CGBP FINAL EXAM QUESTIONS AND ANSWERS
How does a company's domestic strategy impact its international strategy? - CORRECT ANSWER✅✅The
international strategy will be based on a firm's competitive advantage and is an important starting point
from which the international strategy is developed.
Which of the following would be issues included with an international business plan? - CORRECT
ANSWER✅✅SWOT, product selection, entry mode, sales and expense forecast
What are some of the management and business plan implications relating to management
commitment? - CORRECT ANSWER✅✅It establishes key decisions such as payback period, how
overhead is allocated, and feedback and control policies.
How much cash flow is required for a company to expand internationally? - CORRECT ANSWER✅✅It
varies based on the overall international strategy but can be less than the current domestic budget.
What is the importance of management commitment as regards to a company's readiness to go global?
- CORRECT ANSWER✅✅It is likely the most important factor that must be in place before a company
plans to expand globally.
Does a company need international expertise to expand globally? - CORRECT ANSWER✅✅No. Those
skills can be learned or outsourced as a company starts its initial global growth.
In order to make international sales, which of the following is a true statement? - CORRECT
ANSWER✅✅Travel to the foreign market is not required, but suggested.
What is meant by a company's capacity to produce international products? - CORRECT
ANSWER✅✅Does it have spare manufacturing capacity to produce enough products for international
buyers?
Which of the following is not a necessary condition for a company to be ready to go global? - CORRECT
ANSWER✅✅foreign language ability
,What is meant by a company's capability to produce international products? - CORRECT
ANSWER✅✅Can it manufacture products that meet foreign market standards and regulations?
Assume a company is importing music boxes classified as 9208.05.0000. Also assume the music boxes fit
inside a specially designed plastic case suitable to store the music box. Also assume there is a
classification for plastic cases of 3919.20.2000. When importing these music boxes with the plastic
cases, which harmonized code(s) would you use for the products? - CORRECT
ANSWER✅✅9208.05.0000
Where are prior U.S. Binding Rulings located? - CORRECT ANSWER✅✅CROSS
Which international agency maintains the harmonized code system? - CORRECT ANSWER✅✅World
Customs Organization
When exporting from the U.S., which harmonized code is generally used? - CORRECT
ANSWER✅✅Schedule B
The harmonized codes are standardized to what level globally? - CORRECT ANSWER✅✅6 digits
Assume guitars are classified as 9202.90.3000. Also assume parts of a guitar are classified as
9202.90.9000. If a guitar is shipped without no guitar strings attached, what will be its classification? -
CORRECT ANSWER✅✅9202.90.3000
For the harmonized code 2120.92.3000, "2120.92" is the: - CORRECT ANSWER✅✅subheading
For the harmonized code 2120.92.3000, "21" is the: - CORRECT ANSWER✅✅chapter
When importing into the U.S., which harmonized code is used? - CORRECT ANSWER✅✅HTSUS
Assume guitars are classified as 9202.90.3000. Also assume parts of a guitar are classified as
9202.90.9000. If a complete guitar is unassembled into a box, and shipped, what will be its
classification? - CORRECT ANSWER✅✅9202.90.3000
, Assume as part of a company's international strategy in a region it has decided to use indirect exporting.
The company has identified a number of companies in their home market that export related products.
This would most likely mean a suitable indirect export partner would be: - CORRECT ANSWER✅✅a
piggyback partner
Which type of export partner is essentially a domestic sale to a local non-competing company? -
CORRECT ANSWER✅✅Piggyback
What is the purpose of a grandfather clause in an international partner contract? - CORRECT
ANSWER✅✅It provides for a commission to be paid for a short time after a contract is ended to the
partner.
Assume as part of a company's international strategy in a region it has decided to use indirect exporting.
The company also will require significant foreign market training and ongoing customer support. This
would most likely mean a suitable indirect export partner would be: - CORRECT ANSWER✅✅a
piggyback partner
Which type of export partner is essentially a domestic sale to a professional exporting company? -
CORRECT ANSWER✅✅EMCs
What are Export Management Companies? - CORRECT ANSWER✅✅Companies that sell internationally
on behalf of another company
Assume as part of a company's international strategy in a region it has decided to use indirect exporting.
The company has also decided mainting control of its brand would be critical. This would most likely
mean the best indirect export partner would be: - CORRECT ANSWER✅✅an EMC
Assume as part of a company's international strategy in a region it has decided to use indirect exporting.
However, after five years it plans a direct export stratetg. This would most likely mean the best indirect
export partner would be: - CORRECT ANSWER✅✅an EMC
How does a company's domestic strategy impact its international strategy? - CORRECT ANSWER✅✅The
international strategy will be based on a firm's competitive advantage and is an important starting point
from which the international strategy is developed.
Which of the following would be issues included with an international business plan? - CORRECT
ANSWER✅✅SWOT, product selection, entry mode, sales and expense forecast
What are some of the management and business plan implications relating to management
commitment? - CORRECT ANSWER✅✅It establishes key decisions such as payback period, how
overhead is allocated, and feedback and control policies.
How much cash flow is required for a company to expand internationally? - CORRECT ANSWER✅✅It
varies based on the overall international strategy but can be less than the current domestic budget.
What is the importance of management commitment as regards to a company's readiness to go global?
- CORRECT ANSWER✅✅It is likely the most important factor that must be in place before a company
plans to expand globally.
Does a company need international expertise to expand globally? - CORRECT ANSWER✅✅No. Those
skills can be learned or outsourced as a company starts its initial global growth.
In order to make international sales, which of the following is a true statement? - CORRECT
ANSWER✅✅Travel to the foreign market is not required, but suggested.
What is meant by a company's capacity to produce international products? - CORRECT
ANSWER✅✅Does it have spare manufacturing capacity to produce enough products for international
buyers?
Which of the following is not a necessary condition for a company to be ready to go global? - CORRECT
ANSWER✅✅foreign language ability
,What is meant by a company's capability to produce international products? - CORRECT
ANSWER✅✅Can it manufacture products that meet foreign market standards and regulations?
Assume a company is importing music boxes classified as 9208.05.0000. Also assume the music boxes fit
inside a specially designed plastic case suitable to store the music box. Also assume there is a
classification for plastic cases of 3919.20.2000. When importing these music boxes with the plastic
cases, which harmonized code(s) would you use for the products? - CORRECT
ANSWER✅✅9208.05.0000
Where are prior U.S. Binding Rulings located? - CORRECT ANSWER✅✅CROSS
Which international agency maintains the harmonized code system? - CORRECT ANSWER✅✅World
Customs Organization
When exporting from the U.S., which harmonized code is generally used? - CORRECT
ANSWER✅✅Schedule B
The harmonized codes are standardized to what level globally? - CORRECT ANSWER✅✅6 digits
Assume guitars are classified as 9202.90.3000. Also assume parts of a guitar are classified as
9202.90.9000. If a guitar is shipped without no guitar strings attached, what will be its classification? -
CORRECT ANSWER✅✅9202.90.3000
For the harmonized code 2120.92.3000, "2120.92" is the: - CORRECT ANSWER✅✅subheading
For the harmonized code 2120.92.3000, "21" is the: - CORRECT ANSWER✅✅chapter
When importing into the U.S., which harmonized code is used? - CORRECT ANSWER✅✅HTSUS
Assume guitars are classified as 9202.90.3000. Also assume parts of a guitar are classified as
9202.90.9000. If a complete guitar is unassembled into a box, and shipped, what will be its
classification? - CORRECT ANSWER✅✅9202.90.3000
, Assume as part of a company's international strategy in a region it has decided to use indirect exporting.
The company has identified a number of companies in their home market that export related products.
This would most likely mean a suitable indirect export partner would be: - CORRECT ANSWER✅✅a
piggyback partner
Which type of export partner is essentially a domestic sale to a local non-competing company? -
CORRECT ANSWER✅✅Piggyback
What is the purpose of a grandfather clause in an international partner contract? - CORRECT
ANSWER✅✅It provides for a commission to be paid for a short time after a contract is ended to the
partner.
Assume as part of a company's international strategy in a region it has decided to use indirect exporting.
The company also will require significant foreign market training and ongoing customer support. This
would most likely mean a suitable indirect export partner would be: - CORRECT ANSWER✅✅a
piggyback partner
Which type of export partner is essentially a domestic sale to a professional exporting company? -
CORRECT ANSWER✅✅EMCs
What are Export Management Companies? - CORRECT ANSWER✅✅Companies that sell internationally
on behalf of another company
Assume as part of a company's international strategy in a region it has decided to use indirect exporting.
The company has also decided mainting control of its brand would be critical. This would most likely
mean the best indirect export partner would be: - CORRECT ANSWER✅✅an EMC
Assume as part of a company's international strategy in a region it has decided to use indirect exporting.
However, after five years it plans a direct export stratetg. This would most likely mean the best indirect
export partner would be: - CORRECT ANSWER✅✅an EMC
