by which an organization in another country buys the rights to manufacture a company's product in its own country for a negotiated fee A firm that enters many markets at once: [73-75 As the parent company, NewGen runs its R&D department from its home country, so that each foreign subsidiary remains dependent on it for new products, processes, and ideas. D. Ex-Im Bank It gives a specified sum of money to a beneficiary, normally the exporter, on presentation of particular, specified documents. It does not allow firms to finance an export deal when other means are not available. D. Federal Deposit Insurance Corporation d. transnational Which of the following is true of counterpurchase? a. NAFTA It fails to give firms a way to finance an export deal. A. easy tracking of the parties involved. A. switch trade B. creating revenue. A . THis tutorial shows you how to export data from Quizlet.com to use elsewhere. A. maker Family issues are the main reason for expatriates to return home early. C. Germany D. Countertrade principals of PP Door signed the lease and guaranty agreements d. None they are independent of each other. c. join venture They are private organizations that assist U.S. exporters. b. licensing company has control over its technology C. It allows the use of a specialized third-party trading house. United Nations These conflicting preferences of the parties are a manifestation of _____. Question 2 Which of the following is an advantage of using exporting as an international business strategy? b. Australia Uncertain value proposition E. barter. B. a buyback B. D. Export Legal Assistance Network It addresses the issue of lack of trust in international business. Salaries Expense _______ d. Land _______ f. Salaries Payable, Three categories of internationalization strategies (focal firm), Large manufacturing firms - largest overall value of exports, Services- largest component of economic activity, Managing Export-Import Transactions - Documentation. d. differences in consumer tastes C. The United States Recently, FuturaCloud hired a California-based company to do those services instead. d. imports are failing to penetrate deeper into the world's largest economies d. APEC A. delivering the goods immediately. When PP Door failed to make Which of the following is true of barter as a countertrade arrangement? C. strict enforcement of contractual obligations. China b. differences in traditional practices among countries D. Developing nations may have trouble raising the foreign exchange necessary to pay for imports. c. local politics B. Li claimed that the guaranty for rent was not enforceable A. runs the risk of spreading its limited management resources too thin. E. buyback, In international commerce, a _____ refers to an order written by an exporter instructing an importer to pay a specified amount of money at a specified time. She did admit, however, that E. is 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. b. low cost sites are available A drawback of countertrade is that: Advantages of exporting You could significantly expand your markets, leaving you less dependent on any single one. a. cannot easily transfer core skills among international operations Tres Chic uses the ___ model of international competition. B. e. avoids criticism, Heinrich is a German engineer working in Africa. e. inpatriates, Which of the following is a reason why some companies prefer to use expatriates at their overseas operations? a. leads to increased prices e. global, The two strategic models that have relatively high manufacturing costs are d. a restaurant chain E. The Ministry of International Trade and Industry (MITI) in the United States is always on the lookout for export opportunities. B. the exporter has a letter of credit. B. offset Offset To serve the increasing demand for cruises, Carnival is constantly expanding its fleet of ships. d. expatriate Another advantage of exporting is profitability. b. strategy through which the firm sells products in markets outside the firm's domestic market. B. E. It requires exporting firms to obtain a letter of credit form a local bank. C. can be used to obtain payment or a written promise of payment before the merchandise is released to the importer. d. Nigeria Counterpurchase: back-to-back transaction or offset agreement Once accepted by the drawee, a time draft becomes a(n): A. merchandise bill E. It cannot be sold by an exporter. False Using host-country nationals at an overseas subsidiary is generally less expensive than using expatriates. d. varied consumer preferences Switch trading d. prefers familiarity Mar 27, 2022 C. It reduces the importer's ability to borrow funds for other purposes. each team, use this variable to create a new variable, stadium age, by subtracting a. is less responsive to consumer tastes and demands E. buyback. Identify a drawback of a countertrade agreement. E. selling the draft to an investor at a discount from its face value. D. It provides export specialists who act as the export marketing departments or international departments for their client firms. D. rapid acculturation. e. franchising, Superior Appliances moved some of its manufacturing operations to another country where wages are lower. B. specifies that the carrier is obligated to provide a transportation service in return for a certain charge. lessor with credit information. D. Vietnam, The practice followed bu some companies of moving jobs to another country is called d. the company risks losing control of its intellectual property c. Substantive testing should be twice the amount of internal controls testing. E. offset draft and counter draft, Which of the following drafts is payable on presentation to the drawee? e. intranational, Exporting, licensing, franchising, joint ventures, and wholly owned subsidiaries are all methods of A. bill of lading These factors result in: Increased competitiveness and market share. Requires a single contract D. time draft a. Russia c. wages in the foreign countries rise, reducing the expected cost savings A. TradeNet Export Advisor c. loss of control over quality Apparently, both the lessor and the b. outsourcing It coordinates the Export Legal Assistance Network, a nationwide group of international trade attorneys. c. avoiding the assignment of mentors The Biden administration on Thursday approved exports of liquefied natural gas from the Alaska liquefied natural gas (LNG) project, a document showed, prompting criticism from environmental groups . In terms of using a third party in international trade, title to the products is given to a bank by the exporter in the form of a document known as a _____. Which of the following is a characteristic of a time draft? b. decreased scale volume A. the importer has to request for it. C. inshoring a. world output and trade have decreased to dramatically low levels c. responsibility B. B. e. high labor costs, NAFTA combined the economies of ______ into one of the world's largest trading blocs The most comprehensive source of information on export opportunities for U.S. firms is the _____. b. the parent company allows the subsidiaries to respond to local conditions e. sales practices are uniform from country to country, a. consumer tastes and preferences differ significantly, When One-World Fashion tries to open its clothing stores in a new country, it learns that local rules require a certain percentage of its products to be manufactured locally. b. international An exporter has to forgo a letter of credit when: d. expatriates The inputs the company uses are cheaper. No cash deposit or collateral is required from the importer. C. Securitization B. Few companies invest more in equipment than Carnival Cruise Lines, the most popular cruise line in the world. One advantage of exports is: Concentration of resources on production Companies with innovation-seeking strategic goals target countries and regions: Renowned for generating first-class innovators A green-field operation refers to: A wholly owned subsidiary created by building a new factory and offices from scratch A properly maintained ship can easily last more than 30 years. A. proactively and continuously seek export opportunities for their affiliated companies. c. immigrant a. international b. host-country national This is an example of which of the following? B. bill of lading E. letter of credit. d. global model The Company operates a subsidiary in Australia, marketing products that are customized to appeal to Australian tastes. c. global C. Switch trading Which of the following is one of the five core values? It provides a potential exporter with a "best prospects" list. d. ethnocentrism A. D. It is also known as a bill of lading. C. narrowing distance between the two parties due to technological advances. E. Federal Reserve Bank, The Foreign Credit Insurance Association (FCIA) is an association of private commercial institutions operating under the guidance of the _____. a. Sony c. the international model D. filing a suit against the importer in court. E. new companies. In which of the following types of countertrade arrangement are the two parties engaged? against her. C. Export-Import Bank The importer does not have to pay for the merchandise until the documents have arrived. B. exporter can convert the currency only in U.S. dollars. Advantages/Disadvantages of importing/exporting (A)Small cash outlay, little risk, no adaptation necessary. The World Train Organization B. a. exporting Disadvantage 1 of exporting When you buy goods and then sell them for less which is called a deficit. D. bill of lading. b. subsidiaries located in countries where the company does business with much of the control exercised by the parent company A. Risk mitigation. b. Germany b. wholly owned subsidiaries True Federal Trade Commission C. Overseas Commercial Service a. differences in distribution channels a. Egypt Contingent on a second contract = seller agrees to purchase goods for same cash amount or set percentage of it, Alternative technique for expanding into international markets B. writing or stamping a notice of acceptance on its face. It oversees volunteers with international trade experience and directs them to provide one-on-one counseling to active and new-to-export businesses. A. can be used to advance funds to the exporter by its local bank before or during shipment. e. wholly owned subsidiary, Parent company nationals who are sent to work at a foreign subsidiary are known as e. joint ventures, What is an advantage of exporting as a global expansion entry mode? b. it provides maximum latitude to research and development functions a. may lose control over its technology d. transnational Risk Mitigation. E. Bill of exchange, A _____ is issued by a bank, and it indicates that the bank will make payments under specific circumstances. One advantage of exporting is that it provides scale economies. D. It typically lacks information about local business regulations. e. reducing the dependency by communicating rarely, While Cork Commercial Containers was planning how it was going to open a plant in the Phillipines, it brought in Rodrigo, a native of the country, to teach the development team about the country's culture and economy. E. letter of credit, When a time draft is drawn on and accepted by a business firm, it is known as a(n) _____. E. It gives novice exporters the names and addresses of potential distributors in foreign markets along with businesses they are in. e. transnational, Which of the following companies is an example of a transnational company? C. banker's acceptance B. exclusively serve the largest and most prestigious companies in Japan. e. cognitive dissonance, ___ are foreign nationals who are brought in to work at the parent company A. a. individualism c. entering overseas markets D. arbitrage Sight draft Compute the C. developing nations have trouble raising the foreign exchange necessary to pay for imports. Advantages of Exporting Strategy can be easily implemented Less investment abroad- small firms can also enter int. It is primarily used with trading partners who are not creditworthy or trustworthy. C. obtaining pre-export financing. D. It organizes trade events that help potential exporters make foreign contacts. d. the worldwide model c. transportation costs are generally lower b. IBM D. strategy management company e. it has reversed the trend of increased automation, c. wages in the foreign countries rise, reducing the expected cost savings, An organization's economic environment includes Lack of international marketing prowess c. it is the most expensive method of expanding globally B. c. India c. a pipe fabricator e. creating a wholly owned subsidiary, Jamila is a native of the country where Regal Industries is building its new plant. C. It reduces the administrative costs incurred by a company. B. banker's check B. bill of lading A. c. inability to customize products b. multinational Why do you think Carnival estimates that its ships will be used for only 30 years? b. licensing C. It coordinates a nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters. It allows payment for merchandise after its delivery. Use the compound interest formula (1) to find the indicated values. d. franchising A. bill of exchange C. gets the time to learn about each market. D. U.S. Department of Commerce E. reduces the costs of any subsequent failure. E. barter. D. It helps companies increase their unit costs. In the modern era, countertrade arose in the 1960s as a way for _____ to purchase imports. The use of a specialized third-party trading house in a countertrade arrangement is known as _____. D. It results in lower shipping costs. C. United States Trade Service An official of the carrier gives the exporter a bill of lading. Bill of lading e. compassion, US business people working abroad may face ethical challenges, in particular because of cultural differences regarding these are the most efficient and flexible method to discover and accommodate changes in local demand O . B. offset a. determine the profit-loss ratio for a new product Increased profits. a. exporting c. requires spending more money on product customization b. many companies find their home markets under attack from foreign competition b. the company may face tariff barriers Closing price for the week for Belden (BDC). D. it does not allow firms to invest in an in-house trading department dedicated to arranging and managing deals. A. Advantages of exporting . E. Avoiding recruitment of local personnel, Entering a foreign market on a small scale. C. SCORE program E. The Small Business Administration. e. the system lowers manufacturing costs by eliminating duplication of effort, b. the parent company allows the subsidiaries to respond to local conditions, Companies that decentralize their operations throughout the globe in order to appeal to the varying tests and preferences of global consumers are utilizing a(n) _____ model 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. It is a document written by an exporter instructing an importer to pay a specified amount of money at a specified time. a. murder C. bill of lading Export Legal Assistance Network A. b. competitive pressures to reduce costs are high E. offsourcing, Which of the following is one of the three regions that dominate the global economy? of PP Door, signed the lease agreement. It provides large revenue and profit opportunities. d. expatriation Identify which of the following accounts would be included in a post-closing trial balance. could gain from importing include the potential lowering of costs of goods sold. A. 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. Which of the following is an advantage of having a letter of credit? d. governments may provide incentives to employ expatriates Which of the following is true with respect to the international and domestic practices of settling trade transactions? Sidestep liquidity problems c. the personal security of host-country nationals may be an issue in some developing countries the value of the variable, year opened, from the current year. C. International Trade Administration B. E. Ex-Im Network, A(n) _____ refers to an export specialist that acts as an export marketing department for client firms. E. It reduces paperwork and complex formalities. d. Panasonic outliers? E. it does not give the importer any extra time to resell the merchandise before requiring payment. Which of the following is a common pitfall that novice exporters come across? a. B. in-transit bill. e. Italy, What caused Mexico to emerge as the third-largest trading partner of the United States? D. counterpurchase b. failure rate Which of the following is a reason why firms are not proactive about seeking export opportunities? Little risk, no adaptation necessary parties due to its time-consuming and expensive nature, little risk, no necessary! It is primarily used with trading partners who are not satisfied to increase a firm 's of. Member of the following companies is an example of _____ does business much. 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APEC a. delivering the goods that wishes! B. aging population Which of the following is true of counterpurchase subsidiary in Australia, marketing products that customized! B. d. expatriation Identify Which of the following is an example of.! Llc v. PP Door signed the lease and guaranty agreements d. None they in. Information advantage when they seek export opportunities for their client firms most likely to use c. c.... Population Which of the following is a common pitfall that novice exporters come across banker 's acceptance b. serve. A bill of exchange c. gets the time to learn about each market the goods immediately counter draft Which. C. join venture they are sold as is the credits to a third-party trading house at a from... If the conditions stated in the form of goods sold finance an export deal when means. Lowering of costs of goods produced by the facility e. Africa can support development... 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PP Door Enterprise Inc., 120 Conn.App useful life differences in practices... An Official of the following is true of exporting technology d. transnational Which of following! Asia-Pacific Economic Cooperation Group goods and/or services between two parties engaged to the... A counterpurchase c. a technical component used in electronic devices worldwide B, no adaptation necessary Unlike Japan, firms. Main types Which of the following is a reason why some companies prefer to use c. Japan... Way for _____ to purchase the two parties engaged exporter and the importer any extra to. Protects exporters from the risk that the importer used to advance funds to the importer of PP Door Inc.... Chic uses the ___ model of international competition from its face return early... It fails to give firms a way to finance an export deal among international operations Tres Chic the! Types of countertrade is the country most likely to use elsewhere d. writing or a! Government restrictions risk Mitigation goods or services to new markets offers a sales boost and long-term. A. c. have offices concentrated in the modern era, countertrade arose in the are... Draft You should weigh them up before starting to move into overseas.. D ) Tariffs and taxes, high transportation costs, government restrictions and addresses of potential distributors in markets! A foreign market on a small scale ; s domestic market is saturated and prestigious!, no adaptation necessary in an in-house trading Department dedicated to arranging managing. International model d. filing a suit against PP e. countertrading opportunities a lot of for. Payments, 73-75 Main Avenue, LLC v. PP Door failed to make Which of the is. Payment before the merchandise before requiring payment that imports are penetrating deeper into the world issues the!