BUSI 3250 LATEST EXAM ACTUAL QUESTIONS AND
ANSWERS SURE A+
✔✔Small and medium size enterprises (SMEs) account for about ____ percent of the
companies that directly export goods, but they account for only about _____ percent of
the known value of goods exports(2020 - ✔✔97%; 33%
✔✔Mistakes Made by New Exporters - ✔✔1.Failure to get qualified counseling and
develop export strategy
2.Insufficient commitment by top management to overcome initial difficulties (If it's "too
hard"/takes too much effort/time....commitment wanes quickly)
3.Poor choice of overseas sales representatives
4. Chasing orders rather than establishing basis for profitable and orderly growth
(Fulfilling orders instead of pausing and looking at opportunities for strategic growth)
5.Neglecting exports when home market booms.
Think of exporting as secondary.
6.Failure to treat international distributors on equal basis with domestic counterparts.
7.Assumption that a given marketing technique and product will work in all countries.
(Belief that a standardized strategy will work)
8.Failure to modify products to meet regulations or cultural preferences of other
countries
9.Failure to provide sales, service and warranty information in local languages.
10.Failure to consider use of export management company.
11.Failure to consider joint ventures and licensing.
12.Failure to provide readily available servicing for the product.
✔✔Export Marketing Plan is like the domestic plan, it must state: - ✔✔What must be
done when. (tactical approach)
Who should do it. (resources)
How much money will be spent. (budget)
✔✔Export Marketing Plan and should include: - ✔✔- Specifics about the markets to be
developed
- The marketing strategy for serving them
- Tactics required to carry out the strategy
✔✔Export Marketing Plan is like the - ✔✔domestic plan
✔✔Universal trade terminology developed by the International Chamber of Commerce -
✔✔INCOTERMS
✔✔Incoterms - ✔✔Describe which party does which tasks, which party covers the
costs, and which party bears the risk
, ✔✔Ex-works - ✔✔Seller makes goods available at factory or warehouse, where risk
passes
✔✔FCA - ✔✔Free carrier, seller hands over goods to carrier at a named place, where
risk passes.
✔✔CPT - ✔✔Carriage paid to destination, seller pays for carriage, while risk passes
when goods handed to carrier
✔✔FAS (free alongside ship) - ✔✔seller clears the goods for export and places them by
the ship, risk passes at rail
✔✔seller loads goods, risk passes at rail - ✔✔FOB (Free alongside ship)
✔✔Cost and freight; seller pays costs of freight to bring goods to destination port. This
does not include insurance. Risk passes once goods are loaded - ✔✔CFR
✔✔CIP - ✔✔Carriage and insurance paid to destination, while risk passes when goods
are handed to carrier
✔✔Delivered at terminal; seller pays for transport and insurance to terminal and has risk
until goods loaded at terminal - ✔✔DAT
✔✔DAP - ✔✔Delivered at place; seller pays for carriage to the named place and
assumes all risk until goods are unloaded.
✔✔DDP - ✔✔Delivered, duty paid; seller delivers goods to destination and covers all
duties, taxes, customs.
✔✔CIF - ✔✔Same as CFR, but also includes insurance. Risk still passes at ship's rail
✔✔CIF and CFR terms of sale are more convenient for foreign buyers because -
✔✔risk passes to buyer
✔✔For exporters, the preferred pricing method is - ✔✔factory door cost
✔✔Why is the preferred pricing method factor door cost for exporters? - ✔✔Because
they don't have to "deal with product" once it leaves their factory
✔✔Export sales agreements need to specify as simply as possible the duties of -
✔✔both buyer and exporter
ANSWERS SURE A+
✔✔Small and medium size enterprises (SMEs) account for about ____ percent of the
companies that directly export goods, but they account for only about _____ percent of
the known value of goods exports(2020 - ✔✔97%; 33%
✔✔Mistakes Made by New Exporters - ✔✔1.Failure to get qualified counseling and
develop export strategy
2.Insufficient commitment by top management to overcome initial difficulties (If it's "too
hard"/takes too much effort/time....commitment wanes quickly)
3.Poor choice of overseas sales representatives
4. Chasing orders rather than establishing basis for profitable and orderly growth
(Fulfilling orders instead of pausing and looking at opportunities for strategic growth)
5.Neglecting exports when home market booms.
Think of exporting as secondary.
6.Failure to treat international distributors on equal basis with domestic counterparts.
7.Assumption that a given marketing technique and product will work in all countries.
(Belief that a standardized strategy will work)
8.Failure to modify products to meet regulations or cultural preferences of other
countries
9.Failure to provide sales, service and warranty information in local languages.
10.Failure to consider use of export management company.
11.Failure to consider joint ventures and licensing.
12.Failure to provide readily available servicing for the product.
✔✔Export Marketing Plan is like the domestic plan, it must state: - ✔✔What must be
done when. (tactical approach)
Who should do it. (resources)
How much money will be spent. (budget)
✔✔Export Marketing Plan and should include: - ✔✔- Specifics about the markets to be
developed
- The marketing strategy for serving them
- Tactics required to carry out the strategy
✔✔Export Marketing Plan is like the - ✔✔domestic plan
✔✔Universal trade terminology developed by the International Chamber of Commerce -
✔✔INCOTERMS
✔✔Incoterms - ✔✔Describe which party does which tasks, which party covers the
costs, and which party bears the risk
, ✔✔Ex-works - ✔✔Seller makes goods available at factory or warehouse, where risk
passes
✔✔FCA - ✔✔Free carrier, seller hands over goods to carrier at a named place, where
risk passes.
✔✔CPT - ✔✔Carriage paid to destination, seller pays for carriage, while risk passes
when goods handed to carrier
✔✔FAS (free alongside ship) - ✔✔seller clears the goods for export and places them by
the ship, risk passes at rail
✔✔seller loads goods, risk passes at rail - ✔✔FOB (Free alongside ship)
✔✔Cost and freight; seller pays costs of freight to bring goods to destination port. This
does not include insurance. Risk passes once goods are loaded - ✔✔CFR
✔✔CIP - ✔✔Carriage and insurance paid to destination, while risk passes when goods
are handed to carrier
✔✔Delivered at terminal; seller pays for transport and insurance to terminal and has risk
until goods loaded at terminal - ✔✔DAT
✔✔DAP - ✔✔Delivered at place; seller pays for carriage to the named place and
assumes all risk until goods are unloaded.
✔✔DDP - ✔✔Delivered, duty paid; seller delivers goods to destination and covers all
duties, taxes, customs.
✔✔CIF - ✔✔Same as CFR, but also includes insurance. Risk still passes at ship's rail
✔✔CIF and CFR terms of sale are more convenient for foreign buyers because -
✔✔risk passes to buyer
✔✔For exporters, the preferred pricing method is - ✔✔factory door cost
✔✔Why is the preferred pricing method factor door cost for exporters? - ✔✔Because
they don't have to "deal with product" once it leaves their factory
✔✔Export sales agreements need to specify as simply as possible the duties of -
✔✔both buyer and exporter
