QUESTION 1

What is a foreign trade zone? How does it differ from a free trade zone?

QUESTION 5

Managers generally mention three areas in which they lack knowledge related to exporting, including identification of foreign markets, export procedures, and

		identifying international distributors.
		identifying international agents.
		payment and financing procedures.
		hiring a customs broker.

QUESTION 6

What private sector organization is active in 92 countries and provides networking opportunities and an online trading system?

		Small Business Administration
		Global Markets Unit
		World Trade Centers Association
		U.S Department of Commerce

QUESTION 7

FOB (free on board) means that

		the seller pays for carriage to the named place and assumes all risk until the goods are unloaded.
		the seller pays cost of freight to bring goods to the destination port, but not insurance.
		the cost and risk transfer to the seller at the ship's rail.
		the seller loads the goods on board the ship identified by the buyer and clears them for export, and both the cost and the risk then transfer to the buyer.

QUESTION 8

A company has been able to forecast the potential growth of its products in the Latin American market based on the pattern of growth rates its products have shown in the past. What is the company using to make these forecasts?

		market factors
		basic needs potential
		trend analysis
		cluster analysis

QUESTION 9

The first step in the process of strategic planning is to analyze the company's ________ environment.

QUESTION 10

What is the analyst mostly concerned with during the second screening?

		trends in inflation, interest rates, exchange rates
		market growth
		banking legislation and regulation
		consumer profile

QUESTION 11

A clear, concise description of the fundamental beliefs and priorities expected of the organization's members, reflecting how they are to behave with each other and with the company's customers, suppliers, and other members of the global community is known as a

		strategic plan.
		vision statement.
		mission statement.
		values statement.

QUESTION 12

A manufacturing company decided not to conduct business in some parts of South America after it learned that governments hold all imports for up to 18 months before releasing to the importing country. What aspect of segment screening fostered this decision?

		accessible
		definable
		capturable
		actionable

QUESTION 13

A(n) ________ is an area authorized by customs authorities for storage of goods on which payment of import duties is deferred until their removal.

		collection area
		bonded warehouse
		customhouse
		import warehouse

QUESTION 14

Companies pursuing a ________ strategy typically centralize product development functions in their home country and then transfer innovations to foreign markets in order to capture additional value.

QUESTION 15

Many nations, especially those of Latin America, follow the ________ Doctrine, which holds that contractual dispute cases should be tried under local, and not foreign, law.

QUESTION 16

Hansen Fashion Corporation is an online retail clothing group that plans to enter the European market after its analysis showed that the number of online clothing buyers has increased steadily over the past ten years and is projected to double in the next year. What is the company using to make its decision?

		competitive screen
		political stability
		market indicator
		economies of scale

QUESTION 17

The firm's ultimate manager of strategic planning is the firm's

		chief executive officer.
		vice president for planning.
		board of directors.
		chief operating officer.

QUESTION 18

During the initial screening process, Securicom decided not to pursue activity in Greenland because consumers werent interested in purchasing high-end door locks for their automobiles. What was Securicom assessing in this process?

		competitive forces
		cultural potential
		basic needs potential
		economic/financial forces

QUESTION 19

Independent businesses that handle import shipments for compensation are

		freight forwarders.
		customhouse brokers.
		importing agents.
		bonded warehouses.

QUESTION 20

Incoterms describe three issues that arise in a commercial transaction, including

		which party determines the goods to be sent.
		which party collects the payments.
		which party covers the costs.
		which party's jurisdiction is used to resolve conflicts.

QUESTION 21

What is one of the 12 most common mistakes and pitfalls awaiting new exporters listed in the textbook?

		failure to treat international distributors on an equal basis with domestic counterparts
		too much attention on selecting overseas distributors
		failure to develop a domestic marketing plan
		overuse of an export management compan

QUESTION 22

The Small Business Administration (SBA) provides what kind of assistance through its Office of International Trade?

		grant programs to support international research
		education assistance
		coupon redemption service
		financial assistance

QUESTION 23

Jefferson Materials Corporation has developed a fire-resistant fabric that no one else has been able to replicate. It is used throughout the world in firefighting equipment and supplies. Since it is the only company making the product, customers are willing to pay a premium for the fabric. In this scenario, the fire-resistant fabric has helped the company develop a(n)

		purchasing power parity.
		comparative advantage.
		competitive advantage.
		economy of scale.

QUESTION 24

________ are multiple, plausible stories a company uses when assessing probable futures.

QUESTION 25

________ screening is an application of environmental scanning that companies use to eliminate the less desirable markets.

QUESTION 26

The European Union uses a Conformit Europene (CE) mark on shipments, which indicates that

		the shipment must be inspected when sent to any EU country.
		the shipment has been paid for by the shipper.
		the country of origin is in the EU.
		the merchandise conforms to European requirements.

QUESTION 27

During the meeting, David mentioned two possibilities for the future of the new product line. It could do well initially but then be undercut by competitor challenges or supplier pricing changes. Or, it could fail immediately if marketing promotions arent effective in the European market. What is David using in his strategy formulation?

		procedures
		policies
		scenarios
		contingencies

QUESTION 28

Parul is part of a team assessing international markets for the company. It is her job to learn the marketing strategies and pricing policies of companies already in the market. Which aspect of the screening process is Parul responsible for?

		financial and economic forces
		cultural forces
		competitive forces
		political and legal forces

QUESTION 29

________ screening is an in-country analysis of groups of consumers.

QUESTION 30

An assessment conducted on the chain of interlinked activities of an organization or set of interconnected organizations, intended to determine where and to what extent value is added to the final product or service is known as

		value chain analysis.
		economic value added.
		internal analysis.
		SWOT analysis.