Most export management corporations are small firms, typically with fewer than fifteen employees. ________ 4-2 b

The company that develops a business product or concept and grants rights to a large number of intellectual property items all bundled in a business package is called a franchisor.

Joint ventures are becoming more and more attractive to foreign investors.

__________ 4-4d

Parallel imports are sometimes called gray market goods.

__________ 4-5

If tariffs on a finished product are higher than tariffs on the parts of the product, the product is said to be in an inverted tariff structure.

__________ 4-7 a

An export trading company is an intermediary which will purchase goods in the exporting country and will resell them to a customer in a foreign country.

__________ 4-2 a

Not only are export trading companies helpful for organizations who are novices at international trade, but as an organization becomes more involved in international trade, the export trading company becomes more of a necessity.

An agent often has several principals and generally sells a group of complementary products rather than products that compete directly with one another.

__________ 4-3 a

When a principal is allowed to negotiate directly with the importer, then the principal’s agent is considered by a large number of countries’ governments as a binding agent.

__________ 4-3 a

The advertising clause of a contract between an exporter and an agent/distributor spells out the obligations of both parties in the areas of

The most sensitive issue in an international distribution contract between an exporter and an agent/distributor is

When an international distribution contract between an exporter and an agent/distributor is terminated for “just cause,” in most cases the termination is made by the

An increasingly popular way of settling disputes between international exporter-agent/distributor partners is

An exporter’s termination of a relationship with an agent/distributor on the basis of “convenience” is

Lex Mercatoria is

Courts generally look at two criteria to determine if a contract is international. Those criteria are

If an international agreement between an exporter and an agent/distributor grants a monopoly to the agent/distributor, that agent/distributor is considered to be

A legal dispute in which the loser bears court costs is said to be operating under

The United Nations Convention on Contracts for the International Sale of Goods (CISG) considers a contract to have been accepted

Under the FAS Incoterm, in countries where export authorities require a pre-shipment inspection, the ____________________ has to pay for it. 6-6 b

Under the CFR Incoterm, until the merchandise has cleared the ship’s ____________________, it is the responsibility of the exporter, after that, of the importer. 6-8 a

Under the CFR Incoterm, if the pre-paid contract of carriage does not include the unloading of the ship, then the ____________________ must pay for it. 6-8 b

Under the CPT Incoterm, the bill of ____________________ can act as a proof of delivery from the carrier. 6-10 a

Under the CPT Incoterm, the ____________________ is responsible for unloading the goods from the carrier’s truck, clearing customs, and paying for any inland transportation beyond the city of destination. 6-10 b

Under the DES Incoterm, the exporter is responsible for the goods until they are placed at the disposal of the importer at the ____________________ of destination. 6-12