It is primarily used with trading partners who are not creditworthy or trustworthy. c. franchising E. exporter has to enter a barterlike agreement. b. operating a transnational business e. it is inconsistent with a pure global strategy, ___ is an arrangement by which an organization in another country buys the rights to manufacture a company's product in its own country for a negotiated fee D. It uses a specialized third-party trading house. Countertrade accounts for as much as 1/3 of all world trade A. Barter C. It involves cash transactions. E. Compensation, A firm concludes a counterpurchase agreement with a foreign country for which it receives some counterpurchase credits for purchasing its goods. d. large amount of discretion is given to the subsidiaries The exporter can insure against this possibility by: b. differences in traditional practices a. political instability A. b. CAFTA-DR If Jamila goes to work at Regal's factory, she will be considered a(n): c. third-country national It gives a specified sum of money to a beneficiary, normally the exporter, on presentation of particular, specified documents. A. countertrade E. Ministry of International Trade and Industry. d. it is considered responsive to local needs At trial, Li testified that she was A. c. free-trade agreements b. Canada, Mexico, and South America e. reducing costs, Which of the following entry modes do most manufacturing companies use to begin global expansion? B. Greater production can lead to larger economies of scale and better margins. A. E. export-import program, The _____ is a government organization that helps potential exporters. d. optimizing global profit the conventional means of international trade are difficult. China she had paid the rent. A drawback of countertrade is that: C. It puts the importer in a strong bargaining position. a. exporting e. host countries can impose higher tariffs on the firm, c. high costs and risk are associated with this type of operation, Which of the following methods of entering global competition best allows a company to have operations in other countries and maintain tight control over them? C. It serves as a receipt, a contract, and a document of title. D. It indicates that the carrier has received the merchandise described on the face of the document. B. draft Round answer to the nearest cent. a. NAFTA e. the products are standardized, An organizational model that consists of a company's overseas subsidiaries and is characterized decision making and tight control by the parent company over more aspects of worldwide operations is known as the E. export management list. A. document of title E. possibility of doing business with someone with whom they have been associated for a long time. On average, sales grow faster, more jobs are created, and employees earn more than in non-exporting firms. D. It enables exporters to insist on a letter of credit. B. B. becomes established in all the markets. E. The Ministry of International Trade and Industry (MITI) in the United States is always on the lookout for export opportunities. It protects exporters from the risk that the foreign importer will default on payment. To serve the increasing demand for cruises, Carnival is constantly expanding its fleet of ships. d. submission b. decreased scale volume What characteristic is Heinrich displaying? True The most significant disadvantage concerning franchising is brand name recognition. d. bribery concerns Each of Carnival's "Fun Ships" is a floating resort that offers a wide variety of restaurants, casinos, lounges, spas, nightclubs, and duty-free shopping. c. subsidiaries can customize products according to local preferences C. It allows an exporter to get a higher price for his or her goods. c. customer satisfaction D. It involves huge cash transactions. b. duplication of efforts B. d. APEC Treaty c. Calculate the chi-square test statistic for testing the null hypothesis, part b. a. it can cost three to four times as much to use host-country nationals, compared to expatriates B. countertrade d. Panasonic b. international licensing c. wholly owned subsidiary b. subsidiaries located in countries where the company does business with much of the control exercised by the parent company E. U.S. Commercial Service, Through its _____ program, the Small Business Administration oversees almost 11,500 volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses. D. bill of lading. c. Mexico b. competitive pressures to reduce costs are high a. vertical axis measures pressures for global integration and the horizontal axis measures pressures for local responsiveness A. matchmaker program D. Barter D. It typically lacks information about local business regulations. This is an example of _____. E. it may involve the exchange of poor-quality goods that cannot be disposed of profitably. b. a smartphone manufacturer b. Australia D. offsourcing, For the past several years, FuturaCloud hired a firm in India to handle its technical customer support. B. C. The importer places an order with the exporter and asks the exporter if he would be willing to ship under a letter of credit. Become a member. NAFTA had an immediate and negative effect on the US automobile industry. Which of the following is a disadvantage of barter as a countertrade arrangement? e. joint ventures, What is an advantage of exporting as a global expansion entry mode? b. host-country national c. join venture A. E. Federal Reserve Bank, The Foreign Credit Insurance Association (FCIA) is an association of private commercial institutions operating under the guidance of the _____. In the modern era, countertrade arose in the 1960s as a way for _____ to purchase imports. Export Legal Assistance Network The Middle East E. It usually involves the exchange of high-quality goods that a firm can dispose of profitably. D. letter of credit What are the advantages and disadvantages of exporting as a mode of entry into foreign markets? Advantages of exporting You could significantly expand your markets, leaving you less dependent on any single one. e. Taiwan, Which of the following existing agreements includes Costa Rica, Nicaragua, and the United States? b. aging population a. expatriate D. Counterpurchase The importer does not have to pay for the merchandise until the documents have arrived. c. horizontal axis measures financial viability and the vertical axis measures employee satisfaction A. Which of the following is an advantage of choosing exporting as a mode of entry into foreign markets? Great Britain B. the goods and services cannot be traded for money. This matters, as the services sector represents 80% of the UK economy. e. the multinational model, In order to achieve cost economies, Peak Manufacturing bases its production plants in Mexico and gets its engineering services from skilled workers in Japan. a. lack of response to local political conditions A. it fails to enable firms to finance an export deal. C. can be used to obtain payment or a written promise of payment before the merchandise is released to the importer. E. Export Credit Insurance Association, The _____ guarantees repayment of medium- and long-term loans U.S. commercial banks make to foreign borrowers for purchasing U.S. exports. The foreign country pays the firm in dollars, but in exchange, the firm agrees to spend some of the proceeds from the sale on textiles produced by the foreign country. Receiving payments on time is crucial for global businesses. d. Mexico The National Tax Journal (December 2001) published a study of charitable givers based on data collected from the Independent Sector Survey on Giving and Volunteering. E. letter of credit, Which of the following stands at the center of international commercial transactions and is issued by a bank at the request of an importer? A. c. traditional practices among countries are similar b. c. Middle East no knowledge of the lease agreement. C. Germany a. differences in distribution channels d. expatriation b. host-country nationals e. intranational, Exporting, licensing, franchising, joint ventures, and wholly owned subsidiaries are all methods of Using the variable, salary, create a box plot. the importer is in a strong bargaining position. B. d. governments may provide incentives to employ expatriates D. Ex-Im Bank E. It allows for a delay in payment. The most comprehensive source of information on export opportunities for U.S. firms is the _____. e. global market integration, The model in which managers use their organization's existing core capabilities to expand into foreign markets is called the ____ model. A. As the parent company, NewGen runs its R&D department from its home country, so that each foreign subsidiary remains dependent on it for new products, processes, and ideas. c. a pipe fabricator e. panic attack, Which of the following is an effective way to prevent failed global assignments? D. agent It oversees volunteers with international trade experience and directs them to provide one-on-one counseling to active and new-to-export businesses. B. E. he or she knows that the importer will default on payment. E. barter, When a firm enters a(n) _____ agreement with a country, it often ends up with what are called counterpurchase credits, which can be used to purchase goods from that country. B. Counterpurchase It gives a firm a way to finance an export deal when other means are not available. c. Brazil a. may lose control over its technology a. ethnocentric b. expatriates often tend to transfer the corporate culture and best practices to other countries Indicate if each actual component percentage is acceptable or unacceptable. a. licensee bears most of the costs and risks associated D. collecting information. the value of the variable, year opened, from the current year. a. third-country nationals Kpler data shows Russian oil exports to the UAE more than tripled to 60 . A. each team, use this variable to create a new variable, stadium age, by subtracting A. offshoring c. greed It facilitates an exporter to obtain pre-exporting financing. D. arbitrage d. expatriation principals of PP Door signed the lease and guaranty agreements d. ethnocentrism d. it reduces the duplication of efforts In which of the following types of countertrade arrangement are the two parties engaged? e. the Asia Pacific Economic Cooperation group, Which of the following is the largest export market of the United States? C. narrowing distance between the two parties due to technological advances. a. companies who use offshoring find that their travel costs decrease What is the reason that firms take a reactive approach? A. d. do a cost-benefit analysis of outsourcing Greater production can lead to larger economies of scale and better margins. B. outsourcing D. International Trade Administration THis tutorial shows you how to export data from Quizlet.com to use elsewhere. E. Bill of exchange, A _____ is issued by a bank, and it indicates that the bank will make payments under specific circumstances. Barterthe oldest form direct exchange of goods without any money This is an example of _____. A. A. offshoring Documentation = Official forms and other paperwork required in export transactions for shipping and custom procedures. Increased competitiveness and market share. e. intranational, Which model involves fostering communication among subsidiaries to permit transfer of skills? C. Compensation South America A. counterpurchase D. letter of credit a. ambition B. c. global c. second-party nationals D. Federal Deposit Insurance Corporation Prepare any necessary reversing entries for the accounting adjustment provided assuming that Hawk uses reversing entries in its accounting system. A. TradeNet Export Advisor D. It requires the importer to repay the loan even before the merchandise is sold. It facilitates an exporter to obtain pre-export financing. EXPORT TRADE Countries sometimes sell what they produced in surplus to those with deficits in. a. the NAFTA trade zone If negotiations fail & cost of termination is substantial assistance from its bank or attorney These firms can best overcome ignorance by: E. collateral. E. it does not give the importer any extra time to resell the merchandise before requiring payment. A. The firm does not want any foreign goods, however, so it sells the credits to a third-party trading house at a discount. The trading house finds a firm that can use the credits and sells them at a profit. e. inpatriates, Which of the following is a reason why some companies prefer to use expatriates at their overseas operations? Salaries Expense _______ d. Land _______ f. Salaries Payable, Three categories of internationalization strategies (focal firm), Large manufacturing firms - largest overall value of exports, Services- largest component of economic activity, Managing Export-Import Transactions - Documentation. . a. manufacturing costs are low c. global D. Time draft told her he was too young to have good credit. A. offshoring C. switch trading Companies both large and small now view the world, rather than a single country, as their marketplace. B. E. letter of credit. B. The situation in which consumer tastes and preferences regarding a product are similar in many different countries is an example of Your research and development budget could work harder as you can change existing products to suit new markets. e. competitive pressures to reduce costs, Colas have become available around the globe, and they are used in similar ways worldwide. Export Trade Assistance Partnership She also denied signing the guaranty agreement. c. franchising A lack of trust between two parties engaged in international trade is exacerbated by the: These factors result in: Time draft There is no need to adapt the products to be exported to local conditions as they are sold as is. b. customized products Advantage 2 of exporting You can trade wit other countries. Japan's great trading houses are referred to as _____. A. counterpurchase d. high transportation costs D. any firm in democratic nations. Merger _____, a type of countertrade, occurs when a firm agrees to purchase a certain amount of materials back from a country to which a sale is made. Buyback E. barter, TruWorth Petroleum negotiated a deal with a foreign country in which TruWorth would build several ammonia plants in the foreign country and receive ammonia as partial payment over a 20-year period. *i do have quizlet plus currently so i am not sure if the ability to export is only for plus users but worth a shot to try. e. licensee has lower production costs, a. licensee bears most of the costs and risks associated, A disadvantage of licensing is that the licensing company At up to $500 million per ship, the cost of the cruise ships is one of Carnival's most significant expenses. e. inpatriation, Which of the following has been an unexpected effect of offshoring? D. Japan E. better understanding of how transactions should be configured. e. sales practices are uniform from country to country, a. consumer tastes and preferences differ significantly, When One-World Fashion tries to open its clothing stores in a new country, it learns that local rules require a certain percentage of its products to be manufactured locally. In the data set, the year opened, is the first year of operation for that stadium. a. growth of developing nations C. It does not have expert specialists to help neophyte exporter identify opportunities. a. global It allows a firm to have its own company-owned facilities in a particular foreign market. What is the relation, if any, between reliance on internal controls testing and substantive testing of account balances? B. the exporter has a letter of credit. e. the system lowers manufacturing costs by eliminating duplication of effort, b. the parent company allows the subsidiaries to respond to local conditions, Companies that decentralize their operations throughout the globe in order to appeal to the varying tests and preferences of global consumers are utilizing a(n) _____ model c. immigrants b. increase their level of productivity A. E. Buyback, The most restrictive countertrade arrangement is _____ because if goods are not exchanged simultaneously, one party ends up financing the other for a period. a. purely global strategy a. international B. creating revenue. the export button should appear where the 3 dots are. 1,072 charitable givers reported that their charitable contributions were motivated by tax considerations. C. It oversees volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses. d. leads to reduced efficiency (D) Inflexibility, competition C. Entering a foreign market on a small scale The mission of the _____ is to provide financing aid that will facilitate exports, imports, and the exchange of commodities between the United States and other countries. What is an accurate description of countertrade? The sogo shosha of Japan: C. document of title They are organizations within the U.S. Department of Commerce. B. buying export credit insurance. D. there is mutual trust between the exporter and the importer. can be used to advance funds to the exporter by its local bank before or during shipment. B. drawee c. avoiding the assignment of mentors b. international c. immigrants Li claimed that the guaranty for rent was not enforceable D. bill of lading C. buyer International strategy refers to a (n): a. action plan pursued by American companies to b. strategy through which the firm sells products in markets outside the firm's domestic market. e. domestic, Which of the following is true of the multinational approach to international competition? A. bill of exchange a) The advantages a business. A letter of credit reduces an importer's ability to borrow funds for other purposes because: The United States is the largest services trading country in the world. D. the importer has to pay even if the conditions stated in the letter are not satisfied. c. APEC D. buyback Rodrigo is an example of a(n) B. similar preferences of the parties regarding how a transaction should be configured. the goods and services cannot be traded for money. C. The United States Therefore it produces exactly the same makeup products, using the same color palettes, in several countries with attractive labor rates, and offers them to all of its markets around the world. c. exporting Litigation, arbitration, or other legal means, Countertrade: Emerging markets & developing economies, Goods/services are traded for other goods/services when conventional means of payment are difficult, costly, or nonexistent C. switch trading She claimed that C. letter of credit Which of the following is a function of an export management company? accident and had asked her to help pay his bills, including the rent a. international d. The International Monetary Fund with the new variable, age. b. multinational b. international b. Germany c. subsidiaries located in countries where the company does business with much of the control exercised by the subsidiaries True _______ a. A. merchandise bill Like any fundamental change to the way you trade, there are risks as well as benefits you should consider. d. cannot easily launch a coordinated global attack against competitors Ethnocentrism is the tendency to judge others by the standard of one's own culture or group, which are seen as superior, Ethical behavior and decision making are surprisingly harder in a purely domestic situation than in the international arena, Which country has received the most foreign direct investment in recent years? D. Export Legal Assistance Network c. global model D. Ex-Im Bank A. Guanxi She claimed that Zhang had been in a car D. It is useful only for small companies. . E. Ex-Im Network, A(n) _____ refers to an export specialist that acts as an export marketing department for client firms. Which of the following is a common pitfall that novice exporters come across? A. a. NAFTA B. Counterpurchase A. exporter may not be paid in his or her home currency due to nonconvertibility. A. easy tracking of the parties involved. D. filing a suit against the importer in court. D. bill of lading D. "comparison shopping service" A. the United States e. avoids criticism, Heinrich is a German engineer working in Africa. c. intranational C. Counterpurchase b. international model Tres Chic uses the ___ model of international competition. E. It is not issued at the importer's request. The importer applies to a trusted third party (usually a bank) for a letter of credit to be issued in favor of the exporter for the merchandise the importer wishes to buy. c. licensing company has control over quality levels a. large low-cost manufacturing facilities located in selected locations with products exported to various subsidiaries B. a. Brazil d. decreasing consumer demand a. international model a. Japan b. has high manufacturing costs A. e. inpatriates, ___ are natives of a country other than the home country of the host country of an overseas subsidiary e. global transnational, Research suggests that regardless of nationality or religion, most people embrace a set of five core values. Disadvantage 1 of exporting When you buy goods and then sell them for less which is called a deficit. C. buyback a. Egypt Which of the following is not a strategic advantage of exporting: A broker or other import consultant can help an importer minimize import duties by _____. See full answer below. e. intranational, Which of the following factors would increase the pressure for local responsiveness? Federal Trade Commission c. responsibility E. It is the direct exchange of goods without a cash transaction. C. Letter of credit d. independent venture c. multinational e. Vietnam, Threats to China's economic future include Another advantage of exporting is profitability. One advantage of exports is: Concentration of resources on production Companies with innovation-seeking strategic goals target countries and regions: Renowned for generating first-class innovators A green-field operation refers to: A wholly owned subsidiary created by building a new factory and offices from scratch b. the European Union a. using validated screening criteria e. causes countries to produce more varied goods, ____ occurs when the organization contracts with an external provider to produce one or more of an organization's products or services. A. d. licensing company has lower communication costs D. countertrade C. title drafts and quantity drafts. c. global Successful exporting requires that agents perform all of the following except _____. B. a lack of trust between the parties. A. E. offset draft and counter draft, Which of the following drafts is payable on presentation to the drawee? The managers of Custom Jewelry have established the following target component percentages: CostofMerchandiseSold35.0%GrossProfitonSales65.0%Expenses40.0%NetIncomebeforeFederalIncomeTax25.0%\begin{array}{ll}\text { Cost of Merchandise Sold } & 35.0 \% \\ \text { Gross Profit on Sales } & 65.0 \% \\ \text { Expenses } & 40.0 \% \\ \text { Net Income before Federal Income Tax } & 25.0 \%\end{array} E. buyback, Which of the following types of countertrade is the simplest, although not common? C. the exporter is not able to get a letter of credit from a local bank. B. d. it helps reduce wage stagnation of workers in the home country c. uncertainty avoidance D. It helps companies increase their unit costs. d. transnational Advantages of strategic alliances Facilitate entry into a foreign market Allows forms to share the fixed costs and risks of developing new products or process Bring together complementary skills and assets that neither partner could easily develop on its own Disadvantages of strategic alliances C. United States Trade Service Due to the complexity and diversity of foreign markets, firms sometimes hesitate to seek export opportunities. E. Offset. These conflicting preferences of the parties are a manifestation of _____. go to where it says "visible to" and change it to make sure it says "visible to only me" & "editable by only me" then save. E. consider export only when there is excess production at home. d. increase the average workers' wages against her. Use the MACRS to find the annual depreciation. e. Italy, What caused Mexico to emerge as the third-largest trading partner of the United States? Limited trade volume D. 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