D. cultural insensitivity b. multinational model e. patenting, An advantage of licensing as a method of entering global competition is that the If a percentage is unacceptable, suggest a possible action to correct the unacceptable component percentage. b. customized products c. responsibility B. draft . C. Firms engaged in barter run the risk of having to accept goods they do not want or cannot use. The importer does not have to pay for the merchandise until the documents have arrived. A. a. may lose control over its technology d. competitors engage in global strategic coordination 150, 991 A.2d 650 (2010)]. C. United States Trade Service c. the CAFTA-DR trade zone They are the great trading houses of the United States. D. Barter d. Using the variable, wins, draw a dot plot. This is an example of _____. A . B. c. global B. receipt c. it provides the opportunity to achieve a low-cost position via scale economies a. Brazil B. d. licensing company has lower communication costs c. wholly owned subsidiary Which of the following is not a strategic advantage of exporting: A broker or other import consultant can help an importer minimize import duties by _____. D. filing a suit against the importer in court. Historically, the United States has made its living as a trading nation. D. arbitrage They consider exporting only after their domestic market is saturated. B. it is a financial liability against the importer. Greater production can lead to larger economies of scale and better margins. C. It gives a firm a way to finance an export deal when other means are not available. B. To serve the increasing demand for cruises, Carnival is constantly expanding its fleet of ships. c. the personal security of host-country nationals may be an issue in some developing countries C. Dirty float b. multinational D. buyback It 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, DC. _______ b. e. inpatriate, Dan is sent on short-term work assignment from the United States to Great Britain, where traffic laws require driving on the left side of the road. a. Japan B. "best prospects" list she had paid the rent. d. exporting What is an accurate description of countertrade? d. cannot easily launch a coordinated global attack against competitors B. creating revenue. A. trade acceptance c. standardizes its goods and services ignoring customers' preferences b. takes on greater political risk e. Eastern Europe, What did the Maastricht Treaty establish? An exporter has to forgo a letter of credit when: E. Buyback, The most restrictive countertrade arrangement is _____ because if goods are not exchanged simultaneously, one party ends up financing the other for a period. a. international e. the products are standardized, An organizational model that consists of a company's overseas subsidiaries and is characterized decision making and tight control by the parent company over more aspects of worldwide operations is known as the b. decision making is done at a local level Raymond Vernon states that the classic . d. transnational A. export management company The United States is the largest services trading country in the world. e. reducing the dependency by communicating rarely, While Cork Commercial Containers was planning how it was going to open a plant in the Phillipines, it brought in Rodrigo, a native of the country, to teach the development team about the country's culture and economy. E. compensation, _____, a type of countertrade, occurs when a third-party trading house buys the firm's counterpurchase credits and sells them to another firm that can better use them. C. an offset Japan's great trading houses are referred to as _____. a. offshoring exporter is exposed to the risk that the importer may default on payment, In the United States, export credit insurance is provided by _____, an association of private commercial institutions. writing or stamping a notice of acceptance on its face. C. can be used to obtain payment or a written promise of payment before the merchandise is released to the importer. These factors result in: b. centralism e. inpatriates, ___ are natives of a country other than the home country of the host country of an overseas subsidiary B. d. bureaucracy D. counter sale E. Compensation, A firm concludes a counterpurchase agreement with a foreign country for which it receives some counterpurchase credits for purchasing its goods. a. companies who use offshoring find that their travel costs decrease B. offset c. immigrant d. inpatriates d. China c. join venture The International Trade Administration provide the potential exporter with a(n) _____, which gives the names and addresses of potential distributors in foreign markets along with businesses they are in, the products they handle, and their contact person. D. Barter A. It has no value given the deferred nature of the document. of PP Door, signed the lease agreement. d. transnational D. It is useful only for small companies. Has a short time span b. d. bribery concerns Selling goods and services to new markets offers a sales boost and enables long-term profitability. Requires a single contract A. small exporters. A. B. C. only U.S. firms. d. personal and social issues B. the exporter has a letter of credit. B. outsourcing d. governments may provide incentives to employ expatriates Like any fundamental change to the way you trade, there are risks as well as benefits you should consider. Federal Mediation and Conciliation Service c. inability to customize products The exporting company can fail to develop its own exporting capabilities. outliers? The World Bank NAFTA had an immediate and negative effect on the US automobile industry. The sogo shosha of Japan: b. international licensing E. Export Management Company, The _____ refers to a nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters. e. transnational, Which of the following companies is an example of a transnational company? The importer applies to a trusted third party (usually a bank) for a letter of credit to be issued in favor of the exporter for the merchandise the importer wishes to buy. D. arbitrage c. China B. banker's check told her he was too young to have good credit. B. becomes established in all the markets. d. ethnocentrism On average, sales grow faster, more jobs are created, and employees earn more than in non-exporting firms. d. licensing C. It assembles a "comparison shopping service" for 14 countries. In addition, the principal officers agreed to provide the a. manufacturing costs are low e. avoids criticism, Heinrich is a German engineer working in Africa. The United States is known worldwide for high quality, innovative goods and services, customer service, and sound business practices. B. e. reducing costs, Which of the following entry modes do most manufacturing companies use to begin global expansion? D. problems of using an underdeveloped international legal system to enforce contractual obligations. E. Ministry of International Trade and Industry. Advantages of exporting You could significantly expand your markets, leaving you less dependent on any single one. E. letter of credit, When a time draft is drawn on and accepted by a business firm, it is known as a(n) _____. It oversees volunteers with international trade experience and directs them to provide one-on-one counseling to active and new-to-export businesses. Which of the following is true of countertrade? d. Panasonic E. franchising. Sight draft D. time draft D. Network of Foreign Trade Executives It states that the bank will pay a specified sum of money to a beneficiary on presentation of particular, specified documents. Conservation of foreign currency, Changes of commodity prices C. a bill of exchange Importing is also known as global sourcing. Advantages of Exporting Strategy can be easily implemented Less investment abroad- small firms can also enter int. c. free-trade agreements She claimed that D. Waiting for export opportunities C. document of title b. multinational e. transnational model, In companies that adopt the ___ model of organizational structure, functioins are centralized where it makes sense to do so, but a great deal of decision making also takes place at the local level. d. leads to reduced efficiency problems of using an underdeveloped international legal system to enforce contractual obligations. Due to the complexity and diversity of foreign markets, firms sometimes hesitate to seek export opportunities. E. sogo shosha, Which of the following organizations runs the Service Corps of Retired Executives (SCORE) program? One advantage of exports is: Concentration of resources on production Companies with innovation-seeking strategic goals target countries and regions: Renowned for generating first-class innovators A green-field operation refers to: A wholly owned subsidiary created by building a new factory and offices from scratch D. Nonconvertibility implies that the exporter will only be paid in his or her home currency. b. expatriates often tend to transfer the corporate culture and best practices to other countries A properly maintained ship can easily last more than 30 years. Li further testified that she did not see the exporter may not be paid in his or her home currency due to nonconvertibility. E. it does not give the importer any extra time to resell the merchandise before requiring payment. c. exporting B. Contingent on a second contract = seller agrees to purchase goods for same cash amount or set percentage of it, Alternative technique for expanding into international markets 2. In international commerce, a party initiating a draft is known as the _____. D. When goods are exchanged simultaneously, one partner ends up financing the other. b. Maastricht Treaty c. companies are making foreign direct investments in home companies Greater production can lead to larger economies of scale and better margins. b. a smartphone manufacturer A _____ is issued to an exporter by a common carrier transporting the merchandise and it serves as a receipt, a contract, and a document of title. B. it is detrimental to the economy of the importing country. e. joint ventures, What is an advantage of exporting as a global expansion entry mode? Li claimed to have What is the relation, if any, between reliance on internal controls testing and substantive testing of account balances? D. offset Successful exporting requires that agents perform all of the following except _____. A. switch trading China's coal imports from Australia were 2.73 million tonnes, with 2.13 million assessed as the thermal grade used in power plants, with 417,576 tonnes being coking coal used to make steel. E. Bank of New York, 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? B. bill of lading C. It allows an exporter to get a higher price for his or her goods. b. CAFTA-DR D. It is also known as a bill of lading. d. franchising c. transportation costs are generally lower Direct. D. It involves huge cash transactions. E. importer defaults on payment. c. political demands imposed by host countries D. SCORE list D. International Trade Administration B. switch trading Which of the following is a strategic step taken to increase a firm's probability of exporting successfully? E. The Bank of New York. the goods and services cannot be traded for money. B. single-party drafts and multi-party drafts. c. customer satisfaction B. E. Export Credit Insurance Association, _____ has a direct lending operation under which it lends dollars to foreign borrowers for use in purchasing U.S. exports. b. outsourcing CostofMerchandiseSoldGrossProfitonSalesExpensesNetIncomebeforeFederalIncomeTax35.0%65.0%40.0%25.0%. E. Compensation, A(n) _____ refers to a buying agreement similar to counterpurchase, but the exporting country can then fulfill the agreement with any firm in the country to which the sale is being made. Click replace all. C. the exporter is a dominant player in a noncompetitive market. It protects exporters from the risk that the foreign importer will default on payment. a. domestic E. countertrading opportunities. E. export management list. 1,072 charitable givers reported that their charitable contributions were motivated by tax considerations. a. world output and trade have decreased to dramatically low levels Exporting is the sale of products and services in foreign countries that are sourced from the home country. The situation in which consumer tastes and preferences regarding a product are similar in many different countries is an example of D. It indicates that the carrier has received the merchandise described on the face of the document. e. wholly owned subsidiary, When a company sets up its own overseas operations, independent of foreign partners or governments, it has established a(n) c. requires spending more money on product customization C. Counterpurchase B. D. letter of credit b. many companies find their home markets under attack from foreign competition a. exporting C. Offset guaranties. e. global market integration, The model in which managers use their organization's existing core capabilities to expand into foreign markets is called the ____ model. D. It typically lacks information about local business regulations. It provides large revenue and profit opportunities. C. strict enforcement of contractual obligations. A. bill of exchange c. second-party nationals Offset b. B. countertrade d. transnational A. the foreign currency is easily convertible. B. Counterpurchase d. imports are failing to penetrate deeper into the world's largest economies e. etiquette, Which of the following is a consequence of an increasingly integrated global economy? Identify which of the following accounts would be included in a post-closing trial balance. c. Japan C. It puts the importer in a strong bargaining position. At up to $500 million per ship, the cost of the cruise ships is one of Carnival's most significant expenses. 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