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

The applicant is the importer. The beneficiary is the exporter. The advising bank is the exporter's bank.

answer

True

question

SWIFT stands for Society for Worldwide Interbank Financial Financial Telecommunication.

answer

True

question

The commercial invoice _______.

answer

-Is sent ahead of the shipment -The same thing as a packing list -Is the same thing as a letter of credit -All of these -None of these

question

End-Use Certificate____.

answer

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

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

Besides a contract and a receipt for goods, an ocean bill of lading is_____.

answer

A certificate of title

question

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

answer

True

question

Which of the following are international documents?

answer

-Commercial invoice -Packing list -Airway Bill -All of these*

question

Looking at the percentage of revenue paid and total tons of freight hauled the following statements are true about U.S. transportation mode comparison

answer

-Trucks account for 80% of revenue paid and about 38% of total tons hauled. -Air account for about 5% of revenue paid and less than 1% of total tons hauled. -Railroads account for 7% of revenue paid and about 35% of total tons hauled.

question

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

answer

True

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

An intermodel yard transfers containers from trucks to trains, or vice-versa.

answer

True

question

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

answer

True

question

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

answer

True

question

In the Harmonized System of classification, an incomplete or unfinished product is classified____.

answer

An incomplete or unfinished product is classified as the product it will be when finished.

question

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

answer

-Incoterms -Precise description of the product -Terms of payment -All of these*

question

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

answer

True

question

The following are functional areas often classified as Inbound Logistics

answer

Purchasing

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

It is generally accepted that _____.

answer

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

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

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

Different colors of bills of ladings are used for each type of transportation.

answer

False

question

The country of origin of a product is the country in which it acquired its most substantial transformation

answer

True

question

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

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

Goods in a foreign trade zone can be warehoused until they are sent to their final destination, either in the host country or to a foreign destination. If the goods are sold in the host country, they are only dutiable at the time of that transaction. If they are sold abroad, they are dutiable both to the country where they are sold and to the host country of the foreign trade zone.

answer

False

question

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

answer

False

question

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

answer

Primary packaging

question

The following are functional areas often classified as Inbound Logistics:

answer

Purchasing

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

It is not possible for a shipper to insure its cargo against war damages.

answer

False

question

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

answer

True

question

We discussed some basic definitions, including

answer

-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* - Logistics is the management of the flow and storage of inventory so that total costs are minimized and customer services are achieved -Logistis which can be summed us al follow the inventory -None of these

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

Many ports have had to dredge channels to allow ships with drafts of up to 40 feet.

answer

True

question

Shipper's Export Declaration (SED) is a data-collection document required by U.S. government:

answer

-Allows U.S. government to tell what products are exported from U.S. to where -and must be sent to U.S. Customs Service -for exports valued at more than $2,500 per item category ($500 for parcels sent through the postal system) or shipments requiring an individual Validated Export Licence -All of these*

question

Ships dedicated to the transport of petroleum products are called _____.

answer

Crude Carriers

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

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

answer

True

question

Stable countries representing the greatest percentage of world trade all have _____ currencies.

answer

floating

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 following are types of International aircraft

answer

-Passenger Aircraft -Freighter Aircraft -Combi-Aircraft -Quick Change Aircraft -All of these*

question

Intermodal containers sometimes collapse in rough seas

answer

True

question

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

answer

Bespoke Names

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

Ships too large to pass through the Panama Canal are called_____.

answer

Post-Panamax Ships

question

Rationale: Unseaworthy vessels and improper packing are never insurable. Coverage against strikes and other civil disturbances can be with a special endorsement.

answer

True

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

The faster it moves the greater the transportation spend

answer

True

question

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

answer

True

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

correspondent bank (confirming bank)

question

The commercial invoice_______:

answer

-Is the same thing as a letter of credit -The same thing as a packing list -Is sent ahead of the shipment -All of these -None of these* (The commercial invoice is sent with the shipment, it is separate from a letter of credit, and it has no connection to an export license.)

question

An import license is usually provided by an independent laboratory or independent inspection company attesting to composition of certain shipped products

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

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

answer

True

question

The most common container is the 40-foot container, designed to hold goods loaded through its two doors.

answer

True

question

A TEU is a twenty foot containers

answer

True

question

International exchange rates began to float _____.

answer

-And it changed the role of the International Monetary Fund -in 1971 -At the end of the gold standard -All of these*

question

The International airfreight business is regulated by ______.

answer

-the Federal Aviation Administration -Aeroflot -the Civil Aeronautics Board -the Civil Air Patrol -None of the above * (correct answer is the International Air Transport Association and the International Civil Aviation Organization)

question

Rich countries dominate decision-making in the IMF because voting power is determined by the amount of money that each country pays into the IMF's quota system. It's a system of one dollar, one vote. The U.S. is the largest shareholder with a quota of 18 percent. German, Japan, France, Great Britain, and the US combined control about 38 percent. This is the argument from the Global Exchange an international human rights group for abolishing the IMF.

answer

True

question

A medical device is not legal in country A but is 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

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

answer

True

question

The Harmonized Commodity Description and Coding System, also called Harmonized System (HS) uses up to 13 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 Maritime Dangerous Goods Code regulates the shipment of dangerous goods by ocean.

answer

True

question

Most duty is collected ad valorem which means

answer

It is based on the value of the import

question

A commercial invoice created from a letter of credit should conform to spelling(?) used on the letter of credit to avoid bank discrepancy charges

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

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 stationery provided by a country and visa-ed by its consulate in the exporter s country.

answer

True

question

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

answer

-The type of goods; their classification. -The value of the goods; their valuation. -The country from which the goods originated; the rules of origin. -All of these.*

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

Dimensional weight calculations are the same for both ocean and air shipments.

answer

False

question

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

answer

False

question

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

answer

True

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

Another land bridge is across Russia to connect Europe and Africa.

answer

False

question

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

answer

True

question

An intermodel yard transfers containers from trucks to trains, or vice-versa.

answer

True

question

An intermodel yard transfers containers from trucks to trains, or vice-versa.

answer

True

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

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

answer

False

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

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

The International Bank for Reconstruction is known as the World Bank and was founded after the Bretton Woods Conference to help countries rebuild their infrastructures after WWII.

answer

True

question

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

answer

a certificate of title

question

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

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

An export management company earns its revenue through ___.

answer

Sales commissions

question

In its absolute form, the exchange rate determination theory of Purchasing Power Parity.

answer

-is rarely noticeable, even for identical products sold worldwide -All of these* -is impossible to achieve -says that exchange rates should reflect the price differences of each and every product between countries. -says that the exchange rate should equalize price differences of similar products between countries.

question

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

answer

Bespoke Names

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

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

The importer's bank is called the ___.

answer

Issuing bank

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

An intermodal yard transfers containers from trucks to trains, or vice-versa.

answer

True

question

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

answer

True

question

An exporter and an importer can agree on three possible alternatives when choosing the currency in which a sales contract will be paid

answer

-The exporter's country's currency -The importer's country's currency -A third country's currency -All of these

question

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

answer

True

question

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

answer

True

question

Letters of credit are used:

answer

-As a standby to guarantee a perform obligation -As a method of financing export/import of goods -As a device to guarantee payment obligation -All of these*

question

A Certificate of Origin must be signed by the importer's chamber of commerce.

answer

False

question

The country of origin of a product is the country in which it acquired its most substantial transformation.

answer

True

question

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

answer

labor law

question

It is possible to find insurance for improper packing.

answer

False

question

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

answer

False

question

A packing list always accompanies a shipment.

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

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

Letters of credit are often used in global transactions to be banks, a credible third party into the process when sellers and buyer really do not know each other well.

answer

True

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 usually applies to more than one shipment from the exporter to the importer -It allows the exporter to extend an open account to the importer, using the letter of credit only if the importer doesn't meet its obligations -All of these*

question

A certificate of inspection is a document signed by independent third party attesting to authenticity and accuracy of a shipment.

answer

True

question

Dimensional weight calculations are the same for both ocean and air shipments

answer

False

question

An export license can be used by a country to control the outflow of certain goods.

answer

True

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

Non-tariff barriers may appear in the form of ___.

answer

multiplying the number of documents required for importing products; slowing down Customs clearance processes; requiring a special sticker to be applied to an imported product

question

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

answer

duty

question

Tariffs can be calculated

answer

-ad valorem -All of the above * -as a fixed amount per unit imported. -in a mixed system of a fixed amount per unit imported plus a percentage of the value of the goods imported.

question

The Bank for International Settlement was created after World War I to manage Germany's war reparation payments. Since then, it has evolved into a major international institution, providing support to Central Banks, and acting as a clearinghouse between central banks

answer

True

question

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

answer

Noise

question

Intermodal containers sometimes collapse in rough seas.

answer

True

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

distributor

question

In 1999 the U.S. Congress passed the Ocean Shipping Reform Act (OSRA) which allowed for private confidential contracts between shipping lines and shippers. OSRA _________ the legal collective rate making rights of global ocean conferences.

answer

weakened

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.

answer

Argentina has an absolute advantage in the production of beef.

question

The term "project cargo" refers to cargo

answer

that is outside of the normal realm of what shipping companies handle in terms of weight, size, or destination

question

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

answer

Fire

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