Quiz 4

1. Unique, powerful Japanese trading companies are called ___.
a. Nissans
***b. sogo shosha
c. export trading companies
d. exporters
e. None of the above
2. An export management company earns its revenue through ___.
***a. sales commissions
b. receiving quantity discounts by buying in bulk and reselling
products at a higher price
c. charging fixed fees to exporters
d. All of the above
e. None of the above
3. Because agents tend to be individuals or very small firms, governments
in some countries put them under ___.
a. high tariffs
***b. labor law
c. contract law
d. maritime law
e. None of the above
4. An intermediary that purchases goods in the exporting country and
resells them to a customer in a foreign country is called a(n) ___.
a. agent
b. export management corporation
c. principal
d. contract manufacturer
***e. None of the above
5. Usually, a distributor is located ___.
a. near the exporter
***b. in the importing country
c. near the capital city of the importing country
d. in a neighboring country
e. None of the above
6. The customs status of a maquiladora is similar to that of ___.
a. a foreign trade zone located only in the United States
b. a foreign trade zone located only in Mexico
c. a customs office
d. what is outlined in the Foreign Corrupt Practices Act
***e. None of the above
7. When a firm realizes that it wants to exploit the possibilities that sales
abroad can bring, and decides to become directly involved in its exporting
activities, it is said to be involved in ___.
a. indirect exporting
b. parallel imports
c. foreign trade zones
***d. active exporting
e. None of the above
8. Attempts to reduce business practices that include corruption and
bribery have been made by the ___.
a. W.O.F.E.
b. sogo shosha
***c. Organization for Economic Co-operation and Development
d. foreign labor laws that protect agents
e. None of the above
9. When a company has a subsidiary in a foreign country, as far as the
foreign country’s government is concerned that subsidiary is ___.
a. an agent of the exporter
b. an exporter
c. a foreign trade zone
***d. the importer of record
e. None of the above
10. The fee a licensee pays a licensor for each use of an intellectual
property is called a(n) ___.
a. tariff
b. excise
***c. royalty
d. finder’s fee
e. None of the above