Description : When exporting some common pitfalls include: A. failure to use an export management company B. failure to print service, sales, and warranty messages in local languages C. chasing orders around the ... orderly growth D. failure to consider licensing or joint venture agreements E. all of the above
Last Answer : E. all of the above
Description : The “three C’s” of international commerce are: A. customers B. commitment C. currency D. cultural sensitivity E. A, B, and D
Last Answer : C. currency
Description : Which of the following is not necessarily a party to a forfaiting transaction? A. exporter B. importer C. broker D. bank E. forfaiter
Last Answer : C. broker
Description : Buying a company's accounts receivable on a nonrecourse basis is known as _____. A. switch trading B. financing C. factoring D. funding E. free trade
Last Answer : C. factoring
Description : In a _____ countertrade the initial seller receives compensation in products that arise out of the original sale. A. consignment B. barter C. counterpurchase D. buy-back agreement E. switch trading
Last Answer : D. buy-back agreement
Description : Which of the following is not a form of countertrade? A. barter B. consignment C. switch trading D. counterpurchase E. compensation agreement
Last Answer : B. consignment
Description : Which of the following is not a form of offset agreements? A. coproduction B. licensed production C. subcontractor production D. cash in advance E. technology transfer
Last Answer : D. cash in advance
Description : Which of the following is not true of a consular invoice? A. provides customs officials with all information B. facilitates easy customs clearance C. helps customs officials assess duties D. issued by the consulate of the exporting country E. it is not a title to the goods
Last Answer : D. issued by the consulate of the exporting country
Description : A document that contains a precise description of the goods is known as a _____. A. weight list B. packing list C. commercial invoice D. certificate of origin E. consular invoice
Last Answer : C. commercial invoice
Description : A commercial invoice is issued by _____. A. exporter B. exporter's bank C. importer D. importer's bank E. confirming bank
Last Answer : A. exporter
Description : Which of the following documents should necessarily accompany a draft? A. certificate of origin B. weight list C. packing list D. inspection certificate E. none of the above
Last Answer : E. none of the above
Description : Which of the following may be required as additional documents in a letter of credit? A. commercial invoice B. insurance document C. consular invoice D. certificate of origin E. all of the above
Description : If an exporter is doubtful about an issuing bank's ability to pay, he will expect a domestic bank to join the transaction in a _____ letter of credit. A. revolving B. irrevocable C. revocable D. unconfirmed E. confirmed
Last Answer : E. confirmed
Description : If a letter of credit can be neither cancelled nor modified without the consent of all parties, it is known as _____. A. revolving B. irrevocable C. revocable D. unconfirmed E. unclean
Last Answer : B. irrevocable
Description : Which of the following is not true of a letter of credit? A. it is a document B. issued by a bank C. at the request of the exporter D. the bank agrees to honor a draft drawn on the importer E. payable in the designated currency
Last Answer : C. at the request of the exporter
Description : A(n) _____ bill of lading does not guarantee that the goods have been loaded on the vessel. A. on-board B. foul C. received-for-shipment D. straight E. order
Last Answer : C. received-for-shipment
Description : If a carrier is instructed to deliver goods to an importer, a _____ bill of lading is used. A.straight B. order C. documentary D. on-board E. clean
Last Answer : A.straight
Description : When IBM ships products to its subsidiary in Argentina, it will most likely use a ____ draft. A. sight B. clean C. D/P D. demand E. all of the above
Last Answer : B. clean
Description : Documentary drafts require various shipping documents such as ____. A. bills of lading B. insurance certificates C. commercial invoices D. A and B E. A, B, and C
Last Answer : E. A, B, and C
Description : Forms of countertrade include the following except ___. A. simple barter B. clearing arrangement C. switch trade D.counterpurchase E. mutual agreement
Last Answer : E. mutual agreement
Description : If a draft is accepted by a bank, it becomes a _____. A. valid draft B. demand draft C. usance draft D. banker's acceptance E. drawee's acceptance
Last Answer : D. banker's acceptance
Description : If a draft is made to bearer, payment should be made to _____. A. a bank B. drawer C. acceptor D. anyone who presents the draft E. all of the above
Last Answer : D. anyone who presents the draft
Description : Which of the following is not a condition for drafts to be negotiable? A. must be in writing, signed by the drawer B. must contain a promise to pay a certain sum if goods are received C. must contain an ... D. must be payable on sight or at a specified date E. must be made out to order or bearer
Last Answer : B. must contain a promise to pay a certain sum if goods are received
Description : Foreign exchange risk can be reduced by using _____. A. forward contracts B. futures contracts C. currency options D. currency denomination E. all of the above
Description : ______ risk is the potential exchange loss from outstanding obligations as a result of exchange-rate fluctuations. A. Trade B. Exchange C. Finance D. Noncompletion E. Transaction
Last Answer : E. Transaction
Description : Which of the following is not an important document in foreign trade? A. a check for the value of goods B. a draft C. bill of lading D. a letter of credit E. none of the above
Last Answer : A. a check for the value of goods
Description : Which of the following is not a basic objective of documentation in foreign trade? A. to assure that the exporter will receive the payment B. to assure that the importer will receive the goods C. to eliminate risk of noncompletion D. to reduce foreign exchange risk E. none of the above