BUSN 3001 Chapter 14 Exam Questions and
Answers Graded A+
Manuel has been hired by a clothing distributor based in Ireland. It is his job to travel to U.S.
clothing manufacturers and try to purchase denim products at the lowest price possible. He then
receives a commission based on his results. Which type of export service provider does Manuel
work for? Confirming house
Carolina Sailboat contracts with a company that identifies businesses in foreign countries that
will market and sell their line of sailboats. This company also provides all the documentation for
the exports, coordinates logistics, and transportation. What type of company does Carolina
Sailboat contract with? Export trading company
What two things are generally needed for successful piggyback marketing?
Complementary products
Same target market
What firms are export specialists that act as an export department for their clients? Export
management companies
Mega Data International wants to export into South America but has no knowledge of the laws or
documentation required to do so. Which of these agents can help the company with this
problem? Customs broker
,Which company is taking steps to minimize risk as it enters the export market? Instead of
trying to spread itself too thin by going after 22 foreign markets, Natalie's company focused on
three potential foreign markets.
Businesses would use the CORE diagnostic tool when making decisions regarding
_____________. exporting
Due to a lack of __________________, special mechanisms for financing exports and imports
have been created to deal with conducting transactions with strangers. trust
Which type of export service provider buys a product directly from the manufacturer and then
packages and labels the product based on its own specifications and sells the product under its
own name? Remarketer
One of the biggest concerns an exporter has is not receiving ____________ when shipping a
product to customers. payment
In order to reduce the risks associated with exporting, it makes sense for a company to initially
focus on one market. true
The CORE diagnostic tool on the globalEDGE website helps a company assesses its
readiness to export a product.
XYZ Company asked an international trade partner to pay for goods prior to delivery. XYZ
Company was not fully aware of the company's background and wanted to be sure that it got
, paid. This is an example of why the lack of Blank______ has resulted in the development of
special mechanisms for financing exports and imports. trust
What are two factors that can lead to a lack of trust in an export transaction? Distance
between the two parties
Problems enforcing contractual obligations
If a payment is made before products are shipped, an importer may be concerned about what two
things? Not receiving the product
Receiving a defective product
Importers involved in international trade prefer to pay ____________________ the goods are
received. after
What type of company is normally used as a trusted intermediary for exporting situations?
Bank
Exquisite Jewelery Company, based in New York, isn't sure it wants to start exporting to Europe.
The company is concerned that it won't be paid unless it receives it upfront and the European
companies don't want to pay until they receive the products. This situation demonstrates how
_______________________ can affect exporting. a lack of trust
If an _________________makes payment before shipment of a product, they risk receiving a
defective product. Importer
Answers Graded A+
Manuel has been hired by a clothing distributor based in Ireland. It is his job to travel to U.S.
clothing manufacturers and try to purchase denim products at the lowest price possible. He then
receives a commission based on his results. Which type of export service provider does Manuel
work for? Confirming house
Carolina Sailboat contracts with a company that identifies businesses in foreign countries that
will market and sell their line of sailboats. This company also provides all the documentation for
the exports, coordinates logistics, and transportation. What type of company does Carolina
Sailboat contract with? Export trading company
What two things are generally needed for successful piggyback marketing?
Complementary products
Same target market
What firms are export specialists that act as an export department for their clients? Export
management companies
Mega Data International wants to export into South America but has no knowledge of the laws or
documentation required to do so. Which of these agents can help the company with this
problem? Customs broker
,Which company is taking steps to minimize risk as it enters the export market? Instead of
trying to spread itself too thin by going after 22 foreign markets, Natalie's company focused on
three potential foreign markets.
Businesses would use the CORE diagnostic tool when making decisions regarding
_____________. exporting
Due to a lack of __________________, special mechanisms for financing exports and imports
have been created to deal with conducting transactions with strangers. trust
Which type of export service provider buys a product directly from the manufacturer and then
packages and labels the product based on its own specifications and sells the product under its
own name? Remarketer
One of the biggest concerns an exporter has is not receiving ____________ when shipping a
product to customers. payment
In order to reduce the risks associated with exporting, it makes sense for a company to initially
focus on one market. true
The CORE diagnostic tool on the globalEDGE website helps a company assesses its
readiness to export a product.
XYZ Company asked an international trade partner to pay for goods prior to delivery. XYZ
Company was not fully aware of the company's background and wanted to be sure that it got
, paid. This is an example of why the lack of Blank______ has resulted in the development of
special mechanisms for financing exports and imports. trust
What are two factors that can lead to a lack of trust in an export transaction? Distance
between the two parties
Problems enforcing contractual obligations
If a payment is made before products are shipped, an importer may be concerned about what two
things? Not receiving the product
Receiving a defective product
Importers involved in international trade prefer to pay ____________________ the goods are
received. after
What type of company is normally used as a trusted intermediary for exporting situations?
Bank
Exquisite Jewelery Company, based in New York, isn't sure it wants to start exporting to Europe.
The company is concerned that it won't be paid unless it receives it upfront and the European
companies don't want to pay until they receive the products. This situation demonstrates how
_______________________ can affect exporting. a lack of trust
If an _________________makes payment before shipment of a product, they risk receiving a
defective product. Importer
