BUSN 410 MIDTERM 1 QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) | ALREADY GRADED A+ | NEW
UPDATE 2025
Trade - ANSWER import or export of goods and services across national
borders, usually as part of an exchange
exporting - ANSWER the shipment of goods out of a country or the rendering
of services to a foreign buyer located in a foreign country
importing - ANSWER the entering of goods into the customs territory of a
country or the receipt of services from a foreign provider
Trade in services - ANSWER the providing of services to a customer or the
operation of service companies in a foreign country
-examples could be found in transportation, package delivery, banking, insurance,
securities brokerage, law, accounting, architecture
benefits of exporting - ANSWER -may provide the inexperiencd or smaller firm
wiht an opportunity to reach new customesr and to tap new markets
-usually requires modest capital investment, risks are usually manageable by most
firms
-permits firms to explore market potential
,Direct Exporting - ANSWER refers to a type of exporting in which the exporter,
often a manufacturer, assumes responsibility for most of the export functions,
including marketing, export licensing, shipping, and collecting payment
foreign sales representaives - ANSWER independent sales agents who solicit
orders on behalf of their principals and receive compensation on a commission
basis. Agents who represent a firm.
-ex: one agent may represent several different manufacturers of US sporting
goods in Japan
foreign distributors - ANSWER independent firms, usually located in the
country or region to which a firm is exporting, that purchase and take delivery of
goods for resale to their customers
indirect exporting - ANSWER countries without the experience, personnel, or
capital to tackle a foreign market alone typically use tis.
This refers to a firm's use of specialized intermediaries outside of their own
organization to handle specific functions--foreign marketing, foreign sales, finance,
and shipping for example
--> usually done when smaller or medium sized companies don't have a dedicated
international sales staff or export department or are not yet ready to handle the
mechanics o export transactions on their own
----> two types of intermediaries include international/export trading companies
and export management companies
International Trading Companies - ANSWER firms that specialize in all aspects
of import/export transactions by either buying goods on their own accounts for
resale or by acting as middlemen to bring other buyers and sellers together
, -Come from both developed and developing countries
-include Export Trading Companies
export trading companies (ETCs) - ANSWER In 1982, the US Congress passe
the Export Trading Company Act, giving American exporters the same competitive
advantage as the Japanese. US export trading companies (ETCs) can apply for and
receive an Export Trade Certificate of Review from the US Department of
Commerce with the approval of the DOJ that waives the application of US
antitrust laws to their specified export activities.
-waiver is issued only if its shown that the advantage will not lessen competition
in the US or unreasonably affect domestic prices of the exported products
Tarbert Trading v. Cometals - ANSWER
certificate of origin (CO) - ANSWER a document , prepared or provided by an
exporter or shipper that certifies and attests to the county of origin of the goods
being shipped
-some countries requires certification and others just requires it to be on a
exporting company letterhead
Export Management Companies (EMCs) - ANSWER independent firms that
assume a range of export-related responsibilities for manufacturers, producers, or
other exporters
-They may offer advice and training on how to export, or may assume full
responsibility for the entier export sales process.
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) | ALREADY GRADED A+ | NEW
UPDATE 2025
Trade - ANSWER import or export of goods and services across national
borders, usually as part of an exchange
exporting - ANSWER the shipment of goods out of a country or the rendering
of services to a foreign buyer located in a foreign country
importing - ANSWER the entering of goods into the customs territory of a
country or the receipt of services from a foreign provider
Trade in services - ANSWER the providing of services to a customer or the
operation of service companies in a foreign country
-examples could be found in transportation, package delivery, banking, insurance,
securities brokerage, law, accounting, architecture
benefits of exporting - ANSWER -may provide the inexperiencd or smaller firm
wiht an opportunity to reach new customesr and to tap new markets
-usually requires modest capital investment, risks are usually manageable by most
firms
-permits firms to explore market potential
,Direct Exporting - ANSWER refers to a type of exporting in which the exporter,
often a manufacturer, assumes responsibility for most of the export functions,
including marketing, export licensing, shipping, and collecting payment
foreign sales representaives - ANSWER independent sales agents who solicit
orders on behalf of their principals and receive compensation on a commission
basis. Agents who represent a firm.
-ex: one agent may represent several different manufacturers of US sporting
goods in Japan
foreign distributors - ANSWER independent firms, usually located in the
country or region to which a firm is exporting, that purchase and take delivery of
goods for resale to their customers
indirect exporting - ANSWER countries without the experience, personnel, or
capital to tackle a foreign market alone typically use tis.
This refers to a firm's use of specialized intermediaries outside of their own
organization to handle specific functions--foreign marketing, foreign sales, finance,
and shipping for example
--> usually done when smaller or medium sized companies don't have a dedicated
international sales staff or export department or are not yet ready to handle the
mechanics o export transactions on their own
----> two types of intermediaries include international/export trading companies
and export management companies
International Trading Companies - ANSWER firms that specialize in all aspects
of import/export transactions by either buying goods on their own accounts for
resale or by acting as middlemen to bring other buyers and sellers together
, -Come from both developed and developing countries
-include Export Trading Companies
export trading companies (ETCs) - ANSWER In 1982, the US Congress passe
the Export Trading Company Act, giving American exporters the same competitive
advantage as the Japanese. US export trading companies (ETCs) can apply for and
receive an Export Trade Certificate of Review from the US Department of
Commerce with the approval of the DOJ that waives the application of US
antitrust laws to their specified export activities.
-waiver is issued only if its shown that the advantage will not lessen competition
in the US or unreasonably affect domestic prices of the exported products
Tarbert Trading v. Cometals - ANSWER
certificate of origin (CO) - ANSWER a document , prepared or provided by an
exporter or shipper that certifies and attests to the county of origin of the goods
being shipped
-some countries requires certification and others just requires it to be on a
exporting company letterhead
Export Management Companies (EMCs) - ANSWER independent firms that
assume a range of export-related responsibilities for manufacturers, producers, or
other exporters
-They may offer advice and training on how to export, or may assume full
responsibility for the entier export sales process.