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c14 Key
1. Only large companies have benefited significantly from the moneymaking opportunities of exporting.
2. Firms that actively export often lose out on significant opportunities for growth and cost reduction.
3. While small firms tend to be proactive about seeking opportunities for profitable exporting, large firms are
very reactive.
4. Reactive firms do not consider exporting until their domestic market is saturated.
5. German and Japanese firms are relatively more information-disadvantaged than U.S. firms.
6. For U.S. firms, the most comprehensive source of information on export opportunities is the U.S. Department
of Commerce.
7. Commercial banks and major accounting firms are rarely willing to assist small firms in starting export
operations due to high default risks.
8. Export management companies (EMCs) start exporting operations for a firm with the understanding that the
firm will take over operations after they are well established.
9. The advantage of export management companies (EMCs) is that they are experienced specialists that can
help the neophyte exporter identify opportunities and avoid common pitfalls.
10. It often makes sense for a firm to enter a foreign market on a large scale to reduce the costs of any
subsequent failure.
11. Exporting is often not an end in itself, but merely a step on the road toward establishment of foreign
production.
12. Lack of trust in international trade is exacerbated by the distance between the two parties in space, language,
and culture.
13. Issued by a bank at the request of an importer, a bill of lading states that the bank will pay a specified sum
of money to a beneficiary, normally the exporter, on presentation of particular, specified documents.
14. A letter of credit may reduce an importer's ability to borrow funds for other purposes.
15. A draft, an instrument normally used in international commerce to effect payment, is also known as a letter
of credit.
16. In international commerce, a person or business initiating a draft is known as the drafter and the party to
whom the draft is presented is known as the draftee.
17. In domestic trade transactions, a buyer can often obtain possession of merchandise without signing a formal
document acknowledging his or her obligation to pay.
18. In international commerce, a sight draft allows for a delay in payment.
19. In international commerce, time drafts are negotiable instruments.
20. A bill of lading can function as collateral against which funds are advanced to the exporter by its local bank
before final payment by the importer.
21. The Export-Import Bank provides financing aid to prospective U.S. exporters.
22. The mission of the Foreign Credit Insurance Association is to provide financing aid that will facilitate
exports, imports, and the exchange of commodities between the United States and other countries.
23. Export credit insurance protects an exporter against the possibility of a foreign importer's default on
payment when there is a lack of a letter of credit.
24. The principle of countertrade is to trade goods and services for money.
25. Barter is primarily used with trading partners who are not creditworthy or trustworthy.
26. Offset refers to the use of a specialized third-party trading house in a countertrade arrangement.
27. Countertrade's main attraction is that it can give a firm a way to finance an export deal when other means
are not available.
28. Which of the following is an advantage of exporting?
29. Exporting is nearly always a way to increase the revenue and profit base of a company because:
30. Firms that do not export often:
31. While seeking opportunities for profitable exporting, large firms generally tend to be:
32. Which of the following is true of medium-sized and small firms?
33. Many medium-sized and small firms are not proactive in seeking export opportunities because:
34. Which of the following is a common pitfall that novice exporters come across?
35. Which of the following is true of exporting?
36. Which of the following is true of exporting?
37. Due to the complexity and diversity of foreign markets, firms sometimes hesitate to seek export
opportunities. These firms can best overcome ignorance by:
38. Japan's great trading houses are referred to as:
39. The sogo shosha of Japan:
40. Which of the following is true of the export performance of the United States, Germany, and Japan?
41. The most comprehensive source of information on export opportunities for U.S. firms is the:
42. Which of the following institutions within the U.S. Department of Commerce is dedicated to providing
businesses with intelligence and assistance for attacking foreign markets?
43. The list provided by the International Trade Administration to a potential exporter with the names and
addresses of potential distributors in foreign markets, along with businesses they are in, is called the:
44. Which of the following is a way in which the U.S. Department of Commerce helps potential exporters?
45. Representatives of the U.S. Department of Commerce accompany groups of U.S. businesspeople abroad to
meet with qualified agents, distributors, and customers, as part of the:
46. The government organization that employs 76 district international trade officers and 10 regional
international trade officers throughout the United States as well as a 10-person international trade staff in
Washington, D.C. to help potential exporters is the:
47. Which of the following organizations runs the Service Corps of Retired Executives (SCORE) program?
48. The Small Business Administration oversees almost 11,500 volunteers with international trade experience to
provide one-on-one counseling to active and new-to-export businesses through its program known as the:
49. A nationwide group of international trade attorneys who provide free initial consultations to small
businesses on export-related matters is the:
