International Trade and Export Marketing: A Comprehensive Guide

International Trade and Export Marketing

Key Concepts in Exporting

31) The only marketing mix element applicable solely in export selling is Place.

32) Which of the following is not true about personal selling? E) To have a face-to-face meeting is not a requirement.

33) Export marketing requires all of the following except: E) Reaching retail customers.

34) The possible arrangements of responsibilities for handling exports include all except: E) Through an export department of an embassy.

35) Research has shown that exporting firms tend to: C) Receive unsolicited export orders.

Global Trade Dynamics

36) According to recent data on percent market share, which country is a dominant player in international trade? B) China

37) Governments commonly use activities to support and promote domestic industries. These activities include all of the following except: E) Voting rights.

38) Agricultural subsidies are particularly controversial with: C) India.

39) The Ministry of International Trade and Industry (MITI) has helped the industrialization of: E) Japan.

40) Which of the following was a major U.S. tax incentive for exporters? C) FSC (Foreign Sales Corporation)

41) The export and import process can entail considerable paperwork and complex formalities. One way to simplify these procedures is through the use of: D) Free trade zones.

42) Which of the following is described as the "three R's" of global trade? B) Rules, rate schedules (tariffs), and regulations

43) Which of the following refers to a system of farm subsidies in Europe? C) CAP (Common Agricultural Policy)

44) Which of the following establishes classification numbers that allow customs officials to determine the duties and taxes to be assessed on imported goods? E) HTS (Harmonized Tariff Schedule)

45) Governmental actions that discourage imports and block market access are known as: B) Protectionist measures (not free trade zones).

46) Restrictive administrative and technical regulations can create: D) Non-tariff barriers.

47) In an effort to attract assembly operations, Brazil has used: B) Preferential tariffs.

48) Developed under the auspices of the Customs Cooperation Council, the ________ has been adopted by the majority of the world's trading nations. B) Harmonized Tariff Schedule (HTS)

49) After the aftermath of the tragedy involving fire at a Bangladeshi apparel factory, the ________ was established. B) Business Social Compliance Initiative (BSCI)

50) After the aftermath of the tragedy, one of the key features of the BSCI is: C) Those auditing facilities are audited by BSCI's own auditors.

51) The United States has given Normal Trade Relations (NTR) status to all of the following countries except: B) Iraq

52) A nontariff barrier (NTB) includes all of the following except: E) Ad valorem duty.

53) A duty that represents a certain percentage of the value of a good is known as: B) Ad valorem duty.

54) The sale of merchandise in export markets at unfair prices is known as: A) Dumping.

55) Which of the following types of duties would be imposed to offset subsidies granted to producers of imported goods in the exporting country? B) Countervailing duty

56) Sweden applies a system to certain categories of imported agricultural products. This system is known as: C) Variable import levies.

Export Intermediaries and Financing

57) Which of the following is sometimes referred to as a "buyer for export"? A) Foreign purchasing agent

58) Which of the following receives a fee for bringing together international buyers and sellers? B) Export broker

59) ________ 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. D) Export management company

60) ________ are licensed specialists in traffic, customs, and international documentation, and assist exporters in shipping their goods. D) Freight forwarders

61) Direct representation, as opposed to representation by independent intermediaries, offers the following advantage: E) Greater control over the marketing effort.

62) Which of the following offers a company the best assurance of getting paid for exported goods? A) A letter of credit

63) The international standard by which letters of credit (L/Cs) are governed is: A) UCP (Uniform Customs and Practice for Documentary Credits)

64) Which of the following documents represents title to goods and is a negotiable instrument? A) Bill of lading

65) An irrevocable letter of credit transfers the obligation to pay from the importer to the: B) Bank.

66) Which set of documents generally represents the minimum documentation required for any shipment? B) Bill of exchange, commercial invoice, and bill of lading

67) Which of the following completely eliminates the risk of nonpayment by an importer? C) Cash in advance

68) Which of the following correctly states the roles of banks in export financing? B) The exporter's bank is the advising and/or confirming bank.

69) In which of the following forms of export financing does an exporter retain title to the goods until the importer has paid? B) With a documentary collection (draft)

70) Which of the following incorrectly states the roles of banks in export financing? B) The importer's bank is the advising &/OR confirming bank.

71) Which of the following arranges export financing payment methods from most secure to least secure for the exporter? D) Cash in advance → documentary credit (L/C) → documentary collection (draft) → sales on open account

72) Which of the following financing methods would be used by an exporter that seeks to minimize risk? C) Cash in advance

73) Which of the following methods of financing would be used by an exporter that seeks to build trust and establish a long-term relationship with a buyer? D) Sales on open account

Global Sourcing and Supply Chain Management

74) In the post-September 11 business environment, which of the following security initiatives has become increasingly important for exporters? B) C-TPAT (Customs-Trade Partnership Against Terrorism)

75) The organizational decision to purchase production inputs, components, or finished goods from domestic or foreign suppliers is known as: D) Sourcing

76) The chief executives of Swiss Swatch Group and Japanese Seiko have voiced their concerns about: C) Retaining a majority, if not 100%, of their manufacturing in their home countries.

77) If the dollar, the yen, or the euro becomes seriously overvalued, a company with production capacity in several countries can: C) Shifting production among different countries to take advantage of currency fluctuations.

78) A number of explanations have been offered for the persistent U.S. trade deficit. One explanation is: E) A strong U.S. dollar translates into less expensive imports and more expensive exports.

79) Officially, the EU tariffs on Chinese and Vietnamese shoes are known as: B) Antidumping duties.

80) The furniture industry has become increasingly globalized. One of the key factors driving this trend is: C) China's low labor rates translate into lower production costs.