International Trade and Learning Objective

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Chapter 13
Exporting, Importing, and Countertrade

True / False Questions

1. (p. 439) Firms that export lose out on opportunities of profit and revenue. Topic: The Promise and Pitfalls of Exporting
FALSE

AACSB: Analytic
BT: Knowledge
Difficulty: Easy
Learning Objective: 13-1

2. (p. 439) Studies have shown that while small firms tend to be proactive about seeking opportunities for profitable exporting, systematically scanning foreign markets to see where the opportunities lie for leveraging their marketing skills in foreign countries, many large firms are very reactive. Topic: The Promise and Pitfalls of Exporting

FALSE

AACSB: Analytic
BT: Knowledge
Difficulty: Easy
Learning Objective: 13-1

3. (p. 439) Simple ignorance of potential opportunities is a huge barrier to exporting. Topic: The Promise and Pitfalls of Exporting
TRUE

AACSB: Analytic
BT: Knowledge
Difficulty: Easy
Learning Objective: 13-1

4. (p. 439) The combination of unfamiliarity and intimidation probably explains why exporters still account for only a tiny percentage of U.S. firms, less than 5 percent of firms with fewer than 500 employees, according to the Small Business Administration. Topic: The Promise and Pitfalls of Exporting

TRUE

AACSB: Analytic
BT: Knowledge
Difficulty: Easy
Learning Objective: 13-1

5. (p. 439) Many neophyte exporters run into significant problems when first trying to do business abroad, which sours them on future exporting ventures. Topic: The Promise and Pitfalls of Exporting

TRUE

AACSB: Analytic
BT: Knowledge
Difficulty: Easy
Learning Objective: 13-1

6. (p. 440) Most novice exporters realize the amount of management resources that have to be dedicated to cultivate business in foreign countries. Topic: The Promise and Pitfalls of Exporting
FALSE

AACSB: Analytic
BT: Knowledge
Difficulty: Easy
Learning Objective: 13-1

7. (p. 441) The United Nations has calculated that the time involved in preparing documentation, along with the costs of common errors in paperwork, often amounts to 10 percent of the final value of goods exported. Topic: The Promise and Pitfalls of Exporting

TRUE

AACSB: Analytic
BT: Knowledge
Difficulty: Easy
Learning Objective: 13-1

8. (p. 442) One big impediment to exporting is the simple lack of knowledge of the opportunities available. Topic: Improving Export Performance
TRUE

AACSB: Analytic
BT: Knowledge
Difficulty: Easy
Learning Objective: 13-2

9. (p. 442) The way to overcome ignorance in exporting is to collect information. Topic: Improving Export Performance
TRUE

AACSB: Analytic
BT: Knowledge
Difficulty: Easy
Learning Objective: 13-1

10. (p. 442) Identifying export opportunities is made even more complex because more than 200 countries with widely differing cultures compose the world of potential opportunities. Topic: Improving Export Performance

TRUE

AACSB: Analytic
BT: Knowledge
Difficulty: Easy
Learning Objective: 13-2

11. (p. 442) In Indonesia, one of the world's most successful exporting nations, trade associations, government agencies, and commercial banks gather information, helping small firms identify export opportunities. Topic: Improving Export Performance

FALSE

AACSB: Analytic
BT: Knowledge
Difficulty: Easy
Learning Objective: 13-2

12. (p. 442) German and Japanese firms can draw on the large reservoirs of experience, skills, information, and other resources of their respective export-oriented institutions. Topic: Improving Export Performance

TRUE

AACSB: Analytic
BT: Knowledge
Difficulty: Easy
Learning Objective: 13-2

13. (p. 443) The U.S. Department of Industries organizes trade events that help potential exporters make foreign contacts and explore export opportunities. Topic: Improving Export Performance
FALSE

AACSB: Analytic
BT: Knowledge
Difficulty: Easy
Learning Objective: 13-3...
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