Checkup 2

Question 1

The length of the distribution channel in international trade __________ the risk of loss.

Answer 1

increases

Question 2

A banker’s acceptance is a ___________________-.

Answer 2

credit instrument

Question 3

The letter of credit is submitted by the __________’s bank to the ___________ of goods.

Answer 3

importer’s, exporter

Question 4

The United States has benefited from the importation of ____________________.

Answer 4

technological ability

Question 5

Many Americans are working in __________ positions around the world.

Answer 5

advisory

Question 6

The most common maturity of a banker’s acceptance, minimum maturity, and maximum maturity.

Answer 6

90 days; 30 days; 180 days

Question 7

The importer’s bank releases the ____________ to the importer after accepting the draft.

Answer 7

shipping documents

Question 8

the currency exchange ratio is affected by differing rates of _______ among countries.

Answer 8

inflation

Question 9

An overriding factor in international business is the ________ motive.

Answer 9

profit

Question 10

An exporter may sell a banker’s acceptance at a ____________.

Answer 10

The exporter may sell a banker’s acceptance at a DISCOUNT.