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FILL IN THE BLANK. Write the word or phrase that best completes each statement or
answers the question.
86) Once the potential exporter has established that there may be a market for the firm’s
products, the next task is to draft the ________ plan.
87) For U.S. firms that already are exporting, the ________ Administration offers export
promotion activities that include export counseling, analysis of foreign markets, assessment of
industry competitiveness, and development of market opportunities and sales representation
through export promotion events.
88) Once the firm knows that a potential market exists, it needs to choose between exporting
________ through U.S.-based exporters and exporting ________ using its own staff.
89) The Incoterm acronym CIP (named destination) refers to the situation where ________
and ________ are paid to destination, with risk passing from the seller when goods are handed to
the carrier.
90) The Incoterm acronym FAS (named loading port), refers to ________.
91) The Incoterm acronym FOB (named loading port), refers to ________.
92) Many nations, especially those of Latin America, follow the ________ Doctrine, which
holds that contractual dispute cases should be tried under local, and not foreign, law.
93) A document issued by the buyer’s bank in which the bank promises to pay the seller a
specified amount under specified conditions is a ________.
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94) Before opening a letter of credit, a buyer frequently requests a ________. This is the
exporter’s formal quotation, a description of the merchandise, price, delivery time, proposed
method of shipment, terms of sale, and ports of exit and entry.
95) An unconditional order drawn by the seller that instructs the buyer to pay the draft on
presentation or at an agreed future date and that must be paid before the buyer receives shipping
documents is known as a(n) ________.
96) A ________ is a time draft with a maturity of less than 270 days that has been accepted
by the bank on which the draft was drawn, thus becoming the accepting bank’s obligation.
97) The sale of an exporter’s accounts receivable on ordinary goods, with the balance of the
payment due upon delivery or soon after is known as ________.
98) Rebates on customs duties are known as ________.
99) ________ act as agents for exporters and prepare documents, book space on carriers, and
otherwise act as the exporter’s traffic department.
100) The U.S. Department of Commerce form used to control export shipments and record
export statistics is the ________.
101) A document issued by the carrier that is a contract for the shipment, a receipt for the
goods shipped, and a certificate of ownership is a(n) ________.
102) The three kinds of marine insurance policies are ________ named perils, ________
named perils, and all risks.
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103) The EU mark that indicates that merchandise conforms to European health, safety, and
environmental requirements is the ________ mark.
104) Independent businesses that handle import shipments for compensation are ________.
105) A ________ is an area authorized by customs authorities for storage of goods on which
payment of import duties is deferred until their removal.
106) HTSA is the U.S. version of the global tariff code known as the ________.
ESSAY. Write your answer in the space provided or on a separate sheet of paper.
107) Compare and contrast three sources of export counseling and support in the U.S. and
describe what they offer to businesses looking to export.
108) Explain how Incoterms work. What are they and what do they describe?
109) Choose three sources of export financing and how they function, who they benefit, and
when they are not a good choice for financing.
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110) “Although air freight rates are usually higher than ocean freight rates, it may be less
costly for a firm to ship by air.” Explain why this statement is correct or incorrect.
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Answer Key
Test name: Module B
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