BUS 410 Midterm 1 Exam Questions With
Correct Answers
Trade - CORRECT ANSWER✔✔-import or export of goods and services
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across national borders, usually as part of an exchange
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exporting - CORRECT ANSWER✔✔-the shipment of goods out of a
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country or the rendering of services to a foreign buyer located in a
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foreign country
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importing - CORRECT ANSWER✔✔-the entering of goods into the
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customs territory of a country or the receipt of services from a foreign
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provider
Trade in services - CORRECT ANSWER✔✔-the providing of services to a
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customer or the operation of service companies in a foreign country
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-examples could be found in transportation, package delivery, banking,
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insurance, securities brokerage, law, accounting, architecture
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benefits of exporting - CORRECT ANSWER✔✔--may provide the
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inexperiencd or smaller firm wiht an opportunity to reach new
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customesr and to tap new markets | | | | |
,-usually requires modest capital investment, risks are usually
| | | | | | | |
manageable by most firms | | |
-permits firms to explore market potential
| | | | |
Direct Exporting - CORRECT ANSWER✔✔-refers to a type of exporting in
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which the exporter, often a manufacturer, assumes responsibility for
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most of the export functions, including marketing, export licensing,
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shipping, and collecting payment | | |
foreign sales representaives - CORRECT ANSWER✔✔-independent sales
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agents who solicit orders on behalf of their principals and receive
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compensation on a commission basis. Agents who represent a firm.
| | | | | | | | | |
-ex: one agent may represent several different manufacturers of US
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sporting goods in Japan | | |
foreign distributors - CORRECT ANSWER✔✔-independent firms, usually
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located in the country or region to which a firm is exporting, that
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purchase and take delivery of goods for resale to their customers
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indirect exporting - CORRECT ANSWER✔✔-countries without the
| | | | | | |
experience, personnel, or capital to tackle a foreign market alone
| | | | | | | | | |
typically use tis. | | |
, This refers to a firm's use of specialized intermediaries outside of their
| | | | | | | | | | | |
own organization to handle specific functions--foreign marketing,
| | | | | | |
foreign sales, finance, and shipping for example
| | | | | |
--> usually done when smaller or medium sized companies don't have a
| | | | | | | | | | | |
dedicated international sales staff or export department or are not yet
| | | | | | | | | | |
ready to handle the mechanics o export transactions on their own
| | | | | | | | | |
----> two types of intermediaries include international/export trading
| | | | | | | |
companies and export management companies | | | |
International Trading Companies - CORRECT ANSWER✔✔-firms that | | | | | | |
specialize in all aspects of import/export transactions by either buying
| | | | | | | | | |
goods on their own accounts for resale or by acting as middlemen to
| | | | | | | | | | | | |
bring other buyers and sellers together
| | | | |
-Come from both developed and developing countries
| | | | | |
-include Export Trading Companies | | |
export trading companies (ETCs) - CORRECT ANSWER✔✔-In 1982, the
| | | | | | | | |
US Congress passe the Export Trading Company Act, giving American
| | | | | | | | | |
exporters the same competitive advantage as the Japanese. US export
| | | | | | | | | |
trading companies (ETCs) can apply for and receive an Export Trade
| | | | | | | | | | |
Certificate of Review from the US Department of Commerce with the
| | | | | | | | | | |
approval of the DOJ that waives the application of US antitrust laws to
| | | | | | | | | | | | |
their specified export activities.
| | |
Correct Answers
Trade - CORRECT ANSWER✔✔-import or export of goods and services
| | | | | | | | | |
across national borders, usually as part of an exchange
| | | | | | | |
exporting - CORRECT ANSWER✔✔-the shipment of goods out of a
| | | | | | | | | |
country or the rendering of services to a foreign buyer located in a
| | | | | | | | | | | | |
foreign country
|
importing - CORRECT ANSWER✔✔-the entering of goods into the
| | | | | | | | |
customs territory of a country or the receipt of services from a foreign
| | | | | | | | | | | | |
provider
Trade in services - CORRECT ANSWER✔✔-the providing of services to a
| | | | | | | | | | |
customer or the operation of service companies in a foreign country
| | | | | | | | | |
-examples could be found in transportation, package delivery, banking,
| | | | | | | | |
insurance, securities brokerage, law, accounting, architecture
| | | | |
benefits of exporting - CORRECT ANSWER✔✔--may provide the
| | | | | | | |
inexperiencd or smaller firm wiht an opportunity to reach new
| | | | | | | | | |
customesr and to tap new markets | | | | |
,-usually requires modest capital investment, risks are usually
| | | | | | | |
manageable by most firms | | |
-permits firms to explore market potential
| | | | |
Direct Exporting - CORRECT ANSWER✔✔-refers to a type of exporting in
| | | | | | | | | |
which the exporter, often a manufacturer, assumes responsibility for
| | | | | | | | | |
most of the export functions, including marketing, export licensing,
| | | | | | | | |
shipping, and collecting payment | | |
foreign sales representaives - CORRECT ANSWER✔✔-independent sales
| | | | | | |
agents who solicit orders on behalf of their principals and receive
| | | | | | | | | | |
compensation on a commission basis. Agents who represent a firm.
| | | | | | | | | |
-ex: one agent may represent several different manufacturers of US
| | | | | | | | | |
sporting goods in Japan | | |
foreign distributors - CORRECT ANSWER✔✔-independent firms, usually
| | | | | | |
located in the country or region to which a firm is exporting, that
| | | | | | | | | | | | |
purchase and take delivery of goods for resale to their customers
| | | | | | | | | |
indirect exporting - CORRECT ANSWER✔✔-countries without the
| | | | | | |
experience, personnel, or capital to tackle a foreign market alone
| | | | | | | | | |
typically use tis. | | |
, This refers to a firm's use of specialized intermediaries outside of their
| | | | | | | | | | | |
own organization to handle specific functions--foreign marketing,
| | | | | | |
foreign sales, finance, and shipping for example
| | | | | |
--> usually done when smaller or medium sized companies don't have a
| | | | | | | | | | | |
dedicated international sales staff or export department or are not yet
| | | | | | | | | | |
ready to handle the mechanics o export transactions on their own
| | | | | | | | | |
----> two types of intermediaries include international/export trading
| | | | | | | |
companies and export management companies | | | |
International Trading Companies - CORRECT ANSWER✔✔-firms that | | | | | | |
specialize in all aspects of import/export transactions by either buying
| | | | | | | | | |
goods on their own accounts for resale or by acting as middlemen to
| | | | | | | | | | | | |
bring other buyers and sellers together
| | | | |
-Come from both developed and developing countries
| | | | | |
-include Export Trading Companies | | |
export trading companies (ETCs) - CORRECT ANSWER✔✔-In 1982, the
| | | | | | | | |
US Congress passe the Export Trading Company Act, giving American
| | | | | | | | | |
exporters the same competitive advantage as the Japanese. US export
| | | | | | | | | |
trading companies (ETCs) can apply for and receive an Export Trade
| | | | | | | | | | |
Certificate of Review from the US Department of Commerce with the
| | | | | | | | | | |
approval of the DOJ that waives the application of US antitrust laws to
| | | | | | | | | | | | |
their specified export activities.
| | |
