Logistics :- FSU

The common currency of most of the countries of the European Unions is called?
The Euro
International Trade is still mostly concentrated among the developed countries of the Northern Hemisphere. Which country is the largest importer of the world (2012)?
United States of America
International Trade is still mostly concentrated among the developed countries of the Northern Hemisphere. Which country is the largest Exporter of the world (2012)?
China
World Trade in services represent a higher percentage of total trade than does world trade in merchandise?
False
The total value of international Trade (2008) in services and merchandise is about?
US$20 Trillion
The Bretton Woods Conference triggered the creation of the World Trade Organization in 1944?
False
Many developing countries of the world experience traffic gridlock?
True
The treaty of Rome in 1957 was the first step in the creation of the European Union?
True
The Euro has replaced the currencies of all the countries of the European Union?
False
The European Union is an Economic community that compromises how many countries?
27
The person responsible for the creation of containers in 1956 was named Malcolm McLean?
True
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?
Malcolm McLean
Which one was NOT one of the characteristics of the “early days” of logistics?
An emphasis on customer satisfaction
Another name for sea-going containers is?
Boxes
The single most important development in international ocean shipping was the creation of containers?
True
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?
Interest rates
The modern term “logistics” is upon a French word meaning “military train?”
False
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?
True
The globalization is a recent phenomenon?
False
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?
Delivering the goods on the day and at the time promised
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 ?
Absolute advantage in production of beef
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?
Active exporting
Of the following, the best definition of logistics infrastructure would be that it consists of?
All of the elements in place to facilitate transportation, communication, and business
exchanges
Companies increasingly are designing products so that they can gain a competitive advantage
through reverse logistics. Returned products are?
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

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?
Competition driver
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)
A country of innovation only
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?
Delivering the right amount of Goods on the day and at the time promised
Unless otherwise specified, contracts between an exporter and an agent and contracts between an
exporter and a distributor are called?
distribution contracts
Courts generally look at two criteria to determine if a contract is international. Those criteria are?
Economic and judicial criteria
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?
Education
An exporter’s termination of a relationship with an agent/distributor on the basis of
“convenience” is?
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******

A legal dispute in which the loser bears court costs is said to be operating under?
European rules
Because work in modern ports goes so fast, there is no need for warehousing space?
False
In judging whether or not a contract has been breached, the Uniform Commercial Code (UCC)
applies the principle of “perfect tender.” This means that?
The goods and their delivery must exactly conform to what was written in the contract
The largest cargo airport in the world is?
Hong Kong Chek Lap Kok
Usually, a distributor is located?
the importing country
Supply chain management encompasses activities that are broader than those of logistics management?
It is generally accepted that
Attempts to reduce business practices that include corruption and bribery have been made by
the?
Organization for Economic Co-operation and Development
Factors contributing to the rise of U.S. freight railroads since about 1980 are?
road congestion, concerns about pollution and noise, and development of the multi-modal
container
The fee a licensee pays a licensor for each use of an intellectual property is called a(n)?
Royalty
An export management company earns its revenue through?
Sales commission
True A country’s court system could be considered to be part of its infrastructure?
True
The cost of air cargo shipments decreased after deregulation of the 1980’s?
True
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?
False
“Time-defined” deliveries refer to shipments of goods that cannot stay in transit too long because they are perishable/
False
MRP, MRP II, and DRP are inventory management techniques that allow manufacturers to reduce inventory their levels?
True
MRP, MRP II, and DRP are inventory management techniques that allow manufacturers to reduce their shipment times (the times that goods spend in transit)?
False
Customer service became the primary focus of logistics in the 2000’s?
True
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?
True
International Logistics includes activities that are not part of domestic logistics?
False
It is generally accepted that 😕
Supply Chain Management encompasses activities that are broader that those of logistics management.
Among other reasons, international transactions are perceived to have more risk of non-payment because of:
a lack of credit information, a lack of personal contact, and no easy legal recourse.
As a defense measure to keep invading military troops from using their railroads, Spain and Russia:
developed widths between rails (gauges) different from those of the rest of Europe.
The best definition of a logistics infrastructure would consist of:
all the elements in place to facilitate transportation, communication, and business exchanges.
The change in government policies that allowed FedEx and other air carriers to purchase larger aircrafts and compete with other airlines was called ______________.
deregulation
The choice of the proper Incoterms Rule is a critical decision because:
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.
Companies increasingly are designing products so that they can gain a competitive advantage through reverse logistics. Returned products are:
refurbished for resale in secondary markets, reused (packaging or containers), remanufactured (restored to their original performance standards).
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:
“pull” system (pull out the inventory).
Following negotiations on a transaction which result in use of a letter of credit payment, the next step is for the exporter to:
send a pro-forma invoice, this confirms the importer and exporter are on the same page.
The Incoterms Rule FCA means:
Free Carrier
Incoterms Rules STANDS for:
International Commerce Terms
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:
interest rates.
Manufacturers have adopted MRP systems so that they can reduce their inventory and manufacture __________.
just-in-time
The ________ of an airport determine(s) the type of aircraft which can serve the airport.
runway
One of the first problems faced by international logistic managers has to do with:
infrastructure.
Post-Panamx ships have resulted in:
cranes being unable to reach across Post-Panamx ships.
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.
warehousing
A standby letter of credit is similar to a “simple” letter of credit except for:
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.
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.
True
A letter of credit is more secure than cash in advance.
True, from an importers point of view.
Because work in modern ports goes so fast, there is no need for warehousing space.
False
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.
False, $350,000.00.
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.
True
MRP, MRP II, and DRP are inventory management techniques that allow manufacturers to reduce their shipment times (the time that goods spend in transit).
False, they reduce inventory.
North American firms are lagging their European counterparts in the implementation of “green practices” in manufacturing and other supply chain activities.
True
The Cost, Insurance, and Freight Incoterms Rule is specifically designed for ocean transportation.
True
The person responsible for the creation of containers in 1956 was named Malcolm McLean.
True
There are insurance policies that pay the exporter if the importer does not pay.
True
“Time-Defined” deliveries refer to shipments of goods that cannot stay in transit too long because they are perishable.
False, “time-defined” means that firms need to reduce inventory levels and have inventory sit as little as possible.
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.
False, transfer is on board, placed on the vessel.
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.
False
Under the DDP Incoterms Rule, the importer takes control of the goods in the city where the exporter is located.
False, responsible for unloading at their place of business.
Under the Free Carrier Incoterms Rule, the exporter is responsible for clearing the merchandise for export.
True
Unlike other industries, ports in the developed world have managed to avoid strong unions
False
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:
the exporter.
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.
Importer
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?
False
A country’s court system could be considered to be a part of its infrastructure?
True
The infrastructure that most obviously affects the movement of goods internationally is communications infrastructure?
False
As the size of ships increased, ports have been challenged in keeping up with the ability to handle them?
True
Unlike other industries, ports in the developed world have managed to avoid strong unions?
False
Because work in modern ports goes so fats, there is no need for warehousing spaces?
False
The effectiveness of a port is often dependent upon the quality of the road and rail network to which it is connected?
True
The current trend in shipbuilding is towards POST-PANAMAX ships?
True
Air cargo operations are helped by the fact that there is a more than adequate supply of refrigerated warehouses at airports?
False
China’s railroad network only satisfy 60 percent of its demand?
True
Of the following, the best definition of a Logistics infrastructure would be that it consists of?
All of the elements in place to facilitate transportation, communication, and business.
Post-Panamax ships have resulted in?
Cranes being unable to reach across Panamax ships.
Because some ports are becoming increasingly limited in their ability to handle ever larger ships it is possible that?
Large ships will go to “HUB” ports where “FEEDER” ships traverse to and from smaller ports.
Among characteristics of the Saint Lawrence Seaway is/are/
It links the Great Lakes to the Saint Lawrence River and the Atlantic Ocean
The busiest cargo airport in the world is ?
MEMPHIS
The LARGEST cargo airport facility in the world is ?
CHEK LAP KOK AIRPORT IN HONG KONG, CHINA
The TVG trains connecting London and Paris:
The TVG trains connecting London and Paris provide high speed passenger services that competes with airlines.
Factors contributing to the rise of U.S. freight railroads since 1980 are;
road congestion concerns about pollution and noise, and development of the multi-modal container.
In its relationship with an agent, an exporter is known as the ?
Principal
Because agents tends to be individuals or very small firms, governments in some countries put them under?
Labor law
An exporter has the most control over its foreign sales through a(n)?
Sales and marketing subsidiary
An intermediary that purchases goods in the exporting country and resells them to a customer in a foreign country is called a(n)?
An exporting trading company
Agents usually sell more than one product and represent more than one company. The product they sell are?
Complementary
As a company grows in exporting sophistication, it should not become involved with an export trading company because?
customers aboard are customers of the export trading company, not the exporter.
An export management company can earns it revenue through:
Sales commission
When they first go into international trading, most companies first do so after careful planning and thoughtful strategic planning.
False
Most export management corporations are small firms, typically with fewer than fifteen (15) employees?
True
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?
True
Joint ventures are becoming more and more attractive to foreign investors?
False
Parallel imports are sometimes called “Gray Market Goods?”
True
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?
False
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?
True
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?
False
An agent often has several principals and generally sells a group of complementary products rather than products that compete directly with one another?
True
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?
True
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?
True
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?
True
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?
True
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?
True
An advantage of “Gary markets” is the increased amount of control that a company has over a product after it has been sold?
False
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?
False
Among “Marketing Mix Decisions” distribution is a the part of the mix that is the EASIEST or most likely to be adjusted?
False
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?”
True
A distributor takes much less risk in its relationship with an exporter, than does an agent and experiences much lower costs?
False
Most governments make a substantive differentiation in the way of agents and distributors are considered by the judiciary system?
True
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 ?
False
Unique powerful Japanese trading companies are called/
Sogo Shosha
As a company grows in exporting sophistication, it should NOT become involved with an export trading company because?
Customers aboard are customers of export trading company, NOT exporter.
When they first go into international trading, most companies, first do so after careful planning and thoughtful strategic planning?
False
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?
True
An exporter has the most control over its foreign sales through a(n)?
Sales or marketing subsidiary
The most sensitive issue in an international distribution contract between an exporter and an agent/distributor is?
Termination
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 ?
Exporter
An increasingly popular way of settling disputes between international exporter-agent/distributor partner is?
Arbitration
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?
True
Whether or not a sales contract is international is always self-evident?
False
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?
False
Under the Uniform Commercial Code, an offer can be withdrawn at any time, without prejudice?
True
The “perfect tender,” principle means delivered goods must exactly conform to the goods contracted and delivered within the framework specified in the contract?
True
Agreements between an exporter and an agent and agreements between an exporter and a distributor are called distribution contracts?
True
An agent can negotiate prices, delivery, or other sales term with the buyer (importer) without direction from the exporter?
False
In the Middle Eastern countries, agents and distributors are not required to be nationals of the country?
False
A contract is entered in good faith when neither of the parties has any other ulterior motive about the agreement/
True
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?”
False
The scope of appointment clause is usually the first clause of a contract?
True
The European Union tends not to recognize exclusive territories that LIMIT an agent or distributor to one country?
True
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?
True
Agents usually feel encouraged if the exporting firm they represent retains for itself a large number of corporate accounts?
False
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?”
True
An exporter’s termination of a relationship with an agent/distributor on the basis of “Convenience” is?
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.

Courts generally look at two criteria to determine of a contract is international. Those criteria are?
Economic and Judicial criteria
A legal dispute in which the loser bears court costs is said to be operating under _?
European rules
A termination for convenience is?
A termination for any reason other than non-performance.
Under the United Nations Convention on Contracts for the international Sales of Goods (CISG), when an offer is made?
it cannot be withdrawn by the buyer or seller before its expiration date
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?
True
Whether or not a sales contract is international is always self-evident?
False
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?
False
Under the Uniform Commercial Code (UCC), an offer can be withdrawn at anytime, without prejudice?
True
The “Perfect Tender,” principle means delivered goods must exactly conform to the goods contracted and delivered within the framework specified in the contract?
True
An agent can negotiate prices, delivery, or other sales terms with the buyer (importer) without direction from the exporter?
False
Agreements between an exporter and an agent and agreements between an exporter and a distributor are called “Distribution contracts?”
True
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?
False
A contract is entered in good faith when neither of the parties has any other ulterior motive about the agreement?
True
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?
True
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?
True
A contract is entered in good faith when neither of the parties had any other ulterior motives about the agreement?
True
The European Union tends not to recognize exclusive territories that limit an agent or distributor to one country?
True
The advertising clause of a contract between an exporter and an agent/distributor spells out the obligations of both parties in the areas of ?
Advertising
trade show attendance
ownership of ideas
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?
the government of the country where the agent/distributor is located, as it may say it has jurisdiction over the contract
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?
“overwhelming power”
An exporter’s termination of a relationship with an agent/distributor on the basis of “convenience” is?
Potential damages to the spurned party can be substantial. Courts can intervene.
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?
an exclusive representative
In judging whether or not a contract has been breached, the Uniform Commercial Code (UCC) applies the principle of “perfect tender.” This means that ?
the goods and their delivery must exactly conform to what was written in the contract
Instead of using courts to settle disputes, an increasing number of contracts call for disputes to be settled by ?
an arbitration panel
Lex Mercatoria is ?
trade law made up of a multitude of different sources of law and jurisprudence
A termination for “convenience” is?
a termination for any reason other than non-performance
The most sensitive issue in an international distribution contract between an exporter and an agent/distributor is ?
termination
A termination of an international contract between an exporter and an agent/distributor can be made by?
either of the parties
Under the United Nations Convention on Contracts for the International Sale of Goods (CISG), when an offer is made?
is cannot be withdrawn by the buyer or seller before its expiration date
The United Nations Convention on Contracts for the International Sale of Goods (CISG) considers a contract to have been accepted?
both parties agree to all of its terms
Unless otherwise specified, contracts between an exporter and an agent and contracts between an exporter and a distributor are called?
distribution contracts `
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 ?
that party is not acting in good faith
While an exporter and distributor can agree on what the distributor can add for margin on the wholesale price of goods, in agency contracts?
no restrictions
Under the Free Carrier Incoterm, the exporter is responsible for cleaning the merchandise for export?
True
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?
False
Under the FOB Incoterm, in countries where export authorities requires a pre-shipment inspection, the importer must pay for it?
False
The CFR Incoterm means “Cost and Freight?”
True
The cost, insurance, and freight Incoterm is specifically designed for land transportation?
False
Under the Cost, Insurance, and Freight Incoterm, the importer takes responsibility for the goods when they are placed upon the importer’s loading dock?
False
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).
True
The Incoterm CPT means “Cargo Placed at Terminal?”
False
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?
True
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?
True
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?
False
Under Incoterm EXW, FCA, and FAS, the importer is the party responsible for the loading the goods onto the carrier?
True
The DAF Incoterm means “Deliver All Freight?”
False
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?
False
Under the DDU Incoterm, it is the responsibility of importer to arrange and pay for the unloading of goods?
True
Use of Electronic Data Interchange (EDI) is still fairly new and limited to developed countries?
True
In planning their export strategy, companies generally determine which Incoterm they will use on a case-by-case basis?
False
Under the CIF Incoterm, the proof of delivery is an Ocean bill of lading or Sea Airway bill?
True
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?
False
The least customer-friendly of the Incoterms in the EXW (Ex-Works) Incoterm?
True
Incoterms stand for?
International Commerce Terms
While on the surface Incoterms determine who pays what, when, ultimately the ______ directly or indirectly pay(s) the costs of transportation and international shipping?
Importer
The choice of a proper Incoterm is a critical decision is because?
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

In terms of cost and responsibility , the easiest Incoterm for EXPORTER which is in turn, the most difficult for the IMPORTER is ?
EX-WORKS (EXW)
Under the Free Carrier Incoterm, the exporter is responsible for clearing the merchandise for export?
True
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?
False
Under FOB Incoterm, in countries where export authorities require a pre-shipment inspection, the importer must pay for it?
False
The CFR Incoterm means “Cost and Freight,?”
True
Under the Cost, Insurance, and Freight Incoterm, the IMPORTER take responsibility for the goods when they are placed upon the importer’s loading dock?
False
The Cost, Insurance, and Freight Incoterm is specifically designed for land transportation?
False
The Incoterm CPT means “Cargo Placed at Terminal?”
False
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?
True
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?
True
The DES Incoterm is mostly used for bulk shipments of commodities where the parties wish the EXPORTER pay for the unloading of the ship?
False
Under Incoterms, EXW, FAC, and FAS, the Importer is the party responsible for loading the goods unto the ship?
False
The DAF Incoterm means “Deliver All Freight?”
False
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?
False
Under the DDP Incoterm, the importer usually takes control of goods at the city where the exporter is located
False
Under the DDU Incoterm, it is the responsibility of the IMPORTER to arrange and pay for the unloading of the goods?
True
The choice of Incoterm is almost always the decision of the?
Exporter
The Incoterm FCA means?
Free Carrier
Under the Incoterm FOB, responsibility for the cargo?
Shifts from EXPORTER to IMPORTER when the goods are loaded onto the ship in the country from which the goods are leaving.
Incoterms determine?
which tasks will be performed by the exporter
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?
All the above
Among other reasons, international transactions are perceived to have more risk of non-payment because of?
All the above
The risk(s) of an EXPORTER using cash in advance as a means of payment is/are?
it puts the exporter at a competitive advantage
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?
An open account
In a letter of Credit, the most important aspect is?
the documentation of the transaction
The Importer’s bank is called the?
Issuing bank
In valuing currency, the direct quote is?
The value of the foreign currency expressed in Units of the domestic currency
Among country risks in international trade are labor issues. For instance ______ has/have a strikes almost every year at its/their ports?
Japan
International commercial risk can be evaluated by?
a. credit report companies.

b. factoring houses

c. some accounting firms, insurance companies, and banks.

****D. ALL THE ABOVE

Swift stands for?
Swifts stands for “Society For Worldwide Interbank Financial Telecommunication.”
In the European Union, it has become difficult to conduct business on any payment term other than?
Open account
International factoring/
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.

In a letter of credit , the mots important aspect is?
the documentation of the transaction
The greater the exposure, the more secure terms of payment should be?
True
In a letter of credit worthiness of the exporter is substituted for the credit worthiness of the importer?
False
A letter of credit is more secure than cash in advance?
False
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?
True
An irrevocable letter of credit cannot be canceled by the issuing bank unless the applicant agrees to it?
False
In most cases, it is wise to have a letter of credit confirmed by the advising bank?
False
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?
False
It is possible to add a draft to a letter of credit?
True
It is often a disadvantage to request a letter of credit because of the costs (and the cumbersome process) associated with t?
True
A date draft transaction solves one of the problems of documentary collection in general: the date which the importer will endorse the draft?
True
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?
True
Documentary collections are more cumbersome and expensive than letters of credit?
False
Usually a bank guarantee is offered by a single bank, rather than multiple banks?
False
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?
True
United States laws prohibit banks guarantees?
True
A payment guarantee is the most commonly used type of guarantee and is used to ensure that the contractor finished the project?
False
A date draft goes into effect at the time the draft is endorsed (signed)?
False
A procurement card is conceptually similar to a consumer credit card?
True
A problem with Trade Card is that it is an extremely expensive alternative?
False
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?
False
The majority of transactions issued in the European Union are conducted on a “documentary collection,” basis?
False
In attempting a credit check of a foreign firm, a basic problem is?
Deciphering the business’s organization and name
The risk(s) that an exporter takes in requesting cash in advance as means of payment is/are?
it puts the exporter at a competitive DISADVANTAGE
World Trade has grown about 10 percent per year since 1950?
False