Companies that export spread business risk by diversifying into multiple markets.. continue reading A. Export-Import Bank Advantages of exporting You could significantly expand your markets, leaving you less dependent on any single one. c. traditional practices Advantages of exporting You could significantly expand your markets, leaving you less dependent on any single one. A. bill of exchange d. governments may provide incentives to employ expatriates B. offset Which of the following is an advantage of a letter of credit for an importer? Advantages/Disadvantages of Licensing (A) Increased profitability, extended profitability. a. reduce their population density E. he or she knows that the importer will default on payment. A. switch trading a. differences in distribution channels B. similar preferences of the parties regarding how a transaction should be configured. Which of the following is one of the five core values? c. entering a joint venture D. collecting information. b. international licensing This matters, as the services sector represents 80% of the UK economy. exporter is exposed to the risk that the importer may default on payment, In the United States, export credit insurance is provided by _____, an association of private commercial institutions. b. operating a transnational business A. Guanxi She did admit, however, that property at 73 Main Avenue, Norwalk, Connecticut, Switch trading D. It organizes trade events that help potential exporters make foreign contacts. E. It reduces paperwork and complex formalities. A. Few companies invest more in equipment than Carnival Cruise Lines, the most popular cruise line in the world. d. realizes higher profit margins d. transnational b. keeping the assignment structure open If negotiations fail & cost of termination is substantial assistance from its bank or attorney Which of the following is true of medium-sized and small firms? The exporter can insure against this possibility by: C. narrowing distance between the two parties due to technological advances. Li claimed to have What can you conclude from this plot? e. the Asia Pacific Economic Cooperation group, Which of the following is the largest export market of the United States? d. transnational d. the company risks losing control of its intellectual property Which of the following is true of countertrade? A. switch trade Organizations resort to countertrade of goods and services when: d. The International Monetary Fund C. Securitization "best prospects" list c. takes on greater development costs In international commerce, a party initiating a draft is known as the _____. b. the transnational model C. SCORE program It helps in easy currency conversion. A. export management company It results in the importer losing control over the process of trading. C. exporter is dealing with a country that has huge foreign reserves. D. It results in lower shipping costs. Paste the data into Microsoft Word. e. multinational and transnational, The ___ organizational model is designed to enable a company to market a standardized product in the worldwide marketplace and to manufacture that product in a limit number of locations where the mix of costs and skills is most favorable a. offshoring E. Bill of exchange, A _____ is issued by a bank, and it indicates that the bank will make payments under specific circumstances. The importer does not have to pay for the merchandise until the documents have arrived. e. panic attack, Which of the following is an effective way to prevent failed global assignments? Exporting is the sale of products and services in foreign countries that are sourced from the home country. b. low cost sites are available They consider exporting only after their domestic market is saturated. C. can be used to obtain payment or a written promise of payment before the merchandise is released to the importer. A. Which of the following is not a strategic advantage of exporting: A broker or other import consultant can help an importer minimize import duties by _____. accident and had asked her to help pay his bills, including the rent d. bribery concerns One advantage of exports is: Concentration of resources on production Companies with innovation-seeking strategic goals target countries and regions: Renowned for generating first-class innovators A green-field operation refers to: A wholly owned subsidiary created by building a new factory and offices from scratch Requires a single contract A. the importer has to request for it. D. exporter has received a letter of credit from the importer's bank. a. Sony b. multinational D. It uses a specialized third-party trading house. e. high labor costs, NAFTA combined the economies of ______ into one of the world's largest trading blocs B. bill of lading The National Tax Journal (December 2001) published a study of charitable givers based on data collected from the Independent Sector Survey on Giving and Volunteering. B. Firms can avoid setting up in-house trading departments. b. outsourcing E. buyback, In international commerce, a _____ refers to an order written by an exporter instructing an importer to pay a specified amount of money at a specified time. The following data was used to prepare adjusting entries for Hawk Company as of August 31, the end of the company's fiscal year. B. letter of credit D. counterpurchase It starts exporting operations for a firm with the understanding that the firm will take over operations after they are well established. C. Ex-Im Bank E. Bank of New York, Which of the following institutions within the U.S. Department of Commerce is dedicated to providing businesses with intelligence and assistance for attacking foreign markets? D. offset a. determine the profit-loss ratio for a new product United Nations A. contract drafts and lending drafts. Disadvantages of exporting D. They are departments in the Small Business Administration. E. The exporting company cannot avoid the common pitfalls of exporting. e. intranational, Which of the following factors would increase the pressure for local responsiveness? The governments of developing nations sometimes insist on a certain amount of countertrade. This is an example of _____. c. China In global trade, exporting is the process by which companies from one country sell their goods and services to companies or consumers in a different country. In an international transaction, a formal promise to pay is required before the buyer can obtain the merchandise. Entering several markets simultaneously to hedge risk Which of the following is a common pitfall that novice exporters come across? China's coal imports from Australia were 2.73 million tonnes, with 2.13 million assessed as the thermal grade used in power plants, with 417,576 tonnes being coking coal used to make steel. Receiving payments on time is crucial for global businesses. E. Ministry of International Trade and Industry. D. Waiting for export opportunities d. universal needs B. switch trading B. E. Export Credit Insurance Association, _____ has a direct lending operation under which it lends dollars to foreign borrowers for use in purchasing U.S. exports. Increased profits. What characteristic is Heinrich displaying? Disadvantage 1 of exporting When you buy goods and then sell them for less which is called a deficit. c. political demands imposed by host countries C. barter B. d. global model strategic exam 2-2. . e. cost considerations, One of the drawbacks of exporting is Switch trading They are unfamiliar with foreign market opportunities. D. rapid acculturation. C. providing a collateral for the amount specified in the bill. d. intranational C. International Trade Administration B. e. ASEAN, What does an integration-responsiveness grid help a manager to do? c. overconfident Lack of international marketing prowess In a barter system, if goods are exchanged simultaneously, one party ends up financing the other. b. wholly owned subsidiaries d. expatriation Receives payment in the form of goods produced by the facility a. international B. single-party drafts and multi-party drafts. D. exporter has easy access to export credit to fund its international trade. D. time draft she had paid the rent. Small Business Administration e. a clothing factory, Which of the following is the preferred strategy when a company's competitive advantage is based on technology and the company wishes to enter the global marketplace? What are your conclusions? D. Ex-Im Bank Refer to the Baseball 2016 data that report information on the 30 Major League the sole owner of PP Door but denied that Zhang was its manager. Export promotion leads to expansion of goods for the foreign market. B. it is detrimental to the economy of the importing country. d. China E. better understanding of how transactions should be configured. D. Countertrade a. world output and trade have decreased to dramatically low levels "best prospects" list b. decentralized structures d. Germany Sight draft At up to $500 million per ship, the cost of the cruise ships is one of Carnival's most significant expenses. D. It indicates that the carrier has received the merchandise described on the face of the document. a. In an international transaction, the seller usually ships merchandise on an open account. e. it increases profits because of economies of scale, c. subsidiaries can customize products according to local preferences, A disadvantage of a multinational model is that it e. reducing costs, Which of the following entry modes do most manufacturing companies use to begin global expansion? A. Why do you think Carnival estimates that its ships will be used for only 30 years? One advantage of exporting is that it provides scale economies. _____ refers to an alternative means of structuring an international sale when conventional means of payment are difficult, costly, or nonexistent. E. kanban. d. competitors engage in global strategic coordination On Wednesday last week (05 April 2023) the Office for National Statistics released its latest detailed data on the UK's imports and exports of services. C. exporter is unable to obtain any pre-export financing. C. Bill of lading d. differences in consumer tastes C. "comparison shopping service" B. Seller agrees to a set price & receives cash from buyer b. many companies find their home markets under attack from foreign competition A. approaching the World Bank. A. D. draft d. None they are independent of each other. The 10 Benefits of Exporting. Which of the following is true of a letter of credit? d. licensing E. It is not an acceptable means of trading in most developing countries. e. Unilever, Which of the following models of organization structure depends heavily on communication and coordination between subsidiaries? principals of PP Door signed the lease and guaranty agreements C. Firms prefer to be paid in hard currency. Why might the court agree? Barterthe oldest form direct exchange of goods without any money C. International Trade Veteran's Group They are organizations within the U.S. Department of Commerce. c. the CAFTA-DR trade zone e. the system lowers manufacturing costs by eliminating duplication of effort, b. the parent company allows the subsidiaries to respond to local conditions, Companies that decentralize their operations throughout the globe in order to appeal to the varying tests and preferences of global consumers are utilizing a(n) _____ model A. easy tracking of the parties involved. A. trade acceptance c. Calculate the chi-square test statistic for testing the null hypothesis, part b. quartiles using formula (4-1 ). d. franchising A. it fails to enable firms to finance an export deal. e. sales practices are uniform from country to country, a. consumer tastes and preferences differ significantly, When One-World Fashion tries to open its clothing stores in a new country, it learns that local rules require a certain percentage of its products to be manufactured locally. It protects exporters from the risk that the foreign importer will default on payment. Which of the following is true with respect to the international and domestic practices of settling trade transactions? B. exporter can convert the currency only in U.S. dollars. a. consumer tastes and preferences differ significantly d. persistence Buyback E. Buyback. E. offsourcing, Gerard's company used to have one of its clothing lines manufactured by an outside supplier. Selling goods and services to new markets offers a sales boost and enables long-term profitability. Exporting is defined as the sale of products and services in foreign countries that are sourced or made in the home country. In this case, Peak is using the ___ model of organizational structure c. exporting e. it transfers ultimate control to the subsidiaries, a. it facilitates the transfer of skills from the parent company to the subsidiaries, NewGen Communications Technology has subsidiaries in each country which it does business. Obtaining pre-export financing becomes easier. C. United States Trade Service Another advantage of exporting is profitability. A. document of title The importer applies to a trusted third party (usually a bank) for a letter of credit to be issued in favor of the exporter for the merchandise the importer wishes to buy. e. compare the economic advantages of outsourcing versus inshoring, c. identify the best strategy for competing in a global marketplace, In the integration-responsiveness grid the B. Which of the following is a reason why firms are not proactive about seeking export opportunities? a. growth of developing nations e. legal demands imposed by host countries, Strong pressures for local responsiveness emerge when 150, 991 A.2d 650 (2010)]. A. proactively and continuously seek export opportunities for their affiliated companies. a. third-country national Merger b. outsourcing Due to the complexity and diversity of foreign markets, firms sometimes hesitate to seek export opportunities. Which of the following is a drawback of relying on an export management company (EMC)? If Jamila goes to work at Regal's factory, she will be considered a(n): B. outsourcing e. patenting, An advantage of licensing as a method of entering global competition is that the True Family issues are the main reason for expatriates to return home early. Advantages of exporting Extending to a global scale. e. etiquette, Which of the following is a consequence of an increasingly integrated global economy? b. competitiveness D. It helps exporters incur lower shipping costs. c. Middle East monthly payments, 73-75 Main Avenue filed a suit against PP the export button should appear where the 3 dots are. A lack of trust between two parties engaged in international trade is exacerbated by the: C. It becomes a financial contract between the trusted third party (usually a bank) and the exporter. 2. d. expatriates C. It does not have expert specialists to help neophyte exporter identify opportunities. The World Train Organization A. B. Which of the following is a strategic step taken to increase a firm's probability of exporting successfully? A. Brazil The Department of Commerce On average, sales grow faster, more jobs are created, and employees earn more than in non-exporting firms. c. join venture Using the variable, salary, create a box plot. C. Entering a foreign market on a small scale c. wholly owned subsidiary A major advantage of using export strategies to enter international markets is that Multiple Choice these can be used to avoid tariffs and curb the effects of fluctuating exchange rates. D. counterpurchase Firms engaged in barter run the risk of having to accept goods they do not want or cannot use. A. From an exporter's perspective, why is an offset more attractive than a straight counterpurchase agreement? A. A. offshoring D. Ex-Im Bank D. writing or stamping a notice of acceptance on its face. E. It allows buyers to obtain possession of merchandise without signing a formal document acknowledging his or her obligation to pay. C. barter A. merchandise bill c. wages in the foreign countries rise, reducing the expected cost savings e. compassion, US business people working abroad may face ethical challenges, in particular because of cultural differences regarding writing or stamping a notice of acceptance on its face. The expired portion of prepaid insurance is $3,700. B. offset Advantages of Exporting for Companies Exports can increase sales and profitsif the goods create new markets or expand existing ones, and they may even present an opportunity to capture significant global market share. B. Factoring The lack of a letter of credit exposes the exporter to the risk that the foreign importer will default on payment. e. India, Which of the following is a reason that companies adopt a common global strategy? It reduces the exporter's level of trust in the importer. A. switch trading E. The importer does not have to pay the third party a fee for facilitating the transaction. E. Export Credit Insurance Association, The _____ guarantees repayment of medium- and long-term loans U.S. commercial banks make to foreign borrowers for purchasing U.S. exports. A. D. letter of credit Following generally accepted accounting principles, Carnival depreciates the cost of each ship over its 30-year estimated useful life. E. Ex-Im Network, A(n) _____ refers to an export specialist that acts as an export marketing department for client firms. of PP Door, signed the lease agreement. Importing refers to buying goods and services from foreign sources and bringing them back into the home country. D. Developing nations may have trouble raising the foreign exchange necessary to pay for imports. E. It specializes in serving firms in particular industries and in particular areas of the world. a. ethnocentric A. Use the compound interest formula (1) to find the indicated values. Expanding the variety of products for purchase by consumers and business. E. letter of credit. c. Heineken D. buyback B. Counterpurchase d. varied consumer preferences E. countervailing duty, The principle of _____ is to trade goods and services for other goods and services when they cannot be traded for money. b. has high manufacturing costs D. Barter A. D. Barter You should weigh them up before starting to move into overseas markets. C. a counterpurchase e. competitive pressures to reduce costs, Colas have become available around the globe, and they are used in similar ways worldwide. e. decentralized, Which of the following is true of the global model? C. It oversees volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses. b. subsidiaries located in countries where the company does business with much of the control exercised by the parent company c. multinational E. Buyback, A firm sells some products to a foreign country. The sogo shosha of Japan: c. culture shock A. D. has fewer export opportunities. Limited trade volume A. c. high costs and risk are associated with this type of operations She also denied signing the guaranty agreement. A . When a time draft is presented to a drawee, he or she signifies acceptance of it by: Successful exporting requires that agents perform all of the following except _____. e. intranational, The organizational model that enables managers to "think globally but act locally" is the b. decreased scale volume To cater to the growing demand of luxury cars, Terabithia Republic agreed to buy 5,000 cars from MotoSporto Inc. in exchange for 5,000 gallons of oil. . Carnival estimates that its ships will sail for 30 years before they are retired. E. It starts exporting operations for firms until they are well established. B. D. The exporter ships the goods to the importer on a common carrier. D. Switch trading b. horizontal axis measures pressures for local interaction and the vertical axis measures pressures for global responsiveness d. the worldwide model E. It cannot be sold by an exporter. She claimed that c. subsidiaries located in countries where the company does business with much of the control exercised by the subsidiaries b. multinational Using host-country nationals at an overseas subsidiary is generally less expensive than using expatriates. go to your study set and click edit. e. global market integration, The model in which managers use their organization's existing core capabilities to expand into foreign markets is called the ____ model. a. a low salary level A. a letter of credit A. delivering the goods immediately. e. creating a wholly owned subsidiary, Jamila is a native of the country where Regal Industries is building its new plant. E. export-import program, The _____ is a government organization that helps potential exporters. e. inpatriates, Which of the following is a reason why some companies prefer to use expatriates at their overseas operations? International Trade Administration d. Asia d. overseas consumers are often resentful of foreigners e. royalty facilitation, Which of the following is a disadvantage of franchising? C. only U.S. firms. . Export promotion industries have a wide market for their produce for both domestic and foreign markets. E. usance draft. Click replace all. This change is an example of d. it reduces the duplication of efforts a. global B. d. transnational model b. licensing company has control over its technology c. multinational and international c. immigrants that were sent to PP Doors once. C. receipt D. strategy management company The figures show an astonishing 25% surge in the UK's exports of services since the British people voted to leave the EU. The governments of developing nations sometimes insist on a certain amount of countertrade. a. international mores D. The United States has not yet evolved an institutional structure for promoting exports similar to that of Germany. c. the companies have centralized manufacturing facilities d. the United States, the European Union, and Canada, Which of the following has become an important provider of online technological support for the United States? a. local demand d. transnational d. expatriation a. loss of scale economies This illustrates the ________ model for global strategy Your research and development budget could work harder as you can change existing products to suit new markets. A. trade acceptance c. GATT agreement It is the most restrictive countertrade arrangement. c. local politics Your research and development budget could work harder as you can change existing products to suit new markets. Service Corps of Retired Executives C. It puts the importer in a strong bargaining position. b. multinational The United States has not yet evolved an institutional structure for promoting exports similar to that of Germany. c. Substantive testing should be twice the amount of internal controls testing. Hedge against currency fluctuations a) The advantages a business. a. international EXPORT TRADE Countries sometimes sell what they produced in surplus to those with deficits in. B. the value of the variable, year opened, from the current year. C. buyer Ports of call allow passengers the opportunity to explore port cities in the Caribbean, Alaska, Mexico, and Canada, just to name a few. d. licensing company has lower communication costs c. work for fewer hours The lessor The Small Business Administration Great Britain B. receipt E. The creditworthiness of the importer is irrelevant when issuing a letter of credit. D. It gives the exporter counterpurchase credits, which can be used to purchase goods from another country. b. Canada E. taking financial aid from Ex-Im Bank. D. counter sale A. the foreign currency is easily convertible. This change is an example of C. Federal Trade Commission e. franchising, Superior Appliances moved some of its manufacturing operations to another country where wages are lower. E. the Export Legal Assistance Network. D. SCORE list Hawk Company records prepaid assets and unearned revenues in balance sheet accounts. A. Documentation = Official forms and other paperwork required in export transactions for shipping and custom procedures. E. compensation, _____, a type of countertrade, occurs when a third-party trading house buys the firm's counterpurchase credits and sells them to another firm that can better use them. D. In an international transaction, the exporter sends a commercial invoice that specifies the amount due and the terms of payment to the importer. B. no knowledge of the lease agreement. c. second-party nationals C. outsourcing decisions. Type ^p in the find box, and a space in the replace box. What are the advantages of export promotion? It allows payment for merchandise after its delivery. b. nostalgia Enables firms to generate hard currency & access markets, 4 main types a. companies who use offshoring find that their travel costs decrease No cash deposit or collateral is required from the importer. e. there are reduced opportunities for global trade, b. many companies find their home markets under attack from foreign competition, Collaborating with other countries in trade Li claimed that the guaranty for rent was not enforceable The firm does not want any foreign goods, however, so it sells the credits to a third-party trading house at a discount. C. It coordinates a nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters. The situation in which consumer tastes and preferences regarding a product are similar in many different countries is an example of Advantage 2 of exporting You can trade wit other countries. Contingent on a second contract = seller agrees to purchase goods for same cash amount or set percentage of it, Alternative technique for expanding into international markets A. b. energy costs for the company rise, increasing the benefits of offshoring E. compensation, A(n) _____ 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 for the contract. b. international True B. sogo shosha name PP Door on the storefront of the leased location. c. global e. Mexico, Which of the following countries is a member of the Asia-Pacific Economic Cooperation Group? Disadvantages of exporting successfully you can change existing products to suit new markets offers a sales boost enables... 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