c. loss of control over quality a. may lose control over its technology D. insourcing From an exporter's perspective, why is an offset more attractive than a straight counterpurchase agreement? c. subsidiaries located in countries where the company does business with much of the control exercised by the subsidiaries e. it increases profits because of economies of scale, c. subsidiaries can customize products according to local preferences, A disadvantage of a multinational model is that it e. avoids criticism, Heinrich is a German engineer working in Africa. d. licensing A. contract drafts and lending drafts. Countertrade is most likely to be used when: Use the MACRS to find the annual depreciation. E. It usually involves the exchange of high-quality goods that a firm can dispose of profitably. b. lack of adequate housing e. foreign cohorts, Which of the following core values do most people embrace despite differences across cultures, and regardless of nationality or religion? A properly maintained ship can easily last more than 30 years. a. growth of developing nations D. the importer is in a strong bargaining position. Better Knowledge of Customers' Requirements: The manufacturer is in direct touch with the consumers or retailers and can possess a better understanding and knowledge of the requirements of the buyer and can modify, if needed, his product accordingly. b. the company may face tariff barriers D. letter of credit The World Train Organization b. takes on greater political risk D. a formal document for acknowledgement is not available. Seller agrees to supply technology or equipment to construct a facility One of the consequences of an increasingly integrated global economy is that imports are penetrating deeper into the world's largest economies. Tres Chic uses the ___ model of international competition. e. franchising, Superior Appliances moved some of its manufacturing operations to another country where wages are lower. b. nostalgia It protects exporters from the risk that the foreign importer will default on payment. E. countervailing duty, The principle of _____ is to trade goods and services for other goods and services when they cannot be traded for money. d. transnational B. single-party drafts and multi-party drafts. d. expatriation It requires an in-house trading department to be maintained, which can be expensive and time-consuming. Type ^p in the find box, and a space in the replace box. c. it provides the opportunity to achieve a low-cost position via scale economies Advantages of exporting You could significantly expand your markets, leaving you less dependent on any single one. b. narrows down the market for managers a. is less responsive to consumer tastes and demands b. inpatriate a. it facilitates the transfer of skills from the parent company to the subsidiaries e. Taiwan, Which of the following existing agreements includes Costa Rica, Nicaragua, and the United States? d. global C. inshoring problems of using an underdeveloped international legal system to enforce contractual obligations. . D. offset Barterthe oldest form direct exchange of goods without any money It reduces the importer's ability to borrow funds for other purposes. In this case, Foam Cutters is following the ______ If a percentage is unacceptable, suggest a possible action to correct the unacceptable component percentage. b. launching coordinated global attacks against competitors is easy A major advantage of using export strategies to enter international markets is that Multiple Choice these can be used to avoid tariffs and curb the effects of fluctuating exchange rates. B. B. the export button should appear where the 3 dots are. C. It coordinates a nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters. b. licensing company has control over its technology Exporting is nearly always a way to increase the revenue and profit base of a company because: the international market is much larger than the domestic market. A. proactively and continuously seek export opportunities for their affiliated companies. D. time draft Ports of call allow passengers the opportunity to explore port cities in the Caribbean, Alaska, Mexico, and Canada, just to name a few. It facilitates an exporter to obtain pre-exporting financing. The lessor (D) Inflexibility, competition The lack of a letter of credit exposes the exporter to the risk that the foreign importer will default on payment. B. e. ASEAN, What does an integration-responsiveness grid help a manager to do? e. provides too much freedom to its subsidiaries, a. is less responsive to consumer tastes and demands, Tres Chic, a cosmetics manufacturer, assumes that all people will view and use its products in the same way. b. does not give any freedom to its subsidiaries to respond to local conditions D. rapid acculturation. d. it requires a minimum amount of effort and coordination by the parent company B. in-transit bill. B. paying the draft amount immediately. B. exporter can convert the currency only in U.S. dollars. a. political instability B. a. NAFTA Disadvantage 1 of exporting When you buy goods and then sell them for less which is called a deficit. While in Great Britain, Dan notices that he feels anxious every time he has to drive on a two-way street. Which of the following is an advantage of export credit insurance? This is an example of which of the following? D. Federal Deposit Insurance Corporation For an importer, which of the following is a disadvantage of using a letter of credit for international transactions? D. Vietnam, The practice followed bu some companies of moving jobs to another country is called c. Draw a scatter diagram with the variable, wins, on the vertical axis and salary on the 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. d. political demands by host countries d. ethnocentrism C. a counterpurchase C. the conventional means of international trade transaction are difficult. A . C. SCORE program These goods earn foreign exchange that can be used to facilitate development. An advantage of _____ is that it helps in doing business in many developing nations that find it difficult to raise the foreign exchange necessary to pay for imports. Great Britain E. Buyback, A firm sells some products to a foreign country. B. counterpurchase b. international and transnational A letter of credit reduces an importer's ability to borrow funds for other purposes because: C. free trade Firms engaged in barter run the risk of having to accept goods they do not want or cannot use. The United States is the largest services trading country in the world. E. Sogo shosha, A range of barterlike agreements by which goods and services are traded for other goods and services when they cannot be traded for money is known as _____. e. intranational, The organizational model that enables managers to "think globally but act locally" is the c. uncertainty avoidance A. offshoring a. international B. switch trading Which of the following is a reason why firms are not proactive about seeking export opportunities? D. Time draft A company that is not dependent on a single market is crisis-proof. a. a low salary level E. Federal Reserve Bank, The Foreign Credit Insurance Association (FCIA) is an association of private commercial institutions operating under the guidance of the _____. An official of the carrier gives the exporter a bill of lading. C. Switch trading To cater to the growing demand of luxury cars, Terabithia Republic agreed to buy 5,000 cars from MotoSporto Inc. in exchange for 5,000 gallons of oil. Which of the following is one of the five core values? In international commerce, a party initiating a draft is known as the _____. e. cost considerations, One of the drawbacks of exporting is C. International Trade Administration d. the United States, the European Union, and Canada, Which of the following has become an important provider of online technological support for the United States? these are the most efficient and flexible method to discover and accommodate changes in local demand O . E. export management list. Documentation = Official forms and other paperwork required in export transactions for shipping and custom procedures. The Department of Commerce c. requires spending more money on product customization A. the foreign currency is easily convertible. Lack of international marketing prowess d. cannot easily launch a coordinated global attack against competitors a. universal needs Uncertain value proposition E. is 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. a. third-country national b. Australia Rodrigo is an example of a(n) b. Canada e. it transfers ultimate control to the subsidiaries, a. it facilitates the transfer of skills from the parent company to the subsidiaries, NewGen Communications Technology has subsidiaries in each country which it does business. no knowledge of the lease agreement. It is primarily used with trading partners who are not creditworthy or trustworthy. Entering several markets simultaneously to hedge risk D. counter sale b. expatriates often tend to transfer the corporate culture and best practices to other countries There is no need to adapt the products to be exported to local conditions as they are sold as is. South America e. centralizes functions of research and development to the parent company, d. cannot easily launch a coordinated global attack against competitors, Foam Cutters is a speedboat manufacturing company based in California. Countertrade deals are common in large-scale government procurement projects, Countertrade occurs in response to 2 factors E. sogo shosha, Which of the following organizations runs the Service Corps of Retired Executives (SCORE) program? D. an offset e. intranational model, A disadvantage of the global model is that it A. b. centralism Question 2 Which of the following is an advantage of using exporting as an international business strategy? 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? . c. immigrants B. the Soviet Union (D) Tariffs and taxes, high transportation costs, government restrictions. b. Canada C. draft C. It reduces the importer's ability to borrow funds for other purposes. E. bill of exchange, When serving as a _____, a bill of lading specifies that the carrier is obligated to provide a transportation service in return for a certain charge. D. Developing nations may have trouble raising the foreign exchange necessary to pay for imports. C. Barter E. compensation, A(n) _____ occurs when a firm builds a plant in a country and agrees to take a certain percentage of the plant's output as partial payment for the contract. e. 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