Deck 16: Export and Import Management

Question 1

_______________ is usually the first entry mode of entry used by many companies.

A)Exporting
B)Importing
C)Licensing
D)Contract manufacturing
E)None of the above

Answer 1

A

Question 2

The _________________ acts as the export department to a small exporter or a large producer with small overseas sales.

A)combination export manager (CEM)
B)export merchant
C)export commission house
D)piggyback exporter
E)trading company

Answer 2

A

Question 3

Data for grouping along macroeconomic criteria are available from international agencies such as:

A)the International Court of Justice
B)the World Court.
C)the World Bank.
D)the National Geographic Society.
E)the World Economic Council.

Answer 3

C

Question 4

Conducting export research on China and Russia would best be done by:

A)doing database research.
B)doing on-line searches.
C)doing field work.
D)using existing government facts and figures.
E)using data supplied by trade missions.

Question 5

To get an idea of market segments in a foreign country,the marketer can first group regions within countries across the world by macroeconomic variables.
An illustration of one of these macroeconomic variables would be:

A)level of industrial development.
B)purchase preferences.
C)services sought.
D)lifestyles.
E)purchase frequency.

Question 6

Which of the following countries is the largest participant in database growth?

A)United Kingdom
B)Germany
C)Japan
D)France
E)United States

Question 7

In 2004,Exports represented about __________ percent of the U.S.GDP.

A)5 percent
B)8 percent
C)9 percent
D)10 percent
E)15 percent

Question 8

The identification of an appropriate overseas market and an appropriate segment involves grouping by all of the following criteria EXCEPT:

A)socioeconomic characteristics.
B)political and legal characteristics.
C)consumer variables.
D)service variables.
E)financial conditions.

Question 9

In 2004,an estimated _______________ American jobs depended on international t trade and export expansion.

A)1 million
B)8 million
C)12 million
D)15 million
E)20 million

Question 10

When independent U.S.middlemen market a firm's goods in an overseas market, they are called ______________________.They market through their own network
Of foreign distributors and their own sales force.

A)exporters
B)export specialists
C)export representatives
D)distribution specialists
E)parallel exporters

Question 11

The Japanese trading companies are known as:

A)keiretsus
B)chaebols
C)sogonets
D)sogoshoshas
E)akimonos

Question 12

The CEM stands for:

A)cash export manager.
B)customs export manager.
C)charismatic export manager.
D)combination export manager.
E)collective export manager.

Question 13

Approximately how many databases (that can be used to help with international trade)are available online in the world?

A)1,000
B)3,000
C)4,000
D)5,000
E)6,000

Question 14

___________________ is the most popular way for many companies to become international.

A)Exporting
B)Importing
C)Licensing
D)Contract manufacturing
E)None of the above

Question 15

When attempting to identify an appropriate overseas market and an appropriate segment,socioeconomic variables should be considered.All of the following
Are socioeconomic variables that should be considered EXCEPT:

A)demographics.
B)economic.
C)geographic.
D)econometrics.
E)climatic characteristics.

Question 16

As an aid to expanding information about world trade,increasingly,international marketing information is available in the form of ____________________.

A)CD-ROMs
B)electronic encyclopedias
C)electronic databases
D)CIA reports
E)government intelligence reports

Question 17

_________________ exporting involves the use of independent U.S.middlemen to market the firm's products overseas.

A)Direct
B)Indirect
C)Parallel
D)Synchronized
E)Dual

Question 18

For a firm beginning exports for the first time,the first step is to use available ___________________.

A)primary data
B)secondary data
C)tertiary data
D)Internet data
E)intranet data

Question 19

When attempting to identify an appropriate overseas market and an appropriate segment,consumer variables should be considered.All of the following
Are consumer variables that should be considered EXCEPT:

A)service quality.
B)purchase frequency.
C)lifestyle.
D)preferences.
E)purchase behavior.

Question 20

The easiest product to sell abroad with respect to logistics is a(n)_____________ product.

A)differentiated
B)semi-standardized
C)clustered
D)gray market
E)standardized

Question 21

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

Question 22

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

Question 23

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

Question 24

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).

Question 25

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

Question 26

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

Question 27

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

Question 28

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.

Question 29

_________________ 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

Question 30

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

Question 31

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).

Question 32

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.

Question 33

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

Question 34

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.

Question 35

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

Question 36

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.

Question 37

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

Question 38

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

Question 39

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

A)IBM.
B)General Motors.
C)Mitsui.
D)Volvo.
E)Wal-Mart.

Question 40

___________________ 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

Question 41

When a shipment reaches the United States,the consignee (usually the importer)will file ______________ with the port director at the port of entry.

A)visas
B)product passports
C)bills of landing
D)bills of shipping
E)entry documents

Question 42

___________________ risk refers to the chances that payment will not be made due to the importer's inability to obtain U.S.dollars and transfer them to the
Exporter.

A)Credit
B)Exchange
C)Transfer
D)Importer
E)Exporter

Question 43

A(n)__________________ is a payment form where a shipment is held by the importer until the merchandise has been sold,at which time payment is made to the
Exporter.

A)cash with order
B)confirmed irrevocable letter of credit
C)sight draft
D)time draft
E)consignment

Question 44

___________________ risk exists when the sale is in the importer's currency and that currency depreciates in terms of the dollar,leaving the exporter with a lesser
Number of dollars.

A)Foreign credit
B)Foreign exchange
C)Foreign transfer
D)Foreign payment
E)Foreign delivery

Question 45

Ex-Im Bank is not an aid or development agency,but a_____________________ corporation.

A)state
B)domestic
C)regional
D)private
E)government

Question 46

Ex-Im Bank has two major programs in place which include:

A)Project Finance Division and Working Capital Program.
B)Project Finance Division and Working Capital Business Program.
C)Project Finance Division and Working Capital Export Program.
D)Project Finance Division and Working Capital Guarantee Program.
E)Project Finance Division and Working Capital Infrastructure Program.

Question 47

Since most world trade is done in dollars,the U.S.importer does not usually need to _____________ foreign exchange transactions.

A)capitalize
B)hedge
C)capitate
D)survey
E)monitor

Question 48

The terms of payment between the exporter and importer are a matter of negotiation and depend on a variety of factors.All of the following might be on that list of
Factors EXCEPT:

A)the buyer's credit standing.
B)the seller's reputation.
C)the amount of the sale transaction.
D)the risks associated with the type of merchandise to be shipped.
E)the usual practice in the trade.

Question 49

A shipment that is held by the importer until the merchandise has been sold is called:

A)advance payment.
B)confirmed irrevocable letter of credit.
C)unconfirmed irrevocable letter of credit.
D)open account.
E)consignment.

Question 50

The Ex-Im Bank is described as being a:

A)bank that lends exclusively to importers.
B)new name for the old "World Bank."
C)federally supported bank whose mission is to thwart communism by making loans to anti-communist nations and exporters.
D)federally supported bank whose mission is to support exporters with necessary credit.
E)bank which is not in existence yet.The concept still awaits Congressional approval.

Question 51

The main emphasis of the Ex-Im Bank's lending practices today is in the area of:

A)loans to Japan.
B)loans to Taiwan.
C)loans to Mexico.
D)loans for prior bankrupt countries.
E)project finance (such as infrastructure projects---roads,dams,etc. ).

Question 52

The Japan External Trade Organization (JETRO)which helps foreign businesses to export to Japan is affiliated with Japan's _____________________________.

A)Ministry of Business,Trade,and Industry
B)Ministry of Economy,Trade,and Industry
C)Ministry of Economy,Trade,and Technology
D)Ministry of Economy,Trade,and Logistics
E)Ministry of Economy,Trade,and Agriculture

Question 53

All of the following are activities that an importer would normally go through in order to complete the purchase process.Which of the items listed below does not
Logically fit?

A)Find a bank in the exporter's country to handle financial transactions.
B)Establish a letter of credit to smooth the process.
C)Decide on the mode of transfer of goods.
D)Always use an export or import middleman to expedite the process.
E)Check compliance with national laws.

Question 54

Merchandise arriving from Canada and Mexico,trade fair goods,and perishable goods and shipments assigned to the U.S.government almost always utilize the
____________________ to enable fast delivery after arrival.

A)quick release form
B)quick permit form
C)Customs form 7200
D)Special Permit for Immediate Delivery
E)block and load release form

Question 55

A(n)_______________________ is a payment form where a cash payment occurs when the order is placed.

A)cash with order
B)confirmed irrevocable letter of credit
C)sight draft
D)time draft
E)consignment

Question 56

_______________ risk is the risk that the importer will not pay or fail to pay on the agreed terms.

A)Credit
B)Exchange
C)Transfer
D)Importer
E)Exporter

Question 57

With respect to shipments entering the United States,a(n)__________ is a guarantee by someone that the duties and any potential penalties will be paid to the customs
Of the importing country.

A)line of credit
B)transfer
C)bond
D)permit
E)tariff

Question 58

A(n)________________________ is a payment form where a draft is so drawn as to be payable on presentation to the drawee (usually the buyer).

A)cash with order
B)third party draft
C)confirmed irrevocable letter of credit
D)sight draft
E)time draft

Question 59

One of the biggest advantages the United States has in importing is that U.S. companies can:

A)order unlimited amounts of goods.
B)always sell what they order abroad.
C)be assured that the government will support their trade efforts.
D)pay in U.S.dollars--a currency accepted everywhere.
E)always turn a profit with the goods they buy because of market demand.

Question 60

A confirmed irrevocable letter of credit is issued by the ____________ bank and confirmed by a bank usually in the ____________ country.

A)importer's,exporter's
B)exporter's,importer's
C)investment,exporter's
D)government's,exporter's
E)none of the above

Question 61

The World Bank publishes the World Development Report.

Question 62

Brand reputation is a critical element in _________________ products.

A)gray
B)black
C)furniture
D)smuggled
E)none of the above

Question 63

When import duties are paid,the _________________ duty is a specified amount of the per unit weight or other quantity of the merchandise.

A)ad valorem
B)specific
C)compound
D)nontariff
E)import

Question 64

In the U.S. ,the Automated Export System (AES)enables exporters to file import
information at no cost over the Internet.

Question 65

If goods enter a ________________,they can be re-exported anytime (up to five years)without payment of duty.

A)holding pen
B)corporate security zone
C)bonded warehouse
D)wharf zone
E)parallel import zone

Question 66

Another name for gray market channels is _________________.

A)positioned imports
B)concentric marketing
C)strategic entry imports
D)parallel imports
E)sidebar hedging

Question 67

A standardized product is not the easiest to sell abroad.

Question 68

________________ channels refer to the legal export/import transaction involving genuine products into a country by intermediaries other than the authorized
Distributors.

A)Black market
B)Gray market
C)Positioned
D)Zoned
E)Red zone

Question 69

_________________ exporting involves using independent U.S.middlemen to
market the firm's products overseas.

Question 70

For a firm beginning exports for the first time,the first step is to use available primary
data.

Question 71

Exports from the United States do not require an export license.

Question 72

All of the following conditions lend to the development of gray markets EXCEPT:

A)currency fluctuations.
B)differences in market demand.
C)legal differences.
D)opportunistic behavior.
E)foreign trade outlets.

Question 73

When import duties are paid,the _________________ duty is a combination of a specified amount of the per unit weight or other quantity of the merchandise plus
An ad valorem rate.

A)bonded
B)corkage
C)compound
D)nontariff
E)import

Question 74

Exports represent about 4 percent of the U.S.gross domestic product (GDP).

Question 75

______________________ duties are duties that are assessed to counter the effects of subsidies provided by foreign governments to goods that are exported
To the United States.

A)Ad valorem
B)Specific
C)Compound
D)Countervailing
E)Antidumping

Question 76

Piggyback exporting 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.

Question 77

When import duties are paid,the _________________ duty is a percentage of the value of the merchandise.

A)ad valorem
B)specific
C)compound
D)nontariff
E)import

Question 78

The combination export manager (CEM)acts as the import department to a small
importer.

Question 79

Exporting is the first mode of foreign entry used by many companies.

Question 80

_________________ duties are assessed on imported merchandise sold to importers in the United States at a price that is less than the fair market value.

A)Ad valorem
B)Specific
C)Compound
D)Nontariff
E)Antidumping