question

The common currency of most of the countries of the European Unions is called?

answer

The Euro

question

International Trade is still mostly concentrated among the developed countries of the Northern Hemisphere. Which country is the largest importer of the world (2012)?

answer

United States of America

question

International Trade is still mostly concentrated among the developed countries of the Northern Hemisphere. Which country is the largest Exporter of the world (2012)?

answer

China

question

World Trade in services represent a higher percentage of total trade than does world trade in merchandise?

answer

False

question

The total value of international Trade (2008) in services and merchandise is about?

answer

US$20 Trillion

question

The Bretton Woods Conference triggered the creation of the World Trade Organization in 1944?

answer

False

question

Many developing countries of the world experience traffic gridlock?

answer

True

question

The treaty of Rome in 1957 was the first step in the creation of the European Union?

answer

True

question

The Euro has replaced the currencies of all the countries of the European Union?

answer

False

question

The European Union is an Economic community that compromises how many countries?

answer

27

question

The person responsible for the creation of containers in 1956 was named Malcolm McLean?

answer

True

question

Who was the person who popularized the idea of sea-going container that could be loaded directly onto a ship, a truck, or a railroad car?

answer

Malcolm McLean

question

Which one was NOT one of the characteristics of the "early days" of logistics?

answer

An emphasis on customer satisfaction

question

Another name for sea-going containers is?

answer

Boxes

question

The single most important development in international ocean shipping was the creation of containers?

answer

True

question

In the 1980's, companies started to managed their inventories much more closely than they had in the 1960's and 1970's. This was due to?

answer

Interest rates

question

The modern term "logistics" is upon a French word meaning "military train?"

answer

False

question

Early logisticians were international traders, and although they used different techniques and means of transportation, they were concerned with the same issues that present day logisticians are concerned about?

answer

True

question

The globalization is a recent phenomenon?

answer

False

question

It is NOT unusual for companies shipping to large manufacturers, and retail chains to be penalized financially (not receiving the full invoice amount) for not?

answer

Delivering the goods on the day and at the time promised

question

Argentina can produce 1 ton of meat (beef) using 0.1 years of labor. It can also produce 1 automobile using 2 years of labor. In order to produce 1 ton of beef, the United States uses 0.2 years of labor. It can produce an automobile using 1.5 years of labor. Argentina has ?

answer

Absolute advantage in production of beef

question

When a firm realizes that it wants to exploit the possibilities that sales abroad can bring, and decides to become directly involved in its exporting activities, it is said to be involved in?

answer

Active exporting

question

Of the following, the best definition of logistics infrastructure would be that it consists of?

answer

All of the elements in place to facilitate transportation, communication, and business exchanges

question

Companies increasingly are designing products so that they can gain a competitive advantage through reverse logistics. Returned products are?

answer

a. refurbished for resale in secondary markets b. reused (packaging or containers) c. remanufactured (restored to their original performance standards) d. discarded E. ALL OF THE ABOVE

question

On occasion, a firm will respond to a competitor's move by retaliating. For example, Linde Gas (an American firm producing industrial gasses) entered the French market when Air Liquide (a French company in the same industry) decided to enter the U.S. market. Such a move is considered a?

answer

Competition driver

question

According to the International Product Life Cycle Theory, the country(ies) most likely to manufacture a product that has been recently developed (one that is the result of a brand-new design and uses patented technology) and is in its first commercialization year, is (are)

answer

A country of innovation only

question

It is not unusual for companies shipping to large manufacturers and retail chains to be penalized financially (not receiving the full invoice amount) for not?

answer

Delivering the right amount of Goods on the day and at the time promised

question

Unless otherwise specified, contracts between an exporter and an agent and contracts between an exporter and a distributor are called?

answer

distribution contracts

question

Courts generally look at two criteria to determine if a contract is international. Those criteria are?

answer

Economic and judicial criteria

question

The Heckscher-Ohlin Theory holds that countries that have an abundance of certain resources enjoy an absolute or comparative advantage over other countries. Which of the following is NOT one of the factors that Heckscher and Ohlin considers scarce?

answer

Education

question

An exporter's termination of a relationship with an agent/distributor on the basis of "convenience" is?

answer

essentially risk-free b. with little obligation on the part of the exporter to the agent/distributor c. easy to accomplish d. in little danger of ending up in court ******* E. None of the above******

question

A legal dispute in which the loser bears court costs is said to be operating under?

answer

European rules

question

Because work in modern ports goes so fast, there is no need for warehousing space?

answer

False

question

In judging whether or not a contract has been breached, the Uniform Commercial Code (UCC) applies the principle of "perfect tender." This means that?

answer

The goods and their delivery must exactly conform to what was written in the contract

question

The largest cargo airport in the world is?

answer

Hong Kong Chek Lap Kok

question

Usually, a distributor is located?

answer

the importing country

question

Supply chain management encompasses activities that are broader than those of logistics management?

answer

It is generally accepted that

question

Attempts to reduce business practices that include corruption and bribery have been made by the?

answer

Organization for Economic Co-operation and Development

question

Factors contributing to the rise of U.S. freight railroads since about 1980 are?

answer

road congestion, concerns about pollution and noise, and development of the multi-modal container

question

The fee a licensee pays a licensor for each use of an intellectual property is called a(n)?

answer

Royalty

question

An export management company earns its revenue through?

answer

Sales commission

question

True A country's court system could be considered to be part of its infrastructure?

answer

True

question

The cost of air cargo shipments decreased after deregulation of the 1980's?

answer

True

question

Inventory reduction was a major goal of companies in the 1980's this change was sue to the increasing costs of oil and of products manufactured with oil?

answer

False

question

"Time-defined" deliveries refer to shipments of goods that cannot stay in transit too long because they are perishable/

answer

False

question

MRP, MRP II, and DRP are inventory management techniques that allow manufacturers to reduce inventory their levels?

answer

True

question

MRP, MRP II, and DRP are inventory management techniques that allow manufacturers to reduce their shipment times (the times that goods spend in transit)?

answer

False

question

Customer service became the primary focus of logistics in the 2000's?

answer

True

question

Baltaglia sees logistics as the merger of materials management and physical distribution and Supply Chain Management as the merger of logistics with marketing, sales, information technology, and most importantly, strategic planning?

answer

True

question

International Logistics includes activities that are not part of domestic logistics?

answer

False

question

It is generally accepted that :-?

answer

Supply Chain Management encompasses activities that are broader that those of logistics management.

question

Among other reasons, international transactions are perceived to have more risk of non-payment because of:

answer

a lack of credit information, a lack of personal contact, and no easy legal recourse.

question

As a defense measure to keep invading military troops from using their railroads, Spain and Russia:

answer

developed widths between rails (gauges) different from those of the rest of Europe.

question

The best definition of a logistics infrastructure would consist of:

answer

all the elements in place to facilitate transportation, communication, and business exchanges.

question

The change in government policies that allowed FedEx and other air carriers to purchase larger aircrafts and compete with other airlines was called ______________.

answer

deregulation

question

The choice of the proper Incoterms Rule is a critical decision because:

answer

it can be an integral part of export strategy, it is linked to the level of customer service the firm is attempting to provide, and it can be a competitive advantage.

question

Companies increasingly are designing products so that they can gain a competitive advantage through reverse logistics. Returned products are:

answer

refurbished for resale in secondary markets, reused (packaging or containers), remanufactured (restored to their original performance standards).

question

DRP (Distribution Requirements Planning) is a system that allows manufacturers, wholesalers, and retailers of consumer products to manage their inventory "just-in-time." DRP works as a:

answer

"pull" system (pull out the inventory).

question

Following negotiations on a transaction which result in use of a letter of credit payment, the next step is for the exporter to:

answer

send a pro-forma invoice, this confirms the importer and exporter are on the same page.

question

The Incoterms Rule FCA means:

answer

Free Carrier

question

Incoterms Rules STANDS for:

answer

International Commerce Terms

question

In the 1980's companies started to manage their inventories much more closely than they had in the 1960's and 1970's. This was due to an increase in:

answer

interest rates.

question

Manufacturers have adopted MRP systems so that they can reduce their inventory and manufacture __________.

answer

just-in-time

question

The ________ of an airport determine(s) the type of aircraft which can serve the airport.

answer

runway

question

One of the first problems faced by international logistic managers has to do with:

answer

infrastructure.

question

Post-Panamx ships have resulted in:

answer

cranes being unable to reach across Post-Panamx ships.

question

Protection of goods when they have to wait at one or more points in transit have to do with a port or country's ________ infrastructure.

answer

warehousing

question

A standby letter of credit is similar to a "simple" letter of credit except for:

answer

it generally has a much longer validity period, it unusually applies to more than one shipment from the exporter to the importer, and it allows the exporter to extend an open account to the importer, using a letter of credit only if the importer doesn't meet his obligations.

question

A bill of lading or equivalent document (air waybill, sea waybill, multi-modal bill of lading) acts as proof of delivery under the CIP Incoterms Rule.

answer

True

question

A letter of credit is more secure than cash in advance.

answer

True, from an importers point of view.

question

Because work in modern ports goes so fast, there is no need for warehousing space.

answer

False

question

A crossing of the Suez Canal, which allows a ship to not go around the entire continent of Africa, can cost almost half a million U.S. dollars.

answer

False, $350,000.00.

question

Given the differences logistics managers may find in other countries and cultures, it is important for them to adapt to what is unfamiliar in those other countries and cultures.

answer

True

question

MRP, MRP II, and DRP are inventory management techniques that allow manufacturers to reduce their shipment times (the time that goods spend in transit).

answer

False, they reduce inventory.

question

North American firms are lagging their European counterparts in the implementation of "green practices" in manufacturing and other supply chain activities.

answer

True

question

The Cost, Insurance, and Freight Incoterms Rule is specifically designed for ocean transportation.

answer

True

question

The person responsible for the creation of containers in 1956 was named Malcolm McLean.

answer

True

question

There are insurance policies that pay the exporter if the importer does not pay.

answer

True

question

"Time-Defined" deliveries refer to shipments of goods that cannot stay in transit too long because they are perishable.

answer

False, "time-defined" means that firms need to reduce inventory levels and have inventory sit as little as possible.

question

Under Incoterms Rule FOB, transfer of responsibility for cargo from exporter to importer is at the ship's rail as the cargo is loaded onto the ship.

answer

False, transfer is on board, placed on the vessel.

question

Under the DAT Incoterms Rule, the exporter is responsible for the costs of transportation to the goods final destination and for the costs of clearing customs.

answer

False

question

Under the DDP Incoterms Rule, the importer takes control of the goods in the city where the exporter is located.

answer

False, responsible for unloading at their place of business.

question

Under the Free Carrier Incoterms Rule, the exporter is responsible for clearing the merchandise for export.

answer

True

question

Unlike other industries, ports in the developed world have managed to avoid strong unions

answer

False

question

Under the Free On Board Incoterms Rule, if a piece of cargo breaks loose while it is loaded onto the ship, it becomes the responsibility of:

answer

the exporter.

question

While on the surface Incoterms Rules determine who pays what when, ultimately the ________ directly or indirectly pay(s) the costs of transportation and international shipping.

answer

Importer

question

Given the differences Logistics managers may find in other countries and cultures, it is important for them to attempt to impose what is familiar to them those other countries and cultures?

answer

False

question

A country's court system could be considered to be a part of its infrastructure?

answer

True

question

The infrastructure that most obviously affects the movement of goods internationally is communications infrastructure?

answer

False

question

As the size of ships increased, ports have been challenged in keeping up with the ability to handle them?

answer

True

question

Unlike other industries, ports in the developed world have managed to avoid strong unions?

answer

False

question

Because work in modern ports goes so fats, there is no need for warehousing spaces?

answer

False

question

The effectiveness of a port is often dependent upon the quality of the road and rail network to which it is connected?

answer

True

question

The current trend in shipbuilding is towards POST-PANAMAX ships?

answer

True

question

Air cargo operations are helped by the fact that there is a more than adequate supply of refrigerated warehouses at airports?

answer

False

question

China's railroad network only satisfy 60 percent of its demand?

answer

True

question

Of the following, the best definition of a Logistics infrastructure would be that it consists of?

answer

All of the elements in place to facilitate transportation, communication, and business.

question

Post-Panamax ships have resulted in?

answer

Cranes being unable to reach across Panamax ships.

question

Because some ports are becoming increasingly limited in their ability to handle ever larger ships it is possible that?

answer

Large ships will go to "HUB" ports where "FEEDER" ships traverse to and from smaller ports.

question

Among characteristics of the Saint Lawrence Seaway is/are/

answer

It links the Great Lakes to the Saint Lawrence River and the Atlantic Ocean

question

The busiest cargo airport in the world is ?

answer

MEMPHIS

question

The LARGEST cargo airport facility in the world is ?

answer

CHEK LAP KOK AIRPORT IN HONG KONG, CHINA

question

The TVG trains connecting London and Paris:

answer

The TVG trains connecting London and Paris provide high speed passenger services that competes with airlines.

question

Factors contributing to the rise of U.S. freight railroads since 1980 are;

answer

road congestion concerns about pollution and noise, and development of the multi-modal container.

question

In its relationship with an agent, an exporter is known as the ?

answer

Principal

question

Because agents tends to be individuals or very small firms, governments in some countries put them under?

answer

Labor law

question

An exporter has the most control over its foreign sales through a(n)?

answer

Sales and marketing subsidiary

question

An intermediary that purchases goods in the exporting country and resells them to a customer in a foreign country is called a(n)?

answer

An exporting trading company

question

Agents usually sell more than one product and represent more than one company. The product they sell are?

answer

Complementary

question

As a company grows in exporting sophistication, it should not become involved with an export trading company because?

answer

customers aboard are customers of the export trading company, not the exporter.

question

An export management company can earns it revenue through:

answer

Sales commission

question

When they first go into international trading, most companies first do so after careful planning and thoughtful strategic planning.

answer

False

question

Most export management corporations are small firms, typically with fewer than fifteen (15) employees?

answer

True

question

The company that develops a business product or concept and grants rights to a larger number of intellectual property items all bundled in a business package is called a franchisor?

answer

True

question

Joint ventures are becoming more and more attractive to foreign investors?

answer

False

question

Parallel imports are sometimes called "Gray Market Goods?"

answer

True

question

If tariffs on a finished product are higher than tariffs on the parts of the product, the product is said to be in an inverted tariff structure?

answer

False

question

An export trading company is an intermediary which will purchase goods in the exporting country and will resell them to a customer in a foreign country?

answer

True

question

Not only are export trading company helpful for organizations who are NOVICES at international trade, but as an organization becomes more involved in international trading company becomes more of a necessity?

answer

False

question

An agent often has several principals and generally sells a group of complementary products rather than products that compete directly with one another?

answer

True

question

When a principal is allowed to negotiate directly with the importer, then the principal's agents is considered by a large number of countries' government as a binding agent?

answer

True

question

When a distributor is involved in international trade, there are two sets of INVOICES; one set between the exporter and distributor (who is also the Importer), and a set of domestic invoices between the distributor and its customers?

answer

True

question

There are two types of factors included in the entry decision for an exporter, factors that are market-driven and factors that are company or product driven?

answer

True

question

The granting of rights to intellectual property owned by a company to another company for a fee is the definition of a licensing agreement between two corporation?

answer

True

question

Joint ventures were developed as ways to partner with potentially well-connected company in a foreign country to help prevent things like nationalization of a foreign company by the host government?

answer

True

question

An advantage of "Gary markets" is the increased amount of control that a company has over a product after it has been sold?

answer

False

question

Because the action by the World Trade Organization to lower tariffs in the future, there should be an increase in the importance of foreign trade zones?

answer

False

question

Among "Marketing Mix Decisions" distribution is a the part of the mix that is the EASIEST or most likely to be adjusted?

answer

False

question

When a successful exporter involves one of its suppliers- or a company that makes a complementary product- in the market that this exporter has developed, it results in a form of "PIGGY-BACKING" sometimes called "COLLABORATIVE EXPORTING?"

answer

True

question

A distributor takes much less risk in its relationship with an exporter, than does an agent and experiences much lower costs?

answer

False

question

Most governments make a substantive differentiation in the way of agents and distributors are considered by the judiciary system?

answer

True

question

If an exporting firm wants to change form a strategy where it has used agents or distributors to a s strategy based upon sales subsidiaries, it is usually easy and painless to make this switch ?

answer

False

question

Unique powerful Japanese trading companies are called/

answer

Sogo Shosha

question

As a company grows in exporting sophistication, it should NOT become involved with an export trading company because?

answer

Customers aboard are customers of export trading company, NOT exporter.

question

When they first go into international trading, most companies, first do so after careful planning and thoughtful strategic planning?

answer

False

question

The company that develops a business product or concept and grants rights to a large number of intellectual property items all bundled in a business package is called a franchisor?

answer

True

question

An exporter has the most control over its foreign sales through a(n)?

answer

Sales or marketing subsidiary

question

The most sensitive issue in an international distribution contract between an exporter and an agent/distributor is?

answer

Termination

question

When an international distribution contract between an exporter and an agent/distributor us terminated for "just cause" in most cases the termination is made by the ?

answer

Exporter

question

An increasingly popular way of settling disputes between international exporter-agent/distributor partner is?

answer

Arbitration

question

Whenever a contract is established between two parties in the same country, the law governing the execution of the contract is determined by that country's legal system?

answer

True

question

Whether or not a sales contract is international is always self-evident?

answer

False

question

Under the Uniform Commercial Code (UCC), when a buyer agrees to an offer made the seller, but indicates a desire for a different schedule of delivery or term of payment, such a response is considered to be a rejection of the offer?

answer

False

question

Under the Uniform Commercial Code, an offer can be withdrawn at any time, without prejudice?

answer

True

question

The "perfect tender," principle means delivered goods must exactly conform to the goods contracted and delivered within the framework specified in the contract?

answer

True

question

Agreements between an exporter and an agent and agreements between an exporter and a distributor are called distribution contracts?

answer

True

question

An agent can negotiate prices, delivery, or other sales term with the buyer (importer) without direction from the exporter?

answer

False

question

In the Middle Eastern countries, agents and distributors are not required to be nationals of the country?

answer

False

question

A contract is entered in good faith when neither of the parties has any other ulterior motive about the agreement/

answer

True

question

Contract normally contain a clause that annuls the contract in the event of an overwhelming unforeseen event like a major storm or fire. This is called an "Evergreen provision?"

answer

False

question

The scope of appointment clause is usually the first clause of a contract?

answer

True

question

The European Union tends not to recognize exclusive territories that LIMIT an agent or distributor to one country?

answer

True

question

The scope of appointment clause of a contract usually prevents an agent or distributor to "Cherry Pick," the most profitable products for extra selling effort and to minimize effort toward less profitable products?

answer

True

question

Agents usually feel encouraged if the exporting firm they represent retains for itself a large number of corporate accounts?

answer

False

question

A contract with no determined duration and which can no longer be terminated for non-performance (since termination did not take place earlier, even though there was evidence of non-performance), is called an "Evergreen Contract?"

answer

True

question

An exporter's termination of a relationship with an agent/distributor on the basis of "Convenience" is?

answer

NONE of the ABOVE or A termination for convenience should be handled with the greatest care , as the potential for damages to the spumed party can be substantial. If there are issues to resolve, every effort should be made by the exporter to compensate the distributor or the agent. If it is NOT done, the representatives can very easily ask courts to intervene. These statutes usually mandate long notice periods and generous compensation packages.

question

Courts generally look at two criteria to determine of a contract is international. Those criteria are?

answer

Economic and Judicial criteria

question

A legal dispute in which the loser bears court costs is said to be operating under _?

answer

European rules

question

A termination for convenience is?

answer

A termination for any reason other than non-performance.

question

Under the United Nations Convention on Contracts for the international Sales of Goods (CISG), when an offer is made?

answer

it cannot be withdrawn by the buyer or seller before its expiration date

question

Whenever a contract is established between two parties in the same country, the law governing the execution of this contract is determined by that country's legal system?

answer

True

question

Whether or not a sales contract is international is always self-evident?

answer

False

question

Under the Uniform Commercial Code (UCC), when a buyer agrees to an offer made by a seller, but indicates a desire for different schedule of delivery or term of payment, such a response is considered to be a rejection of the offer?

answer

False

question

Under the Uniform Commercial Code (UCC), an offer can be withdrawn at anytime, without prejudice?

answer

True

question

The "Perfect Tender," principle means delivered goods must exactly conform to the goods contracted and delivered within the framework specified in the contract?

answer

True

question

An agent can negotiate prices, delivery, or other sales terms with the buyer (importer) without direction from the exporter?

answer

False

question

Agreements between an exporter and an agent and agreements between an exporter and a distributor are called "Distribution contracts?"

answer

True

question

Normally, contracts between parties who speak different languages from each other can be written in both or all of their languages, and the contracts will have equal WEIGHT?

answer

False

question

A contract is entered in good faith when neither of the parties has any other ulterior motive about the agreement?

answer

True

question

The scope of appointment clause of a contract usually prevents an agent or distributor to "Cherry pick," the most profitable products for extra selling effort and to minimize effort toward less profitable products?

answer

True

question

A contract with no determined duration and which can no longer be terminated for NON-Performance (since termination did not take place earlier, even though there was evidence of non-performance), is called Evergreen contract?

answer

True

question

A contract is entered in good faith when neither of the parties had any other ulterior motives about the agreement?

answer

True

question

The European Union tends not to recognize exclusive territories that limit an agent or distributor to one country?

answer

True

question

The advertising clause of a contract between an exporter and an agent/distributor spells out the obligations of both parties in the areas of ?

answer

Advertising trade show attendance ownership of ideas

question

An agreement between an exporter and an agent/distributor may state that the laws of the exporter's country apply to governing of the contract. This can be complicated by?

answer

the government of the country where the agent/distributor is located, as it may say it has jurisdiction over the contract

question

Contracts contain a force majeure clause which dissolves the contract in the event of a major unforeseen event, like a ship sinking in a storm. Loosely translated, force majeure means?

answer

"overwhelming power"

question

An exporter's termination of a relationship with an agent/distributor on the basis of "convenience" is?

answer

Potential damages to the spurned party can be substantial. Courts can intervene.

question

If an international agreement between an exporter and an agent/distributor grants a monopoly to the agent/distributor, that agent/distributor is considered to be?

answer

an exclusive representative

question

In judging whether or not a contract has been breached, the Uniform Commercial Code (UCC) applies the principle of "perfect tender." This means that ?

answer

the goods and their delivery must exactly conform to what was written in the contract

question

Instead of using courts to settle disputes, an increasing number of contracts call for disputes to be settled by ?

answer

an arbitration panel

question

Lex Mercatoria is ?

answer

trade law made up of a multitude of different sources of law and jurisprudence

question

A termination for "convenience" is?

answer

a termination for any reason other than non-performance

question

The most sensitive issue in an international distribution contract between an exporter and an agent/distributor is ?

answer

termination

question

A termination of an international contract between an exporter and an agent/distributor can be made by?

answer

either of the parties

question

Under the United Nations Convention on Contracts for the International Sale of Goods (CISG), when an offer is made?

answer

is cannot be withdrawn by the buyer or seller before its expiration date

question

The United Nations Convention on Contracts for the International Sale of Goods (CISG) considers a contract to have been accepted?

answer

both parties agree to all of its terms

question

Unless otherwise specified, contracts between an exporter and an agent and contracts between an exporter and a distributor are called?

answer

distribution contracts `

question

When a party to a contract is continually looking for loopholes to avoid living up to the obligations of that contract, it can be said that ?

answer

that party is not acting in good faith

question

While an exporter and distributor can agree on what the distributor can add for margin on the wholesale price of goods, in agency contracts?

answer

no restrictions

question

Under the Free Carrier Incoterm, the exporter is responsible for cleaning the merchandise for export?

answer

True

question

An advantage of the Free Alongside Ship Incoterm, is the thorough documentation of the receipt of goods at a port holding area or to the quay alongside the ship?

answer

False

question

Under the FOB Incoterm, in countries where export authorities requires a pre-shipment inspection, the importer must pay for it?

answer

False

question

The CFR Incoterm means "Cost and Freight?"

answer

True

question

The cost, insurance, and freight Incoterm is specifically designed for land transportation?

answer

False

question

Under the Cost, Insurance, and Freight Incoterm, the importer takes responsibility for the goods when they are placed upon the importer's loading dock?

answer

False

question

Conceptually, the CPT Incoterm, except it applies to goods shipped by means other than Ocean transport, or shipped by Sea without being handed over the ship's rail (roll-on-roll-off cargo or intermodal containers).

answer

True

question

The Incoterm CPT means "Cargo Placed at Terminal?"

answer

False

question

An Incoterm expressed as "CIP Sofia, Bulgaria, Incoterms 2000," means that under Incoterms as of 2000, the goods are "Carriage and Insurance paid," to Sofia, Bulgaria, where the importer will take control of them?

answer

True

question

A bill of lading or equivalent document (Air waybill, Sea waybill, multi-modal bill of lading) acts as proof of delivery under the CIP Incoterm?

answer

True

question

The DES Incoterms is mostly used for bulk shipments of commodities where the parties wish to have the exporter pay for the unloading of the ship?

answer

False

question

Under Incoterm EXW, FCA, and FAS, the importer is the party responsible for the loading the goods onto the carrier?

answer

True

question

The DAF Incoterm means "Deliver All Freight?"

answer

False

question

Under the DAF Incoterm, the exporter is responsible for the costs of transportation from the border city to the final destination and for the costs of clearing customs?

answer

False

question

Under the DDU Incoterm, it is the responsibility of importer to arrange and pay for the unloading of goods?

answer

True

question

Use of Electronic Data Interchange (EDI) is still fairly new and limited to developed countries?

answer

True

question

In planning their export strategy, companies generally determine which Incoterm they will use on a case-by-case basis?

answer

False

question

Under the CIF Incoterm, the proof of delivery is an Ocean bill of lading or Sea Airway bill?

answer

True

question

It is always best to use only one term of trade in a quote to a potential customer so that there is no possible confusion?

answer

False

question

The least customer-friendly of the Incoterms in the EXW (Ex-Works) Incoterm?

answer

True

question

Incoterms stand for?

answer

International Commerce Terms

question

While on the surface Incoterms determine who pays what, when, ultimately the ______ directly or indirectly pay(s) the costs of transportation and international shipping?

answer

Importer

question

The choice of a proper Incoterm is a critical decision is because?

answer

A. It can be an integral part of export strategy. b. It is linked to the level of customer service the firm is attempting to provide c. It can be a competitive advantage. ****D. ALL THE ABOVE

question

In terms of cost and responsibility , the easiest Incoterm for EXPORTER which is in turn, the most difficult for the IMPORTER is ?

answer

EX-WORKS (EXW)

question

Under the Free Carrier Incoterm, the exporter is responsible for clearing the merchandise for export?

answer

True

question

An advantage to the Free Alongside Ship Incoterm is the thorough documentation of the receipt of goods at a port holding area or to the quay alongside the ship?

answer

False

question

Under FOB Incoterm, in countries where export authorities require a pre-shipment inspection, the importer must pay for it?

answer

False

question

The CFR Incoterm means "Cost and Freight,?"

answer

True

question

Under the Cost, Insurance, and Freight Incoterm, the IMPORTER take responsibility for the goods when they are placed upon the importer's loading dock?

answer

False

question

The Cost, Insurance, and Freight Incoterm is specifically designed for land transportation?

answer

False

question

The Incoterm CPT means "Cargo Placed at Terminal?"

answer

False

question

An Incoterm expressed as "CIP, Sofia, Bulgaria, Incoterms 2000," means that Incoterms as of 2000 the goods are "Carriage and Insurance Paid," to Sofia, Bulgaria, where the IMPORTER will take control of them?

answer

True

question

A bill of lading or equivalent document (Air waybill, Sea Waybill, Multi-Modal bill of lading) are as proof of delivery under the CIP Incoterm?

answer

True

question

The DES Incoterm is mostly used for bulk shipments of commodities where the parties wish the EXPORTER pay for the unloading of the ship?

answer

False

question

Under Incoterms, EXW, FAC, and FAS, the Importer is the party responsible for loading the goods unto the ship?

answer

False

question

The DAF Incoterm means "Deliver All Freight?"

answer

False

question

Under DAF Incoterm, the exporter is responsible for the costs of transportation from the border city to the final destination and for costs of clearing customs?

answer

False

question

Under the DDP Incoterm, the importer usually takes control of goods at the city where the exporter is located

answer

False

question

Under the DDU Incoterm, it is the responsibility of the IMPORTER to arrange and pay for the unloading of the goods?

answer

True

question

The choice of Incoterm is almost always the decision of the?

answer

Exporter

question

The Incoterm FCA means?

answer

Free Carrier

question

Under the Incoterm FOB, responsibility for the cargo?

answer

Shifts from EXPORTER to IMPORTER when the goods are loaded onto the ship in the country from which the goods are leaving.

question

Incoterms determine?

answer

which tasks will be performed by the exporter

question

The document that corresponds clearly to the transfer of responsibility for a Free Carrier shipment is the receipt given by the carrier to the exporter. This receipt can be?

answer

All the above

question

Among other reasons, international transactions are perceived to have more risk of non-payment because of?

answer

All the above

question

The risk(s) of an EXPORTER using cash in advance as a means of payment is/are?

answer

it puts the exporter at a competitive advantage

question

A transaction method in which an exporter conducts its international business similar to the way it and most companies would conduct domestic business is through?

answer

An open account

question

In a letter of Credit, the most important aspect is?

answer

the documentation of the transaction

question

The Importer's bank is called the?

answer

Issuing bank

question

In valuing currency, the direct quote is?

answer

The value of the foreign currency expressed in Units of the domestic currency

question

Among country risks in international trade are labor issues. For instance ______ has/have a strikes almost every year at its/their ports?

answer

Japan

question

International commercial risk can be evaluated by?

answer

a. credit report companies. b. factoring houses c. some accounting firms, insurance companies, and banks. ****D. ALL THE ABOVE

question

Swift stands for?

answer

Swifts stands for "Society For Worldwide Interbank Financial Telecommunication."

question

In the European Union, it has become difficult to conduct business on any payment term other than?

answer

Open account

question

International factoring/

answer

a. is more complicated than domestic factoring. b. can be used to extend credit beyond what the exporter can normally afford. c. often involves factoring firms in both the exporting and importing countries. D.*****ALL THE ABOVE.

question

In a letter of credit , the mots important aspect is?

answer

the documentation of the transaction

question

The greater the exposure, the more secure terms of payment should be?

answer

True

question

In a letter of credit worthiness of the exporter is substituted for the credit worthiness of the importer?

answer

False

question

A letter of credit is more secure than cash in advance?

answer

False

question

Because some of their cash must be frozen at the issuing bank to guarantee payment, importers often prefers terms other than those of a letter of credit?

answer

True

question

An irrevocable letter of credit cannot be canceled by the issuing bank unless the applicant agrees to it?

answer

False

question

In most cases, it is wise to have a letter of credit confirmed by the advising bank?

answer

False

question

In those few cases in which the letter of credit does not reflect exactly the pro-forma invoice (misspellings for example), it is wiser to attempt to obtain an amendment rather than to issue an invoice that matches the letter of credit?

answer

False

question

It is possible to add a draft to a letter of credit?

answer

True

question

It is often a disadvantage to request a letter of credit because of the costs (and the cumbersome process) associated with t?

answer

True

question

A date draft transaction solves one of the problems of documentary collection in general: the date which the importer will endorse the draft?

answer

True

question

The responsibilities of the presenting bank in the importing country generally stop at notifying the importer that the documents have arrived and at requesting that the importer endorse the draft or at requesting payment before releasing the documents. This is called trade acceptance?

answer

True

question

Documentary collections are more cumbersome and expensive than letters of credit?

answer

False

question

Usually a bank guarantee is offered by a single bank, rather than multiple banks?

answer

False

question

A bank guarantee payable at first request is one in which the beneficiary does not have to provide any evidence that the terms of the underlying contract between the contractor and the beneficiary have not been met?

answer

True

question

United States laws prohibit banks guarantees?

answer

True

question

A payment guarantee is the most commonly used type of guarantee and is used to ensure that the contractor finished the project?

answer

False

question

A date draft goes into effect at the time the draft is endorsed (signed)?

answer

False

question

A procurement card is conceptually similar to a consumer credit card?

answer

True

question

A problem with Trade Card is that it is an extremely expensive alternative?

answer

False

question

The exporter that offers " open account" terms is less likely to clinch a sale than one that offers more secure terms, such as "Letter of Credit," terms?

answer

False

question

The majority of transactions issued in the European Union are conducted on a "documentary collection," basis?

answer

False

question

In attempting a credit check of a foreign firm, a basic problem is?

answer

Deciphering the business's organization and name

question

The risk(s) that an exporter takes in requesting cash in advance as means of payment is/are?

answer

it puts the exporter at a competitive DISADVANTAGE

question

World Trade has grown about 10 percent per year since 1950?

answer

False

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