PDL Cycle#2

Which best explains why companies comply with customs regulations?

• To reduce employee turnover

• To avoid shipment delays and penalties

• To replace domestic suppliers

• To lower product design costs

Which is TRUE about international customs processes?

• They are standardized worldwide

• Each country enforces its own rules

• They apply only to maritime shipments

• They are optional under trade agreements

Which trade agreement replaced NAFTA in North America?

• USMCA

• EU Free Trade Pact

• ASEAN Trade Bloc

• Mercosur

Under USMCA, companies must:

• Source 75% of parts regionally for auto products

• Use only rail transport for goods

• Avoid using Mexican suppliers

• Pay tariffs on all Canadian imports

Which is NOT influenced by trade agreements?

• Tariff levels

• Origin rules

• Global shipping costs

• Product advertising

A key purpose of tariffs is to:

• Encourage outsourcing

• Protect domestic industries

• Increase supply chain risks

• Simplify customs

A logistics firm expands into Asia. What must they consider first?

• Social media popularity

• Local customs regulations

• Exchange rates only

• Employee fashion trends

Trade agreements often reduce:

• Shipping transparency

• Cross-border tariffs

• Import quotas

• Warehouse space

A uniform customs code across multiple countries would most likely:

• Increase complexity

• Simplify global trade

• Raise costs

• Eliminate automation needs

Which situation illustrates trade agreement benefits?

• Delayed customs clearance

• Elimination of tariffs between member countries

• Higher duties on regional goods

• Stricter import bans