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50. Which of the following refers to an export specialist that acts as an export marketing department for client
firms?
51. Which of the following is a function of an export management company?
52. Which of the following is a drawback of relying on an export management company (EMC)?
53. A firm that enters many markets at once:
54. Which of the following is a strategic step taken to increase a firm's probability of exporting successfully?
55. Firms engaged in international trade deal with people they may have never seen, who live in different
countries, who speak different languages, and who abide by different legal systems. These factors result in:
56. In international trade, an exporter wants to be paid before a consignment is shipped. Correspondingly, the
importer wants to pay only upon receipt of the consignment. These conflicting preferences of the parties are a
manifestation of:
57. A lack of trust between two parties engaged in international trade is exacerbated by the:
58. In terms of using a third party in international trade, title to the products is given to a bank by the exporter in
the form of a document known as a:
59. Which of the following stands at the center of international commercial transactions and is issued by a bank
at the request of an importer?
60. Which of the following is true of a letter of credit?
61. Which of the following is true of a letter of credit in international trade?
62. Which of the following is an advantage of having a letter of credit?
63. Which of the following is an advantage of a letter of credit for an importer?
64. For an importer, which of the following is a disadvantage of using a letter of credit for international
transactions?
65. In international commerce, an order written by an exporter instructing an importer to pay a specified amount
of money at a specified time is known as a:
66. Which of the following is true with respect to the international and domestic practices of settling trade
transactions?
67. In international commerce, the party initiating a draft is known as the:
68. Which of the following drafts is payable on presentation to the drawee?
69. Which of the following drafts allows for a delay in payment?
70. When a time draft is presented to a drawee, he or she signifies acceptance of it by:
71. Once accepted by the drawee, a time draft becomes a(n):
72. When a time draft is drawn on and accepted by a bank, it is known as a:
73. When a time draft is drawn on and accepted by a business firm, it is known as a(n):
74. Which of the following is a characteristic of a time draft?
75. Which of the following is issued to an exporter by a common carrier transporting the merchandise and
serves as a receipt, a contract, and a document of title?
76. When a bill of lading specifies that the carrier is obligated to provide a transportation service in return for a
certain charge, it serves as a:
77. When serving as collateral, the bill of lading:
78. When a bill of lading is used to obtain payment or a written promise of payment before the merchandise is
released to the importer, it serves as a:
79. Which of the following is the first step in a typical international trade transaction?
80. Financing aid that will facilitate exports, imports, and the exchange of commodities between the United
States and other countries is provided by the:
81. Repayment of medium- and long-term loans U.S. commercial banks make to foreign borrowers for
purchasing U.S. exports is guaranteed by the:
82. The bank that has a direct lending operation under which it lends dollars to foreign borrowers for use in
purchasing U.S. exports is called the:
83. An exporter has to forgo a letter of credit when:
84. An export credit insurance is necessary when the exporter:
85. In the United States, export credit insurance is provided by the:
86. The Foreign Credit Insurance Association (FCIA) is an association of private commercial institutions
operating under the guidance of the:
87. Countertrade is most likely to be used when:
88. A range of barterlike agreements by which goods and services are traded for other goods and services when
they cannot be traded for money is known as:
89. Countertrade occurs when the:
