WorksheetsIEI 301 FINAL 120Q
Total questions: 120
Worksheet time: 3600secs
who often arranges for goods to picked up and delivered to a carrier , selects the transportation mode and books the necessary space for the cargo ?
a freight forwarder
bank
state-owned committee
customs broker
which of the following is not true for international logistic ?
international logistics allows countries to export products in which they have a competitive advantages
international logistics allow countries to import products that are unavailable at home or produced at lower cost overseas
international logistics cause the limitation in economic growth in the word
international logistic help increase the efficient production transportation and distribution of product
the procurement and physical transmission of material of material through the supply chain from suppliers to customer is called
material management
logistics
distribution
warranty
what factors influences the need for adequate of goods in international trade ?
breakage of goods ,moisture and theft
reduce cost of goods
easier supervision
easier containerization
action of legitimate government authorities to confiscate cargo war revolution that impede the conduct of international business belongs to :
foreign credit risk
political risk
transportation risk
foreign exchange risk
if cargo insurances policy is written for single trip or shipment , it is
voyage policy
time policy
open policy
closed policy
the rigors of long-distance transportation of good require protection of merchandise from possible breakage
packing
labeling
inventory
documentation
in logistics.... is concerned with the outbound flow of materials or products - NOT SURE
materials management
physical distribution
research and development
storage of material for production
which type of risk a business has to face with if the government my impose severe restrictions export, import trade such as limitation or control of exports/ imports ?
political risk
foreign credit risk
transportation risk
foreign exchange risk
an exporter sells goods overseas on FOB and CIF Incoterms (2010 ) , respectively .Who is responsible for the freight charges in each ?
FOB-importer / CIF-exporter
FOB -importer / CIF-importer
FOB-exporter / CIF- importer
FOB-exporter/ CIF- importer
according to Incoterms 2010 ,an importer has responsible for arranging and paying the main carriage in
EXW
CIF
CIP
DDP
a price agreed in CIF ( incoterms 2010 )
includes freight charges up to port of loading
includes freight charges up to port of discharge
includes freight charges up to exporter's factory
does not include any freight charge to any location
how often are inconterms resised to represent contemporary commerical practice ?
every 2 years
every 5 years
every 7 years
every 10 years
which statement is incorrect ?
the exporter has an obligation to do export clearance in CIF ( incoterms 2010 )
the exporter has an obligation to do import clearance in FOB ( incoterms 2010)
the exporter has an obligation to do export clearance in EXW ( incoterms 2010)
the exporter has an obligation to do import clearance in CPT ( incoterms 2010)
in logistics ....deals with the inbound flow of material and production- NOTSURE
physical distribution
packing
material managment
labeling
the method(s) used to project against foreign exchange risks include - NOTSURE
shifting the risk to third parties only
shifting the risk to other party in export contract only
both shifting the risk to third parties and shifting the risk to the other party in an export contract
none of these
according to CIF incoterms 2010-seller must pay the costs and freight includes insurance to bring the goods to ....(1)...-risk is transferred to buyer once the goods are loaded on the ship at ...(2)...
(1) port of loading (2) port of loading
(2) port of destination (2) port of destination
(1) port of destination (2) port of loading
(1) port of loading (2) port of destination
in incoterm 2010 which rule can be used in any mode /modes of transport ?
EXW
CIF
CFR
FOB
if a firm face a possibility that changes in foreign currency Values could either reduce their future receipts or increase their payments in foreign currency it is called
political risk
foreign credit risk
transportation risk
foreign exchange risk
once an insurance company settles the insured's claim. it exercises :
residual rights
subrogation rights
indemnity right
claim rights
In Incoterms 2010, FAS (Free Alongside Ship) and FOB ( Free On Board) are rules for which kind of transport?
Any kind of transport- se, land or air
Inland waterway or sea transport
Rail transport only
Air transport only
The exporter has an obligation to do import clearance in:
CIF, Incoterms 2010
FOB, Incoterms 2010
EXW, Incoterms 2010
DDP, Incoterms 2010
............. is common in industries that have few competitors or in which the companies product differentiated products. - NOT SURE
Skimming pricing
Marginal pricing
Penetrating pricing
Demand- based pricing
Which of the following is not belonged to the Group for maritime transport only under incoterms 2010?
CIF
FAS
FOB
FCA
In Incoterms 2010, what dose FAS stand for?
Free alongside ship
Free after ship
Fund alongside ship
Fund after ship
A sales contracts states that shipment is from Da Nang port ( Vietnam), to Hamburg port (Germany). During its route, the goods will be transited in Bangkok port, Thailand. Which of the following is correct expression if the contract uses delivery term as CIF?
CIF Da Nang Port, Vietnam
CIF Bangkok Port, Thailand
CIF Hamburg Port, Germany
Both CIF Da Nang Port, Vietnam and CIF Bangkok Port, Thailand
According to Incoterms 2010, an exporter has responsible for arranging the insurance for the goods in:
CIF
FOB
EXW
CPT
This a common clause in sales contracts that essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as a war, strike, riot, crime, or an event described by the legal term act of God (hurricane, flood, earthquake, volcanic eruption, etc...), prevents one or both parties from fulfilling their obligation under the contract. What clause is it?
Force majeure
Delivery
Packing
Payment
A document that specifies the conditions under which an exchange of goods and/or services is to occur and details the rights and obligations of the parties involved is best known as a:
Sales contract
Business letter
Memorandum
Civil core
Oral contract means:
A contract need not be concluded or evidenced in writing
A contract must be concluded or evidenced in writing
A contract is decided by the exporter only
A contract is decided by the importer only
This is a Convention which entered into force on January 1, 1988. It establishes a uniform set of rules governing certain aspects of the making and performance of everyday commercial contracts between sellers and buyers who have their places of business in different nations. What is it?
IMF
GATT
WTO
CISG
The CISG (issued by the United Nations) stands for "Convention of International..."
Sales of goods
Standards of goods
Safety of goods
Sensitivity of goods
Which of the following is NOT a motive behind the move toward the harmonization of international contract law?
Increase in trade and other economic relation between nations
The growth of international customary law
The adoption of international conventions and rules
Reduction in trade and other economic relations between nations
Which of the following describes a method of protection against fluctuations in the importer' currency?
The addition of risk premium on the price at the time of the contract
The reduction of risk premium on the price at the time of the contract
Establishment of the risk account in the importer's country
Establishment of the risk account in the exporter's country
Event thought air carriers are more expensive, their cost may be offset by reductions in ............. and ................
Packing: documentation: mode of transportation
Packing: documentation: exemption of import duties
Packing: documentation: inventory requirements
Note of these
Who issues a bill of lading?
A carrier
An exporter
An importer
A Chamber of commerce
Which document is the instrument normally used in international commerce to effect payment, and it is an order written by an exporter instructing the importer, or an importer's agent,to pay a specified amount of money at a specified time ?
A draft
A bill of lading
A certificate of origin
A certificate of inspection
Which organization is the forum in which fares and rates are negotiated among member airlines?
IATA
AITA
TAIA
AAIT
A carrier transporting goods under a Bill of lading is required to exercise "due diligence" in:
Making the rail land worthy
Making the ship safe and fit for their reception, carriage, and preservation of goods
Making the cost of using ship at lowest cost
Making the airplane and airport most convenience
Which document is often issued to the exporter by the carrier transporting the merchandise and it serves as a receipt, a contract, and a document of title?
A bill of lading
A draft
A commercial invoice
A insurence certificate
International trade can bring some following benefits, except:
To acquire a variety of goods and services
To increase cost of production
To increase incomes and employment
To learn about advanced technical methods used abroad
.......in theory, was not an "organization," and participating nations were called "contracting parties" and not members.
The General Agreement on Tariffs and Trade (GATT)
The United Nations (UN)
The World Bank (WB)
The World Trade Organization (WTO)
This agreement came into effect on January 1, 1994. It is also the first reciprocal free trade pact between a developing nation and industrial countries. What is it?
NAFTA
AFTA
EVFTA
AKFTA
By entering into regional agreements, groups of countries aim to ..... trade barriers more ...... than can be achieved under the auspices of the World Trade Organization. - NOT SURE
reduce, rapidly
reduce, slowly
increase, rapidly
increase, slowly
USMCA (formerly called NAFTA) consists of.
The United States, Canada, and Mexico
The United States, Mexico, and Chile
The United Kingdom, Canada, and Mexico
The United Kingdom, Chile, and Mexico
The.......means that once imported goods have been cleared customs, a contracting party of GATT is required to treat foreign imports in the same way as it treats similar domestic products.
Most favored nations (MFN) standard
National treatment (NT) standard
Fair standard
Discrimination standard
The .............. is, in essence, an independent body whose function is to act as a referee who can monitor trade between countries, make sure that no side cheats, and impose sanctions on a country if it break the rules in the trade game.
United Nations (UN)
World Trade Organization WTO
International Chamber of Commerce (ICC)
World Bank (WB)
Smaller nations enter into the Regional Integration Agreements (RIA) for which reasons:
Market access and creation of joint ventures with other less developing nations
Market access and establishing trade and FDI relations with transition economies
Market access and to deal more effectively with larger economies in multilateral trade talks and other areas
None of these
What is an agreement between countries in a geographic region to reduce tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other?
Regional economic integration
Harmonization
Centralization
Decentralization
Which level of international economic integration involves the free flow of products and factors of production between members, the adoption of a common extremal trade policy, as well as requiring a common currency, harmonization of a tax rates, and a common monetary and fiscal policy?
Free trade area
Customs union
Economic union
Common market
Which organization is established at the Uruguay Round with the purpose of policing the international trading system?
World Trade Organization
United Nations
International Monetary Fund
World Bank
Until 1995, GATT rules applied to all of the following except:
manufactured goods.
services.
textiles.
agricultural products.
In............all barriers to trade of goods and services among members countries are removed and the countries
Free trade area
Customs union
Preferential agreement
None of the others
The ultimate controlling unit within the European Union is the:
European Council
European Commission
European Parliament
European Central Bank
According to the 1986 Uruguay Round, the ...... was to be created to implement the GATT agreement.
World Trade Organization
International Monetary Fund
United Nations
World Bank
An agreement between countries in a geographic region to reduce tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other is referred to as:
regional economic integration.
socioeconomic integration.
political integration.
economic-political integration.
The ............ was established to remove barriers to the free flow of goods, services, and capital between nations.
United Nations
International Monetary Fund
General Agreement on Trade and Tariffs
IDA
At the Doha Round of the WTO in late 2001,
the WTO was established.
GATT was extended to include services.
world trade volume increased.
an agenda was established to phase out subsidies to agricultural producers.
Which of the following is seen as a disadvantage of the euro?
Higher foreign exchange and hedging costs.
National authorities losing control over monetary policy.
It becomes difficult to compare prices across Europe
Undermines the development of a pan-European capital market.
On January 1, 1993,.........moved toward a single market with 340 million consumers.
The European Union
MERCOSUR
The Andean community
NAFTA
In a free trade area:
Barriers to the trade of goods and services among member nations are removed.
A common currency is adopted
A single parliament determines political and foreign policy
A common external trade policy is adopted
Which of the following is true of a common market
All barriers to the trade of goods and services among member countries are removed and each country maintains its own policy toward nonmember countries
It involves the free flow of products and factors of production between member countries and adoption of individual external trade policies
It has no barriers to trade between member countries, includes a common external trade policy, and allows factors of production to move freely between member
It eliminates trade barriers between member countries and adopts a common external trade policy and a common currency
Identify the incorrect statement about a common market
It has no barriers to trade between member countries
It includes a common external trade policy
It establishes a central political apparatus coordinating the economic, social, and foreign policy of the member states
It allows factors of production to move freely between members
Which of the following is not a main institution in the political structure of the EU?
The European Parliament
The European Central Bank
The European Commission
The Council of the European Union
Which statement is incorrect ?
In secondary market research, information can be purchased from public or private organizations
Primary market research is conducted by collecting data directly from the foreign market place through interviews, focus groups, observation, surveys
Primary market research can be less expensive and time consuming than secondary market research
Primary market research often provides more specific information and more matching with research purpose than secondary market research
Which of the following is false ? - NOT SURE
Exporters often face voluminous paperwork, complex formalities, and many potential delays and errors
The United States Department of Commerce stands ready to help potential American exporters find potential export opportunities
Only a very few states and cities are involved in trade commissions whose purpose is to promote exports
There are a number of private organizations ready to provide assistance to would-be exporters
In market research, which issue(s) should be examined when assessing financial and economic condition?
Climate
Trends in inflation, interest rates, exchange rate stability
Religion and culture of that market
Natural resources of that market
A firm wishing to export needs to:
Identify foreign market opportunities and avoid a host of unanticipated problems that are often associated with doing business in a foreign market
Familiarize itself with the mechanics of export and import financing
Learn where it can get financing and export credit insurance, and learn how it should deal with foreign exchange risk
All of the others
International Trading companies (ITCs) often offer.......services and have ....... diverse product lines than Export Management companies (EMCs). ITCs are also much......than EMCs
More, more, bigger
Less, less, smaller
More, more, smaller
Less, less, bigger
Direct exporting is likely to provide opportunities for.......even though it requires a high degree of financial commitment
High profit margins
Low profit margins
Medium profit margins
No profit margins
If a producer sells through an import agent, a wholesaler, and a retailer, then:
A long channel exists
The retail system must be concentrated
The Internet probably does not plays a big role in the economy
There is no channel
A(n)........ distribution channel is one that is difficult for outsiders to access
Selective
Intensive
Exclusive
Multichannel
Which of the following is not recommended when considering exporting ?
Begin by focusing on many markets and enter those markets on a large scale
Hire an Export Management Company (EMC) and be prepared to commit a lot of time and effort to build relationships with foreign distributors and/or customers
Be prepared to hire additional personnel in the home office to oversee export operations and to hire local personnel to help the firm established itself in the foreign market
Learn how to avoid different types of risk in international trade
Which of the following is not a feature of direct distribution channel ?
It can be cheap and not time consuming
It offers manufacturers opportunities to learn about their markets and customers
It allows firms greater control over their activities
It offer manufacturers a chance to gain better relationship with their trading partners
When evaluating and selecting..........., there are some major factors which should be consider, including their local reputation, experience with a similar product or industry and commitment not to present competing brands
A potential representatives(agents and distributors)
A potential customs broker
A potential bond warehouse
A potential State Government and city agencies
Which of the following is not true for indirect distribution channel ?
Indirect channel needs little or no investment or marketing experience, and it is suitable for firms with limited resources or experience
Indirect channel helps increase overall sales for the firms
Indirect channel is a good way to test market products before making substantial commitment
Indirect channel increases the contact/feedback from end users
Risks of buyer's default or delay in payment is defined as:
Foreign credit risk
Foreign exchange risk
Transportation risk
Delivery risk
The primary purpose of....... in the context of foreign trade is to reduce the financial burden of losses arising from the movement of goods over long distances
Insurance
Transportation
Investment
Inventory
..........is the activity that controls the transportation of physical materials through the value chain, from procurement through production and into distribution.
Outsourcing
Production
Logistics
Distribution
International Logistics:
Is using different currency and exchange rate
Is facing only one national regulation on customs procedures, documentation, packing and labeling requirements
Is suitable for very short distance, and no need for high inventory levels
Has the goods transported mostly by trucks
An air way bill acts as
Document of title only
Contract of carriage only
Shipper's receipt of goods only
Both contract of carriage and shipper's receipt of goods
Which of the following statements is false?
Drafts is an order written by an exporter instructing the importer to pay a specified amount of money at a specified time.
A bill of lading serves as a receipt, a contract, and a document of title
Insurance certificate is always issued by an exporter himself to ensure the safety for their goods
A certificate of origin is the document evidencing the origin of goods.
Which of the following transport documents is not appropriate for transportation by sea?
A bill of lading
A charter party bill of lading
An airway bill
A through bill of lading
An importer in vietnam buys equipment from an exporter from U.S.A. The importer requires the exporter to provide them with a document which attests the specifications of the goods, and this document must be issued by the third party. Which of the following documents should best match this repuirement?
A commercial invoice issued by an exporter
A packing list issued by an exporter
A certificate of origin which states the origin of goods only
An inspection certificate issued by an inspection company in the U.S
A method of payment requiring the buyer to pay before shipment is effected is called:
Cash in advance
Collection
Open account
Documentary credit
Which party opens the letter of credit, and has responsible for making payment to the beneficiary if they present compiled documents?
Issuing bank
Applicant
Negotiating bank
Beneficiary
Which of the following are potential risks faced by an applicant under a letter of credit?(1) Loss or damagr to goods in transit(2) Foreign exchange risk(3) Failure of the issuing bank(4) Fraud in the presented documents
1,2 and 3
2,3 and 4
1,3 and 4
1,2,3 and 4
A letter of credit is issued by a bank at the request of a(an)...and states that the bank will pay a specified sum of money to a(an)..., on the presentation of particular, specified documents.
Importer, beneficiary
Importer, custom broker
Beneficiary, importer
Beneficiary, custom broker
In order to limit foreign credit risk from the importer in international trade, which payment method the exporter can use?
Letter of credit
Open account
Clean collection
Both letter of credit and open account
Which payment method guarantees that the beneficiary/exporter will be paid by the issuing bank provied that they presented a complied documents?
Documentary credit
Open account
Collections
Cash in advance
Under a letter of credit, which of the following party will present the documents to claim payment from issuing bank?
Applicant
Beneficiary
Freight forwarder
Customers broker
Which statement is incorrect about a letter of credit (L/C)?
L/C has the advantage to the exporter of guaranteeing payment provied that he presents complied documents
L/C is advantageous to the importer because the importer doesn not have to pay outfinds for the merchandise until the documents have arrived and unless all conditions stated in the letter of credit have been statisfied
L/C has the disvantage to the importer because he often must pay to the bank a fee to issue the letter of credit
L/C can help exporter and importer avoid all types of risk in international trade
Which statement is false about countertrade?
Countertrade helps firms contact directly with their customers.
Countertrade helps firms control over the operation and make sure its confidentiality
Countertrade is costly and mostly suitable for multinational companies with broad-based product lines.
Countertrade is very consistent the national treatment standard under GATT/WTO
In countries where exchange control restrictions are in place,......is quite common.
Countertrade
Exporting
Importing
Both exporting and importing
Identify the type of countertrade transaction that best fits this example: Levi Strauss transfer its know-how and trademark to Hugarian firm for the production and sale of its products, with an agreement to purchase and market the output in Western Europe.
Buyback
Clearing
Simple
Compenstation
....... offsets are contractual arrangements in which goods and services unrelated to the exports are acquired fromor produced in the host(purchasing) country. These include, but are not limited, certain forms of foreign investment, technology transfer, and countertrade.
Direct
Indirect
Bilateral
Unilateral
Countertrade:
Accounts for a very small percentage of total world trade
Refers to range of baterlike agreements by which goods and services can be traded for other goods and services.
Make sense when a country's currency is freely convertible
Is totally consistent with national treatment standard (nt) which is embolied in most trade agreements
Which type of countertrade is illustrated in the diagram?
Switch trading
Offset
Barter
Clearing arrangement
Under WTO's viewpoint, countertrade results in...transaction costs, and is...with the national treatment standard (NT) which is enbodied in the most trade agreements.
Higher, inconsistent
Lower, inconsistent
Higher, consistent
Lower, consistent
Specific tariffs are:
Levied as a proportion of the value of the imported good.
Levied as a fixed charge for each unit of a good imported.
In the form of manufacturing or production requirements of goods.
Government payment to domestic producers.
All of the following are true of tariffs except:
They reduce the revenue for the government.
They can be levied as a proportion of the value of the imported good.
They can be levied as a fixed charge for each unit of a good imported.
They impose significant costs on domestic consumers.
What type of duty is used in this case: $10.00per ton (wheat) or $4.00per dozen (fountain pens)?
Ad valorem duty
Specific duty
Compound duty
Flexible duty
The permitted types of manipulation are......in the case of a bonded warehouse than for an Free Trade Zone.
More Limited
More Flexible
At the same level with
None of these
Free Trade Zones are certain designated areas, usually located in or........ a customs port of duty, where merchandise admitted........a tariff until it is entered into the customs territory.
Near, is not subject to
Near, is subject to
Far from, is not subject to
Far from, is subject to
Under the GPS system, which condition is NOT required for imports from eligible countries to enjoy tariff exemptions or reductions?
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 United Nations certificate of origin is prepared and signed by the exporter and filed with the entry of the goods.
The merchandise must be high-technology products.
....... is a direct restriction on the quantity of some good that may be imported into a country.
Specific tariff
Import quota
Subsidy
Ad valorem tariff
Economic theory suggests that import levels are effected by different 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.
Low trade barriers:
Have facilitated the globalization of production.
Have hurt nations more than they have helped.
Increase the costs of imported goods and services.
All of these
Which of the following is false about the impact of tariff?
The government gains because it increases government revenues.
Domestic producers gain because the tariff affords them some protection against foreign competitors by increasing the cost of imported foreign goods.
Consumers lose since they must pay more for certain imports.
There is no impact of tariff on price of import and/or export products.
In United States, once the.......has been released from custom, a bond must be posted to guarantee payment of duty upon final assessment of duty.
Merchandise
Documentations
Company staffs
Sales contract
Some countries apply sanitary, photo-sanitary requirements for agricultural imports. In this case, these requirements are called:
Tariff
Non-tariff barriers
Quota
Subsidies
Trade shows provide importers with the following advantages, except:
A variety of products to buy
Opportunities for personal contact
Information on competitors
Increase in trade barriers among countries
Which of the following is not a major factor in international supplier selection?
Quality assurance
Financial conditions
Buyer-supplier relation
Exporter-freight forwarder relationships
Which is not true for outsourcing?
Firms can achieve lower price
Firms can gain benefits from advanced technology available from foreign sources
Firms can improve their international competitiveness
Firms will face no problem with quality and delivery time
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.......is based on their international knowledge and experience, willingness to devote sufficient time to develop the product and willingness to prove training.
Supplier
Importer
Customs
Arbitrator
In customs valuation, please select the correct order in which imported merchandise is appraised.
Deductive value, transaction value, computed value
Transaction value, deductive value, computed value
Computed value, transaction value, deductive value
Computed value, deductive value, transaction value
In customs valuation, this method starts with the costs of materials, labor, and overheads in producing the imported goods. Customs then adds profits and general expenses incurred by the produce. Which method is mentioned here?
Computed value
ISM value
Deductive value
Transaction value
According to the United States' customs regulations, who may not make an entry for imported goods?
Owner of the goods
Unauthorized employee
Licensed customs broker
Purchaser of the goods
This is the most common type of entry of imported goods. Merchandise that is not held for examination is released under bond. What is this type of entry?
Entry for consumption
Entry for warehouse
Entry for transportation in Bond
Entry for charity
