Question 1

Given the financial and other risks, today, governments at all levels in Canada are not willing to assist small firms in starting export operations.

Accepted Answer

A) True 
 B)False

Question 2

Neophyte exporters tend to underestimate the time and expertise needed to cultivate business in foreign countries.

Accepted Answer

A) True 
 B)False

Question 3

Countertrade is an alternative means of structuring an international sale.

Accepted Answer

A) True 
 B)False  True

Question 4

When a specialized third-party trading house is used in a countertrade arrangement, it is called:

Accepted Answer

A)  counter-purchase.
B)  offset.
C)  managed barter.
D)  buyback.
E)  switch trading.F) All of the above
G) A) and D)

Question 5

What is the Export Development bank? What is its mission? How does it pursue its mission?

Accepted Answer

The EDC is crown corporation.I...

Question 6

What is the difference between a sight draft and a time draft?

Accepted Answer

A sight draft is payable on presentation...

Question 7

The most restrictive countertrade arrangement is:

Accepted Answer

A)  counter-purchase.
B)  offset.
C)  buybacks.
D)  switch trading.
E)  barter.F) B) and D)
G) D) and E)

Question 8

Which of the following correctly states the role of banks in import/export transactions involving a letter of credit (L/C) ?

Accepted Answer

A)  The importer's bank is the advising and/or confirming bank; the exporter's bank is the issuing bank.
B)  The exporter's bank is the advising and/or confirming bank; the importer's bank is the issuing bank.
C)  The exporter's bank is the advising, confirming, and issuing bank.
D)  The importer's bank is the advising, confirming, and issuing bank.
E)  The exporter's bank is the drawee; the importer's bank is the payee.F) A) and E)
G) A) and D)

Question 9

As a receipt, the _______________ indicates that the carrier has received the merchandise described on the face of the document.

Accepted Answer

A)  letter of credit
B)  time draft
C)  sight draft
D)  bill of lading
E)  trade acceptanceF) A) and B)
G) A) and C)

Question 10

Why do many neophyte exporters have problems when first trying to do business abroad? What are the common pitfalls of neophyte exporters?

Accepted Answer

Neophyte exporters tend to underestimate...

Question 11

When a firm builds a plant in a country-or supplies technology, equipment, training, or other services to the country-and agrees to take a certain percentage of the plant's output as partial payment for the contract, it is called:

Accepted Answer

A)  counter-purchase.
B)  offset.
C)  switch trading.
D)  buyback.
E)  industrial barter.F) A) and C)
G) D) and E)

Question 12

A draft is sometimes referred to as a:

Accepted Answer

A)  bill of exchange.
B)  letter of credit.
C)  bill of lading.
D)  counter purchase.
E)  payment order.F) B) and C)
G) A) and C) A

Question 13

Great trading houses in Japan are called:

Accepted Answer

A)  kaizen.
B)  sogo shosha.
C)  MITI.
D)  guanxi.
E)  keiratsu.F) A) and D)
G) A) and B)

Question 14

Time drafts are negotiable instruments.

Accepted Answer

A) True 
 B)False

Question 15

What is countertrade? Give an example of when it can be used.

Accepted Answer

Countertrade is an alternative means of ...

Question 16

Toddler Toys, which recently opened for business, has 45 employees and about $10 million in sales.Given the small size of the firm, according to studies, Toddler Toys would be ___________ seeking opportunities for profitable exporting.

Accepted Answer

A)  proactive about
B)  prohibited from
C)  reactive about
D)  government-driven for
E)  discouraged fromF) B) and C)
G) B) and D)

Question 17

A sight draft allows for a delay in payment.

Accepted Answer

A) True 
 B)False  False

Question 18

Describe the mechanisms for financing export and imports.Do you believe that the complexity of export financing deters small firms from becoming involved in exporting? Explain your answer.

Accepted Answer

There are three principle mechanisms use...

Question 19

For Canadian firms, one of the most comprehensive sources of export opportunities information is/are the:

Accepted Answer

A)  Trade Commissioners.
B)  the United Nations.
C)  Team Canada.
D)  foreign embassies.
E)  Industry Canada.F) B) and D)
G) All of the above

Question 20

For the service of providing letter of credit, the bank's service charge ranges between ____________ of the value of L/C.

Accepted Answer

A)  5 to 7 percent
B)  10 to 15 percent
C)  3 to 4 percent
D)  0.5 to 2 percent
E)  1 to 3 percentF) A) and B)
G) C) and E)

Exam 13: Exporting, Importing, and Countertrade

Given the financial and other risks, today, governments at all levels in Canada are not willing to assist small firms in starting export operations.

Correct AnswerverifiedShow Answer

Neophyte exporters tend to underestimate the time and expertise needed to cultivate business in foreign countries.

Correct AnswerverifiedShow Answer

Countertrade is an alternative means of structuring an international sale.

Correct AnswerverifiedTrue

When a specialized third-party trading house is used in a countertrade arrangement, it is called:

Correct AnswerverifiedShow Answer

What is the Export Development bank? What is its mission? How does it pursue its mission?

Correct AnswerverifiedThe EDC is crown corporation.I...View AnswerShow Answer

What is the difference between a sight draft and a time draft?

Correct AnswerverifiedA sight draft is payable on presentation...View AnswerShow Answer

The most restrictive countertrade arrangement is:

Correct AnswerverifiedShow Answer

Which of the following correctly states the role of banks in import/export transactions involving a letter of credit (L/C) ?

Correct AnswerverifiedShow Answer

As a receipt, the _______________ indicates that the carrier has received the merchandise described on the face of the document.

Correct AnswerverifiedShow Answer

Why do many neophyte exporters have problems when first trying to do business abroad? What are the common pitfalls of neophyte exporters?

Correct AnswerverifiedNeophyte exporters tend to underestimate...View AnswerShow Answer

When a firm builds a plant in a country-or supplies technology, equipment, training, or other services to the country-and agrees to take a certain percentage of the plant's output as partial payment for the contract, it is called:

Correct AnswerverifiedShow Answer

A draft is sometimes referred to as a:

Correct AnswerverifiedA

Great trading houses in Japan are called:

Correct AnswerverifiedShow Answer

Time drafts are negotiable instruments.

Correct AnswerverifiedShow Answer

What is countertrade? Give an example of when it can be used.

Correct AnswerverifiedCountertrade is an alternative means of ...View AnswerShow Answer

Toddler Toys, which recently opened for business, has 45 employees and about $10 million in sales.Given the small size of the firm, according to studies, Toddler Toys would be ___________ seeking opportunities for profitable exporting.

Correct AnswerverifiedShow Answer

A sight draft allows for a delay in payment.

Correct AnswerverifiedFalse

Describe the mechanisms for financing export and imports.Do you believe that the complexity of export financing deters small firms from becoming involved in exporting? Explain your answer.

Correct AnswerverifiedThere are three principle mechanisms use...View AnswerShow Answer

For Canadian firms, one of the most comprehensive sources of export opportunities information is/are the:

Correct AnswerverifiedShow Answer

For the service of providing letter of credit, the bank's service charge ranges between ____________ of the value of L/C.

Correct AnswerverifiedShow Answer

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True

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The EDC is crown corporation.I...
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A sight draft is payable on presentation...
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Neophyte exporters tend to underestimate...
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A

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Countertrade is an alternative means of ...
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False

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There are three principle mechanisms use...
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