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Mixed Quiz
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1

Exporting has been facilitated by all of the following except
A)a decline in trade barriers
B)advances in communication technology
C)advances in transportation technology
D)countries with weak currencies
E)increased regional economic integration
2

Which of the following is not a common pitfall of exporting?
A)a lack of an effective distribution system
B)problems securing financing
C)being overly proactive and not reactive enough
D)a lack of product customization to the market
E)a poor understanding of the competitive conditions in the market
3

Services offered by the U.S. Department of Commerce include all of the following except
A)discount export financing
B)a best prospects list
C)trade events and trade fairs
D)a customized market research survey
E)a matchmaker program
4

A ________ is issued by a bank indicating that the bank will make payments under specific circumstances.
A)letter of credit
B)time draft
C)sight draft
D)commercial bill of exchange
E)bill of lading
5

Another name for a draft is
A)letter of credit
B)irrevocable letter of credit
C)bill of exchange
D)bill of lading
E)payment order
6

The main advantage of the letter of credit system is
A)the importer does not have to pay for the product at the time of purchase
B)the exporter can choose the currency that payment will be made in
C)the foreign exchange market can be completely avoided
D)it eliminates the need for trade intermediaries
E)it introduces trust into the relationship between the importer and exporter
7

A __________ serves as a receipt, a contract, and a document of title.
A)bill of lading
B)bill of exchange
C)time draft
D)sight draft
E)letter of credit
8

The mission of the _________ is to provide financing aid that will facilitate exports, imports, and the exchange of commodities between the U.S. and other countries.
A)World Bank
B)International Bank for Reconstruction and Development
C)Ex-Im Bank
D)IMF
E)Central Bank
9

The direct exchange of goods or services between two parties without a cash transaction is
A)a buyback
B)barter
C)counterpurchase
D)an offset agreement
E)switch trading
10

A reciprocal buying agreement is called
A)switch trading
B)a buyback
C)an offset agreement
D)barter
E)counterpurchase
11

Medium-sized and small firms are often more reactive than proactive at capitalizing on export opportunities.
A)True
B)False
12

The best source of information for U.S. exporters is the U.S. Department of Commerce.
A)True
B)False
13

Export specialists who act as an export marketing department for client firms are export management companies.
A)True
B)False
14

For a French importer, the preferred scenario for financing is that the importer pays for the goods, then the exporter ships the product.
A)True
B)False
15

A promise to pay by the accepting party at some future date is a sight draft.
A)True
B)False
16

The trade of goods and services for other goods and services is known as countertrade.
A)True
B)False
17

Countertrade makes up between 8-10% of world trade by value.
A)True
B)False
18

An offset occurs when a firm builds a plant in a country and agrees to take a certain percentage of the plant's output as partial payment of the contract.
A)True
B)False
19

In many developed nations, countertrade is the only option available when doing business.
A)True
B)False
20

Countertrade is most attractive to small exporters who lack export financing.
A)True
B)False





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