E. letter of credit, When a time draft is drawn on and accepted by a business firm, it is known as a(n) _____. c. the cost of development is high e. Mexico, Which of the following countries is a member of the Asia-Pacific Economic Cooperation Group? b. aging population A. small exporters. It allows payment for merchandise after its delivery. C. have offices concentrated in the business district of Tokyo. B. c. wholly owned subsidiary a. Japan D. offsourcing, For the past several years, FuturaCloud hired a firm in India to handle its technical customer support. e. intranational, Exporting, licensing, franchising, joint ventures, and wholly owned subsidiaries are all methods of a. companies who use offshoring find that their travel costs decrease C. Unlike Japan, U.S. firms have a strong information advantage when they seek export opportunities. d. imports are failing to penetrate deeper into the world's largest economies Countertrade deals are common in large-scale government procurement projects, Countertrade occurs in response to 2 factors B. Countertrade is most likely to be used when: b. licensing 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. Offset A=$15,000;i=0.01;n=28;P=A=\$ 15,000 ; i=0.01 ; n=28 ; P=A=$15,000;i=0.01;n=28;P= ? 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. If negotiations fail & cost of termination is substantial assistance from its bank or attorney World Bank to PP Door Enterprise, Inc. Nan Zhang, as manager D. It organizes trade events that help potential exporters make foreign contacts. Limited trade volume d. governments may provide incentives to employ expatriates Why do you think Carnival estimates that its ships will be used for only 30 years? It specializes in serving firms in particular industries and in particular ares of the world. e. cost considerations, One of the drawbacks of exporting is c. global C. It becomes a financial contract between the trusted third party (usually a bank) and the exporter. Recently, FuturaCloud hired a California-based company to do those services instead. a. there is a large amount of risk for the franchisor Goodwill: C. Dirty float B. C. banker's acceptance B. c. global A. c. wages in the foreign countries rise, reducing the expected cost savings The trading house finds a firm that can use the credits and sells them at a profit. Main Avenue, LLC v. PP Door Enterprise Inc., 120 Conn.App. c. South America, the United States, and Central America B. International Business Chapter 14 Multiple Ch, IB 3101 Final - CONNECT Chapter Assessments, rsula Pueyo, deportista profesional p.50, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Fundamentals of Financial Management, Concise Edition, Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield. A. it fails to enable firms to finance an export deal. d. the Association of Southeast Asian Nations D. switch trading a. franchising D. time draft c. subsidiaries can customize products according to local preferences d. prefers familiarity Which of the following is an advantage of a letter of credit for an importer? d. competitors engage in global strategic coordination E. drafter, The two categories of drafts (or bills of exchange) are: a. offshoring Seller agrees to supply technology or equipment to construct a facility a. third-country national E. The creditworthiness of the importer is irrelevant when issuing a letter of credit. a. the subsidiaries are completely under the control of the parent comapny C. It is detrimental to the economy of the importing country. e. European Unification Act, To be competitive in a global economy, Europeans must B. carry trade d. transnational A. exporter is exposed to the risk that the importer may default on payment. 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. 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. global and international e. tighten immigration rules, Which of the following countries is on its way to becoming the largest producer and consumer of the world's goods? Bank of New York Sidestep liquidity problems b. licensing b. d. expatriates C. It helps the importer to get goods for a lower price. E. letter of credit. D. bill of lading EXPORT TRADE Countries sometimes sell what they produced in surplus to those with deficits in. C. Entering a foreign market on a small scale Ports of call allow passengers the opportunity to explore port cities in the Caribbean, Alaska, Mexico, and Canada, just to name a few. d. expatriation b. host-country national e. transnational model, In companies that adopt the ___ model of organizational structure, functioins are centralized where it makes sense to do so, but a great deal of decision making also takes place at the local level. C. switch trading B. exporter is dealing in a country that has a nonconvertible currency. Advantage 2 of exporting You can trade wit other countries. e. Eastern Europe, What did the Maastricht Treaty establish? d. the company risks losing control of its intellectual property Greater production can lead to larger economies of scale and better margins. D. Firms usually appreciate being paid in the form of goods and services instead of hard currency. D. It gives the exporter counterpurchase credits, which can be used to purchase goods from another country. e. joint ventures, What is an advantage of exporting as a global expansion entry mode? D. Bank of New York E. compensation, _____, a type of countertrade, occurs when a third-party trading house buys the firm's counterpurchase credits and sells them to another firm that can better use them. E. consider export only when there is excess production at home. b. Inverse. b. multinational B. buying export credit insurance. Correspondingly, the importer wants to pay only upon receipt of the consignment. B. specifies that the carrier is obligated to provide a transportation service in return for a certain charge. B. The exporting company can fail to develop its own exporting capabilities. the importer is in a strong bargaining position. What is Dan experiencing? E. taking financial aid from Ex-Im Bank. d. bribery concerns What is the reason that firms take a reactive approach? A. asset for the drawee. c. the companies have centralized manufacturing facilities It does not allow firms to finance an export deal when other means are not available. Export promotion leads to expansion of goods for the foreign market. There is no need to adapt the products to be exported to local conditions as they are sold as is. b. nostalgia A. the foreign currency is easily convertible. e. global transnational, Research suggests that regardless of nationality or religion, most people embrace a set of five core values. Government support. Paste the data into Microsoft Word. Identify which of the following accounts would be included in a post-closing trial balance. The Biden administration on Thursday approved exports of liquefied natural gas from the Alaska liquefied natural gas (LNG) project, a document showed, prompting criticism from environmental groups . Carnival estimates that its ships will sail for 30 years before they are retired. a. domestic c. Substantive testing should be twice the amount of internal controls testing. D. It is issued by the exporter at the request of the importer. a. purely global strategy Countertrade accounts for as much as 1/3 of all world trade c. franchising . Which of the following is true of the export performance of the United States, Germany, and Japan? c. inadequate access to health benefits b. international and transnational D. Export Legal Assistance Network e. there are chances to lose quality control, e. there are chances to lose quality control, Which of the following methods of entering global competition runs the biggest risk of conflict between partners over who controls what? 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. B. E. It is the most flexible countertrade arrangement. B. e. sincerity, intro to organizational management Ch. b. host-country nationals e. inpatriation, Which of the following has been an unexpected effect of offshoring? C. providing a collateral for the amount specified in the bill. e. Vietnam, Threats to China's economic future include Thus, a portion of a ship's cost is recorded as an expense each time Carnival sets sail for a new destination. Following generally accepted accounting principles, Carnival depreciates the cost of each ship over its 30-year estimated useful life. It addresses the issue of lack of trust in international business. Seller agrees to a set price & receives cash from buyer a. exporting They are unfamiliar with foreign market opportunities. b. multinational Direct. An exporter has to forgo a letter of credit when: a. Egypt B. in-transit bill c. responsibility he often complains that Africans do not have the efficiency or punctuality of Germans. A. d. differences in consumer tastes Export Legal Assistance Network 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. In an international transaction, there is more trust between the exporter and the importer than in a domestic transaction. A. One of the primary benefits of exporting is access to a global market of buyers. A. _______ b. D. International Trade Administration One advantage of exporting is that it provides scale economies. problems of using an underdeveloped international legal system to enforce contractual obligations. C. Counterpurchase They are private organizations that assist U.S. exporters. D. letter of credit E. The Bank of New York. D. insourcing b. third-level nationals B. E. It reduces paperwork and complex formalities. b. competitive pressures to reduce costs are high d. it helps reduce wage stagnation of workers in the home country e. intranational, Which of the following factors would increase the pressure for local responsiveness? 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. E. exporter has to enter a barterlike agreement. of PP Door, signed the lease agreement. A. bill of exchange The governments of developing nations sometimes insist on a certain amount of countertrade. Less common today, but still exercised in straightforward, one-shot deals E. Ministry of International Trade and Industry. b. narrows down the market for managers One of the consequences of an increasingly integrated global economy is that imports are penetrating deeper into the world's largest economies. b. multinational model Your research and development budget could work harder as you can change existing products to suit new markets. a. identifying lucrative consumers on a global scale Develop a box plot e. a clothing factory, Which of the following is the preferred strategy when a company's competitive advantage is based on technology and the company wishes to enter the global marketplace? d. Panasonic a. NAFTA a. expatriates Service Corps of Retired Executives This illustrates the ________ model for global strategy writing or stamping a notice of acceptance on its face. E. Export Credit Insurance Association, _____ has a direct lending operation under which it lends dollars to foreign borrowers for use in purchasing U.S. exports. Federal Trade Commission B. C. Offset . B. When PP Door failed to make a. world output and trade have decreased to dramatically low levels C. can be used to obtain payment or a written promise of payment before the merchandise is released to the importer. C. Compensation d. None they are independent of each other. b. multinational E. Avoiding recruitment of local personnel, Entering a foreign market on a small scale. 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. C. title drafts and quantity drafts. c. traditional practices B. a lack of trust between the parties. C. narrowing distance between the two parties due to technological advances. the sole owner of PP Door but denied that Zhang was its manager. Entering several markets simultaneously to hedge risk A company that is not dependent on a single market is crisis-proof. c. join venture Firms prefer to be pain in hard currency. C. barter Your research and development budget could work harder as you can change existing products to suit new markets. at 73 Main Avenue. E. It requires exporting firms to obtain a letter of credit form a local bank. A. easy tracking of the parties involved. b. multinational It gives a firm a way to finance an export deal when other means are not available. Which of the following is true of exporting? In this case, Peak is using the ___ model of organizational structure E. Bill of exchange, A _____ is issued by a bank, and it indicates that the bank will make payments under specific circumstances. NAFTA had an immediate and negative effect on the US automobile industry. You should weigh them up before starting to move into overseas markets. C. It puts the importer in a strong bargaining position. a. domestic c. Japan B. draft e. compare the economic advantages of outsourcing versus inshoring, c. identify the best strategy for competing in a global marketplace, In the integration-responsiveness grid the a. the existence of widely torn traditional clothing styles 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. c. overconfident Negotiate with the offending party Enables firms to generate hard currency & access markets, 4 main types 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. d. universal needs Apparently, both the lessor and the c. traditional practices among countries are similar Greater production can lead to larger economies of scale and better margins. . 2. D. an offset Write a brief summary of your analysis. D. arbitrage A. saturation of the domestic market. B. a buyback a. global and transnational When serving as collateral, the bill of lading: e. legal demands imposed by host countries, Strong pressures for local responsiveness emerge when Which of the following is a common pitfall that novice exporters come across? e. decentralized, Which of the following is true of the global model? Like any fundamental change to the way you trade, there are risks as well as benefits you should consider. d. APEC Treaty d. Nigeria It is a very complex arrangement. In the modern era, countertrade arose in the 1960s as a way for _____ to purchase imports. c. free-trade agreements B. U.S. Department of Commerce d. contingency D. Federal Deposit Insurance Corporation D. sight drafts and time drafts. The World Bank D. has fewer export opportunities. C. Switch trading b. has high manufacturing costs B. bill of lading What characteristic is Heinrich displaying? Compensation deals include payment in both goods and cash. C. Overseas Commercial Service In international commerce, a party initiating a draft is known as the _____. A. a letter of credit c. culture shock It fails to give firms a way to finance an export deal. A. It is primarily used with trading partners who are not creditworthy or trustworthy. This is an example of _____. A. trade acceptance accident and had asked her to help pay his bills, including the rent C. It assembles a "comparison shopping service" for 14 countries. D. Developing nations may have trouble raising the foreign exchange necessary to pay for imports. Which of the following is a reason why firms are not proactive about seeking export opportunities? Disadvantage 2 of exporting You can lose a lot of money for the country. C. letter of credit a. it can cost three to four times as much to use host-country nationals, compared to expatriates e. royalty facilitation, Which of the following is a disadvantage of franchising? 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 Use the MACRS to find the annual depreciation. c. requires spending more money on product customization lose out on significant opportunities for cost reduction. True The most significant disadvantage concerning franchising is brand name recognition. c. uncertainty avoidance If a percentage is unacceptable, suggest a possible action to correct the unacceptable component percentage. Bill of lading False Using host-country nationals at an overseas subsidiary is generally less expensive than using expatriates. E. It allows buyers to obtain possession of merchandise without signing a formal document acknowledging his or her obligation to pay. D. buyback 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? Refer to the Baseball 2016 data that report information on the 30 Major League a. franchising It becomes a financial contract between the trusted third party (usually a bank) and the exporter. (D) Inflexibility, competition D. SCORE list E. the Export Legal Assistance Network. d. China b. outsourcing Which of the following is true of a letter of credit in international trade? E. The Ministry of International Trade and Industry (MITI) in the United States is always on the lookout for export opportunities. A. A. b. customized products Which of the following is an advantage of exporting? Prepare any necessary reversing entries for the accounting adjustment provided assuming that Hawk uses reversing entries in its accounting system. C. obtaining pre-export financing. a. international e. inpatriates, ___ are natives of a country other than the home country of the host country of an overseas subsidiary B. E. an export management company is used. a. it does not provide scale economies C. It reduces the administrative costs incurred by a company. A. bill of exchange D. any firm in democratic nations. a. international D. filing a suit against the importer in court. d. APEC b. competitiveness B. E. kanban. D. Time draft C. Export-Import Bank The 10 Benefits of Exporting. c. high costs and risk are associated with this type of operations This practice is referred to as d. licensing company has lower communication costs e. franchising, Superior Appliances moved some of its manufacturing operations to another country where wages are lower. 2. c. entering a joint venture B. a. the global model B. export-import firm e. contingency, The international model of organization structure involves D. The exporter ships the goods to the importer on a common carrier. a. growth of developing nations Which of the following is true of a letter of credit? c. global model The exporter can insure against this possibility by: c. companies are making foreign direct investments in home companies c. exporting D. "comparison shopping service" c. multinational 1,072 charitable givers reported that their charitable contributions were motivated by tax considerations. d. political demands by host countries It results in the importer losing control over the process of trading. d. delaying the creation of job objectives d. transnational model E. buyback, In international commerce, a _____ refers to an order written by an exporter instructing an importer to pay a specified amount of money at a specified time. B. The expired portion of prepaid insurance is $3,700. B. Switch trading c. immigrants C. zaibatsu B. drawee 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. Japan's great trading houses are referred to as _____. On Wednesday last week (05 April 2023) the Office for National Statistics released its latest detailed data on the UK's imports and exports of services. e. loss of control over technology, Which of the following businesses is the most likely to use the franchising model? the conventional means of international trade are difficult. c. offshoring One advantage of exporting is that it provides scale economies. Which of the following is a disadvantage of barter as a countertrade arrangement? e. India, Which of the following is a reason that companies adopt a common global strategy? While in Great Britain, Dan notices that he feels anxious every time he has to drive on a two-way street. C. It coordinates a nationwide group of international trade attorneys who provide free initial consultations to small businesses on export-related matters. C. International Trade Administration C. the importer has to pay for the merchandise even before receiving the documents. D. Network of Foreign Trade Executives C. inshoring c. multinational and international b. differences in traditional practices among countries d. varied consumer preferences Economies of scale. b. outsourcing e. intranational model, A disadvantage of the global model is that it c. global E. It is not issued at the importer's request. c. it provides the opportunity to achieve a low-cost position via scale economies The most significant disadvantage concerning franchising is brand name recognition. e. political demands, Which model should a company adopt when pressures for local responsiveness are high and pressures for global integration are low? E. buyback. C. Firms prefer to be paid in hard currency. A. can be used to advance funds to the exporter by its local bank before or during shipment. e. the existence of competitors engaged in global strategic coordination, a. the existence of widely worn traditional clothing styles, Which of the following is a major disadvantage of the multinational model? Documentation = Official forms and other paperwork required in export transactions for shipping and custom procedures. c. Heineken e. reducing costs, Which of the following entry modes do most manufacturing companies use to begin global expansion? d. optimizing global profit c. immigrant E. Buyback, A firm sells some products to a foreign country. A. B. Countertrade is a means of structuring an international sale when conventional means of payment are cost-effective. b. strategy through which the firm sells products in markets outside the firm's domestic market. It gives the exporter greater flexibility to choose the goods that it wishes to purchase. It is unattractive to multinational companies due to its time-consuming and expensive nature. B. single-party drafts and multi-party drafts. E. Bank of New York, Which of the following institutions within the U.S. Department of Commerce is dedicated to providing businesses with intelligence and assistance for attacking foreign markets? It states that the bank will pay a specified sum of money to a beneficiary on presentation of particular, specified documents. b. wholly owned subsidiaries d. creating a joint venture 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. e. transnational, Which of the following companies is an example of a transnational company? B. banker's check no knowledge of the lease agreement. Expanding the variety of products for purchase by consumers and business. 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? Export the data from quizlet, using ;TAB; for the word-def deliminater and ;BREAK; for the def-word deliminater. told her he was too young to have good credit. A properly maintained ship can easily last more than 30 years. They consider exporting only after their domestic market is saturated. At up to $500 million per ship, the cost of the cruise ships is one of Carnival's most significant expenses. D. bill of lading. c. Draw a scatter diagram with the variable, wins, on the vertical axis and salary on the C. gets the time to learn about each market. B. Counterpurchase c. join venture c. Mexico Another advantage of exporting is profitability. When serving as a _____, a bill of lading is used to obtain payment or a written promise of payment before the merchandise is released to the importer. Time draft Which of the following is true of medium-sized and small firms? b. Canada, Mexico, and South America e. ASEAN, What does an integration-responsiveness grid help a manager to do? D. Ex-Im Bank Type ^p in the find box, and a space in the replace box. b. it provides maximum latitude to research and development functions A. competing exporters also require letters of credit. A. Using the variable, salary, create a box plot. A. bill of lading a. inpatriation These firms can best overcome ignorance by: c. intranational b. a wholly owned subsidiary offers too much flexibility over operations d. traditional practices c. a technical component used in electronic devices worldwide B. D. Countertrade 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. B. bill of lading b. the parent company allows the subsidiaries to respond to local conditions quartiles using formula (4-1 ). d. it reduces the duplication of efforts C. It is a negotiable instrument. E. letter of credit. d. transnational This is an example of _____. True Family issues are the main reason for expatriates to return home early. a. international A. Export-Import Bank e. climate change, Under the ___, member countries of the European Union agreed to adopt a common European currency called the euro. Raymond Vernon states that the classic . She also denied signing the guaranty agreement. Tres Chic uses the ___ model of international competition. E. selling the draft to an investor at a discount from its face value. In an international transaction, the seller usually ships merchandise on an open account. d. decreasing consumer demand d. submission B. outsourcing Which of the following is a function of an export management company? d. Using the variable, wins, draw a dot plot. Sight draft The United States is known worldwide for high quality, innovative goods and services, customer service, and sound business practices. In an international transaction, a formal promise to pay is required before the buyer can obtain the merchandise. In this case, Foam Cutters is following the ______ 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 Use the compound interest formula (1) to find the indicated values. c. the personal security of host-country nationals may be an issue in some developing countries D. 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