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90. In the modern era, countertrade arose in the 1960s as a way to purchase imports for:
91. Which of the following is true of countertrade?
92. Which of the following is a distinct type of countertrade arrangement?
93. The direct exchange of goods and/or services between two parties without a cash transaction is referred to
as:
94. Which of the following is the most restrictive countertrade arrangement?
95. Which of the following is true of barter as a countertrade arrangement?
96. Which of the following is a disadvantage of barter as a countertrade arrangement?
97. To cater to the growing demand for luxury cars, Terabithia Republic agreed to buy 5,000 cars from
MotoSporto Inc. in exchange for 5,000 gallons of oil. Due to a lack of trust, Terabithia decided to make it a
one-time-only deal. Which of the following forms of countertrade is the country most likely to use?
98. Which of the following is true of counterpurchase?
99. The type of countertrade where a firm agrees to purchase a certain amount of materials back from a country
to which a sale is made is called:
100. A firm sells some products to a foreign country. The foreign country pays the firm in dollars but in
exchange the firm agrees to spend some of the proceeds from the sale on textiles produced by the foreign
country. In which of the following types of countertrade arrangement are the two parties engaged?
101. A buying agreement where the exporting country can fulfill the agreement with any firm in the country to
which the sale is being made is called a(n):
102. From an exporter's perspective, why is an offset more attractive than a straight counterpurchase
agreement?
103. The use of a specialized third-party trading house in a countertrade arrangement is known as:
104. A type of countertrade where a third-party trading house buys the firm's counterpurchase credits and sells
them to another firm that can better use them is called:
105. A firm concludes a counterpurchase agreement with a foreign country for which it receives some
counterpurchase credits for purchasing its goods. The firm does not want any foreign goods, however, so it sells
the credits to a third-party trading house at a discount. The trading house finds a firm that can use the credits
and sells them at a profit. This is an example of:
106. A firm builds a plant in a country and agrees to take a certain percentage of the plant's output as partial
payment for the contract. This type of countertrade is called a(n):
107. TruWorth Petroleum negotiated a deal with a foreign country in which TruWorth would build several
ammonia plants in the foreign country and receive ammonia as partial payment over a 20-year period. This is an
example of:
108. A drawback of countertrade is that:
109. Which of the following is a drawback of a countertrade agreement?
110. Countertrade is most attractive to:
111. Why do many neophyte exporters have problems when trying to do business abroad for the first time?
What are the common pitfalls experienced by such exporters?
112. What does the term sogo shosha mean? How do they help Japanese exporters and what role do they play in
countertrade?
113. Describe the role of the U.S. Department of Commerce in helping U.S. firms increase their knowledge of
export opportunities.
114. How does the Small Business Administration (SBA) help potential exporters?
115. What are export management companies? What are their advantages and disadvantages?
116. Briefly describe the strategic steps that novice exporters can take to increase the probability of exporting
successfully.
117. How does a lack of trust affect firms engaged in international trade? How can the problem be solved?
118. Briefly describe the various financial devices that help exporters solve the problem of a lack of trust in
international trade.
119. What is the difference between a sight draft and a time draft?
120. Briefly describe the different forms of government-backed assistance that help potential U.S. exporters
finance their export programs.
121. What is an Ex-Im Bank? What is its mission and how does it pursue it?
122. Describe the Foreign Credit Insurance Association (FCIA). What types of risks does it cover?
123. What is countertrade? When can it be used?
124. Briefly describe the different types of countertrade arrangements.
125. Describe the pros and cons of countertrade.
