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International Business : The Challenge of Global Competition, 8/e

Donald Ball
Wendell H. McCulloch, California State University Long Beach
Paul L. Frantz, California State University Long Beach
Michael Geringer, California Polytechnic State University
Michael S. Minor, University of Texas Pan American

Export and Import Practices

Multiple Choice Quiz


1	The twelfth largest US exporter is:
		A)	General Motors
		B)	Wal-Mart
		C)	Du Pont
		D)	Microsoft


2	Companies become involved in exporting for a number of reasons, all of which are linked to the desire to:
		A)	increase profits and sales.
		B)	protect profits and sales from being eroded.
		C)	both "a" and "b".
		D)	none of the above.


3	Which of the following is not a reason for exporting?
		A)	To offset cyclical sales of the global market.
		B)	To satisfy a host government's requirement that the local subsidiary export.
		C)	To remain competitive in the home market.
		D)	To test foreign markets and foreign competition inexpensively.


4	A major reason given for a firm not exporting is:
		A)	preoccupation with corporate restructuring.
		B)	preoccupation with the vast American market.
		C)	no knowledge of foreign operations.
		D)	insufficient capital to expand foreign markets.


5	The first step in locating foreign markets, whether for export or for foreign manufacturing is to determine whether:
		A)	sufficient personnel are available to handle the foreign operations.
		B)	sufficient capital is available to expand internationally.
		C)	excess production capacity exists in the home market.
		D)	a market exists for the firm's product.


6	The aim of the TIC website is to:
		A)	provide all information necessary to export a product.
		B)	inform the inexperienced about the available resources before they contact the Trade Information Center directly for assistance.
		C)	provide additional information for the experienced after they have contacted the Trade Information Center.
		D)	all of the above.


7	Firms that are already exporting and desire to expand their overseas business may bypass the Trade Information Center and go to the nearest district office of the:
		A)	US Department of Exporting.
		B)	Commerce Department's Exporting Administration.
		C)	Commerce Department's International Trade Administration.
		D)	US Department of International Trade.


8	The International Trade Administration offers a wide range of export promotion activities that include:
		A)	export counseling, analysis of foreign markets, assessment of industry competitiveness, and development of opportunities.
		B)	the National Trade Data Bank.
		C)	SCORE/ACE programs which have free one-on-one counseling to small firms.
		D)	SBDC/SBI programs in that provide export counseling.


9	The _________________ is a program that provides current sales leads from overseas firms that want to buy or represent American firms.
		A)	Trade Representation Program.
		B)	Trade Incentives Program.
		C)	Trade Alternatives Program.
		D)	Trade Opportunities Program.


10	Which of the following are trade events organized by the Department of Commerce to help in both locating foreign representatives and making sales?
		A)	US pavilions.
		B)	Reverse trade missions.
		C)	Product literature center.
		D)	all of the above.


11	An export marketing plan is ________________ a domestic marketing plan.
		A)	essentially the same as
		B)	more comprehensive than
		C)	more detailed than
		D)	more specific than


12	If a foreign customer insists on a FAS (free alongside ship), the seller:
		A)	quotes a price that includes the cost of the goods, insurance and all transportation costs.
		B)	quotes a price that includes the cost of the goods and all transportation costs.
		C)	pays all of the transportation and delivery expense up to the ship's side.
		D)	quotes a price that covers all costs up to the border.


13	The sales agreement should specify:
		A)	all of the terms and conditions of the sale.
		B)	as simply as possible the duties of the representative and the firm.
		C)	as comprehensively as possible the duties of the representative and the firm.
		D)	none of the above.


14	Which of the following is not one of the kinds of payment terms offered by exporters to foreign buyers?
		A)	Cash on delivery.
		B)	Cash in advance.
		C)	Consignment.
		D)	Documentary drafts.


15	An unconditional order that is drawn by the seller on the buyer to pay the draft's amount on presentation or at an agreed future date and that must be paid before the buyer receives shipping documents is called:
		A)	an unconditional draft.
		B)	a presentation draft.
		C)	an export draft.
		D)	a documentary draft.


16	Although exporters would prefer to sell on the almost riskless letter of credit terms, increased foreign competition and the universally tight money situation are forcing them to:
		A)	accept payment in foreign currency.
		B)	accept export drafts.
		C)	accept documentary drafts.
		D)	offer credit.


17	A specialized corporate form authorized by the federal government that provides tax advantages for exporting firms is known as:
		A)	an exporting corporation.
		B)	a foreign sales corporation.
		C)	a foreign exporting corporation.
		D)	a foreign tax advantage corporation.


18	When non-exporters complain about the complexity of export procedures, they are generally referring to:
		A)	government regulations.
		B)	dealing with foreign regulations.
		C)	documentation.
		D)	all of the above.


19	Which of the following is not one of the purposes served by the export bill of lading?
		A)	It is a contract for carriage between the shipper and carrier.
		B)	It is a receipt from the carrier for the goods shipped.
		C)	It is a certificate of ownership.
		D)	It is a certificate for release of liability.


20	__________ warehouse is authorized by customs authorities for the storage of goods on which payment of import duties is deferred until the goods are removed.
		A)	A bonded
		B)	An import
		C)	A customs
		D)	A deferred

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