self test Flashcards
4 possible types of differences between domestic and international commerce
physical
cultural
political
business factors
A frequent characteristic of underdeveloped countries is a lack of ____________.
capital
Members of the wealthy upper classes have traditionally performed business roles. (T or F?)
False
Should the purchaser of goods fail to pay the bank, a bank is still obligated to honor an accepted draft. (T or F?)
True
Banker’s acceptance step by step
- Importer submits letter of credit request to its bank
2 and 3. Letter of credit is sent to exporter - Shipping documents are released by bank to importer
- Goods are shipped by exporter to importer.
- Accepted draft is returned to exporter’s bank.
- Banker’s acceptance is presented for payment at authority.
Exporting is
the selling of products produced in one country to customers in another country
Packaging of international products must withstand multiple handlings and varying _______ conditions
climate
Foreign businessmen may conceal their ___________ transactions
business
Importing is
the purchasing of foreign-produced products by firms in the United States
frequent characteristics of underdeveloped countries
Lack of capital & political instability
Tariff is
a tax, usually on imported goods
An embargo is
the legal prohibition of importing or exporting certain products
or the prohibition of the exporting of a certain product
The twofold purpose of an import tariff
to raise revenue
to discourage the flow of imported goods into the country
The length of the distribution channel of international commerce increases the risk of loss due to _______, _____________, and ___________.
carelessness, perishability, and theft
