Question 1

Which of the following correctly states the role of banks in import\export transactions involving a letter of credit (L\C) ?

Accepted Answer

A)  The importer's bank is the advising and\or confirming bank;the exporter's bank is the issuing bank.
B)  The exporter's bank is the advising and\or confirming bank;the importer's bank is the issuing bank.
C)  The exporter's bank is the advising,confirming,and issuing bank.
D)  The importer's bank is the advising,confirming,and issuing bank.
E)  none of the aboveF) A) and B)
G) A) and E)

Question 2

Which of the following methods of financing would be used if the exporting and importing parties had a strong,long-standing relationship?

Accepted Answer

A)  documentary credit (letter of credit) 
B)  documentary collection
C)  cash in advance
D)  open account
E)  bank draftF) A) and B)
G) B) and E)

Question 3

The four tigers-Singapore,South Korea,Taiwan,and Hong Kong-learned from the Japanese experience and built strong export-based economies of their own.

Accepted Answer

A) True 
 B)False

Question 4

In an effort to attract assembly operations,Brazil allows certain product components to be imported at reduced tariff rates.This is an example of:

Accepted Answer

A)  offsets.
B)  preferential tariffs.
C)  the effect of the Customs Valuation Code.
D)  an EMC.
E)  discriminatory procurement.F) A) and D)
G) All of the above

Question 5

In the post-September 11 business environment in the United States,imports have come under increased security.One of the initiatives taken in the interest of national security is:

Accepted Answer

A)  NAFTA.
B)  C-TPAT.
C)  WTO.
D)  NTB.
E)  FSC.F) B) and D)
G) C) and D)

Question 6

According to the recent import regulations in the United States,action figures that represent non-human creatures such as monsters or robots are categorized as toys and qualify for lower duties than human figures that are classified as dolls.

Accepted Answer

A) True 
 B)False

Question 7

Overall,Italy's retail sector has pursued very little international expansion;by contrast,other European supermarket chains such as Tesco (UK),Metro (Germany),and Carrefour (France)took local products and brands with them as they expanded around the globe.

Accepted Answer

A) True 
 B)False

Question 8

Tax incentives,subsidies,export assistance,and free trade zones are common support provided by governments to firms that engage in exporting.

Accepted Answer

A) True 
 B)False

Question 9

The MEA can act as an export distributor or as an export commission representative.However,the MEA does not perform the functions of an export department,and the scope of market activities is usually limited to a few countries.

Accepted Answer

A) True 
 B)False

Question 10

"Piggyback exporter," "cooperative exporter," and "export vendor" are all terms used to describe an export broker.

Accepted Answer

A) True 
 B)False

Question 11

Developed under the auspices of the Custom Cooperation Council (now the World Customs Organization) the system which took effect is referred to as:

Accepted Answer

A)  preferential tariffs.
B)  harmonized tariff.
C)  BTN duty.
D)  specialized tariff.
E)  antidumping duty.F) B) and C)
G) B) and E)

Question 12

________ are variously referred to as buyer for export,export commission house,or export confirming house.

Accepted Answer

A)  Export brokers
B)  Export merchants
C)  Foreign purchasing agents
D)  Export managers
E)  Manufacturer's agentsF) A) and C)
G) C) and D)

Question 13

Research has shown that exporting is essentially a developmental process that proceeds in different stages.Before a firm reaches stage 4,it must do which one of the following activities?

Accepted Answer

A)  explore the feasibility of exporting
B)  commit resources for exporting
C)  receive unsolicited export orders
D)  believe in attractiveness of exporting
E)  build confidence in firm's ability for exportingF) B) and C)
G) A) and C)

Question 14

Outsourcing means shifting undesirable jobs or work assignments to another company to cut costs.When the outsourced work moves to another country,the terms "global outsourcing" or "offshoring" are used.

Accepted Answer

A) True 
 B)False

Question 15

The so-called "China triangle" includes:

Accepted Answer

A)  Hong Kong,Republic of China,and Singapore
B)  Republic of China,Taiwan,and Hong Kong
C)  Republic of China,Taiwan,and South Korea
D)  Taiwan,Hong Kong,and Republic of China
E)  Singapore,China,and Republic of ChinaF) B) and E)
G) A) and B)

Question 16

Duty drawback refers to refunds of duties paid on imports that are processed or incorporated into other goods and then re-exported.

Accepted Answer

A) True 
 B)False

Question 17

Which set of documents generally represents the minimum documentation required to clear a shipment through customs?

Accepted Answer

A)  packing list,commercial invoice
B)  bill of exchange,commercial invoice
C)  certificate of origin,bill of exchange
D)  packing list,insurance certificate
E)  letter of credit,commercial invoiceF) A) and C)
G) A) and B)

Question 18

Paris is widely regarded as the design capitol of the world,where the world's largest furniture and home furnishings trade fair took place in 2016.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following financing methods would be used by an exporter that enjoys good relations with a buyer in a well-established market?

Accepted Answer

A)  letter of credit
B)  cash in advance
C)  open account
D)  barter
E)  arrival draftF) D) and E)
G) A) and D)

Question 20

Why does the tariff system vary from country to country? Explain,giving examples of tariffs imposed by the United States with particular emphasis on preferential tariffs.What are the conditions under which GATT allows the use of preferential tariffs?

Accepted Answer

Tariff systems provide either a single r...

Exam 8: Importing,exporting,and Sourcing

The MEA can act as an export distributor or as an export commission representative.However,the MEA does not perform the functions of an export department,and the scope of market activities is usually limited to a few countries.

Correct AnswerverifiedShow Answer

Why does the tariff system vary from country to country? Explain,giving examples of tariffs imposed by the United States with particular emphasis on preferential tariffs.What are the conditions under which GATT allows the use of preferential tariffs?

Correct AnswerverifiedTariff systems provide either a single r...View AnswerShow Answer

Duty drawback refers to refunds of duties paid on imports that are processed or incorporated into other goods and then re-exported.

Correct AnswerverifiedShow Answer

In the post-September 11 business environment in the United States,imports have come under increased security.One of the initiatives taken in the interest of national security is:

Correct AnswerverifiedShow Answer

Which set of documents generally represents the minimum documentation required to clear a shipment through customs?

Correct AnswerverifiedShow Answer

In an effort to attract assembly operations,Brazil allows certain product components to be imported at reduced tariff rates.This is an example of:

Correct AnswerverifiedShow Answer

According to the recent import regulations in the United States,action figures that represent non-human creatures such as monsters or robots are categorized as toys and qualify for lower duties than human figures that are classified as dolls.

Correct AnswerverifiedShow Answer

"Piggyback exporter," "cooperative exporter," and "export vendor" are all terms used to describe an export broker.

Correct AnswerverifiedShow Answer

Outsourcing means shifting undesirable jobs or work assignments to another company to cut costs.When the outsourced work moves to another country,the terms "global outsourcing" or "offshoring" are used.

Correct AnswerverifiedShow Answer

Developed under the auspices of the Custom Cooperation Council (now the World Customs Organization) the system which took effect is referred to as:

Correct AnswerverifiedShow Answer

Overall,Italy's retail sector has pursued very little international expansion;by contrast,other European supermarket chains such as Tesco (UK),Metro (Germany),and Carrefour (France)took local products and brands with them as they expanded around the globe.

Correct AnswerverifiedShow Answer

Tax incentives,subsidies,export assistance,and free trade zones are common support provided by governments to firms that engage in exporting.

Correct AnswerverifiedShow Answer

Which of the following financing methods would be used by an exporter that enjoys good relations with a buyer in a well-established market?

Correct AnswerverifiedShow Answer

The four tigers-Singapore,South Korea,Taiwan,and Hong Kong-learned from the Japanese experience and built strong export-based economies of their own.

Correct AnswerverifiedShow Answer

Which of the following methods of financing would be used if the exporting and importing parties had a strong,long-standing relationship?

Correct AnswerverifiedShow Answer

The so-called "China triangle" includes:

Correct AnswerverifiedShow Answer

Which of the following correctly states the role of banks in import\export transactions involving a letter of credit (L\C) ?

Correct AnswerverifiedShow Answer

Research has shown that exporting is essentially a developmental process that proceeds in different stages.Before a firm reaches stage 4,it must do which one of the following activities?

Correct AnswerverifiedShow Answer

________ are variously referred to as buyer for export,export commission house,or export confirming house.

Correct AnswerverifiedShow Answer

Paris is widely regarded as the design capitol of the world,where the world's largest furniture and home furnishings trade fair took place in 2016.

Correct AnswerverifiedShow Answer

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Tariff systems provide either a single r...
View Answer

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