International Trade and Learning Objective

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