Please highlight in bold all the correct answers no need for an explanation

Question 1

A micromultinational is:

a business composed of two or more owners who contribute the initial capital of the business and share in the profits and the losses.

a tiny company that operates globally, having a presence and people in several countries.

an organization that provides disaster assistance and emergency relief for businesses through special tax law provisions.

a nonprofit association dedicated to educating entrepreneurs and helping small businesses start, grow, and succeed nationwide.

a business voluntarily operated by two or more people as co-owners for profit. Question 2 Which of the following is an advantage of direct exporting?

The owner has a greater degree of control over all aspects of the transaction.

It does not require a lot of organizational effort or staff workers.

The business has limited liability for product marketing problems.

The producer of the goods is subject to only small dangers and risk.

The owner does not have to be concerned with shipment and other logistics. Question 3 Which of the following is a disadvantage of direct exporting?

The profits of a business will be lower, and control over foreign sales is lost.

The opportunity to tailor its offerings to the customer's evolving needs is lost.

The owner may not be able to respond to customer communications as quickly as a local agent can.

The owner does not know whom to contact if something is not working.

The long-term outlook and goals for an export program can change rapidly, and it is hard to redirect efforts accordingly. Question 4 Which of the following is a feature of direct exporting?

It allows the owner to continue to concentrate on its domestic business.

It does not require a lot of organizational effort or staff workers.

The profits of a business will be lower, and control over foreign sales is lost.

The business has limited liability for product marketing problems.

It takes more time, energy, and money than an owner may be able to afford. Question 5 Which of the following is a drawback of direct exporting?

Servicing the business will demand more responsibility from every level in the organization.

The profits of a business will be lower, and control over foreign sales is lost.

The opportunity to tailor its offerings to the customer's evolving needs is lost.

The owner knows whom to contact if something is not working.

The long-term outlook and goals for an export program can change rapidly, and it is hard to redirect efforts accordingly. Question 6 Which of the following is a feature of indirect exporting?

The owner does not have to be concerned with shipment and other logistics.

The owner has a greater degree of control over all aspects of the transaction.

The owner knows whom to contact if something is not working.

It requires more "people power" to cultivate a customer base.

Potential profits are greater. Question 7 Which of the following is a disadvantage of indirect exporting?

It requires more "people power" to cultivate a customer base.

It takes more time, energy, and money than an owner may be able to afford.

The opportunity to tailor its offerings to the customer's evolving needs is lost.

The owner himself can not provide quick response to customer communications.

The owner must handle all the logistics of the transaction. Question 8 Which of the following is a drawback of indirect exporting?

Servicing the business will demand more responsibility from every level in the organization.

The owner must handle all the logistics of the transaction.

It requires more "people power" to cultivate a customer base.

The profits of a business will be lower, and control over foreign sales is lost.

It takes more time, energy, and money than an owner may be able to afford. Question 9 Features of a product that have little to do with the primary function of the product but add value to customer satisfaction are known as:

functional attributes.

psychological attributes.

conditional attributes.

epistemic attributes.

sociological attributes. Question 10 The most severe political risk to exporting businesses is the seizing of a company's assets without payment, which is known as:

conviction.

elimination.

deduction.

expropriation.

confiscation. Question 11 Which of the following is the most secure method of payment for an exporter?

Episode payment

Letters of credit

Open account

Documentary collections

Bundled payment Question 12 Export Express 7(a) Loan Programs offered by the SBA are streamlined programs that:

help small businesses develop or expand their export markets.

offer borrowers a maximum SBA-guaranteed portion of $1.75 million.

are aimed at offsetting the added risks of doing business abroad, from complex trade rules to unpaid bills.

provide lenders guarantees of up to 90 percent on export loans to ensure that qualified exporters do not lose viable export sales due to a lack of working capital.

offer short-term financing or may help purchase the goods to be exported directly from the manufacturer. Question 13 International Trade Loan Program 7(a) Loans are available for businesses that:

are trying to develop or expand their export markets.

are able to generate export sales but need additional working capital to support these sales.

plan to start or continue exporting or have been adversely affected by competition from imports.

require working capital loan guarantees, export-credit insurance, and other forms of financing for US exporters of all sizes.

seek intermediaries who can purchase their goods to be exported directly from them. Question 14 Export intermediaries:

help small businesses develop or expand their export markets.

offer borrowers a maximum SBA-guaranteed portion of $1.75 million.

are aimed at offsetting the added risks of doing business abroad, from complex trade rules to unpaid bills.

provide lenders guarantees of up to 90 percent on export loans to ensure that qualified exporters do not lose viable export sales due to a lack of working capital.

provide short-term financing or may purchase the goods to be exported directly from the manufacturer. Question 15 Taxes imposed on imported goods so that the price of imported goods increases to the level of domestic goods are known as:

quotas.

tariffs.

levies.

embargoes.

sanctions. Question 16 Which of the following is a legal entity with each partner holding an equity position?

Direct cooperation

Angel venture

Industrial alliance

Joint venture

Venture succession Question 17 Which of the following best describes a strategic alliance?

It is a nonprofit association dedicated to educating entrepreneurs and helping small businesses start, grow, and succeed nationwide.

It is the transference of leadership from one generation to the next to ensure continuity of family ownership of the business.

It is insurance that protects a business in the event of a natural disaster that affects the ability of a company to conduct business.

It is an agreement that considers the choice between making money or controlling and running a business.

It is an agreement signed between two corporations, but a separate business entity is not created. Question 18 Direct foreign investment would be the best choice if a business:

is a nonprofit association dedicated to educating entrepreneurs and helping small businesses start, grow, and succeed nationwide.

is looking for a passive investment in the securities of another country such as stocks and bonds.

is interested in manufacturing locally to take advantage of low-cost labor, gain access to raw materials, or gain market entry.

desires to initiate portfolio investment in another country.

does not want to create lasting interest in or effective management control over the foreign enterprise. Question 19 Which of the following is the most secure method of payment for international transactions?

Letters of credit

Payment in advance

Consignment

Documentary collection

Open account Question 20 A documentary letter of credit is from a documentary collection or draft because the former method:

requires the buyer to pay the face amount either on sight or on a specified date in the future.

is considered risky in international business because a business has limited recourse if debts are unpaid.

is an internationally recognized instrument issued by a bank on behalf of its client, the purchaser.

relieves a business of collection problems and guarantees immediate use of the money.

puts the exporter under great risk and offers the least control over the goods. Question 21 Which of the following is true about documentary letter of credit as a method of payment?

It requires the buyer to pay the face amount either on sight or on a specified date in the future.

It involves the use of a draft, drawn by the seller on the buyer.

It represents the bank's guarantee to pay the seller, provided that the conditions specified in it are fulfilled.

It is the ideal method of payment because a company has immediate use of the money.

It involves wire transfers or the acceptance of credit cards. Question 22 Which of the following is true about an open account as a method of payment?

It requires the buyer to pay the face amount on sight.

It requires the exporter to bill the customer, who is then expected to pay under agreed-on terms at a future date after the goods are manufactured and delivered.

It involves the use of a draft, drawn by the seller on the buyer.

It is the ideal method of payment because a company has immediate use of the money.

It involves wire transfers or the acceptance of credit cards.