Question 1

A(n) ___________________ refers to the practice where U.S. firms that have an established export department assume, under a cooperative agreement, the
Responsibility of exporting the products of other U.S. companies.
A) combination export manager (CEM)
B) export broker
C) export commission house
D) piggyback exporter
E) trading company

Accepted Answer

The practice described in the question is known as piggyback exporting, where a company with an established export department exports the products of other U.S. companies. Option A, combination export manager, is not a commonly used term in the industry, and options B and C refer to different types of export intermediaries that do not necessarily involve cooperative agreements with established export departments. Option E, a trading company, may export its own products or products of other companies, but it does not necessarily require an established export department.

Question 2

In order to expand their exporting activities, many Japanese firms rely on giant general trading companies known as _________________________.
A) keiretsus
B) chaebols
C) sogonets
D) sogoshoshas
E) akimonos

Accepted Answer

Sogoshoshas are the giant general trading companies in Japan that help other companies expand their exporting activities. Keiretsus and chaebols are more associated with the structure of corporate groups in Japan and South Korea respectively. Sogonets and akimonos are not commonly used terms in the context of Japanese business.

Question 3

_________________ exporting occurs when a manufacturer or exporter sells directly to an importer or buyer located in a foreign market.
A) Direct
B) Indirect
C) Parallel
D) Synchronized
E) Dual

Accepted Answer

Direct exporting is when a manufacturer or exporter directly sells goods to an importer or buyer in a foreign market without involving any intermediaries. This method provides greater control over pricing, promotions, and distribution, as well as the opportunity to build direct relationships with customers.

Question 4

___________________ are large, foreign organizations engaged in exporting and importing. They buy on their own account and export the goods to their home
Country.
A) Combination export manager (CEM)
B) Export broker
C) Export commission house
D) Piggyback exporter
E) Trading companies

Accepted Answer

Trading companies are large foreign organizations that engage in exporting and importing on their own account. They buy goods and then export them to their home country.

Question 5

When the exporter quotes a price for the goods, including charges for delivery of the goods alongside a vessel at a port (the seller covers all costs of unloading and
Wharfage plus loading the goods on the vessel and the buyer covers all other charges
To get the goods to the buyer), this form of terms of shipment is called:
A) ex-works.
B) free alongside ship (FAS).
C) free on board (FOB).
D) cost and freight (CFR).
E) Cost, Insurance, and Freight (CIF).

Accepted Answer

The answer of When the exporter quotes a price for...

Question 6

All exports from the United States (except to Canada and U.S. territories) require a(n) _____________________.
A) letter of credit.
B) letter of ownership.
C) letter for transportation permission.
D) export license.
E) social security number.

Accepted Answer

All exports from the United States (except to Canada and U.S. territories) require an export license. This is a document issued by the U.S. government that permits the export of specific goods to certain destinations. The purpose of the export license is to regulate and control the export of certain goods that may have national security implications or may be subject to trade restrictions or embargoes.

Question 7

With respect to direct exporting, the primary difference between a foreign sales subsidiary and a foreign sales branch is that the foreign sales branch:
A) is larger.
B) is smaller.
C) is not a separate legal entity.
D) uses home country managers.
E) does not pay taxes.

Accepted Answer

A foreign sales branch is not a separate legal entity from its parent company. This means that the parent company assumes all liability and is responsible for all decisions made by the branch. In contrast, a foreign sales subsidiary is a separate legal entity that operates independently of its parent company.

Question 8

A(n) _________________________ is a contract between the exporter and the shipper indicating that the shipper has accepted responsibility for the goods and
Will provide transportation in return for payment.
A) bill of disclosure
B) term of sale
C) payment statement
D) transportation invoice
E) bill of lading

Accepted Answer

A bill of lading is a legal document that serves as a contract between the exporter and the shipper for the transportation of goods. It indicates that the shipper has accepted responsibility for the goods and will provide transportation in return for payment. It also provides details about the goods being transported, their destination, and the terms of the agreement.

Question 9

The _____________________ is someone who brings together an overseas buyer and a U.S. manufacturer for the purpose of an export sale and earns a commission
For establishing a contact that results in a sale.
A) combination export manager (CEM)
B) export broker
C) export commission house
D) piggyback exporter
E) trading company

Accepted Answer

An export broker is someone who brings together an overseas buyer and a U.S. manufacturer for the purpose of an export sale and earns a commission for establishing a contact that results in a sale.

Question 10

A(n) ____________________ places orders on behalf of its foreign clients with U.S. manufacturers and acts as a finder for its client to get the best buy.
A) combination export manager (CEM)
B) export broker
C) export commission house
D) piggyback exporter
E) trading company

Accepted Answer

The answer of A(n) ____________________ places orders on behalf of...

Question 11

The following characteristics (high set-up costs, higher credit risks, and higher customer loyalty) apply to which of the following forms of exporting?
A) direct
B) indirect
C) parallel
D) synchronized
E) dual

Accepted Answer

Direct exporting typically involves higher set-up costs as the exporter must establish their own distribution channels and marketing efforts in the foreign market. It also involves higher credit risks as the exporter is responsible for payment collection and has direct contact with customers. However, direct exporting can result in higher customer loyalty as the exporter has more control over the customer experience.

Question 12

INCOTERMS 2000 which went into effect from January 1, 2000 and is an acronym for ____________________________, are the internationally accepted standard
Definitions for the terms of sale by the International Chamber of Commerce.
A) Industrial Commercial Terms
B) Insurance Commercial Terms
C) Irrevocable Commercial Terms
D) International Commercial Terms
E) none of the above

Accepted Answer

INCOTERMS stands for International Commercial Terms, as they are the globally accepted standard definitions for terms of sale. The other options do not accurately reflect the nature or purpose of INCOTERMS.

Question 13

A(n) _______________________ is a bill for the goods stating basic information about the transaction, including a description of the merchandise, total cost of the
Goods sold, addresses of the buyer and seller, and delivery and payment.
A) bill of disclosure
B) term of sale
C) payment statement
D) commercial invoice
E) bill of lading

Accepted Answer

A commercial invoice is a document used in international trade that includes basic information about the transaction, including a description of the merchandise, total cost of the goods sold, addresses of the buyer and seller, and delivery and payment.

Question 14

In the U.S., ______________________ allows exporters to file export information at no cost over the Internet.
A) Auxiliary Export System
B) Amended Export System
C) Automated Export System
D) Alliance Export System
E) none of the above

Accepted Answer

The correct term for the system described in the question is the Automated Export System (AES). It allows exporters to file export information electronically and at no cost. The other choices (Auxiliary Export System, Amended Export System, and Alliance Export System) are not actual terms in use in the context of U.S. exports.

Question 15

All of the following are possible payment terms for goods exported to another nation EXCEPT:
A) advance payment
B) third party draft.
C) confirmed irrevocable letter of credit.
D) unconfirmed irrevocable letter of credit
E) open account

Accepted Answer

A third party draft is not a recognized payment term for international trade transactions. The other options are standard payment terms used in exporting goods.

Question 16

The _________________ buys and sells on their own accounts and assumes all the responsibilities of exporting a product. Manufacturers do not control sales activities.
A) combination export manager (CEM)
B) export merchant
C) export commission house
D) piggyback exporter
E) trading company

Accepted Answer

An export merchant buys and sells on their own accounts, assumes all the responsibilities of exporting a product, and does not have the control of sales activities.

Question 17

Which of the following is an example of a large trading company?
A) IBM.
B) General Motors.
C) Mitsui.
D) Volvo.
E) Wal-Mart.

Accepted Answer

Mitsui is a large trading company based in Japan with multinational operations in various industries such as energy, metals, machinery, chemicals, and food products. The other companies mentioned are primarily focused on manufacturing and retail sectors.

Question 18

When the exporter quotes a price for the goods, including charges for delivery of the goods alongside a vessel at a port (the seller covers all costs of unloading and
Wharfage at the shipment port and the buyer covers all other charges to get the goods
To the buyer), this form of terms of shipment is called:
A) ex-works.
B) free alongside ship (FAS).
C) free on board (FOB).
D) cost and freight (CFR).
E) Cost, Insurance, and Freight (CIF).

Accepted Answer

The terms of shipment described in the question match those of Free Alongside Ship (FAS). In this type of shipment, the seller delivers the goods alongside the vessel at a port and takes responsibility for unloading and wharfage costs at the shipment port. The buyer is responsible for all other costs associated with transporting the goods from the port to their final destination. Ex-works (A), Free On Board (FOB) (C), Cost and Freight (CFR) (D), and Cost, Insurance, and Freight (CIF) (E) all have different terms and conditions for which party is responsible for bearing the costs and obligations of transportation and delivery.

Question 19

The second pillar of the export transaction is the logistics of the export transaction. Included in this transaction are all of the following EXCEPT:
A) a bill of lading.
B) the terms of sale.
C) the payment.
D) a dispute mechanism.
E) monitoring of the shipment and delivery of the goods.

Accepted Answer

The payment is not part of the logistics of the export transaction; it is a separate financial aspect of the transaction.

Question 20

All of the following are common types of export representatives in the United States EXCEPT:
A) combination export manager (CEM).
B) export merchant.
C) export commission house.
D) export consortium.
E) the trading company.

Accepted Answer

The other four options (A, B, C, and E) are all common types of export representatives in the United States, whereas export consortium is not a common type.

Quiz 16: Export and Import Management

A(n) ___________________ refers to the practice where U.S. firms that have an established export department assume, under a cooperative agreement, the Responsibility of exporting the products of other U.S. companies.

In order to expand their exporting activities, many Japanese firms rely on giant general trading companies known as _________________________.

_________________ exporting occurs when a manufacturer or exporter sells directly to an importer or buyer located in a foreign market.

___________________ are large, foreign organizations engaged in exporting and importing. They buy on their own account and export the goods to their home Country.

All exports from the United States (except to Canada and U.S. territories) require a(n) _____________________.

With respect to direct exporting, the primary difference between a foreign sales subsidiary and a foreign sales branch is that the foreign sales branch:

A(n) _________________________ is a contract between the exporter and the shipper indicating that the shipper has accepted responsibility for the goods and Will provide transportation in return for payment.

The _____________________ is someone who brings together an overseas buyer and a U.S. manufacturer for the purpose of an export sale and earns a commission For establishing a contact that results in a sale.

A(n) ____________________ places orders on behalf of its foreign clients with U.S. manufacturers and acts as a finder for its client to get the best buy.

The following characteristics (high set-up costs, higher credit risks, and higher customer loyalty) apply to which of the following forms of exporting?

INCOTERMS 2000 which went into effect from January 1, 2000 and is an acronym for ____________________________, are the internationally accepted standard Definitions for the terms of sale by the International Chamber of Commerce.

A(n) _______________________ is a bill for the goods stating basic information about the transaction, including a description of the merchandise, total cost of the Goods sold, addresses of the buyer and seller, and delivery and payment.

In the U.S., ______________________ allows exporters to file export information at no cost over the Internet.

All of the following are possible payment terms for goods exported to another nation EXCEPT:

The _________________ buys and sells on their own accounts and assumes all the responsibilities of exporting a product. Manufacturers do not control sales activities.

Which of the following is an example of a large trading company?

The second pillar of the export transaction is the logistics of the export transaction. Included in this transaction are all of the following EXCEPT:

All of the following are common types of export representatives in the United States EXCEPT: