A. ELAN list 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 problems of using an underdeveloped international legal system to enforce contractual obligations. It allows a firm to have its own company-owned facilities in a particular foreign market. a. third-country nationals C. a bill of exchange Bill of lading The exporter can insure against this possibility by: Kpler data shows Russian oil exports to the UAE more than tripled to 60 . These factors result in: A. shortening production runs. E. The Small Business Administration. B. countertrade The importer does not have to pay for the merchandise until the documents have arrived. C. draft Your research and development budget could work harder as you can change existing products to suit new markets.. view details E. It does not require the importer to pay any fee. It becomes a financial contract between the trusted third party (usually a bank) and the exporter. In a barter system, if goods are exchanged simultaneously, one party ends up financing the other. Which of the following is a disadvantage of barter as a countertrade arrangement? Raymond Vernon states that the classic . b. Canada, Mexico, and South America D. time draft D. Network of Foreign Trade Executives D. counterpurchase C. United States Trade Service D. have monopolized the export market in the country. A. the United States a. the global model The lessor a. the subsidiaries are completely under the control of the parent comapny d. Asia 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. a. global b. aging population c. intranational E. It cannot be used in transactions with trading partners who are not creditworthy. a. Sony D. It uses a specialized third-party trading house. c. traditional practices among countries are similar C. letter of credit C. It does not have expert specialists to help neophyte exporter identify opportunities. B. e. contingency, The international model of organization structure involves c. Substantive testing should be twice the amount of internal controls testing. d. limits its subsidiaries to market and service functions d. high transportation costs What is an accurate description of countertrade? B. bill of lading The situation in which consumer tastes and preferences regarding a product are similar in many different countries is an example of d. overseas consumers are often resentful of foreigners A. offshoring China c. India d. delaying the creation of job objectives A. 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? B. E. It allows for a delay in payment. d. varied consumer preferences D. offset . It is the most restrictive countertrade arrangement. B. d. leads to reduced efficiency A. d. global and international b. multinational c. Brazil C. It is a negotiable instrument. d. prefers familiarity Due to a lack of trust, Terabithia decided to make it a one-time-only deal. e. inpatriates, ___ are natives of a country other than the home country of the host country of an overseas subsidiary The United States has not yet evolved an institutional structure for promoting exports similar to that of Germany. b. competitive venture c. Calculate the chi-square test statistic for testing the null hypothesis, part b. D. time draft A. b. international a. reduce their population density each team, use this variable to create a new variable, stadium age, by subtracting D. arbitrage E. Ministry of International Trade and Industry. Entering several markets simultaneously to hedge risk c. it is the most expensive method of expanding globally c. global c. global C. document of title B. exporter is dealing in a country that has a nonconvertible currency. d. transnational Sight draft 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 E. countervailing duty, The principle of _____ is to trade goods and services for other goods and services when they cannot be traded for money. It is a very complex arrangement. d. there is a high amount of political risk A. In the United States, the _____ is the most comprehensive source of public assistance and information . It allows payment for merchandise after its delivery. b. competitive pressures to reduce costs are high C. Bill of lading b. multinational a. the NAFTA trade zone E. it may involve the exchange of poor-quality goods that cannot be disposed of profitably. principals of PP Door signed the lease and guaranty agreements Negative effect on world market prices e. sincerity, intro to organizational management Ch. B. it is a financial liability against the importer. Contingent on a second contract = seller agrees to purchase goods for same cash amount or set percentage of it, Alternative technique for expanding into international markets d. host-country national b. At up to $500 million per ship, the cost of the cruise ships is one of Carnival's most significant expenses. B. export-import firm c. it provides the opportunity to achieve a low-cost position via scale economies D. writing or stamping a notice of acceptance on its face. The exporter pays the trusted third party (usually a bank) a fee for the service. runs the risk of spreading its limited management resources too thin. e. vertical axis measures pressures for global systems capacity and the horizontal axis measures pressures for local financial success, a. vertical axis measures pressures for global integration and the horizontal axis measures pressures for local responsiveness, ____ create strong pressure for a global strategy c. takes on greater development costs Prepare any necessary reversing entries for the accounting adjustment provided assuming that Hawk uses reversing entries in its accounting system. E. It is not issued at the importer's request. A . E. It is the direct exchange of goods without a cash transaction. This change is an example of E. better understanding of how transactions should be configured. Product buy-back agreement c. a technical component used in electronic devices worldwide E. new companies. Which of the following is a way in which the U.S. Department of Commerce helps potential exporters? e. royalty facilitation, Which of the following is a disadvantage of franchising? C. Firms engaged in barter run the risk of having to accept goods they do not want or cannot use. b. increase their level of productivity D. draft guaranties. b. subsidiaries located in countries where the company does business with much of the control exercised by the parent company e. intranational model, A disadvantage of the global model is that it D. International Trade Administration B. collateral B. c. entering a joint venture This example fits into which category of pressures for local responsiveness? A. proactively and continuously seek export opportunities for their affiliated companies. From an exporter's perspective, why is an offset more attractive than a straight counterpurchase agreement? c. the personal security of host-country nationals may be an issue in some developing countries e. joint ventures, What is an advantage of exporting as a global expansion entry mode? a. Russia Hedge against currency fluctuations B. drawee a. large low-cost manufacturing facilities located in selected locations with products exported to various subsidiaries d. transnational e. global, Which of the following is an advantage of a multinational model? D. insourcing D. bill of lading. e. compassion, US business people working abroad may face ethical challenges, in particular because of cultural differences regarding A. exporter is exposed to the risk that the importer may default on payment. d. manufacturing various components at appropriate sites and assembling the components at national subsidiaries D. Developing nations may have trouble raising the foreign exchange necessary to pay for imports. In the modern era, countertrade arose in the 1960s as a way for _____ to purchase imports. She also denied signing the guaranty agreement. c. multinational and international Tres Chic uses the ___ model of international competition. 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. Trading firms import Russia energy to the UAE and re-export it to Pakistan, Sri Lanka or East Africa, the report said. A. can be used to advance funds to the exporter by its local bank before or during shipment. 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. 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. strategic exam 2-2. . A. competing exporters also require letters of credit. b. many companies find their home markets under attack from foreign competition They are unfamiliar with foreign market opportunities. E. barter. One of the consequences of an increasingly integrated global economy is that imports are penetrating deeper into the world's largest economies. b. differences in traditional practices among countries C. It becomes a financial contract between the trusted third party (usually a bank) and the exporter. e. domestic, Which of the following is true of the multinational approach to international competition? b. multinational 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. d. Nigeria proactively and continuously seek export opportunities for their affiliated companies. Become a member. C. buyer C. Firms prefer to be paid in hard currency. . World Bank D. buyback What can you conclude from this plot? A. easy tracking of the parties involved. Importing is also known as global sourcing. A. a letter of credit d. intranational d. expatriate b. energy costs for the company rise, increasing the benefits of offshoring 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. Compensation, A firm concludes a counterpurchase agreement with a foreign country for which it receives some counterpurchase credits for purchasing its goods. c. GATT agreement B. Like any fundamental change to the way you trade, there are risks as well as benefits you should consider. c. franchising c. South America, the United States, and Central America at 73 Main Avenue. C. an offset A. C. In a domestic transaction, a draft is used to settle trade transactions. Japan's great trading houses are referred to as _____. B. paying the draft amount immediately. A. arbitrage Export promotion leads to expansion of goods for the foreign market. B. E. It cannot be sold by an exporter. A. bill of exchange Which of the following is an advantage of countertrade? C. Barter e. reducing the dependency by communicating rarely, While Cork Commercial Containers was planning how it was going to open a plant in the Phillipines, it brought in Rodrigo, a native of the country, to teach the development team about the country's culture and economy. (D) Inflexibility, competition Buyback In global trade, exporting is the process by which companies from one country sell their goods and services to companies or consumers in a different country. C. Federal Trade Commission e. rigid procedures, Companies that adopt the global model tend to base their global competitive strategy on c. varying sales practices among countries Once accepted by the drawee, a time draft becomes a(n): Are there any outliers? C. Letter of credit 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. It has no value given the deferred nature of the document. b. outsourcing Door and its owner, Ping Ying Li. This is an example of _____. Less complicated United Nations b. the company may face tariff barriers C. Dirty float Switch trading B. 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. E. lowering unit costs. e. it has reversed the trend of increased automation, c. wages in the foreign countries rise, reducing the expected cost savings, An organization's economic environment includes b. Canada a. exporting d. global model A. maker Closing price for the week for Belden (BDC). 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