BUSN 3001 Chapter 14 – Real Exam Q&A | A+
Graded Student Submission
purchase them. This transaction is an example of _______________________________. - ✔✔switch
trading
Countertrade is more advantageous to exporters that are - ✔✔large and diverse.
Currently, you will find the BEST use of countertrading in - ✔✔Japan.
Due to a lack of __________________, special mechanisms for financing exports and imports have been
created to deal with conducting transactions with strangers. - ✔✔trust
Exporters involved in international trade would prefer to ship the goods ____________________
payment is received. - ✔✔after
Exports only account for a small percentage of U.S. business for which two reasons? - ✔✔Companies are
intimidated by language, culture, and currency differences.
Companies are unfamiliar with opportunities.
Exquisite Jewelery Company, based in New York, isn't sure it wants to start exporting to Europe. The
company is concerned that it won't be paid unless it receives it upfront and the European companies
don't want to pay until they receive the products. This situation demonstrates how
_______________________ can affect exporting. - ✔✔a lack of trust
For a small fee, the Department of Commerce provides a company with a market research survey on a
product of its choice. This is called a(n) _____________________. - ✔✔comparison shopping service
German and Japanese firms are viewed as having a ____________________ advantage in exporting
compared to U.S. firms. - ✔✔bigger
, Getting a specialized third-party trading house involved in a countertrade arrangement to purchase the
counterpurchase credits and sell them to another firm is called - ✔✔switch trading.
How does the Ex-Im Bank fund the financing aid it provides to facilitate exports, imports, and the
exchange of commodities between the United States and other countries? - ✔✔Loans
If a payment is made before products are shipped, an importer may be concerned about what two
things? - ✔✔Not receiving the product
Receiving a defective product
If an _________________makes payment before shipment of a product, they risk receiving a defective
product. - ✔✔Importer
Importers involved in international trade prefer to pay ____________________ the goods are received.
- ✔✔after
In a typical international trade transaction, after the importer arranges for a letter of credit, the next
step is that the - ✔✔importer's bank sends a letter of credit to the exporter's bank.
___________________ occurs when a company agrees to purchase a certain amount of product back
from a country to which a sale is made. - ✔✔Counterpurchase
____________________ is the direct exchange of goods between two parties without a cash
transaction. - ✔✔Barter
_________________________ are the Japanese trading houses that work with their affiliated
companies to identify export opportunities. - ✔✔Sogo shosha
A _______________ draft is payable on presentation to the drawee. - ✔✔sight
Graded Student Submission
purchase them. This transaction is an example of _______________________________. - ✔✔switch
trading
Countertrade is more advantageous to exporters that are - ✔✔large and diverse.
Currently, you will find the BEST use of countertrading in - ✔✔Japan.
Due to a lack of __________________, special mechanisms for financing exports and imports have been
created to deal with conducting transactions with strangers. - ✔✔trust
Exporters involved in international trade would prefer to ship the goods ____________________
payment is received. - ✔✔after
Exports only account for a small percentage of U.S. business for which two reasons? - ✔✔Companies are
intimidated by language, culture, and currency differences.
Companies are unfamiliar with opportunities.
Exquisite Jewelery Company, based in New York, isn't sure it wants to start exporting to Europe. The
company is concerned that it won't be paid unless it receives it upfront and the European companies
don't want to pay until they receive the products. This situation demonstrates how
_______________________ can affect exporting. - ✔✔a lack of trust
For a small fee, the Department of Commerce provides a company with a market research survey on a
product of its choice. This is called a(n) _____________________. - ✔✔comparison shopping service
German and Japanese firms are viewed as having a ____________________ advantage in exporting
compared to U.S. firms. - ✔✔bigger
, Getting a specialized third-party trading house involved in a countertrade arrangement to purchase the
counterpurchase credits and sell them to another firm is called - ✔✔switch trading.
How does the Ex-Im Bank fund the financing aid it provides to facilitate exports, imports, and the
exchange of commodities between the United States and other countries? - ✔✔Loans
If a payment is made before products are shipped, an importer may be concerned about what two
things? - ✔✔Not receiving the product
Receiving a defective product
If an _________________makes payment before shipment of a product, they risk receiving a defective
product. - ✔✔Importer
Importers involved in international trade prefer to pay ____________________ the goods are received.
- ✔✔after
In a typical international trade transaction, after the importer arranges for a letter of credit, the next
step is that the - ✔✔importer's bank sends a letter of credit to the exporter's bank.
___________________ occurs when a company agrees to purchase a certain amount of product back
from a country to which a sale is made. - ✔✔Counterpurchase
____________________ is the direct exchange of goods between two parties without a cash
transaction. - ✔✔Barter
_________________________ are the Japanese trading houses that work with their affiliated
companies to identify export opportunities. - ✔✔Sogo shosha
A _______________ draft is payable on presentation to the drawee. - ✔✔sight
