International Transportation Final Exam

The main advantage of using Letter of Credit method is _____________.

• payment is done after the cargo is released to the last mile delivery transporter.

• the buyer will get the cargo as long as he is a powerful person.

• cargo can be released anytime as long as the seller says so.

• the seller gets paid by his bank no matter what happens.

A Straight Bill of Lading can be defned as ________________

• one that is printed on a straight edged paper.

• anyone in possession of the original endorsed negotiable bill can take possession of the cargo

• one that is issued to a specifed consignee for the delivery of the goods and that cannot be endorsed to another party.

• a document that is used to allow the transporter to carry the cargo straight to the destination.

EDI technology is used extensively ________.

• for e-Purchase Orders & e-Billing.

• for physical deliveries & e-Billing

• for e-Purchase Orders, e-Billing & physical deliveries.

• to reduce the threat of cargo loss.

If Demand is 2,300 pieces, Balance in the warehouse is 400 pieces and Goodsin-Transit to you is 500 pieces, how many do we need to purchase?

• 2,300 pieces.

• 1,400 pieces

• 1,900 pieces.

• 3,200 pieces.

If the Factory Gate Price (FGP) of a Laptop is $1,200, and the combined Distribution Centre cost = $700 and the wholesaler adds 10%, what is the Retailer's Cost?

• $1,900

• $1,320

• $2,090

• Cannot be computed.

A commodity market will likely be a __________market structure.

• oligopolistic

• unlimited

• monopolistic competition

• pure competition

A monopolistic competitive market structure means

• . there are several medium size suppliers

• there is only one single supplier.

• there are two to three large suppliers.

• there are multitude of suppliers.

For a monopolistic market structure, the service quality & price will be _______ and ______, respectively

• medium; low

• medium; high

• high; low

• low; low

Who bears the entire risk of costs, insurance, freight & Customs duty charges for DDP (Delivered Duty Paid) term?

• The Government.

• The Buyer.

• The Seller.

• The Carrier.

When the seller delivers when the goods are placed alongside the seagoing vessel (e.g., on a quay or a barge), this is _______ term

• Free on Board (FOB)

• Free Alongside Ship (FAS)

• Free Carrier (FCA)

• Free for Everybody (FFE)