Quiz on International Trade Concepts

Which of the following is the most common method of buying and selling goods internationally?

• exporting and importing

• countertrade

• a turnkey project

• A merger or an acquisition

Which of the following steps of the strategy development process for exports involves performing market research and interpreting results obtained from the research?

• identification of a potential market

• match needs of the market to the company's abilities

• initiation of meetings

• commitment of resources

Which of the following steps of the strategy development process for exports involves establishing relationships with potential local distributors?

• identification of a potential market

• match market needs to the company's abilities

• initiation of meetings

• commitment of resources

Which of the following is the first step in developing a successful export strategy?

• identification of a potential market

• match market needs to the company's abilities

• initiation of meetings

• commitment of resources

Which of the following is true of distributors?

• The use of distributors increases the exporter's control over the price buyers are charged.

• They are compensated with a fixed salary plus commissions based on the value of their sales.

• They are seldom required to take ownership of the merchandise when it enters their country.

• They can stunt the growth of the exporter's market share by charging very high prices.

Which of the following occurs when a company sells its products to intermediaries who then resell to buyers in a target market?

• indirect exporting

• counterpurchase

• an acquisition

• a joint venture

Which of the following allows a country to earn back some of the currency it pays out for imports?

• switch trading

• counterpurchase

• buyback

• barter

Which of the following is the oldest known form of countertrade?

• counterpurchase

• switch trading

• offset

• barter

The sale of goods and services to a country by a company that promises to buy a specific product from that country in the future is called a(n) ________.

• counterpurchase
• offset

• joint venture

• barter

A company proposes that in exchange for a hard-currency sale, it will make a hard-currency purchase of an unspecified product from the buyer nation in the future. Which of the following is the company proposing?

• a counterpurchase

• an offset

• a buyback

• a barter