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International Business, 12e (Hill)
Chapter 16 Exporting, Importing, and Countertrade
1) Proactive firms do not consider exporting until their domestic market is saturated.
Answer: FALSE
Explanation: Proactive firms continually seek opportunities for profitable exporting and
systematically scan foreign markets to see where the opportunities lie for leveraging their
technology, products, and marketing skills in foreign countries. This is unlike the reactive firms
who do not even consider exporting until their domestic market is saturated.
Difficulty: 1 Easy
Topic: Overview of Importing and Exporting
Learning Objective: 16-01 Explain the promises and risks associated with exporting.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
2) Ignorance of the potential opportunities is a huge barrier to exporting.
Answer: TRUE
Explanation: One reason more firms are not proactive in seeking export opportunities is that they
are unfamiliar with foreign market opportunities; they simply do not know how big the
opportunities actually are or where they might lie.
Difficulty: 1 Easy
Topic: Overview of Importing and Exporting
Learning Objective: 16-01 Explain the promises and risks associated with exporting.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
3) Exporters often face voluminous paperwork and complex formalities.
Answer: TRUE
Explanation: Many would-be exporters, particularly smaller firms, are often intimidated by the
complexities and mechanics of exporting to countries where business practices, language, culture,
legal systems, and currency are very different from those in the home market. Exporters often face
voluminous paperwork, complex formalities, and many potential delays and errors.
Difficulty: 1 Easy
Topic: Overview of Importing and Exporting
Learning Objective: 16-01 Explain the promises and risks associated with exporting.
Bloom's: Understand
AACSB: Knowledge Application
Accessibility: Keyboard Navigation
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