ITT3203 International Trade and Finance Midterm Exam

It is especially obvious within the areas of payment, currency and finance where every decision has direct consequences on the capital required during all phases of the transaction, until payment is received. What is it?

• Transaction Management

• Cash Management

• Currency risk Management

All are the basic risks in international trade and investment, except

• commercial

• political

• financial

• currency

• project

The standard rules of reference for the interpretation of the most commonly used trade terms in international trade are ____, issued by the ____.

• Incoterms (International Commercial Terms), International Chamber of Commerce (ICC)

• International Chamber of Commerce (ICC), Incoterms (International Commercial Terms)

The terms of delivery have to be defined in order to determine ____ and ____the seller has fulfilled the obligations to deliver according to the contract and____is

needed to do so.

• why, what, how

• when, where, what

• what, when, where

When choosing the appropriate terms of delivery, deciding factors which seen from the seller’s perspective include: except

• mode of transport

• transportation route

• procedures

• competitive situation

• capital

All are the International Chamber of Commerce core services/activities include: except

• working against political crime

• promoting the multilateral trading system

• setting rules and standards

• being an advocate for international business

Commercial risk also called ____, is often defined as the risk of the buyer going into bankruptcy or being in any other way incapable of fulfilling their contractual obligations.

• Product risk

• Currency risk

• Adverse business risk

• Purchaser risk

All are the global providers of credit information, covering the most important trade markets with millions of companies in their databases: except

• Atradius

• Coface

• Experian

• D&B

• P&G

A suspicious transaction is one that is outside the normal range of transactions from the seller’s point of view, in particular in relation to new customers or where an old customer changes transaction structure in an unusual way. It can include:

• unusual payment settlements

• unusual transfer instructions

• secretiveness

• numerous transfers

• incomplicated accounts structures

Criminal and terrorist organizations generate large sums of cash, which they need to channel into the banking, corporate and trade financial systems, and both banks and traders can innocently fall victim to such activity if not exercising due diligence. A frequently used technique is ____.

• over-invoicing or inflated transactions

• over-invoicing or deflated transactions

• under-invoicing or inflated transactions

• under-invoicing or deflated transactions