Question :
71) Which of the following arranges export financing payment methods : 1353365
71) Which of the following arranges export financing payment methods in descending order starting with the most secure/reliable and ending with the least secure/reliable?
A) sales on open account→cash in advance→documentary credit (L/C)→documentary collection (draft)
B) documentary credit (L/C)→sales on open account→documentary collection (draft)→cash in advance
C) documentary collection (draft)→documentary credit (L/C)→cash in advance→sales on open account
D) cash in advance→documentary credit (L/C)→documentary collection (draft)→sales on open account
E) none of the above
72) Which of the following financing methods would be used by an exporter that enjoys good relations with a buyer in a well-established market?
A) letter of credit
B) cash in advance
C) sales on open account
D) barter
E) arrival draft
73) Which of the following methods of financing would be used if the exporting and importing parties had a strong, long-standing relationship?
A) documentary credit (letter of credit)
B) documentary collection
C) cash in advance
D) sales on open account
E) bank draft
74) In the post-September 11 business environment in the United States, imports have come under increased security. One of the initiatives taken in the interest of national security is:
A) NAFTA.
B) C-TPAT.
C) WTO.
D) NTB.
E) FSC.
75) The organizational decision to purchase production inputs, components, or finished goods from domestic or foreign producers is known as the ________ decision.
A) import/export
B) NTB
C) preferential
D) sourcing
E) security
76) The chief executives of Swiss Swatch Group and Japanese Canon would like to:
A) outsource all of the manufacturing units overseas in order to save money.
B) outsource a majority of the manufacturing functions overseas.
C) retain a majority, if not all, of the manufacturing in their home country.
D) establish “call centers” in developing countries in order to save labor costs.
E) outsource a full line of new products only.
77) If the dollar, the yen, or the euro becomes seriously overvalued, a company with a production capacity in other locations can achieve competitive advantage by:
A) buying different currencies before major fluctuations take place.
B) conducting transactions in different currencies of the world.
C) shifting production among different sites.
D) cutting down production and waiting until the currency rate is reasonable.
E) reducing production and labor force simultaneously.
78) A number of explanations have been offered for the low level of U.S. exports relative to other countries. All of the following can be considered as reasons for low level of exports except:
A) limited ambition by many American business owners.
B) lack of knowledge of market opportunities abroad.
C) perceived lack of necessary resources.
D) marketing to home-country users is easier than exporting.
E) a strong U.S. dollar translates into less affordable prices in export markets.
79) Officially, the EU tariffs on Chinese and Vietnamese shoe imports are known as:
A) Countervailing duties.
B) Antidumping duties.
C) Specific duties.
D) Ad valorem duties.
E) Temporary surcharges.
80) The furniture industry has become one of the fastest-growing sectors of China’s economy. Furniture imports are flooding into the United States from China. This can be attributed to:
A) the quality of furniture is better than that made in Europe.
B) American tastes in décor have changed.
C) China’s low labor rates translate into reasonable prices for consumers.
D) China can survive tough competition.
E) replacement parts are readily available from China.
