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Advantages of countertrade

A major advantage of countertrade is that it
it helps firms finance export deals when there are no other means.

Export credit insurance is provided by the _, an association of private commercial institutions operating under the guidance of the Export-Import Bank.
Foreign Credit Insurance Association (FCIA)

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Identify a common difficulty that traders face when exporting goods or services to other countries.
Firms often face aggressive competition from smaller firms.

Which of the following is true of many novice exporters?
Novice exporters often have a poor understanding of competitive conditions in the foreign market.

Which of the following refers to an order written by an exporter instructing an importer, or an importer’s agent, to pay a specified amount of money at a specified time?
Bill of exchange

A counterpurchase occurs when
a firm agrees to buy a certain amount of materials back from a country to which a sale is made.

A(n) _ occurs when a firm builds a plant in a country and agrees to take a certain percentage of the plant’s output as partial payment for the contract.

One big impediment to exporting is the simple lack of knowledge about the opportunities available in other countries.

The Export-Import Bank is an agency of the United Nations and its mission is promoting global trade.

Which of the following is a valid observation of the Export-Import (Ex-Im) Bank?
It is an independent agency of the U.S government and promotes international trade.

Switch trading refers to the use of a specialized third-party trading house in a countertrade agreement.

Which of the following is a factor that determines the bank charges on a letter of credit?
Exporter’s creditworthiness

A sight draft is payable on presentation to the drawee.

A drawback of relying on an export management company is that a company can fail to develop its own exporting capabilities.

As a contract, the bill of lading specifies that the carrier
is obligated to provide a transportation service in return for a certain charge.

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