d. franchising D. The Bureau of Competition e. European Unification Act, To be competitive in a global economy, Europeans must e. high labor costs, NAFTA combined the economies of ______ into one of the world's largest trading blocs It is the simplest countertrade arrangement. A. proactively and continuously seek export opportunities for their affiliated companies. d. transnational a. vertical axis measures pressures for global integration and the horizontal axis measures pressures for local responsiveness Prepare any necessary reversing entries for the accounting adjustment provided assuming that Hawk uses reversing entries in its accounting system. (D) Tariffs and taxes, high transportation costs, government restrictions. e. global transnational, Research suggests that regardless of nationality or religion, most people embrace a set of five core values. a. offshoring B. c. Calculate the chi-square test statistic for testing the null hypothesis, part b. e. competitive pressures to reduce costs, Colas have become available around the globe, and they are used in similar ways worldwide. c. global c. work for fewer hours A. ELAN list Advantages of exporting You could significantly expand your markets, leaving you less dependent on any single one. d. The International Monetary Fund E. the conventional means of payment are cheaper. C. It oversees volunteers with international trade experience to provide one-on-one counseling to active and new-to-export businesses. these are the best method to overcome high entry barriers these minimize risks and capital requirements. B. It is a very complex arrangement. c. South America, the United States, and Central America Your research and development budget could work harder as you can change existing products to suit new markets. d. prefers familiarity business Low risk nature Maximize flexibility Reducing the dependence on home market Importing Counterpart of exporting Products and services are bought from foreign sources and brought into home market e. Vietnam, Threats to China's economic future include c. requires spending more money on product customization c. the personal security of host-country nationals may be an issue in some developing countries B. countervailing duty A. sogo shosha b. competitiveness Which of the following is true of barter as a countertrade arrangement? World Bank D. bill of lading D. SCORE list c. overconfident b. competitive pressures to reduce costs are high B. d. optimizing global profit a. universal needs C. switch trading B. 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. e. rigid procedures, Companies that adopt the global model tend to base their global competitive strategy on b. licensing For an importer, which of the following is a disadvantage of using a letter of credit for international transactions? Arbitrage c. the CAFTA-DR trade zone A. It protects exporters from the risk that the foreign importer will default on payment. e. Unilever, Which of the following models of organization structure depends heavily on communication and coordination between subsidiaries? a. international What are the advantages and disadvantages of exporting as a mode of entry into foreign markets? One of the primary benefits of exporting is access to a global market of buyers. c. Draw a scatter diagram with the variable, wins, on the vertical axis and salary on the At trial, Li testified that she was e. bears most of the risks associated, Bob's Better Burgers sells small business owners the rights to use the company's brand name in return for a lump-sum payment and a share of the buyer's profits. Use the compound interest formula (1) to find the indicated values. d. expatriation Export the data from quizlet, using ;TAB; for the word-def deliminater and ;BREAK; for the def-word deliminater. 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? E. Offset, Which of the following drafts allows for a delay in payment? c. raises the standards of living b. launching coordinated global attacks against competitors is easy A. exporter is exposed to the risk that the importer may default on payment. horizontal axis. D. the importer is in a strong bargaining position. d. creating a joint venture A. D. bill of lading 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. Has a short time span 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. Seller agrees to supply technology or equipment to construct a facility Trade expansion benefits families and businesses by: Supporting more productive, higher paying jobs in our export sectors. C. Bill of lading B. in-transit bill Increased profits. A. B. large multinational enterprises. D. Firms usually appreciate being paid in the form of goods and services instead of hard currency. a. manufacturing costs are low B. A. Guanxi a. Egypt A. b. international Carnival estimates that its ships will sail for 30 years before they are retired. It is primarily used with trading partners who are not creditworthy or trustworthy. D. Time draft . 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. Compute the c. third-country national b. multinational Which of the following is one of the five core values? d. ethnocentrism A. _____ refers to an alternative means of structuring an international sale when conventional means of payment are difficult, costly, or nonexistent. B. specifies that the carrier is obligated to provide a transportation service in return for a certain charge. Seller agrees to a set price & receives cash from buyer a. expatriate C. bill of exchange c. avoiding the assignment of mentors A. switch trading Which of the following is true of an export management company (EMC)? d. there is a high amount of political risk Exporters often face voluminous paper work, complex formalities, and many potential delays and errors. C. barter d. submission e. foreign cohorts, Which of the following core values do most people embrace despite differences across cultures, and regardless of nationality or religion? E. countertrading opportunities. E. It requires exporting firms to obtain a letter of credit form a local bank. D. It results in lower shipping costs. The World Bank Thus, a portion of a ship's cost is recorded as an expense each time Carnival sets sail for a new destination. D. Ex-Im Bank E. It cannot be used in transactions with trading partners who are not creditworthy. Federal Trade Commission International Trade Administration each team, use this variable to create a new variable, stadium age, by subtracting a. consumer tastes and preferences differ significantly problems of using an underdeveloped international legal system to enforce contractual obligations. Ports of call allow passengers the opportunity to explore port cities in the Caribbean, Alaska, Mexico, and Canada, just to name a few. The most comprehensive source of information on export opportunities for U.S. firms is the _____. D. In an international transaction, the exporter sends a commercial invoice that specifies the amount due and the terms of payment to the importer. Sight draft D. Vietnam, The practice followed bu some companies of moving jobs to another country is called Increased profits. Using host-country nationals at an overseas subsidiary is generally less expensive than using expatriates. D. letter of credit a. the global model b. international It employs 76 district international trade officers and 10 regional international trade officers throughout the United States as well as a 10-person international trade staff in Washington, DC. d. a restaurant chain d. transnational C. It becomes a financial contract between the trusted third party (usually a bank) and the exporter. a. NAFTA D. It is also known as a bill of lading. 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 c. offshoring The governments of developing nations sometimes insist on a certain amount of countertrade. A company that is not dependent on a single market is crisis-proof. B. acculturation This is an example of _____. An official of the carrier gives the exporter a bill of lading. e. cognitive dissonance, ___ are foreign nationals who are brought in to work at the parent company Less common today, but still exercised in straightforward, one-shot deals b. differences in traditional practices among countries D. Bureau of Competition d. varied consumer preferences B. bill of lading a. exporting C. SCORE program The exporting company can fail to develop its own exporting capabilities. A. switch trading D. Barter B. exclusively serve the largest and most prestigious companies in Japan. D. It is issued by the exporter at the request of the importer. b. multinational 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. Advantages of Exporting - Avoids cost of establishing manufacturing operations - May help achieve experience curve and location economies Disadvantages of Exporting - May compete with low-cost location manufacturers - Possible high transportation costs - Tariff and non-tariff barriers b. host-country nationals A. B. export-import firm a. international mores name PP Door on the storefront of the leased location. e. transnational, Which of the following companies is an example of a transnational company? Which of the following is an advantage of having a letter of credit? c. multinational C. letter of credit C. Foreign Credit Insurance Association E. It starts exporting operations for firms until they are well established. D. Nonconvertibility implies that the exporter will only be paid in his or her home currency. B. exporter is dealing in a country that has a nonconvertible currency. C. insourcing can be used to advance funds to the exporter by its local bank before or during shipment. Identify a drawback of a countertrade agreement. Greater production can lead to larger economies of scale and better margins. A. e. patenting, An advantage of licensing as a method of entering global competition is that the Countertrade occurs when the: B. the Soviet Union E. offsourcing, Gerard's company used to have one of its clothing lines manufactured by an outside supplier. Once accepted by the drawee, a time draft becomes a(n): c. global A. shortening production runs. Goodwill: A. exporter may not be paid in his or her home currency due to nonconvertibility. E. It is the most flexible countertrade arrangement. Documentation = Official forms and other paperwork required in export transactions for shipping and custom procedures. When pressures for local responsiveness are high and pressures for global integration are low, the global model is appropriate. c. global a. differences in distribution channels It starts exporting operations for a firm with the understanding that the firm will take over operations after they are well established. Sight draft b. multinational the export button should appear where the 3 dots are. C. World Bank Less complicated A. the foreign currency is easily convertible. c. Mexico The figures show an astonishing 25% surge in the UK's exports of services since the British people voted to leave the EU. A. b. competitive venture Which of the following is an advantage of choosing exporting as a mode of entry into foreign markets? a. NAFTA could gain from importing include the potential lowering of costs of goods sold. C. receipt C. Firms prefer to be paid in hard currency. 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 _____. Which of the following is a drawback of relying on an export management company (EMC)? c. inability to customize products B. C. promise to pay by the accepting party. This example fits into which category of pressures for local responsiveness? e. creating a wholly owned subsidiary, Jamila is a native of the country where Regal Industries is building its new plant. Buyback Which of the following forms of countertrade is the country most likely to use? Your research and development budget could work harder as you can change existing products to suit new markets.. view details B. c. immigrants E. It is the direct exchange of goods without a cash transaction. c. multinational and international E. Most exporters desire payment in a currency that is not convertible. Greater production can lead to larger economies of scale and better margins. C. switch trading Countertrade accounts for as much as 1/3 of all world trade What is the relation, if any, between reliance on internal controls testing and substantive testing of account balances? A. This change is an example of Organizations resort to countertrade of goods and services when: d. leads to reduced efficiency Foreign Credit Insurance Association C. In a domestic transaction, a draft is used to settle trade transactions. b. host-country nationals a. NAFTA A. against her. C. Overseas Commercial Service b. international licensing Li claimed that the guaranty for rent was not enforceable d. decreasing consumer demand Are there any outliers? The International Trade Administration provide the potential exporter with a(n) _____, which gives the names and addresses of potential distributors in foreign markets along with businesses they are in, the products they handle, and their contact person. D. "comparison shopping service" 2. C. the importer has to pay for the merchandise even before receiving the documents. A. the importer has to request for it. d. competitors engage in global strategic coordination Successful exporting requires that agents perform all of the following except _____. e. inpatriates, ___ are natives of a country other than the home country of the host country of an overseas subsidiary 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. Which of the following is a reason why firms are not proactive about seeking export opportunities? a. international model B. D. It provides export specialists who act as the export marketing departments or international departments for their client firms. B. A. E. franchising. C. foreign direct investment management firm A. mergers D. 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