BA109 Quiz 15 Questions and Answers 2023 with complete
solution
Unlike an EMC or an ETC, manufacturers' export agents act as international sales
representatives in a limited number of markets for various noncompeting
domestic companies, typically operating on a commission basis.
True
Which of the following statements is/are true regarding export management
companies?
All of these
Although franchising is a popular way to do business in the United States, it is
not a popular strategy in international markets.
False
________ act as international sales representatives in a limited number of
markets for various noncompeting domestic companies, typically operating on a
commission basis.
Manufacturers' export agents
The first and most difficult step to exporting for the small business is breaking
the psychological barrier, "My company is too small to export."
True
Small companies with fewer than 20 employees account for more than ________
percent of U.S. export sales.
70
Learning the habits and the customs of the cultures in which they do business is
essential for small business managers trying to go global.
True
As of 2003, the World Trade Organization (WTO) had 155 member countries that
represent over ________ of all world trade.
97 percent
In a(n) ________, a domestic small business forms an alliance with a company in
the target nation for the purpose of exporting to that market.
foreign joint venture
In the United States alone, companies import more than ________ worth of goods
and services annually.
$3.2 trillion
Foreign licensing is a relatively simple way for even the most inexperienced
business owner to extend his reach into global markets.
True
Which of the following is a common problem in joint ventures?
All of these
If a business owner cannot afford to invest in foreign facilities and does not have
time to learn the foreign market, but is willing to give someone else the right to
make and market her product for a fee and royalties, her best bet for entering the
foreign market is:
foreign licensing.
, For an entrepreneur, expanding into international markets:
helps it grow faster and survive competition better.
A letter of credit is an agreement between an exporter's bank and a foreign
buyer's bank that guarantees payment to the exporter for a specific shipment of
goods.
True
The only cultural barrier an American small business manager must overcome
when conducting business internationally is the language gap.
False
Lack of export financing remains a significant barrier to small businesses selling
in foreign markets.
True
An important guideline for companies wanting to successfully compete
internationally is to familiarize yourself with foreign customs, languages, and
cultures, including their lifestyles, values, customs, and business practices.
True
Most export management companies (EMCs) are merchant intermediaries that
work on a buy-and-sell arrangement with domestic small companies, providing
small businesses with a low-cost, efficient, independent, international marketing
department.
True
Foreign licensing has its greatest potential in the licensing of:
intangibles, such as technology, copyrights, and trademarks.
________, the exchange of goods and services for other goods and services, is
one way of trading with countries that lack convertible currency.
Bartering
________ is a transaction in which a company selling goods and services in a
foreign market agrees to help promote investment and trade in that country.
Countertrading
Collecting foreign accounts is usually less complex than collecting domestic
ones.
False
Researching potential export markets is a waste of time and resources for small
business owners; the best way to find export opportunities is to travel abroad
and sell.
False
The small country of Bascovina wanted to protect its infant basket industry and
imposed a 400 percent tariff on all imported baskets. The high tariff dropped the
bottom out of imported basket sales, and imports of baskets stops. Why did this
happen?
The tariff makes the price of imported baskets so high that they are not competitive.
The North American Free Trade Agreement has which of the following
provisions?
The elimination of tariffs on most goods
As the trend toward increased globalization continues, successful companies
must consider themselves businesses without borders.
solution
Unlike an EMC or an ETC, manufacturers' export agents act as international sales
representatives in a limited number of markets for various noncompeting
domestic companies, typically operating on a commission basis.
True
Which of the following statements is/are true regarding export management
companies?
All of these
Although franchising is a popular way to do business in the United States, it is
not a popular strategy in international markets.
False
________ act as international sales representatives in a limited number of
markets for various noncompeting domestic companies, typically operating on a
commission basis.
Manufacturers' export agents
The first and most difficult step to exporting for the small business is breaking
the psychological barrier, "My company is too small to export."
True
Small companies with fewer than 20 employees account for more than ________
percent of U.S. export sales.
70
Learning the habits and the customs of the cultures in which they do business is
essential for small business managers trying to go global.
True
As of 2003, the World Trade Organization (WTO) had 155 member countries that
represent over ________ of all world trade.
97 percent
In a(n) ________, a domestic small business forms an alliance with a company in
the target nation for the purpose of exporting to that market.
foreign joint venture
In the United States alone, companies import more than ________ worth of goods
and services annually.
$3.2 trillion
Foreign licensing is a relatively simple way for even the most inexperienced
business owner to extend his reach into global markets.
True
Which of the following is a common problem in joint ventures?
All of these
If a business owner cannot afford to invest in foreign facilities and does not have
time to learn the foreign market, but is willing to give someone else the right to
make and market her product for a fee and royalties, her best bet for entering the
foreign market is:
foreign licensing.
, For an entrepreneur, expanding into international markets:
helps it grow faster and survive competition better.
A letter of credit is an agreement between an exporter's bank and a foreign
buyer's bank that guarantees payment to the exporter for a specific shipment of
goods.
True
The only cultural barrier an American small business manager must overcome
when conducting business internationally is the language gap.
False
Lack of export financing remains a significant barrier to small businesses selling
in foreign markets.
True
An important guideline for companies wanting to successfully compete
internationally is to familiarize yourself with foreign customs, languages, and
cultures, including their lifestyles, values, customs, and business practices.
True
Most export management companies (EMCs) are merchant intermediaries that
work on a buy-and-sell arrangement with domestic small companies, providing
small businesses with a low-cost, efficient, independent, international marketing
department.
True
Foreign licensing has its greatest potential in the licensing of:
intangibles, such as technology, copyrights, and trademarks.
________, the exchange of goods and services for other goods and services, is
one way of trading with countries that lack convertible currency.
Bartering
________ is a transaction in which a company selling goods and services in a
foreign market agrees to help promote investment and trade in that country.
Countertrading
Collecting foreign accounts is usually less complex than collecting domestic
ones.
False
Researching potential export markets is a waste of time and resources for small
business owners; the best way to find export opportunities is to travel abroad
and sell.
False
The small country of Bascovina wanted to protect its infant basket industry and
imposed a 400 percent tariff on all imported baskets. The high tariff dropped the
bottom out of imported basket sales, and imports of baskets stops. Why did this
happen?
The tariff makes the price of imported baskets so high that they are not competitive.
The North American Free Trade Agreement has which of the following
provisions?
The elimination of tariffs on most goods
As the trend toward increased globalization continues, successful companies
must consider themselves businesses without borders.
