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Lecture

ADMS 4245 Lecture Notes - Pro Forma, International Trade Administration, Multi-Level Marketing


Department
Administrative Studies
Course Code
ADMS 4245
Professor
Peter Modir

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International Business, 13e (Daniels/Radebaugh/Sullivan)
Chapter 13 Export and Import Strategies
1) Which of the following refers to the sale of goods or services produced by a company based in
one country to customers that reside in a different country?
A) importing
B) countertrading
C) exporting
D) freight forwarding
Answer: C
Diff: 1 Page Ref: 478
Skill: Concept
Objective: STUDY QUESTION 13.1: What is exporting? What is importing?
2) Which of the following refers to the purchase of goods or services produced by a company
based in one country from sellers that reside in a different country?
A) importing
B) countertrading
C) exporting
D) freight forwarding
Answer: A
Diff: 1 Page Ref: 478-479
Skill: Concept
Objective: STUDY QUESTION 13.1: What is exporting? What is importing?
3) Which of the following is NOT an example of a service import?
A) a consulting company performing services for a foreign client
B) an investment bank helping a foreign company arrange financing
C) a retail clothing company opening a new retail outlet in a foreign country
D) engineering contractors building roads in a foreign country
Answer: C
Diff: 2 Page Ref: 479
Skill: Concept
Objective: STUDY QUESTION 13.1: What is exporting? What is importing?
4) This spring break you are planning to leave the U.S. and go to London, England and stay at a
hotel there. You will be making a ________ and the London hotel will be performing a
________.
A) merchandise export; service import
B) service export; merchandise export
C) service import; service export
D) service export; service import
Answer: C
Diff: 3 Page Ref: 479
Skill: Application
Objective: STUDY QUESTION 13.1: What is exporting? What is importing?
AACSB: Reflective Thinking
1
Copyright © 2011 Pearson Education, Inc.

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5) The benefits of retaining a core competency within a company and threading that core
competency through the value chain are referred to as ________ advantages.
A) internalization
B) domestic
C) location
D) ownership
Answer: A
Diff: 2 Page Ref: 480
Skill: Concept
Objective: STUDY QUESTION 13.2: What are the strategic advantages of exporting?
6) Companies are likely to export products abroad in all of the following situations EXCEPT
which one?
A) when their average cost per unit of home country production declines substantially by
increasing output
B) when they want to use the riskiest method to engage in international trade
C) when they aim to increase degree of market diversification
D) when they are new to international business
Answer: B
Diff: 2 Page Ref: 480-481
Skill: Concept
Objective: STUDY QUESTION 13.2: What are the strategic advantages of exporting?
7) Which of the following is usually NOT a factor that triggers companies to look to exports to
boost total sales?
A) maturity of the domestic market
B) potential to leverage their core competency in foreign markets
C) promote economic development in underdeveloped markets
D) response to the market entry of a foreign rival
Answer: C
Diff: 2 Page Ref: 480-481
Skill: Concept
Objective: STUDY QUESTION 13.2: What are the strategic advantages of exporting?
8) In general, companies that have low levels of ownership advantages ________.
A) enter foreign markets through FDI
B) enter foreign markets through joint ventures
C) enter foreign markets through franchising
D) do not enter foreign markets
Answer: D
Diff: 2 Page Ref: 480
Skill: Concept
Objective: STUDY QUESTION 13.2: What are the strategic advantages of exporting?
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Copyright © 2011 Pearson Education, Inc.

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9) The probability of being an exporter ________.
A) decreases with firm size
B) is almost always related to firm size
C) is rarely related to firm size
D) increases with firm size
Answer: D
Diff: 2 Page Ref: 482
Skill: Concept
Objective: STUDY QUESTION 13.3: What are the characteristics of exporters?
10) The ________ of a firm is the share of its total output that is exported.
A) freight forward
B) incremental export
C) export intensity
D) intermodal export
Answer: C
Diff: 1 Page Ref: 482
Skill: Concept
Objective: STUDY QUESTION 13.3: What are the characteristics of exporters?
11) Which of the following statements about small and medium-sized enterprises (SMEs) is
true?
A) SMEs are steadily reducing their exporting capabilities.
B) SMEs make up the majority of U.S. exporters.
C) SMEs account for the majority of the value of U.S. exports.
D) Most exporters have fewer than 20 employees.
Answer: B
Diff: 2 Page Ref: 481
Skill: Concept
Objective: STUDY QUESTION 13.3: What are the characteristics of exporters?
12) According to the research described in your text, which of the following is among the factors
that would increase a firm's probability of exporting?
A) low domestic productivity
B) high domestic labor costs
C) high level of efficiency
D) high R & D demands
Answer: C
Diff: 2 Page Ref: 482
Skill: Concept
Objective: STUDY QUESTION 13.3: What are the characteristics of exporters?
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Copyright © 2011 Pearson Education, Inc.
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