Question 1

Which of the following can be referred to as a "buyer for export" or an "export commission house" and operates on behalf of a buyer from a foreign country?

Accepted Answer

A foreign purchasing agent acts on behalf of a buyer from a foreign country, essentially serving as a "buyer for export" or an "export commission house."

Question 2

An ad valorem duty is expressed as a percentage of the value of goods.

Accepted Answer

An ad valorem duty is a type of tariff charged on goods, calculated as a percentage of the total value of the goods.

Question 3

Foreign purchasing agents are also referred to as jobbers.

Accepted Answer

Foreign purchasing agents are typically referred to as "buying agents" or "import agents," not jobbers. Jobbers generally refer to wholesalers or intermediaries in the distribution channel, not specifically to foreign purchasing agents.

Question 4

________ is an independent marketing intermediary that acts as the export department for two or more manufacturers whose product lines do not compete with each other.

Accepted Answer

An Export Management Company (EMC) acts as the export department for several manufacturers, handling the exporting aspect of the business for companies whose products do not compete with each other. This allows manufacturers to focus on their domestic operations while the EMC manages international sales and logistics.

Question 5

Which of the following receives a fee for bringing together an exporter and a buyer in another country?

Accepted Answer

Export brokers specialize in bringing together exporters and buyers from different countries and typically earn a fee for this service. They do not take possession of the goods themselves but facilitate the transaction between the seller and the buyer.

Question 6

The possible arrangements for handling exports include all of the following except:

Accepted Answer

Option C is incorrect because handling exports typically involves additional costs, such as shipping, insurance, and compliance with international regulations, which means it cannot be considered a low-cost arrangement requiring no additional personnel.

Question 7

The MEA can act as an export distributor or as an export commission representative.However,the MEA does not perform the functions of an export department,and the scope of market activities is usually limited to a few countries.

Accepted Answer

MEA (Manufacturers' Export Agent) acts as an intermediary for manufacturers, either distributing products or earning commissions, but does not replace a manufacturer's export department, and typically operates within a limited number of countries.

Question 8

How can restrictive administrative and technical regulations create barriers to trade?

Accepted Answer

The answer of How can restrictive administrative and technical regulations...

Question 9

"Piggyback exporter," "cooperative exporter," and "export vendor" are all terms used to describe an export broker.

Accepted Answer

"Piggyback exporter," "cooperative exporter," and "export vendor" refer to different strategies or entities involved in exporting, not specifically to an export broker. An export broker acts as an intermediary between buyers and sellers, while these terms describe methods or participants in the export process with distinct roles or arrangements.

Question 10

________ are variously referred to as buyer for export,export commission house,or export confirming house.

Accepted Answer

Foreign purchasing agents are referred to as buyers for export, export commission houses, or export confirming houses because they act on behalf of foreign clients, sourcing products and managing purchases and shipments.

Question 11

Direct representation,as opposed to representation by independent intermediaries,for exporting by the market country has several advantages which do not include:

Accepted Answer

Direct representation primarily involves dealing with intermediaries or partners within the market country rather than selling directly to consumers. It focuses on control, communication, decision-making, and ensuring commitment to the marketer's interests, rather than consumer direct sales.

Question 12

What are customs duties? How do they work in controlling imported goods?

Accepted Answer

The answer of What are customs duties? How do they...

Question 13

________ is sometimes called a mother hen,a piggyback exporter,or an export vendor.

Accepted Answer

A cooperative exporter, also known as a mother hen, piggyback exporter, or export vendor, is an organization that helps other companies export their products by providing them with the necessary services and support. This term reflects the cooperative exporter's role in nurturing and supporting smaller companies' export activities, similar to how a mother hen cares for her chicks.

Question 14

What are some of the entities that an exporter should be familiar with? Describe and explain the role played by each of these entities,separating those that have responsibilities from exporters from those that have no responsibilities from the exporters.

Accepted Answer

The answer of What are some of the entities that...

Question 15

What are the differences between antidumping and countervailing duties? Under what conditions are these duties imposed?

Accepted Answer

The answer of What are the differences between antidumping and...

Question 16

CVDs are additional duties levied by exporting countries on imported videodiscs.

Accepted Answer

CVDs, or Countervailing Duties, are additional duties imposed by importing countries on imported goods to counteract subsidies provided to these goods by the exporting countries, not specifically on videodiscs.

Question 17

Export management company (EMC)is an independent marketing intermediary that acts as the export department for two or more manufacturers (principals)whose product lines compete with each other.

Accepted Answer

An Export Management Company (EMC) acts as the export department for several manufacturers (principals), but it typically does not handle competing product lines to avoid conflicts of interest and to maintain focus on each client's market success.

Question 18

A company that assigns a sufficiently high priority to its export business will establish an in-house organization.It then faces the question of how to organize it effectively.

Accepted Answer

Establishing an in-house organization for export business allows a company to prioritize and manage its international operations effectively, but it also necessitates strategic planning on how to structure and run this organization efficiently.

Question 19

________ are licensed specialists in traffic operations,customs clearance,and shipping tariffs and schedules.They can be considered as the travel agents for handling export goods.

Accepted Answer

Freight forwarders are professionals who specialize in arranging the storage and shipping of merchandise on behalf of its shippers. They have expertise in various shipping logistics, including traffic operations, customs clearance, and understanding shipping tariffs and schedules, making them akin to travel agents for export goods.

Question 20

A licensed forwarder receives brokerage fees or rebates from a(n)________ for booked space.

Accepted Answer

The answer of A licensed forwarder receives brokerage fees or...

Quiz 8: Importing,exporting,and Sourcing