International Trade Quiz

What is the first step in the process of international trade?

• Issuing a pro forma invoice

• Arranging shipment

• Inspecting finished merchandise

• Obtaining a letter of credit

What is the purpose of a certificate of manufacture?

• To list the quantity and value of merchandise

• To clear goods through customs

• To certify that goods meet required standards

• To arrange shipment under agreed terms

What document guarantees that payment will be made when conditions of the sale are met?

• Pro forma invoice

• Letter of credit

• Bill of lading

• Certificate of manufacture

What do Incoterms govern in international trade?

• Quality standards of goods

• Payment terms between buyer and seller

• Customs duties and taxes

• Transportation of goods

What is the function of a bonded warehouse?

• To issue certificates of inspection

• To store goods before payment of duties

• To clear goods through customs

• To arrange transport for goods