BUS 410: Midterm 1 || 100% Correct Answers.
Trade correct answers import or export of goods and services across national borders, usually as
part of an exchange
exporting correct answers the shipment of goods out of a country or the rendering of services to a
foreign buyer located in a foreign country
importing correct answers the entering of goods into the customs territory of a country or the
receipt of services from a foreign provider
Trade in services correct answers 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 correct answers -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 correct answers 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 correct answers 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 correct answers 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 correct answers 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 correct answers 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) correct answers 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 correct answers
Trade correct answers import or export of goods and services across national borders, usually as
part of an exchange
exporting correct answers the shipment of goods out of a country or the rendering of services to a
foreign buyer located in a foreign country
importing correct answers the entering of goods into the customs territory of a country or the
receipt of services from a foreign provider
Trade in services correct answers 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 correct answers -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 correct answers 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 correct answers 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 correct answers 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 correct answers 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 correct answers 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) correct answers 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 correct answers
