Exporting,importing,and Countertrade

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Question 1

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Proactive firms do not consider exporting until their domestic market is saturated.

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Question 2

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Poor understanding of competitive conditions in the foreign market is a common problem facing exporters.

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Question 3

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Exporters often face voluminous paperwork and complex formalities.

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Question 4

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Japan's great trading houses are called Samurai houses.

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Question 5

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The U.S.Department of Commerce organizes trade events that help potential exporters make foreign contacts and explore export opportunities.

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Question 6

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SCORE is a nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters.

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Question 7

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Nearly every state in the U.S.maintains active trade commissions to promote exports.

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Question 8

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EMCs are governmental agencies that help the U.S.Department of Commerce to promote export in the United States.

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Question 9

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Hiring an EMC will help a novice exporter identify opportunities and navigate the paperwork involved in exporting.

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Question 10

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Firms commonly employ a reputable bank as third party in international transactions.

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Question 11

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A letter of credit states that an exporter has availed credit from the bank to manufacture goods.

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Question 12

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Exporters usually issue a letter of credit to importers in international transactions.

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Question 13

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The bank promises to pay on behalf of the importer when a bank is used as third party in international transactions.

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Question 14

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A draft is the instrument normally used in international commerce to effect payment.

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Question 15

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A draft is simply an order written by an exporter instructing an importer to pay a specified amount of money at a specified time.

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Question 16

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A sight draft allows for a delay in payment.

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Question 17

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A time draft is payable on presentation to the drawee

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Question 18

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When a time draft is drawn on and accepted by a business firm,it is called a trade acceptance.

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Question 19

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Time drafts cannot be sold to investors at a discount from its face value.

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Question 20

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The bill of lading is a product guarantee issued by the exporter to the importer.

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