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WorksheetsIEI301_C16+17
Total questions: 20
Worksheet time: 20mins
Prohibited imports include certain drug paraphernalia, products sold in violation of intellectualproperty rights, and all types of narcotics.
True
False
The Buy-America Act of 1933 provides the purchase of goods by all foreign governments from domestic sources unless they are not of satisfactory quality, are too expensive, or are not available in sufficient quantity.
True
False
Trade intermediaries and services include customs brokers, free-trade zones, and bonded warehouses.
True
False
Bonded warehouses are secured, nongovernmental-approved warehouse facilities in which exported goods are stored or manipulated with payment of duty until they are removed and entered for consumption.
True
False
Aerospace products, live animals and animal products, beverages, chemicals, combustibles, cosmetics, and drugs are among the few products or product categories that .............................
Have numerous import restrictions
Are subject to certain restrictions or requirements
Are generally prohibited
Are freely traded
Under the GSP system, imports from eligible countries are subject to tariff exemptions or reductions if:
The merchandise is destined to the United States without contingency for diversion at the time of exportation
The cost or value of materials produced in the beneficiary country and/or the direct cost of processing performed is no less than 35 percent of the appraised value of the goods
The UN certificate of origin is prepared and signed by the exporter and filed with the entry of the goods
All of above
Which of the following is a limitation to the application of the GSP?
The vice president is required to suspend GSP eligibility on imports of specific articles from a particular country when the latter supplied more than $19 million in the value of the article during the previous calendar year or over 50 percent of the value of U.S. imports.
The provision of GSP is not restricted for advanced developing nations
The president is required to suspend GSP eligibility on imports of specific articles from a particular country when the latter supplied less than $19 million in the value of the article during the previous calendar year or over 50 percent of the value of U.S. imports.
The provision of GSP is restricted for advanced developing nations.
Which of the following is considered a customs broker?
Individual
Partnership
Corporation
All of the above
Economic advantages of FTZs include which of the following?
Merchandise admitted into the zone is subject to partial customs duty until it is admitted into the customs territory.
Businesses can export a product subject to a high rate of duty and manipulate and manufacture it into a final product that is classified under a low rate of duty when imported into the customs territory.
Merchandise may be remarked but not reconditioned to conform to certain requirements for entry.
Duties are paid on the partial quantity of such foreign goods incorporated in merchandise transferred from the customs territory into the zone of entry.
Which of the following describes the difference between a bonded warehouse and an FTZ?
Costs for the use of a bonded warehouse are generally more than for FTZs
Bonded warehouses may be established under a user’s facilities and with unlimited degree of difficulty as compared with FTZs
The permitted types of manipulation are limited in the case of a bonded warehouse than for an FTZ
Bonded warehouses charge high interest rates on all fees for the use of its facilities, unlike FTZs
Due to the large gap between the rich and poor in countries throughout the world, today’s consumers tend not to be quality/brand name conscious, and are not willing to pay a higher price for good quality products.
True
False
Major factors in international supplier selection include financial conditions, trade restrictions, and cultural and communication barriers.
True
False
Trade shows provide importers with the following advantages:
A variety of products to buy
Opportunities for personal contact
Information on competitors
All of the above
Which two critical factors determine import levels?
Per capita incomes and population size
Economic and trade relations
Purchasing power parity
GDP and FDI
Economic theory also suggests that import levels are affected by other factors, including which of the following?
Price of imports, exchange rate, and price of international goods relative to exports
Price of imports and exchange rate only
Price of imports and price international goods relative to exports
Price of imports, exchange rate, and price of domestic goods relative to imports
Which factors are considered to be important when selecting the right supplier?
Protection of IPRs
Delivery time
Import duty implications
All of the above
Which of the following elements are used to identify low cost suppliers?
Raw materials, labor costs, current exchange rates, and transportation costs
Raw materials, labor costs, and transportation costs only
Labor costs and transportation costs only
Raw materials and transportation costs only
Final selection of supplier is based on:
International knowledge and experience of supplier
Supplier’s willingness to devote sufficient time to develop the product
Supplier’s willingness to provide training
All of the above
Which of the following is a common mistake by potential importers?
Inability to develop an appropriate price structure
Insufficient knowledge of the market
Failure to invest sufficient time and effort to develop the business
All of the above
Which of the following is not used as a tool to finance imports?
Closed account
Open account
Letter of credit
Documentary collection
