Question 1

Exporters are typically faced with what problems?

Accepted Answer

Exporters face all of these problems including lots of paperwork, complex formalities, potential delays, and potential errors.

Question 2

Large firms generally tend to be ______________ about seeking opportunities for profitable exporting,whereas medium-sized and small firms are ____________.

Accepted Answer

Large firms typically have more resources and experience in international trade, allowing them to take a proactive approach in seeking out opportunities for exporting. On the other hand, medium-sized and small firms may have fewer resources and less experience, leading them to be more reactive in responding to potential exporting opportunities. Therefore, the best choice is D - proactive; reactive.

Question 3

Which of these countries is considered as one of the World's most successful exporting nation?

Accepted Answer

Germany is known as one of the world's most successful exporting nations, with a strong focus on high-quality automobiles, machinery, and chemicals. According to the World Bank, Germany is currently the third-largest exporter in the world, after China and the United States.

Question 4

According to the opening case,one of the things SteelMaster did to grow its export business was what?

Accepted Answer

According to the opening case, SteelMaster appointed a dedicated person to develop its international business, which helped the company grow its export business.

Question 5

Common pitfalls of exporting include all of these except:

Accepted Answer

Intimidating foreign customers is not a common pitfall of exporting. The other choices (A, B, C, and E) are common pitfalls that businesses may encounter when exporting.

Question 6

The way to overcome ignorance about export opportunities is _________.

Accepted Answer

The best way to overcome ignorance about export opportunities is to collect information. This can be done through research, attending trade fairs and exhibitions, networking with industry peers, and seeking guidance from relevant government bodies and trade associations. Importing, barter transactions, and countertrade may not necessarily provide the necessary information and could even be counterproductive to identifying export opportunities. DFAIT (Department of Foreign Affairs and International Trade) is a Canadian government body that focuses on foreign policy and global trade, so while they may have information and resources available, they are not a direct solution to overcoming ignorance about export opportunities.

Question 7

In the United States,what percent of firms export,according to the U.S.Small Business Administration?

Accepted Answer

Less than 2 percent of firms in the United States export, according to data from the U.S. Small Business Administration. This highlights the relatively small proportion of U.S. businesses that are engaged in international trade.

Question 8

What federal agency supports the development of trade by providing services to exporters,developing policy,and attracting investment to Canada?

Accepted Answer

DFAIT (Department of Foreign Affairs, Trade and Development) is a federal agency that supports the development of trade by providing services to exporters, developing policies, and attracting investment to Canada.

Question 9

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

Accepted Answer

Small and medium-sized firms, like Toddler Toys, are often reactive about seeking opportunities for profitable exporting, typically responding to inquiries rather than proactively seeking out international markets.

Question 10

The combination of ______________ and _____________ explains why exporters still account for only a tiny percentage of U.S.firms.

Accepted Answer

The answer of The combination of ______________ and _____________ explains...

Question 11

According to the UN report on trade and development,a typical international trade transaction may involve __________ parties,___________ original documents,and ___________ document copies.

Accepted Answer

The answer of According to the UN report on trade...

Question 12

ABC International's market research identified that Canadian consumers prefer relatively less sugar in their soft drinks whereas Asian consumers prefer more.ABC exported their best selling soft drink in Canada,Tasty,without modification to the Asian market.ABC committed which of the common mistakes of exporting?

Accepted Answer

ABC committed a failure to customize the product according to the market preferences of Asian consumers, which is specifically mentioned in the scenario. This is a common mistake in exporting where companies do not adapt their products or services to meet the needs of the target market.

Question 13

Exporting remains a challenge for firms,especially for _______ firms that can find the process intimidating.

Accepted Answer

Exporting can be a daunting task for small firms due to limited resources, lack of experience, and difficulty in navigating international trade regulations. Large firms and multinational corporations, on the other hand, typically have more resources and experience in exporting, making the process less intimidating. The question does not provide enough information to suggest that Canadian or U.S. firms specifically struggle with exporting.

Question 14

According to the United Nations report on trade and development,document and paperwork preparation often amounts to what percentage of the final value of the goods exported?

Accepted Answer

The answer of According to the United Nations report on...

Question 15

Great trading houses in Japan are called:

Accepted Answer

Great trading houses in Japan are called sogo shosha. Sogo shosha are large conglomerates that engage in a range of business activities, including trading, manufacturing, and financing. They play a significant role in the Japanese economy and are involved in international trade. The term sogo shosha translates to "general trading company" in English.

Question 16

Until recently,Canada was mostly a(n)____________ when it came to international trade.

Accepted Answer

Until recently, Canada was mostly a self-contained economy, meaning it relied on domestic production and consumption rather than actively participating in international trade. However, in recent years, Canada has become more engaged in global trade and has become a major player in certain industries such as oil and gas, lumber, and agriculture.

Question 17

One reason more firms are not proactive about seeking export opportunities is that:

Accepted Answer

Many firms are intimidated by the complexities and mechanics of exporting, which can include language barriers, shipping logistics, and understanding foreign regulations. This can make them hesitant to take on the added risks and costs involved in exporting.

Question 18

What is the attraction to firms of exporting?

Accepted Answer

The answer of What is the attraction to firms of...

Question 19

Heublein,a manufacturer of liqueurs,decided to use the U.S.name for their cranberry liqueur when they started exporting to the U.K.Sales were very slow and only later did they understand that the name they were using was slang for privy in Britain.This is an example of what common exporting pitfall?

Accepted Answer

The use of a name that has negative connotations in a foreign market is an example of lack of product adaptation, which is a common exporting pitfall. In this case, Heublein did not adapt the name of their product to match the cultural differences of the British market.

Question 20

According to the text,why is exporting becoming easier?

Accepted Answer

All of these answers are correct. Exporting has become easier due to declining trade barriers under both GATT and WTO, as well as regional economic agreements like the EU and NAFTA. These agreements help to reduce tariffs, quotas, and other barriers to trade, making it easier for businesses to sell their products in foreign markets.

Quiz 13: Exporting,Importing,and Countertrade