Question 1

Exporting is ________.

Accepted Answer

A)   the procurement of products or services from independent suppliers or company-owned subsidiaries located abroad for consumption in the home country or a third country
B)   the procurement of selected value-chain activities, including production of intermediate goods or finished products, from independent suppliers
C)   the transfer of state-owned industries to private concerns
D)   the strategy of producing products or services in one country (often the producer's home country) , and selling and distributing them to customers located in other countries

Question 2

Reva Inc. is a U.S.-based automobile manufacturing company that sets up manufacturing bases in India. Its suppliers followed them to India. This is an example of a proactive move.

Accepted Answer

A) True 
 B)False

Question 3

Licensing and franchising are ________.

Accepted Answer

A)   ownership-based international activities
B)   turnkey operations
C)   contractual relationships
D)   home-based international exchange activities

Question 4

In a short essay, describe three different types of payment methods used in international exporting and importing. Include the advantages or disadvantages of each method.

Accepted Answer

a. Cash in Advance-When the exporter rec...

Question 5

In international trade transactions, an open account is considered as a more secure method of payment than a letter of credit.

Accepted Answer

A) True 
 B)False

Question 6

Favorable foreign market conditions that encourage firms to internationalize are known as ________.

Accepted Answer

A)   proactive factors
B)   reactive factors
C)   push factors
D)   pull factors

Question 7

Push factors include unfavorable trends in the domestic market that compel firms to explore opportunities beyond national borders.

Accepted Answer

A) True 
 B)False

Question 8

Countertrade is ________.

Accepted Answer

A)   an international business transaction where all or partial payments are made in kind rather than cash
B)   the establishment of a firm's presence in a foreign market by investing capital and securing ownership of a factory, subsidiary, or other facility there
C)   the procurement of products or services from independent suppliers or company-owned subsidiaries located abroad for consumption in the home country or a third country
D)   the strategy of producing products or services in one country (often the producer's home country) , and selling and distributing them to customers located in other countries

Question 9

The pre-internationalization stage of internationalization is followed by the committed involvement stage.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following foreign market entry strategies offers the focal firm the highest degree of control over foreign operations?

Accepted Answer

A)   exporting
B)   wholly owned subsidiary (FDI) 
C)   global sourcing
D)   countertrade

Question 11

Lamp Shade Imports (Scenario) 
The ABC Lamp Company is an SME that designs and manufactures high quality lamps that are sold in high-end furniture stores across Canada and the United States. ABC imports lamp shades from Asia where costs are lower than in North America. ABC has received a large order from a hotel chain that wants to purchase 5,000 lamps in the next three months, and ABC will need to import corresponding lamp shades. ABC recently ended a relationship with a Chinese supplier due to the poor quality of shades that were shipped. ABC managers are seeking a new Asian supplier that can fill the hotel lamp order.
-Which of the following factors should be considered by ABC when trying to obtain financing for export sales?

Accepted Answer

A)   Where is the manufacturing facility of the Asian exporter located?
B)   Does the Asian lamp shade supplier sell to ABC's competitors?
C)   What is the creditworthiness of the Asian lamp shade exporter?
D)   At what bank does the Asian lamp shade supplier do business?

Question 12

A risk-averse manager at a Canadian firm would most likely pursue initial internationalization in ________.

Accepted Answer

A)   the United States
B)   China
C)   India
D)   Russia

Question 13

The risks and need for financing associated with international sales can be alleviated through the use of distribution channel intermediaries.

Accepted Answer

A) True 
 B)False

Question 14

The Internet provides the means to export pure services.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following industries-large, publicly traded U.S.-based manufacturing firms-will be more dependent on international sales?

Accepted Answer

A)   publishing
B)   medical equipment
C)   electrical equipment
D)   automobile

Question 16

Incoterms were developed by the International Chamber of Commerce in order to ________.

Accepted Answer

A)   provide permission to export
B)   standardize the cost of shipping and insuring exported items
C)   define how the buyer and seller share freight and insurance costs
D)   reduce the costs of shipping and insuring exported products

Question 17

When large MNEs access equity financing by selling corporate bonds or shares in stock markets, it is considered as intracorporate financing.

Accepted Answer

A) True 
 B)False

Question 18

Focal firms that internationalize through exporting will most likely perform ________ in the home market.

Accepted Answer

A)   sales
B)   distribution
C)   marketing
D)   manufacturing

Question 19

Company-owned subsidiary is ________.

Accepted Answer

A)   accomplished by contracting with intermediaries located in the firm's home market
B)   typically achieved by contracting with intermediaries located in the foreign market
C)   a foreign intermediary that serves as an extension of the exporter, negotiating on behalf of the exporter and assuming such responsibilities as local supply-chain management, pricing, and customer service
D)   a representative office of the focal firm that handles marketing, physical distribution, promotion, and customer service activities in the foreign market

Question 20

________ is the selling, at a discount, of long-term accounts receivable of the seller or promissory notes of the foreign buyer.

Accepted Answer

A)   Forfaiting
B)   Countertrading
C)   Confirming
D)   Factoring

Exam 14: Exporting and Countertrade

The pre-internationalization stage of internationalization is followed by the committed involvement stage.

Correct Answer
verified

Which of the following foreign market entry strategies offers the focal firm the highest degree of control over foreign operations?

Correct Answer
verified

________ is the selling, at a discount, of long-term accounts receivable of the seller or promissory notes of the foreign buyer.

Correct Answer
verified

Company-owned subsidiary is ________.

Correct Answer
verified

Reva Inc. is a U.S.-based automobile manufacturing company that sets up manufacturing bases in India. Its suppliers followed them to India. This is an example of a proactive move.

Correct Answer
verified

A risk-averse manager at a Canadian firm would most likely pursue initial internationalization in ________.

Correct Answer
verified

Favorable foreign market conditions that encourage firms to internationalize are known as ________.

Correct Answer
verified

Incoterms were developed by the International Chamber of Commerce in order to ________.

Correct Answer
verified

Correct Answer
verified

When large MNEs access equity financing by selling corporate bonds or shares in stock markets, it is considered as intracorporate financing.

Correct Answer
verified

Countertrade is ________.

Correct Answer
verified

Licensing and franchising are ________.

Correct Answer
verified

Focal firms that internationalize through exporting will most likely perform ________ in the home market.

Correct Answer
verified

Exporting is ________.

Correct Answer
verified

Which of the following industries-large, publicly traded U.S.-based manufacturing firms-will be more dependent on international sales?

Correct Answer
verified

In a short essay, describe three different types of payment methods used in international exporting and importing. Include the advantages or disadvantages of each method.

Correct Answer
verified
a. Cash in Advance-When the exporter rec...
View Answer

Push factors include unfavorable trends in the domestic market that compel firms to explore opportunities beyond national borders.

Correct Answer
verified

The Internet provides the means to export pure services.

Correct Answer
verified

The risks and need for financing associated with international sales can be alleviated through the use of distribution channel intermediaries.

Correct Answer
verified

In international trade transactions, an open account is considered as a more secure method of payment than a letter of credit.

Correct Answer
verified

Exam 14: Exporting and Countertrade

The pre-internationalization stage of internationalization is followed by the committed involvement stage.

Correct AnswerverifiedShow Answer

Which of the following foreign market entry strategies offers the focal firm the highest degree of control over foreign operations?

Correct AnswerverifiedShow Answer

________ is the selling, at a discount, of long-term accounts receivable of the seller or promissory notes of the foreign buyer.

Correct AnswerverifiedShow Answer

Company-owned subsidiary is ________.

Correct AnswerverifiedShow Answer

Reva Inc. is a U.S.-based automobile manufacturing company that sets up manufacturing bases in India. Its suppliers followed them to India. This is an example of a proactive move.

Correct AnswerverifiedShow Answer

A risk-averse manager at a Canadian firm would most likely pursue initial internationalization in ________.

Correct AnswerverifiedShow Answer

Favorable foreign market conditions that encourage firms to internationalize are known as ________.

Correct AnswerverifiedShow Answer

Incoterms were developed by the International Chamber of Commerce in order to ________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When large MNEs access equity financing by selling corporate bonds or shares in stock markets, it is considered as intracorporate financing.

Correct AnswerverifiedShow Answer

Countertrade is ________.

Correct AnswerverifiedShow Answer

Licensing and franchising are ________.

Correct AnswerverifiedShow Answer

Focal firms that internationalize through exporting will most likely perform ________ in the home market.

Correct AnswerverifiedShow Answer

Exporting is ________.

Correct AnswerverifiedShow Answer

Which of the following industries-large, publicly traded U.S.-based manufacturing firms-will be more dependent on international sales?

Correct AnswerverifiedShow Answer

In a short essay, describe three different types of payment methods used in international exporting and importing. Include the advantages or disadvantages of each method.

Correct Answerverifieda. Cash in Advance-When the exporter rec...View AnswerShow Answer

Push factors include unfavorable trends in the domestic market that compel firms to explore opportunities beyond national borders.

Correct AnswerverifiedShow Answer

The Internet provides the means to export pure services.

Correct AnswerverifiedShow Answer

The risks and need for financing associated with international sales can be alleviated through the use of distribution channel intermediaries.

Correct AnswerverifiedShow Answer

In international trade transactions, an open account is considered as a more secure method of payment than a letter of credit.

Correct AnswerverifiedShow Answer

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a. Cash in Advance-When the exporter rec...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified