What is a reason that firms take a reactive approach to exporting rather than a proactive approach?

81.Why do so many firms take a reactive approach to exporting rather than a proactive approach?

82.What are the typical problems that novice exporters face when trying to export?83.Compare and contrast the export assistance provided to German and Japanese companies with that givento American companies. Discuss the implications of the differences between the countries.84.Describe the information sources that are available to American companies to learn about exportopportunities?85.What is an export management company? What are its advantages and disadvantages?86.Explain the problem of trust that persists in international business.87.Describe the process involved in financing imports and exports using a letter of credit. Why has thissystem developed? What is the advantage of using this system?

88.Compare and contrast time drafts and sight drafts.89.Describe the three purposes of a bill of lading.90.Describe a typical international trade transaction.91.Discuss the importance of the Export-Import Bank, its goals, and its operations.92.What is the Foreign Credit Insurance Association?93.Explain countertrade and its purpose.

94.Explain why barter is viewed as the most restrictive counter-trade arrangement.95.Compare and contrast counterpurchase agreements and offset arrangements. Why might an exporterprefer an offset to a counterpurchase deal?96.Explain how switch trading works.97.Discuss the idea of compensation or buybacks as they relate to countertrade. Provide an example of abuyback arrangement.98.What is the main attraction of countertrade?99.Discuss the disadvantages of countertrade.

100.What type of firms are most likely to engage in countertrade? Why?

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37. FALSE38. TRUE39. FALSE40. FALSE41. C42. A43. B44. D45. A46. D47. C48. A49. B50. C51. D52. A53. A54. C55. B56. A57. D58. C59. D60. C61. C62. C63. B64. B65. A66. B67. C68. B69. B70. B71. A72. D73. B74. C

75. A76. B77. D78. A79. B80. D81. There are several reasons why firms do not take a proactive approach while seeking export opportunities. One reason is that most firms areunfamiliar with foreign market opportunities, they do not realize how big the potential market is, or where the opportunities are. A second reasonwhy firms take a reactive approach to exporting is because they are intimidated by the complexities and mechanics of exporting to countries wherebusiness practices, language, culture, legal systems, and currency are very different from the home market. A third reason for firms not beingproactive about exporting is the number of problems neophyte exporters typically face when trying to do business abroad.82. Novice exporters run into significant problems when first trying to do business abroad. Typically, this sours the companies on future export

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