1. A tariff is a charge on an imported product to ... encourage global trade. to make the product less expensive. make the product more expensive. decrease trade barriers.
2. Domestic trade is a business activity that ... occurs outside a country's own borders. occurs between countries with excessive trade tariffs. occurs between counties with trade agreements. occurs within a country's own borders.
3. Countries participate in international trade for the following reasons: the products consumers want are made in another country, the source materials used to make a product are in another country, and … it increases opportunities for individuals, companies, and nations to reduce tariffs. it decreases opportunities for individuals, companies, and nations to gain wealth. it increases opportunities for individuals, companies, and nations to gain wealth. trading with other countries decreases the goodwill between nations.
4. A freight forwarder is ... an agent for the importer that moves the cargo to an overseas destination. an agent for the importer that moves cargo to a domestic destination. an agent that is unfamiliar with export and customs regulations. an agent for the exporter that moves the cargo to an overseas destination.
5. The preferred method for export is a pro forma invoice, which is ... an invoice in pro form. a quotation prepared in invoice format. a quotation prepared in Purchase Order format. an invoice in retroactive format.
6. The computation of the actual cost of producing a product and bringing it to market is the core element of determining if exporting is ... culturally acceptable. a loss-leader. a domestic failure. financially viable.
7. Flexibility and cultural adaptation should be the guiding principles for traveling abroad on business. Business executives who hope to profit from their travel should learn about the history, culture, and customs of the countries they wish to visit. TRUE FALSE
8 Lack of familiarity with the business practices, social customs, and etiquette of a country can weaken a company's position in the market, prevent it from accomplishing its objectives, and ultimately lead to failure. TRUE FALSE
9. The relative value between the two currencies could change between the time the deal is concluded and the time payment is received. If the exporter is not properly protected, a devaluation or depreciation of the foreign currency could cause the exporter to lose money. One of the risks associated with foreign trade is the uncertainty of the future ... freight forwarder costs. cargo charges. customs cost. exchange rates.
10. A restricted-access site in or adjacent to a Customs Port of Entry, but legally defined as outside the Customs Territory of the United States, is called a ... Foreign-Trade Association (FTA) Foreign-Trade Zone (FTZ) Foreign-Freight Association (FFA) Foreign-Freight Zone (FFZ)
11. A quota is a restriction on the _______________ of a specific kind that a country permits to be imported during a specified time before the imposition of added duties. price of goods location of goods quantity of goods quality of goods
12. When selling internationally, there are many cultural differences of which the exporting company needs to be aware. Three areas that transcend cultures are: to be polite, to tell the truth, and to greet warmly. to be polite, to tell the truth, and to greet in their language. to be polite, to tell the truth, and to greet with a handshake. to be polite, to tell the truth, and to personally sign all contracts.
13. _______________ vary widely from country to country. It is recommended that business travelers prepare for country visits by reading travel guides, which are located in the travel sections of most libraries and bookstores. Business manners and methods, religious customs, dietary practices, humor, and acceptable dress Business manners and methods, religious customs, dietary practices, language, and export costs Business manners and methods, religious customs, dietary practices, language, and acceptable dress Business manners and methods, religious customs, dietary practices, humor, and shipping costs
14. Business manners and methods, religious customs, dietary practices, humor, and acceptable dress vary widely from country to country. It is recommended that business travelers prepare for country visits by ... reading travel guides, which are located in the travel sections of most libraries and bookstores. reading websites that are devoted to travel and can help with booking travel arrangements. making a visit to the location prior to making the business deal. reading maps on the location they are traveling to, which are located in the travel sections of most libraries and bookstores.
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