Deck 16: Export and Import Management

Question 1

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.

Answer 1

C

Question 2

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.

Answer 2

A

Question 3

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.

Answer 3

D

Question 4

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.

Question 5

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 6

_____ 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

Question 7

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 8

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 9

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 10

U.S.merchandise exports and imports combined amounted to what percentage of the US GDP in 2017?

A)10 percent
B)15 percent
C)20 percent
D)25 percent
E)More than 25 percent

Question 11

_____ 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 12

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

A)DVD's
B)electronic encyclopedias
C)electronic databases
D)CIA reports
E)government intelligence reports

Question 13

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 14

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 15

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 16

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 17

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 18

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 19

_____ 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 20

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

Question 21

The seller delivers the goods on board the ship and clears the goods for export.From that point, the buyer bears all the cost and risks of loss or damage.

A)EXW
B)FCA
C)FOB
D)CFR
E)CIF

Question 22

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 23

The seller delivers the goods-cleared for import-to the buyer at destination.The seller bears all the cost and risks of moving the goods to destination, including the payment of customs duties and taxes.

A)EXW
B)FCA
C)DAP
D)DDP
E)FAS

Question 24

_____ are large, foreign organizations engaged in exporting and importing.They buy on their own account and export the goods to another country.

A)Combination export manager (CEM)
B)Export broker
C)Export commission house
D)Piggyback exporter
E)Trading companies

Question 25

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 26

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 27

The seller delivers when the goods, once uploaded from the arriving means of transport, are placed at the buyer's disposal at a named terminal at the named port or place of destination."Terminal" includes any place, whether covered or not, such as quay, warehouse, container yard or road, rail, or air cargo terminal.The seller bears all risks involved in the bringing of goods to the unloading them at the terminal at the named port or place of destination.

A)EXW
B)FCA
C)CPT
D)CIP
E)DAT

Question 28

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 29

INCOTERMS 2010 which went into effect from January 1, 2011 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 30

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 31

The seller delivers the goods to the origin port.From that point, the buyer bears all the costs and the risks of loss or damage.

A)EXW
B)FCA
C)DAP
D)DDP
E)FAS

Question 32

The seller delivers when the goods are placed at the buyer's disposal on the arriving means of transport ready for uploading at the named place of destination.The seller bears all the risks involved in bringing the goods to the named place.

A)EXW
B)FCA
C)DAP
D)DDP
E)FAS

Question 33

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 34

_____ 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 35

The seller pays for moving the goods to destination.From the time the goods are transferred to the first carrier, the buyer bears the risks of the loss or damage.The seller, however, purchases the cargo insurance.

A)EXW
B)FCA
C)CPT
D)CIP
E)DAT

Question 36

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 37

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 38

The seller delivers the goods, cleared for export, to the carrier selected by the buyer.The seller leads the goods if the carrier pickup is at the seller's premises.From that point, the buyer bears the cost and risks of moving the goods to destination.

A)EXW
B)FCA
C)CPT
D)CIP
E)DAT

Question 39

The seller's only responsibility is to make the goods available at the seller's premises.The buyer bears the full cost and risks of moving the goods from there to destination.

A)EXW
B)FCA
C)CPT
D)CIP
E)DAT

Question 40

The seller pays for moving the goods to destination.From the time the goods are transferred to the first carrier, the buyer bears the risks of loss or damage.

A)EXW
B)FCA
C)CPT
D)CIP
E)DAT

Question 41

_____ 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 42

_____ 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 43

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 44

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 45

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 46

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 47

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 48

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 49

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 50

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 51

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 52

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 53

The seller clears the goods for export and pays the cost of moving the goods to destination.The buyer bears all the risks of loss or damage.

A)EXW
B)FCA
C)FOB
D)CFR
E)CIF

Question 54

The seller clears the goods for export and pays the cost of moving the goods to the port of destination.The buyer bears all the risks of loss and damage.The seller, however, purchases the cargo insurance.

A)EXW
B)FCA
C)FOB
D)CFR
E)CIF

Question 55

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 56

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 57

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 58

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 59

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 60

_____ 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 61

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 62

_____ 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 63

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 64

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

Question 65

The grouping of countries and regions among countries enables a firm to link various geographical areas into one heterogeneous market segment.

Question 66

Exporting requires minimum resources while allowing high flexibility.

Question 67

Exports have strong legal recourse in China.

Question 68

While US imports are huge, US exports are relatively small and support less than 2 million jobs in 2014.

Question 69

The World Bank publishes the World Development Report.

Question 70

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

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

Question 71

The Coca-Cola Company markets essentially one Coke worldwide.

Question 72

The jobs supported by US exports tend to be low-paying jobs.

Question 73

A billion dollars of exports supports about 500-1,000 US jobs.

Question 74

_____ 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 75

_____ 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 import

Question 76

Another name for gray market channels is _____.

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

Question 77

Export data from China is fairly reliable.However, export data from Russia is extremely unreliable.

Question 78

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

Question 79

Brand reputation is a critical element in _____ products.

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

Question 80

Exports have strong legal recourse in India.