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90) The main attraction of ________ is that it can give a firm a way to finance an export deal when
other means are not available.
A) switch trading
B) counterpurchase
C) offsets
D) countertrade
91) What is a disadvantage of countertrade?
A) Countertrade contracts may involve the exchange of unusable or poor-quality good.
B) Countertrade requires the firm to use an out-of-house trading company to which much of the
profit will go.
C) Countertrade contracts often involve high-quality, expensive goods that the firm cannot move
enough of to be profitable.
D) Countertrade requires employing lawyers who specialize in these unique types of contracts.
92) Why do so many firms take a reactive approach to exporting rather than a proactive approach?
93) What problems do novice exporters typically face when trying to export?
94) Compare and contrast the export assistance provided to German and Japanese companies with
that given to American companies. Discuss the implications of the differences between the
countries.
95) Describe the information sources that are available to American companies to learn about
export opportunities.
96) Explain 3M's main export principles that have made the company's exporting business so
successful.
97) Why is there a problem of trust that persists in international business?
98) Describe the process involved in financing imports and exports using a letter of credit. Why
has this system developed? What is the advantage of using this system?
99) Compare and contrast time drafts and sight drafts.
100) Describe the 14 steps in a typical international trade transaction.
101) Discuss the importance of the Export-Import Bank, its goals, and its operations.
102) What is the Foreign Credit Insurance Association?
103) Explain why barter is viewed as the most restrictive countertrade arrangement.
104) Compare and contrast counterpurchase agreements and offset arrangements. Why might an
exporter prefer an offset to a counterpurchase deal?
105) Discuss the idea of compensation or buybacks as they relate to countertrade. Provide an
example of a buyback arrangement.
106) What type of firm is most likely to engage in countertrade? Why?
