MGT 302 Exam 4 Test Questions All
Solved Correct 2025-2026 Updated.
Exporting goal - Answer Increase market size and profits
Exporting firms need to: - Answer Identify market opportunities
Deal with foreign-exchange risk
Navigate import and export financing
Understand the challenges of doing business in a foreign market
Improving export performance - Answer Market analytics, information opportunities,
competition, culture, customer understanding.
Assistance from countries and/or use of export management company.
Export pitfalls: - Answer Poor market analysis
Poor understanding of competitive conditions
Lack of local customization
Poor distribution program
Poorly executed promotion
Problems securing financing
Underestimation of expertise required, amount of paperwork and business formalities
Sogo Shosha - Answer Japanese trading houses
U.S. Department of Commerce - Answer Organizes various trade events to help firms make
foreign contacts and explore export opportunities
, The Small Business Administration - Answer Government agency that provides support to
entrepreneurs and small businesses
Export Management Companies (EMC) - Answer Act as an export marketing department or
international department for client firms.
1) EMC begins export operations and then the firm takes over
2) EMC will have continuing responsibilities for selling the firm's products
Ways to reduce the risks of exporting - Answer Hire an EMC or export consultant
Start small
Count the costs/make a commitment
Utilize local resources
Letter of credit - Answer Document from a bank that guarantees payment.
Buyer applies for letter of credit to increase sellers trust that payment will be received. Benefits
both sides.
Draft (or bill of exchange) - Answer An order written by an exporter instructing an importer,
or an importer's agent, to pay a specified amount of money at a specified time
Similar to a check or promissory notes.
Slight draft (bill of exchange) - Answer Is payable on presentation to the drawee.
Time draft (bill of exchange) - Answer Allows for a delay in payment once a time draft has
been "accepted" it becomes a negotiable instrument that can be sold at a discount from its face
value.
Solved Correct 2025-2026 Updated.
Exporting goal - Answer Increase market size and profits
Exporting firms need to: - Answer Identify market opportunities
Deal with foreign-exchange risk
Navigate import and export financing
Understand the challenges of doing business in a foreign market
Improving export performance - Answer Market analytics, information opportunities,
competition, culture, customer understanding.
Assistance from countries and/or use of export management company.
Export pitfalls: - Answer Poor market analysis
Poor understanding of competitive conditions
Lack of local customization
Poor distribution program
Poorly executed promotion
Problems securing financing
Underestimation of expertise required, amount of paperwork and business formalities
Sogo Shosha - Answer Japanese trading houses
U.S. Department of Commerce - Answer Organizes various trade events to help firms make
foreign contacts and explore export opportunities
, The Small Business Administration - Answer Government agency that provides support to
entrepreneurs and small businesses
Export Management Companies (EMC) - Answer Act as an export marketing department or
international department for client firms.
1) EMC begins export operations and then the firm takes over
2) EMC will have continuing responsibilities for selling the firm's products
Ways to reduce the risks of exporting - Answer Hire an EMC or export consultant
Start small
Count the costs/make a commitment
Utilize local resources
Letter of credit - Answer Document from a bank that guarantees payment.
Buyer applies for letter of credit to increase sellers trust that payment will be received. Benefits
both sides.
Draft (or bill of exchange) - Answer An order written by an exporter instructing an importer,
or an importer's agent, to pay a specified amount of money at a specified time
Similar to a check or promissory notes.
Slight draft (bill of exchange) - Answer Is payable on presentation to the drawee.
Time draft (bill of exchange) - Answer Allows for a delay in payment once a time draft has
been "accepted" it becomes a negotiable instrument that can be sold at a discount from its face
value.
