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| 1 | |
The great promise of _______ is that large revenue and profit opportunities are to be found in foreign markets for most firms in most industries. |
| | A) | importing |
| | B) | bartering |
| | C) | exporting |
| | D) | tariffs |
| | E) | countertrade |
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| 2 | |
Large companies tend to be proactive about seeking export opportunities, medium and small sized firms: |
| | A) | are also proactive. |
| | B) | are very reactive. |
| | C) | are extremely proactive. |
| | D) | most do international business. |
| | E) | none of these answers is correct |
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| 3 | |
Common pitfalls of exporting include all of the following except: |
| | A) | failure to customize the product to the needs of foreign customers. |
| | B) | poor market analysis. |
| | C) | problems securing financing. |
| | D) | lack of an effective distribution program. |
| | E) | core competency costs. |
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| 4 | |
The way to overcome the ignorance of exporting is to: |
| | A) | be financially stable. |
| | B) | collect information. |
| | C) | create a subsidiary. |
| | D) | import before exporting. |
| | E) | franchise. |
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| 5 | |
In Canada, a good source of trade information is: |
| | A) | Foreign Embassies and consulates |
| | B) | Trade associations |
| | C) | Industry Canada |
| | D) | DFAIT, Canadian Embassies and Consulates |
| | E) | All of these are good sources |
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| 6 | |
One way for first-time exporters to identify the opportunities associated with exporting and to avoid many of the associated pitfalls is to utilize: |
| | A) | a trading company (export management company). |
| | B) | an experienced CEO. |
| | C) | a researcher to gather global information. |
| | D) | a Greenfield investment consultant. |
| | E) | home-country nationals only. |
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| 7 | |
This financial agency is available for Canadian exporters beyond the conventional financing available from Canadian banks. |
| | A) | BDC |
| | B) | PEMD |
| | C) | EXIM |
| | D) | FCIA |
| | E) | FITT |
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| 8 | |
The probability of exporting successfully can be increased dramatically by taking all of the following steps except to: |
| | A) | utilize a trading company. |
| | B) | focus on several markets at a time. |
| | C) | enter a foreign market on a small scale. |
| | D) | devote extra attention to building enduring relationships. |
| | E) | keep the option of local production in mind. |
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| 9 | |
Issued by a bank at the request of an importer, the __________ states that the bank will pay a specified sum of money to a beneficiary, normally the exporter, on presentation of particular, specified documents. |
| | A) | draft |
| | B) | bill of exchange |
| | C) | bill of lading |
| | D) | letter of credit |
| | E) | export invoice |
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| 10 | |
How is the problem of trust solved between firms engaged in international trade? |
| | A) | By competing to see who wins. |
| | B) | By having the import company choose someone to mediate. |
| | C) | By "grinning and bearing it". |
| | D) | By not working together at all. |
| | E) | By using a third-party trusted by both as an intermediary. |
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| 11 | |
In Canada, export insurance is provided by which federal government agency? |
| | A) | BDC |
| | B) | PEMD |
| | C) | EDC |
| | D) | DFAIT |
| | E) | FITT |
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| 12 | |
A(n) __________ is sometimes referred to as a bill of exchange. |
| | A) | draft |
| | B) | bill of exchange |
| | C) | bill of lading |
| | D) | letter of credit |
| | E) | export invoice |
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| 13 | |
Payments: payable on presentation to the drawee is known as a |
| | A) | Time draft |
| | B) | Sight draft |
| | C) | bill of lading |
| | D) | letter of credit |
| | E) | export invoice |
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| 14 | |
A(n) _______ draft is payable on presentation of the drawee, while a(n) _______ draft allows for a delay of payment. |
| | A) | Sight, time |
| | B) | exchange; sight |
| | C) | time; share |
| | D) | sight; exchange |
| | E) | time; sight |
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| 15 | |
The __________ is issued to the exporter by the common carrier transporting the merchandise. |
| | A) | L/C |
| | B) | draft |
| | C) | bill of lading |
| | D) | bill of exchange |
| | E) | letter of credit |
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| 16 | |
Although _______ is the simplest arrangement of countertrade, it is not common. |
| | A) | barter |
| | B) | counterpurchase |
| | C) | offset |
| | D) | switch trading |
| | E) | buyback |
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| 17 | |
What occurs when a firm agrees to purchase a certain amount of materials back from a country to which a sale is made? |
| | A) | barter |
| | B) | counterpurchase |
| | C) | offset |
| | D) | switch trading |
| | E) | buyback |
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| 18 | |
_______ is the use of specialized third-party trading house in a countertrade arrangement. |
| | A) | barter |
| | B) | counterpurchase |
| | C) | offset |
| | D) | switch trading |
| | E) | buyback |
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| 19 | |
What occurs when a firm builds a plant in a country and agrees to take a percentage of the plant's output as partial payment of the contract? |
| | A) | barter |
| | B) | counterpurchase |
| | C) | offset |
| | D) | switch trading |
| | E) | buyback |
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| 20 | |
These large Japanese firms are well known for trading, and particularly the art of counter-trading: |
| | A) | guanxa. |
| | B) | sogo shosha. |
| | C) | saki houses. |
| | D) | nirvanas. |
| | E) | None of these. |
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