Question 1

It was found by research that even the most experienced exporters express lack of confidence in their knowledge about shipping arrangements,payment procedures,and regulations.

Accepted Answer

The statement mentions that research has found experienced exporters expressing lack of confidence in their knowledge about shipping arrangements, payment procedures, and regulations, indicating that the statement is true.

Question 2

Tax incentives,subsidies,export assistance,and free trade zones are common support provided by governments to firms that engage in exporting.

Accepted Answer

Tax incentives, subsidies, export assistance, and free trade zones are indeed common forms of government support for exporting firms.

Question 3

The terms "export selling" and "export marketing" are interchangeable.

Accepted Answer

Although related, these terms actually have different meanings. Export selling refers specifically to the process of selling products or services to a foreign market, while export marketing involves the broader strategy of promoting products or services to potential customers in foreign markets.

Question 4

"Export selling" involves tailoring various elements of the marketing mix to global market requirements.

Accepted Answer

"Export selling" does not typically involve tailoring products or marketing efforts to suit foreign markets; it involves selling the same product as is. Tailoring products for global markets is more aligned with "export marketing."

Question 5

Potential export problems include packaging,government red tape,warehousing,advertising,and trade restrictions.

Accepted Answer

These are all potential issues that could arise when exporting products.

Question 6

Tariffs can be thought of as the "three R's" of global business: rules,rigor,and regulations of individual countries.

Accepted Answer

Tariffs are taxes imposed on imported goods and services, not the rules, rigor, and regulations of individual countries.

Question 7

The Fly American Act is an example of a nontariff barrier.

Accepted Answer

The Fly American Act mandates that all federal agencies must use American-made airlines for their transportation needs, which is a non-tariff barrier because it creates an advantage for American airlines over foreign airlines without necessarily imposing a tariff or quota.

Question 8

When Honda's U.S.manufacturing subsidiaries purchase parts from Japan,customs authorities in the United States have the right to scrutinize the transfer price to make sure it is a fair reflection of market value.

Accepted Answer

Customs authorities in the United States have the right to scrutinize transfer prices to make sure they are not set artificially low to avoid paying tariffs or artificially high to shift profits to a lower-tax jurisdiction. This helps to ensure that the transfer price reflects the fair market value of the goods being transferred.

Question 9

The Buy American Act of 1933,which stipulates that U.S.federal agencies must buy articles produced in the United States unless domestically produced goods are not available,is an example of discriminatory procurement policies.

Accepted Answer

The Buy American Act of 1933 gives preference to domestically produced goods, thereby discriminating against foreign-produced items.

Question 10

After the research effort has zeroed in on potential markets,there is no substitute for a personal visit to size up the market firsthand and begin the development of an actual export marketing program.

Accepted Answer

It is true that there is no substitute for a personal visit to a potential market to begin the development of an actual export marketing program. Personal visits allow for firsthand observation and interaction with potential customers, distribution channels, and competitors, which are essential for making informed decisions about market entry and developing effective marketing strategies.

Question 11

The Harmonized Tariff System (HTS)has eliminated virtually all problems associated with assigning tariff classifications to new products.

Accepted Answer

While the HTS has standardized the classification system, assigning the correct tariff classification to new products can still be challenging and requires expertise in the system.

Question 12

In an effort to facilitate exports,countries are designating certain areas as "free trade zones" (FTZ)or "special economic zones" (SEZ).

Accepted Answer

This statement is true. Free trade zones and special economic zones are areas where goods can be imported, processed and exported with reduced or eliminated taxes, tariffs and regulations in order to facilitate trade and promote economic growth.

Question 13

The Common Agricultural Policy (CAP)determines the level of subsidies granted to farmers in Latin America.

Accepted Answer

The Common Agricultural Policy (CAP) is a policy of the European Union that governs agricultural subsidies and programs within the EU. It does not apply to Latin America.

Question 14

The four tigers-Singapore,South Korea,Taiwan and Hong Kong-learned from the Japanese experience and built strong export-based economies of their own.

Accepted Answer

The statement is true. The four tigers did learn from the Japanese experience and focused on building strong export-based economies, which helped them achieve rapid economic growth and development.

Question 15

Switzerland exports 51 percent of their GDP,compared to the United States which exports only 14 percent.

Accepted Answer

Switzerland has a highly export-oriented economy, with exports accounting for a significant portion of its GDP, while the United States has a larger domestic market and a lower percentage of GDP from exports.

Question 16

According to the recent import regulations in the United States,action figures that represent non-human creatures such as monsters or robots are categorized as toys and qualified for lower duties than human figures that are classified as dolls.

Accepted Answer

This statement is true according to the recent import regulations in the United States. Non-human creature figures are classified as toys and subject to lower duty rates, while human figures are classified as dolls and subject to higher duty rates.

Question 17

An ad valorem duty is expressed as a percentage of the value of goods.

Accepted Answer

Ad valorem duty is a type of customs duty that is calculated as a percentage of the value of goods. Therefore, the statement is true.

Question 18

Representatives of the apparel,footwear,and textile industries in many countries are deeply concerned about the impact increased trade with China will have on these sectors.

Accepted Answer

This statement is true as representatives of the apparel, footwear, and textile industries in several countries have expressed concerns about the potential negative impact of increased trade with China. They fear that Chinese products may flood their domestic market, leading to job losses and hurting the domestic industry's competitiveness.

Question 19

A nontariff barrier (NTB)is a hidden trade barrier which is a deterrent or obstacle to the sale of products in a foreign market.

Accepted Answer

A nontariff barrier (NTB) is indeed a hidden trade barrier that can include regulations, licensing requirements, quotas, subsidies, and other obstacles that can restrict or impede the import or export of goods and services. Unlike tariffs, which are direct taxes on imports, NTBs are more subtle and can be difficult to identify and place a cost on, making them challenging to address in trade negotiations.

Question 20

The Harmonized Tariff System (HTS)is currently the dominant system for determining the correct classification number.

Accepted Answer

The Harmonized Tariff System (HTS) is currently used by over 200 countries as the basis for customs tariffs and for the compilation of international trade statistics. It is the most widely used system for determining the correct classification number for goods traded internationally.

Quiz 8: Importing,Exporting,and Sourcing