question

The 7-Rs of supply chain management include

answer

-right place -right time -right quantity -right quality -right price -right condition -right customer

question

The international environment presents challenges for the international logistician. Which aspect of the international business environment is most likely to create the greatest frustrations?

answer

cultural differences

question

The EPA's SmartWaySM Transport Partnership program is a voluntary effort between the government and the transportation industry to develop and implement methods to improve air quality and reduce greenhouse gas emissions in transportation.

answer

True

question

Transportation spend account for nearly two thirds of logistics dollar in the United States' gross domestic product (GPD).

answer

True

question

Inventory carrying costs account for nearly two thirds of logistics dollar in the United States' gross domestic product (GPD

answer

False

question

The complexity of logistics and transportation. are often accentuated as Global supply chains increase in length (distance and time).

answer

True

question

The faster it moves the greater the transportation spend

answer

True

question

Logistics cluster theory suggests an area can develop a substantial competitive advantage by providing several logistics service providers in one area. The area then attracts export- and import-minded manufacturers.

answer

True

question

International trade is still mostly concentrated among the developed countries of the Northern Hemisphere. Which country is the largest importer of the world?

answer

United States

question

Inbound logistics refers to the finished products inbound to the final customer

answer

False

question

Infrastructure is a collective term that refers to all of the elements in place (publicly or privately owned goods) to facilitate transportation, communication, and business exchanges.

answer

True

question

The majority of containerships currently in use are post-Panamex ships.

answer

False

question

When a company has a subsidiary in a foreign country, as far as the foreign country's government is concerned that subsidiary is ___.

answer

importer of record

question

A tailored approach, where an agent is used in some countries, a distributor in others, and a marketing subsidiary in the remainder is a strategy some firms us for entering foreign markets contrasted to a standardized approach. The decision depends on the characteristics of the market and resources.

answer

True

question

Cultural issues are not considered to be challenging for international logistician.

answer

False

question

China's share of global manufacturing exports has risen from 2% of the world's total exports to over 50% in 2010.

answer

False

question

A lazy executive thinks about sourcing globally based on the idea of reducing costs.

answer

True

question

Internet services are extremely reliable for global business services thanks to the acceptance of cell phones.

answer

False

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 exchanges

question

Because agents tend to be individuals or very small firms, governments in some countries put them under ___.

answer

labor law

question

Our guest speaker, Gary Maxwell shared with you one of his most important learnings while working in various Walmart international markets was "fit your Brands to the Culture."

answer

True

question

Global railroads are important for expediting trade and every country in the world uses the same gage (width of tracks).

answer

False

question

According to international convention, every ship must be registered in a specific country and fly that country's flag. The country in which a ship is registered determines applicable onboard ship laws, taxes the owners pay and regulations followed onboard a vessel.

answer

True

question

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

answer

Education

question

Container ships carry 60% of the world's trade.

answer

True

question

Dry Bulk Carriers carry coal, agricultural product, ores, scrap iron, and other bulk commodities.

answer

True

question

The idea that containerized ocean cargo needs to take a shortcut across a landmass by rail has resulted in the development of bad bridges.

answer

False

question

NVOCCs are:

answer

Stands for Non Vessel owning Common Carrier; operation comprises of sales, stuffing transport of the containers to gateway ports

question

The Transportation Infrastructure allows businesses to sustain their daily operations. This requires reliable electricity, energy (natural gas), water, and sewer services.

answer

False

question

The most common type of ship charters are time charters and voyage charters.

answer

True

question

Flags of Convenience is a designation of the open registry of a country that has lower taxes and more lenient on-board regulations than other countries with open registries.

answer

True

question

A Dry Lease agreement in which the owner of the aircraft provides only the airplane to the lessee, who is responsible for all other costs.

answer

True

question

In 1945, representatives of 31 scheduled carriers assembled in Havana to officially organize the International Air Transport Association (IATA) to address route structures and fares.

answer

True

question

The Warsaw Convention of 1929 limited the liability of international airlines in accidents.

answer

True

question

In countries with poor traditional telephone services, communications infrastructure has rapidly been developed through

answer

Cellular telephones

question

In calculating airfreight rates, airlines figure the volume-weight of the shipment based on the volume yielding a certain weight value. As a result, ___.

answer

the airline will charge the higher of the volume-weight or the actual weight of the cargo

question

International trade is still mostly concentrated among the developed countries of the Northern Hemisphere. Which country is the largest importer of the world?

answer

United States

question

The Carriage of Goods by Sea Act (COGSA) became U.S. law in 1936 and signified the U.S. agreement with the Law Relating to Bills of Lading known as the Hague Rules from the 1924 Hague international liability convention.

answer

True

question

United and Delta Airlines are examples of integrated air cargo carriers.

answer

False

question

The following are functional areas often classified as Inbound Logistics

answer

Purchasing

question

Ships too large to pass through the Panama Canal are called ___.

answer

Post-Panamax Ships

question

It is possible to hedge against rises in charter rates through the Baltic Exchange, where shippers can buy future contracts for shipping capacity.

answer

True

question

The greatest net profit growth and margin remains in North America.

answer

False

question

Documentary collection is a process by which the exporter asks bank to protect its interests in importing country by not releasing documents (specifically bill of lading which is certificate of title to the goods) until importer meets certain requirements

answer

True

question

A consular invoice is a regular commercial invoice printed on stationery provided by a country and visa-ed by its consulate in the exporter s country.

answer

True

question

The sentence This merchandise licensed by U.S. for ultimate destination [country]. Diversion contrary to U.S. Law prohibited is ___

answer

Destination Control Statement

question

In most cases, an intermodal bill of lading ___.

answer

is a straight bill of lading when the name of the consignee is specified.

question

Weight and dimensional packaging information is necessary in order to build pallets effectively for international shipping.

answer

True

question

A commercial invoice for exporting does not contain financial data.

answer

False

question

In the U.S. trucking accounts for 38% of all freight in tons moved, but only 7% of transportation revenue paid.

answer

False

question

The European Community has recently introduced the concept of ___ that run trains straight through from major ports to cities such as Milan and Vienna without changing locomotives and crews at each border.

answer

Freight corridors

question

Economies of scale of larger ships that cannot go through Panama Canal may be substituted with a land bridge via rail from the port of Seattle to an East Coast U.S. port.

answer

True

question

Oversize cargo is shipped on a "flat rack" container.

answer

True

question

A TEU is a twenty foot container.

answer

True

question

Malcom McLean demonstrated that it was feasible to move ocean freight in containers for about 15.8 cents per ton compared to about $5.83 per ton with conventional processes of the time.

answer

True

question

The sentence "This merchandise licensed by U.S. for ultimate destination [country]. Diversion contrary to U.S. Law prohibited" is

answer

a destination control statement

question

In order for an importer to come under the scope of informed compliance, it must show that it has exercised reasonable care in the filing of its Customs entries.

answer

True

question

A packing list contain financial data.

answer

False

question

The U.S. State Department recently eliminated their foreign services division charged with assisting small and medium size U.S. companies interested in exporting to foreign countries.

answer

False

question

A medical device is not legal in country A, but is legal in country b. Despite being restricted from country A, the product is allowed to go through the foreign trade zone of country A on its way to country B.

answer

False

question

Documentation designed to indicate what country a product initially came from is contained in the ___.

answer

Certificate of Origin

question

The main billing document in a shipment is the pro forma invoice.

answer

False

question

SDR, an artificial currency, is designed to supplement the U.S. dollar in its role as the international currency.

answer

True

question

The United States requests the "sewing tickets" for some garments, an internal work document of the garment factory, as well as the time cards of the employees working there in an attempt to determine the country of origin of textile products. This can be an example of a non-tariff barrier.

answer

True

question

The complexity of logistics and transportation. are often accentuated as Global supply chains increase in length (distance and time).

answer

True

question

The Export-Import Bank (Ex-Im) is a United States federal agency whose purpose is to provide assistance to U.S. exporters in the form of loans, loan guarantees, and political risk insurance policies.

answer

True

question

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

answer

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

question

A cargo service that allows an exporter to ship a large quantity of goods to a location not normally served by cargo airlines would be ___.

answer

charter airfreight service

question

Intermodal containers sometimes collapse in rough seas.

answer

True

question

Successful supply chain strategies cannot be expected to simultaneously lower costs, increase service levels and reduce inventory quantities.

answer

False

question

Most cargo tends to be shipped by air in its

answer

secondary packaging

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 exchanges.

question

The converted tanker ship Ideal X carried 58 containers on April 26, 1956 from the Port of Newark; loading each container on board in about 7 minutes.

answer

True

question

Cigna is a marine insurance company. Lloyd's and the International Underwriting Association are involved in forms of insurance.

answer

True

question

The total capacity of the ship expressed in long tons is called ___.

answer

deadweight tonnage

question

Companies will often seek to sell or source oversea to reduce costs.

answer

True

question

The faster it moves the greater the transportation spend

answer

True

question

An exporter can conduct its international business in a manner similar to the way it and most companies conduct domestic business by using ___.

answer

An open account

question

It is possible to find insurance for improper packing.

answer

False

question

Performance measurement is important because:

answer

Lower-level metrics in an organization must connect directly to the high-level performance to achieve goals

question

Which of the following are not key attributes of supply chain management?

answer

o Inventory control o Leveraging technology o Customer power o A long-term orientation

question

Logistics can be crucial to achieving desired levels of performance in supply chains.

answer

True

question

The only water link between the Black Sea and the oceans is:

answer

The Bosporus Strait

question

When a successful exporter involves one of its suppliers (or a company that makes a complementary product) in the markets that this exporter has developed, it results in a form of piggy-backing sometimes called collaborative exporting.

answer

True

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

The global consulting group, Booz Allen and Hamilton defined a rationale for global sourcing that included:

answer

All of these

question

A certificate of insurance is a document provided by the insurance company of the exporter that attests that the goods are insured during their international voyage. This certificate is obtained only at the request of the importer, and for transactions under certain Incoterm terms of trade, such as CIF and CIP.

answer

True

question

A consular invoice is a regular commercial invoice printed on stationary provided by a country and visa-ed by its consulate in the exporter's country.

answer

True

question

A standard TEU container is 8 feet wide (2.44 meters) and 8.5 feet tall (2.59m).

answer

True

question

According to Eurostat 2012 statistics of freight carried in millions of tonnes railroads accounted for only about 7% of total freight hauled in Europe.

answer

True

question

According to the United Nations ocean export commission all international shipments must have an insurance policy.

answer

False

question

An Airway Bill fulfills same functions as ocean bill of lading but for air freight and is always a straight air waybill.

answer

True

question

Another land bridge is across Russia to connect Europe and Africa

answer

False

question

Another land bridge is via North Korea from a land bridge from South Korea over Russia's Trans-Siberian railway to Europe.

answer

False

question

Documentary collection is a process by which the exporter asks bank to protect its interest in importing country by not releasing documents (specifically bill of lading which is certificate of title to the goods) until importer meets certain requirements.

answer

True

question

Drafts are sometimes used to provide customers (importers) access to lower cost money in the exporter's home country

answer

True

question

End-Use Certificates _____.

answer

Certify that the product is going to be used for a legitimate purpose

question

Export quotas can be used to control scarce resources or prices of products for which a country has a monopoly.

answer

True

question

In most cases, an intermodal bill of lading _____.

answer

Is a straight bill of lading when the name of the consignee is specified

question

In the U.S. rail accounts for 33% of al freight in tons moved, but only 7% of transportation revenue paid.

answer

True

question

Intermodal describes a shipment that takes several different means of transportation (road, rail, ocean, air) from is point of departure (seller/exporter) to its point of destination (buyer/importer).

answer

True

question

Ocean containers must have palletized freight to ship legally.

answer

False

question

The amount of duties charged by U.S. Customs depends on:

answer

o The type of goods; their classification o The value of the goods; their valuation o The country from which the goods originated; the rules of origin

question

Sometimes a third bank, in addition to the issuing bank and the advising bank, becomes involved with a letter of credit. This bank is called a _____.

answer

o Primary bank o Amending bank o Intermediary bank o **None of these o Secondary bank

question

The converted tanker ship Ideal X carried 58 containers on April 26, 1956 from the Port of Newark; loading each container on board in about 7 minutes.

answer

True

question

The European Community has recently introduced the concept of _____ that run trains straight through from major ports to cities such a Milan and Vienna without changing locomotives and crews at each border.

answer

Freight corridors

question

The sentence This merchandise licensed by U.S. for ultimate destination [country]. Diversion contrary to U.S. Law prohibited is ____.

answer

Destination Control Statement

question

Which of the following are international documents?

answer

o Commercial invoice o Packing list o Airway bill

question

Which of the following pieces of information does an international commercial invoice contain?

answer

o Incoterms o Terms of payment o A precise description of the product o Weight and measurements of the product

question

An international airway bill

answer

Is non-negotiable

question

A forward market hedge consists of selling forward the currency that will eventually be collected from a foreign receivable.

answer

True

question

EAR stands for Export Administration Regulations, and it contains the Commerce Control List, which details which commodities and product can and cannot be certain countries.

answer

True

question

Generally speaking, countries with scarce foreign currency resources will attempt to limit the granting of import licenses to companies that have generated export revenues and ___.

answer

Companies purchasing goods for which no close domestic substitute is available

question

Goods imported in the United States are valued on an FAS or CFA basis, or the value of the goods as they were leaving the exporting country compared to most of the rest of the world that uses the value when entering the importer's country.

answer

True

question

International exchange rates began to float ___.

answer

o And it changed the role of the International Monetary Fund o At the end of the gold standard o In 1971

question

Letters of credit are used:

answer

o When sellers are not familiar with buyers and want to use banks as a trusted intermediary to ensure payment o By governments in some instances to control the flow of foreign currencies in and out of their countries o By international conglomerates as a way to control their cash flow

question

Logistics in the 1980s was split between Inbound Logistics and Outbound Logistics.

answer

True

question

Special Drawing Rights (SDRs) of the IMP are an artificial currency whose value is determined by the value of a basket of four currencies: the euro, the Japanese yen, the U.S. dollar, and the British pound.

answer

True

question

SWIFT is the Society for Worldwide Interbank Financial Telecommunications.

answer

True

question

The Export-Import Bank (Ex-Im) is a United States federal agency whose purpose is to provide assistance to U.S. exporters in the form of loans, loan guarantees, and political risk insurance policies.

answer

True

question

The IMF was created to oversee the fixed exchange rate system created by the Bretton-Woods Conference. Today it helps countries manage their balance of payments and lends them money when they experience difficulties with their balance of payments.

answer

True

question

The International Maritime Dangerous Goods Code regulates the shipment of dangerous goods by ocean.

answer

True

question

The stated goal of the European Union is to eventually transform the euro to be a challenger to the U.S. dollar in its role as a preferred third-country currency.

answer

True

question

The U.S. State Department offers assistance to small and medium size companies interested in exporting to foreign countries.

answer

True

question

The United States requires a Shippers Export Declaration.

answer

True

question

We discussed some basic definitions, including

answer

o Supply chain management is the integration of business processes from end user through original suppliers that provide products, services, and information that add value for customers. o Logistics which can be summer up as follow the inventory. o Logistics is the management of the flow and storage of inventory so that total costs are minimized and customer services are achieved

question

When the invoice's value is much below what Customs has historically accepted and when a much higher valuation is reached with one of the alternative valuation methods, customs can determine that the exporter is dumping the goods in the importing country.

answer

True

question

Which one of the following functional areas is not classified as Outbound Logistics?

answer

Purchasing

question

A cargo service that allows an exporter to ship a large quantity of goods to a location not normally served by cargo airlines would be ___.

answer

Charter airfreight service

question

A freight consolidator is almost always quite good at packaging a container properly, with proper dunnage and protection, but the owners of other cargo on board the consolidated container may not be as careful, and that represents a hazard.

answer

True

question

According to John Waite, chief surveyor of the Salvage Association, the biggest hazard(s) for container ships is/are

answer

Fire

question

Among the companies that are exposed to risks in currency fluctuation are ___.

answer

o Firms that have management that is not well-versed in the intricacies of international trade o Firms that do not evaluate international currency transaction risks clearly and that do not follow a specific policy on currency exchange

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

o None of these*** o Principal o Export management corporation o Agent o Contract manufacturer

question

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

answer

Customers abroad are customer of the export trading company, not the exporter

question

LNG and LPG ships ____.

answer

Often operate on long-term contracts

question

At Lloyd's, individuals assuming (insuring) risks are on their personal fortunes called ___.

answer

Bespoke Names

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 exchanges

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 th U.S. market. Such a move is considered a ___.

answer

Competition driver

question

Packaging designed to appeal to and be functional for consumers is called

answer

Primary packaging

question

Ship dedicated to the transport of petroleum products are called ___.

answer

Crude carriers

question

Since most airports are geographically close to large cities, their hours of operations are generally limited by ________ constraints.

answer

Noise

question

Some countries regulate primary package sizes by requiring them to be multiples of simple metrics units.

answer

True

question

The concept of general average is exclusively used in marine insurance.

answer

True

question

The International Product Life Cycle Theory explains why there are no televisions manufactured in Great Britain and the United States, although that technology was invented in those countries.

answer

True

question

The three functions of correct packaging are

answer

To protect goods in transit, to facilitate proper handling of goods in transit, and fulfill the shipper's customer service strategy

question

TradeCard, created in 1994, combines document handling and payment in one process and utilizes electronic transmission of documents and guarantees payment to the exporter.

answer

True

question

cargo freighters carry nearly 60% of global air freight

answer

true

question

The 2013 boeing global forecast confirms that continuing trend toward smaller passenger aircraft

answer

false

question

With the advent of cell phones and the internet, mail service is no longer of concern in most countries

answer

false

question

Fedex is an integrated carrier

answer

true

question

Only 50% of petroleum producers own their own ships, the rest are charters

answer

false

question

Certified cargo screening facilities are charged with

answer

conducting 100% inspections of all shipments that will eventually travel on passenger aircraft

question

Important functions of IATA today, include setting airport, crewing, and navigation safety standards

answer

true

question

The aircraft can carry freight and passengers on the main deck are called mixed aircraft

answer

false - combi

question

In its absolute form, the exchange rate determination theory of purchasing power parity

answer

all of these

question

The commercial invoice

answer

none of these (accompanies the shipment)

question

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

answer

export trading company

question

The tax an importer must pay in order to be allowed to let goods into the country is called a duty

answer

true

question

an experienced exporter knows that the u.s. government almost always checks the paperwork that the exporter provides to the importer

answer

false

question

A letter of credit contains the following information

answer

the consignee and consignor

question

If the exporter and the importer agree that a transaction will be in the currency of the exporters country, the exporter then bears all the risk of exchange rate fluctuation.

answer

false

question

In addition to being a contract of carriage and a receipt for the goods, an ocean bill of landing is

answer

a packing list for the carrier

question

In the United States, the Federal Reserve System technically fulfills the role of being a central bank

answer

true

question

A country may use import documents to enact a protectionist policy

answer

false

question

From the view point of the seller open accounts is the best payment method

answer

false

question

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

answer

all of these

question

A packing list always accompanies a shipment

answer

True

question

in 1996, the Export Administration Regulations(ERA) was revised to a U.S. export policy stating that everything is authorized unless it is specifically prohibited

answer

true

question

Besides a contract and a receipt for goods, an ocean bill of landing is

answer

A certificate of title

question

A pro-forma invoice is not a true invoice (it is a quote) and the expiration date on a pro forma invoice is very important

answer

True

question

The harmonized commodity description and coding system also called HS uses up to 10 digits. the first 6 digits are the same in all countries while the last 4 are country specific, used to differentiate different subcategories of main product

answer

True

question

The international bank of Reconstruction is known as the World Bank and was founded after the Bretton woods conference to help countries rebuild their infrastructures after WW2

answer

True

question

Most duty is collected ad valorem which means

answer

it is based in the value of the import

question

Among freight often carried in the belly of scheduled international passenger airplanes are

answer

critical machine or computer parts and fresh produce like fish

question

An export management company earns its revenue through

answer

sales commission

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