Question 1

In conducting ________,a business sells goods directly to or through an independent domestic intermediary in the exporter's home country that exports the products to foreign markets.
A) direct exporting
B) global marketing
C) strategic planning
D) indirect exporting

Accepted Answer

Indirect exporting refers to selling goods through an independent domestic intermediary who exports the products to foreign markets. Direct exporting, on the other hand, involves selling goods directly to customers in foreign markets without the involvement of intermediaries. Global marketing and strategic planning are broader concepts that encompass a range of activities related to expanding business globally and creating a long-term plan for achieving international success.

Question 2

The incremental internationalization view of exporting holds that companies first target countries that are ________ their home market.
A) different from
B) similar to
C) smaller than
D) larger than

Accepted Answer

The incremental internationalization view of exporting holds that companies first target countries that are similar to their home market. This allows for easier adaptation to the new market and potentially smoother entry into international trade.

Question 3

Which of the following is NOT one of the three main types of importers?
A) importers looking for suppliers abroad to concentrate their operating risks
B) importers looking for any product around the world they can deliver to local citizens for a profit
C) importers looking to foreign-sourcing to get the highest quality products at the lowest possible price
D) importers using foreign sourcing to optimize their supply chains

Accepted Answer

Importers looking for suppliers abroad to concentrate their operating risks is not one of the three main types of importers. Typically, importers seek to diversify and mitigate risks rather than concentrate them. The other options (B, C, D) represent common motivations for importing, such as profit, quality, and supply chain optimization.

Question 4

The perspective of ________ holds that as a company gains experience,resources,and confidence,it progressively increases its scope of countries to which it exports.
A) serendipity
B) export management
C) the born-global theory
D) incremental internalization

Accepted Answer

The perspective described in the question is incremental internalization, which suggests that companies gradually expand their international operations as they gain experience and resources. Serendipity refers to chance discoveries, export management is a general concept related to managing international sales, and the born-global theory focuses on companies that enter international markets from inception.

Question 5

Meade Clocks has hired an intermediary to manage its export activity.Meade should most likely expect ________.
A) lower profit margins
B) greater control over global sales
C) more responsibility for customer satisfaction
D) frequent misunderstandings about trade regulations

Accepted Answer

Hiring an intermediary typically results in lower profit margins because the intermediary takes a cut of the profits for their services.

Question 6

What is the most likely reason that firms avoid aggressively seeking export opportunities?
A) Exporting is an activity best left to large, resource rich firms.
B) Firms are unaware of opportunities in foreign markets.
C) Foreign customers cannot easily communicate their needs.
D) Firms are reluctant to adjust their established business practices.

Accepted Answer

Firms that have established business practices may be hesitant to adapt to the requirements of foreign customers and may prefer to focus on their domestic market. This could cause them to avoid aggressively seeking export opportunities.

Question 7

A(n)________ operates on a contractual basis and provides exclusive representation for an exporter's goods and services in a foreign market.
A) export management company
B) import broker
C) invoice agent
D) countertrader

Accepted Answer

An export management company (EMC) operates on a contractual basis and provides exclusive representation for an exporter's goods and services in a foreign market. EMCs can handle tasks such as market research, distribution, promotion, and sales for their clients. Import brokers, invoice agents, and countertraders do not necessarily provide exclusive representation for exporters in foreign markets.

Question 8

Which of the following best describes the concept of serendipity in exporting?
A) modifying products to meet cultural preferences
B) initiating global sales through e-commerce methods
C) relying too much on exports when domestic sales suddenly increase
D) opportunistically responding to unsolicited orders from foreign customers

Accepted Answer

Serendipity in exporting refers to the act of opportunistically responding to unsolicited orders from foreign customers. This means that exporters may not have actively sought out business abroad, but instead stumbled upon it through unexpected means. It can be a valuable tool for expanding exports, as it allows exporters to tap into new markets without extensive upfront investment or marketing efforts.

Question 9

Which of the following is NOT one of the common ways that trade intermediaries are paid by exporters?
A) commission rate
B) buy-sell basis
C) fixed salary
D) special event contribution

Accepted Answer

Fixed salary is not one of the common ways that trade intermediaries are paid by exporters. The other options, commission rate, buy-sell basis, and special event contribution, are common methods of payment for trade intermediaries.

Question 10

Corbin Coffee plans to initiate activities in foreign markets through indirect exporting.The firm is most likely to use ________.
A) local managers to pay tariffs and duties
B) external specialists to assist in the export process
C) the International Trade Administration to monitor exports
D) freight forwarders to act as distributors in foreign markets

Accepted Answer

Indirect exporting involves using intermediaries such as external specialists to assist in the export process. These specialists can help with tasks such as obtaining necessary permits and licenses, arranging transportation, and handling customs procedures. Local managers may not have the expertise to handle these tasks, freight forwarders may not be able to act as distributors, and the International Trade Administration does not provide assistance with the export process itself.

Question 11

All of the following are primary duties of the Bureau of Customs and Border Protection EXCEPT which one?
A) assessing all duties, taxes, and fees on imported merchandise
B) collecting import and export tariffs
C) protecting the U.S. from threatening imports
D) policing smuggling operations

Accepted Answer

The Bureau of Customs and Border Protection does not collect export tariffs, only import tariffs.

Question 12

All of the following are common problems associated with exporting and importing EXCEPT ________.
A) managing financial risks
B) finding reliable intermediaries
C) matching foreign rivals' prices
D) establishing distribution networks

Accepted Answer

The answer of All of the following are common problems...

Question 13

Which of the following is typically true of an export management company?
A) It is usually a division of a manufacturing company.
B) Most EMCs in the United States are large, representing a wide range of products and large number of companies.
C) It operates on a contractual basis for a manufacturer by helping obtain orders for its clients' products.
D) It usually takes title to products rather than act as an agent.

Accepted Answer

An export management company typically operates on a contractual basis for a manufacturer by helping obtain orders for its clients' products. Option A is incorrect because an EMC is a separate entity, not a division of a manufacturing company. Option B is incorrect because most EMCs are small and specialized rather than large and representing a wide range of products. Option D is incorrect because an EMC usually acts as an agent without taking title to products.

Question 14

The basis for designing an effective export strategy most likely begins with ________.
A) identifying how a firm can leverage its core competencies into foreign markets
B) hiring local personnel in target markets to build the business
C) enlisting the support of an export management company
D) simultaneously targeting a large number of foreign markets

Accepted Answer

Identifying how a firm can leverage its core competencies into foreign markets is the basis for designing an effective export strategy. This involves determining what unique advantages a firm has and how those can be utilized to compete in foreign markets.

Question 15

The primary responsibilities of the ________ are the assessment and collection of all duties,taxes,and fees on imported merchandise,the enforcement of customs and related laws,and the administration of certain navigation laws and treaties.
A) Bureau of Customs and Border Protection
B) U.S. Secret Service
C) Internal Revenue Service
D) Food and Drug Administration

Accepted Answer

The Bureau of Customs and Border Protection is responsible for assessing and collecting duties, taxes, and fees on imported merchandise, enforcing customs and related laws, and administering certain navigation laws and treaties. The U.S. Secret Service is responsible for protecting national leaders and investigating financial crimes, the Internal Revenue Service is responsible for collecting taxes, and the Food and Drug Administration is responsible for ensuring the safety and efficacy of food, drugs, and medical devices.

Question 16

A broker or other import consultant can help an importer minimize import duties by ________.
A) bypassing duty rebates available through drawback provisions
B) incurring duties by using non-bonded warehouses and foreign trade zones
C) maximizing liability by improperly marking an import's country of origin
D) valuing products in such a way that they qualify for more favorable duty treatment

Accepted Answer

Valuing products in such a way that they qualify for more favorable duty treatment can help an importer minimize import duties. This can be done by correctly classifying the imported products and applying the appropriate tariff rate, as well as taking advantage of any free trade agreements or preferential trade programs that may apply to the products.

Question 17

In designing an export plan,managers initially do all of the following EXCEPT ________.
A) sequence tactics
B) specify objectives
C) identify useful resources
D) organize financial support

Accepted Answer

The initial stage of designing an export plan involves specifying objectives, identifying useful resources, and sequencing tactics. Although financial support is a crucial aspect of the plan, it does not necessarily fall within the initial stage. Therefore, the correct option is D, i.e., organizing financial support is not included in the initial stage of designing an export plan.

Question 18

Which of the following has been the LEAST likely outcome of e-commerce on exporting?
A) enhancing supply chains
B) triggering a rise in born globals
C) overcoming capital limitations for SMEs
D) expanding market opportunities for traders

Accepted Answer

E-commerce has significantly impacted exporting by overcoming capital limitations for SMEs, triggering a rise in born globals, and expanding market opportunities. However, enhancing supply chains is more of a general benefit of e-commerce rather than an outcome specifically related to exporting.

Question 19

You are the manager of an SME in the United States,and your firm wants to begin exporting.Since you have never been involved with exporting,there are many compelling reasons that encourage contacting the ________ to obtain expert counseling on exporting.
A) U.S. Treasury Department
B) Small Business Administration
C) Federal Credit Insurance Association
D) U.S. Commerce Department

Accepted Answer

The U.S. Commerce Department has a specific agency called the International Trade Administration (ITA) that provides support and guidance to U.S. companies interested in exporting. The ITA can provide expert counseling on topics such as market research, export regulations, and finding potential buyers and distributors in foreign markets. Additionally, the ITA offers export assistance programs and services, including trade shows and trade missions, to help SMEs succeed in exporting.

Question 20

A driving factor for the growth in imports is the impact of ________.
A) government programs
B) labor specialization
C) consumer preferences
D) social trends

Accepted Answer

The answer of A driving factor for the growth in...

Quiz 14: Export and Import

In conducting ________,a business sells goods directly to or through an independent domestic intermediary in the exporter's home country that exports the products to foreign markets.

The incremental internationalization view of exporting holds that companies first target countries that are ________ their home market.

Which of the following is NOT one of the three main types of importers?

The perspective of ________ holds that as a company gains experience,resources,and confidence,it progressively increases its scope of countries to which it exports.

Meade Clocks has hired an intermediary to manage its export activity.Meade should most likely expect ________.

What is the most likely reason that firms avoid aggressively seeking export opportunities?

A(n) ________ operates on a contractual basis and provides exclusive representation for an exporter's goods and services in a foreign market.

Which of the following best describes the concept of serendipity in exporting?

Which of the following is NOT one of the common ways that trade intermediaries are paid by exporters?

Corbin Coffee plans to initiate activities in foreign markets through indirect exporting.The firm is most likely to use ________.

All of the following are primary duties of the Bureau of Customs and Border Protection EXCEPT which one?

All of the following are common problems associated with exporting and importing EXCEPT ________.

Which of the following is typically true of an export management company?

The basis for designing an effective export strategy most likely begins with ________.

The primary responsibilities of the ________ are the assessment and collection of all duties,taxes,and fees on imported merchandise,the enforcement of customs and related laws,and the administration of certain navigation laws and treaties.

A broker or other import consultant can help an importer minimize import duties by ________.

In designing an export plan,managers initially do all of the following EXCEPT ________.

Which of the following has been the LEAST likely outcome of e-commerce on exporting?

You are the manager of an SME in the United States,and your firm wants to begin exporting.Since you have never been involved with exporting,there are many compelling reasons that encourage contacting the ________ to obtain expert counseling on exporting.

A driving factor for the growth in imports is the impact of ________.