Question 1

Which of the following arranges export financing payment methods in descending order starting with the most secure/reliable and ending with the least secure/reliable:

Accepted Answer

A)  sales on open account→cash in advance→documentary credit (L/
C)  →documentary collection (draft) 
B)  documentary credit (L/
C)  →sales on open account→documentary collection (draft) →cash in advance
C)  documentary collection (draft) →documentary credit (L/
C)  →cash in advance→sales on open account
D)  cash in advance→documentary credit (L/
C)  →documentary collection (draft) →sales on open account
E)  none of the above

Question 2

What are the differences between antidumping and countervailing duties? Under what conditions are these duties imposed?

Accepted Answer

Dumping essentially refers to the sale o...

Question 3

Which of the following receives a fee for bringing together an exporter and a buyer in another country?

Accepted Answer

A)  foreign purchasing agent
B)  export broker
C)  export merchant
D)  export management company
E)  freight forwarder

Question 4

Which of the following offers a company the best assurance of being paid for exported goods?

Accepted Answer

A)  a letter of credit
B)  a "piggyback" arrangement
C)  a swap
D)  an in-house export organization
E)  a certified check

Question 5

Which of the following refers to a system of farm subsidies in Europe?

Accepted Answer

A)  CVD
B)  FSC
C)  CAP
D)  HTS
E)  NTR

Question 6

According to a speech given by President Barack Obama, in many ways we can measure America's bottom line by looking at Caterpillar's bottom line.

Accepted Answer

A) True 
 B)False

Question 7

"Export selling" involves tailoring various elements of the marketing mix to global market requirements.

Accepted Answer

A) True 
 B)False

Question 8

If the dollar, the yen, or the euro becomes seriously overvalued, a company with a production capacity in other locations can achieve competitive advantage by:

Accepted Answer

A)  buying different currencies before major fluctuations take place.
B)  conducting transactions in different currencies of the world.
C)  shifting production among different sites.
D)  cutting down production and waiting until the currency rate is reasonable.
E)  reducing production and labor force simultaneously.

Question 9

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)  sales on open account
E)  bank draft

Question 10

Milan is widely regarded as the design capitol of the world.The year 2011 marked the 50th anniversary of the "Milan Furniture Fair," the world's largest furniture and home furnishings trade fair.

Accepted Answer

A) True 
 B)False

Question 11

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 above

Question 12

The Common Agricultural Policy (CAP)determines the level of subsidies granted to farmers in Latin America.

Accepted Answer

A) True 
 B)False

Question 13

Foreign purchasing agents are also referred to as jobbers.

Accepted Answer

A) True 
 B)False

Question 14

CVDs are duties imposed on imported videodiscs.

Accepted Answer

A) True 
 B)False

Question 15

The international standard by which letters of credit (L/Cs) are interpreted is known as the ________ 500.

Accepted Answer

A)  UCP
B)  NTR
C)  FSC
D)  NTB
E)  HTS

Question 16

Governmental actions at times are designed to discourage imports and block market access.Why do governments want to curtail imports? Explain some of the barriers that are placed to discourage imports.

Accepted Answer

In order to promote domestic industries ...

Question 17

Officially, the EU tariffs on Chinese and Vietnamese shoe imports are known as ________.

Accepted Answer

A)  Countervailing duties
B)  Antidumping duties
C)  Specific duties
D)  Ad valorem duties
E)  Temporary surcharges

Question 18

Which of the following is described as the three R's of global business: rules, rate schedules, and regulations?

Accepted Answer

A)  quotas
B)  tariffs
C)  NTBs
D)  NTR
E)  duties

Question 19

A duty that represents a certain percentage of the value of a particular product is a(n) :

Accepted Answer

A)  specific duty.
B)  ad valorem duty.
C)  BTN duty.
D)  "schedule B" duty.
E)  antidumping duty.

Question 20

The Customs Trade Partnership Against Terrorism (C-TPAT)recognizes that U.S.Customs and Border Protection (CBP)is responsible for screening import cargo transactions.

Accepted Answer

A) True 
 B)False

Exam 8: Importing, Exporting, and Sourcing

According to a speech given by President Barack Obama, in many ways we can measure America's bottom line by looking at Caterpillar's bottom line.

Correct AnswerverifiedShow Answer

If the dollar, the yen, or the euro becomes seriously overvalued, a company with a production capacity in other locations can achieve competitive advantage by:

Correct AnswerverifiedShow Answer

Foreign purchasing agents are also referred to as jobbers.

Correct AnswerverifiedShow Answer

Which of the following arranges export financing payment methods in descending order starting with the most secure/reliable and ending with the least secure/reliable:

Correct AnswerverifiedShow Answer

The Customs Trade Partnership Against Terrorism (C-TPAT)recognizes that U.S.Customs and Border Protection (CBP)is responsible for screening import cargo transactions.

Correct AnswerverifiedShow Answer

A duty that represents a certain percentage of the value of a particular product is a(n) :

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

Milan is widely regarded as the design capitol of the world.The year 2011 marked the 50th anniversary of the "Milan Furniture Fair," the world's largest furniture and home furnishings trade fair.

Correct AnswerverifiedShow Answer

Which of the following is described as the three R's of global business: rules, rate schedules, and regulations?

Correct AnswerverifiedShow Answer

Which of the following offers a company the best assurance of being paid for exported goods?

Correct AnswerverifiedShow Answer

"Export selling" involves tailoring various elements of the marketing mix to global market requirements.

Correct AnswerverifiedShow Answer

Which of the following refers to a system of farm subsidies in Europe?

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

Officially, the EU tariffs on Chinese and Vietnamese shoe imports are known as ________.

Correct AnswerverifiedShow Answer

The international standard by which letters of credit (L/Cs) are interpreted is known as the ________ 500.

Correct AnswerverifiedShow Answer

CVDs are duties imposed on imported videodiscs.

Correct AnswerverifiedShow Answer

Which of the following receives a fee for bringing together an exporter and a buyer in another country?

Correct AnswerverifiedShow Answer

Governmental actions at times are designed to discourage imports and block market access.Why do governments want to curtail imports? Explain some of the barriers that are placed to discourage imports.

Correct AnswerverifiedIn order to promote domestic industries ...View AnswerShow Answer

What are the differences between antidumping and countervailing duties? Under what conditions are these duties imposed?

Correct AnswerverifiedDumping essentially refers to the sale o...View AnswerShow Answer

The Common Agricultural Policy (CAP)determines the level of subsidies granted to farmers in Latin America.

Correct AnswerverifiedShow Answer

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In order to promote domestic industries ...
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Dumping essentially refers to the sale o...
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