GlobalEDGE TM International Trade Strategies and Financing Quiz

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Questions and Answers

What percentage of companies engaged in the global marketplace export?

Around 70%

More than 90% (correct)

Exactly 50%

Less than 50%

What facilitates the increased volume of exporting?

Rising trade barriers and decrease in regional economic agreements

Decline in trade barriers and increase in regional economic agreements (correct)

Limited access to technology and communication

Stagnation in technology and communication

Which type of firms tend to be proactive about exporting?

Start-up firms

Small firms

Large firms (correct)

Medium-sized firms

What is a big impediment to exporting?

Lack of knowledge of available opportunities Signup and view all the answers

Which organization provides export assistance in the US?

U.S. Export Assistance Centers (USEAC) Signup and view all the answers

What do small and medium-sized enterprises prefer when it comes to exporting?

Low commitment Signup and view all the answers

What do large firms tend to be regarding exporting?

Proactive Signup and view all the answers

What can be intimidating for some firms regarding exporting?

Prospect of exporting Signup and view all the answers

What do many small and medium-sized enterprises prefer when it comes to exporting?

Low commitment Signup and view all the answers

What do large revenue and profit opportunities exist for in foreign markets?

Most firms Signup and view all the answers

What is countertrade?

A means of structuring an international sale when conventional payment is difficult Signup and view all the answers

What is the range of world trade covered by some sort of countertrade agreement?

2 to 10 percent by value Signup and view all the answers

Which type of countertrade involves the exchange of unusable or poor-quality goods that the firm cannot dispose of profitably?

Counterpurchase Signup and view all the answers

What is a pro of countertrade?

Can give a firm a way to finance an export deal when other means are not available Signup and view all the answers

What does product readiness involve?

Determining if the product is ready for import and export Signup and view all the answers

What does company readiness involve?

Assessing the company's commitment, resources, skills, and knowledge for import and export Signup and view all the answers

What are some aspects of company readiness to export?

Motivation for going international and top-level commitment Signup and view all the answers

In the context of using a third party for trade, what does step 4 entail?

Bank pays exporter. Signup and view all the answers

What is one major concern associated with countertrade?

Involves exchange of poor-quality goods that cannot be disposed profitably. Signup and view all the answers

Which type of countertrade may be required by a government when exporting goods or services to a specific country?

Compensation or buybacks Signup and view all the answers

What is the purpose of economic processing zones, including foreign trade zones?

To offer benefits for handling international trade activities Signup and view all the answers

What is the role of the Export-Import Bank?

To provide assistance in financing U.S. exports Signup and view all the answers

What is the function of letters of credit in international trade?

To mitigate risks for firms Signup and view all the answers

What is the purpose of export credit insurance provided by organizations like the Foreign Credit Insurance Association?

To help exporters insure against the risk of foreign importer default Signup and view all the answers

What do freight forwarders and export management companies assist with in exporting?

Logistics, documentation, and distribution Signup and view all the answers

What is the significance of the globalEDGETM Exporting Tool, CORE?

It helps companies assess their readiness to export a product and navigate international trade Signup and view all the answers

Study Notes

Exporting Strategies and Financing Options for International Trade

Government programs and resources such as Small Business Administration, Service Corps of Retired Executives, and Centers for International Business Education and Research are available to help exporters.
Service providers like freight forwarders, export management companies, and export trading companies assist in various aspects of exporting, including logistics, documentation, and distribution.
Export packaging companies offer advice on packaging design and materials to maximize shipping efficiency.
Economic processing zones, including foreign trade zones, offer benefits for handling international trade activities.
Strategies for successful exporting include hiring experienced consultants, focusing on specific markets, and building strong relationships with local distributors.
The globalEDGETM Exporting Tool, CORE, helps companies assess their readiness to export a product and navigate international trade.
Trust is a significant issue in international trade, and firms often rely on mechanisms such as letters of credit issued by reputable banks to mitigate risks.
Drafts, including sight drafts and time drafts, are used in international commerce to settle trade transactions.
Bill of lading serves as a receipt, contract, and document of title, and can also be used as collateral for funding from the exporter's local bank.
The Export-Import Bank provides assistance in financing U.S. exports, supporting employment and market competitiveness.
Export credit insurance, provided by organizations like the Foreign Credit Insurance Association, helps exporters insure against the risk of foreign importer default.
Countertrade, a practice where trade is linked to other transactions, can be utilized to facilitate exporting.

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Description

Explore strategies, resources, and financing options for international trade. Learn about government programs, service providers, packaging advice, economic processing zones, and the use of trust mechanisms in international commerce.