International Logistics

Primary packaging is the package that retailers will see

false

RORO is the type of ship that specializes in shipping perishable commodities.

false

The four drivers for international trade are cost driver, market driver, policy driver, and technology driver.

false

The legal system that governs the contract of sale for U.S. domestic transactions is CISG

false

The main purpose of having the double haul design in their water vessels is to increase vessel fuel efficiency

false

The sole purpose of packaging is to protect the cargo.

false

Tradecard is safe for the exporter while providing high customer service, however, the main drawback is that it is very expensive

false

Under the CIF term, the exporter does not need to pre-pay for the insurance

false

In a documentary collection, which of the following is responsible to notify the importer and release the documents

presenting bank

Ultimately, the importer is the one that needs to pay for all the shipping costs even if these costs are "pre-paid" by the exporter.

true

Unitization refers to the procedure when smaller packaging units are assembled into a single larger unit.

true

Please chose the correct statement about Incoterms

Under CIF term, the exporter needs to pre-pay insurance and the main carriage

Which of the following statement about the open account is incorrect:

Under the factoring without recourse, if the factoring company fails to collect payment from the importer, the factoring company can ask the exporter for assistance

Which party will act on the exporter's behalf and review the letter of credit?

advising bank

Active exporting is applicable when companies want to exploit the possibilities that sales abroad can bring. Which of the following strategy belongs to active exporting?

agent

Regardless of the Incoterm, the exporter is always required to

assist in export customs clearance

To ensure an international transaction to be successful, the importer and the exporter need to agree on three critical elements. Which of the following is not one of the elements:

method of packaging

As an exporter, which one will I consider to be the method of payments with the highest customer service

open account

As a seller/exporter, which one will I consider being the method of payments with the lowest non-payment risk

cash in advance

As an exporter, which one will I consider to be the method of payments with the lowest non-payment risk

cash in advance

Which party is called Beneficiary in a letter of credit transaction?

exporter

An agent is an equivalent to a distributor.

false

Factor endowment theory is a theory that holds that, over its life cycle, a product will be produced in different countries

false

Importers must pay the exporter immediately when they are presented with a date draft.

false

Once the cargo is loaded into the container, it is unnecessary to use block materials for extra protection.

false

One important criterion to decide whether a country has an absolute advantage is the opportunity cost.

false

Among the statements of sourcing, which of the following is correct:

Near shoring refers to the practices that companies bring production back to nearby countries

Which of the following about cost driver for the international transaction is incorrect

Among the four drivers (cost, market, technology, competition), it is the least important one

Which of the following statement about the method of entry is incorrect?

Both ETC and EMC take titles of the products before reselling them

Which Incoterms can be used for all modes of transportation?

CIP

Indirect exporting is applicable when the companies are unwilling exporters and want to focus on the domestic market, which of the following belongs to indirect exporting:

ETC

Forecast approach A: ME= 4, MAD = 18;Forecast approach B: ME=-5, MAD = 6;Which of the following statement is incorrect?

Forecast approach A provides a better forecast since its MAD is larger

Which of the following about distribution contract termination is correct:

If an exporter decides to terminate the contract with a distributor because of the change of company strategy, such termination will be a termination for convenience

Which organization created and periodically reviews INCOTERMS?

International Chamber of Commerce (ICC)

Which is not true of the Harmonized System of Classification?

It has limited acceptance in the world

Which of the following is correct:

Main-carriage refers to the international transportation between importing and exporting country

Which of the following statement about resolving a dispute in an international distribution relationship is true

Mediation is not conducted in a court room setting

What is gray marketing?

Sale of authentic products by the distributor through unauthorized distribution channels

According to the factor endowment theory, which of the following is not a factor

Technology

Which of the following statement about the documents involved in an international transaction is correct

The exporter usually drafts and sends the pro forma invoice to the importer

A product is imported to U.S. from a foreign country. Depends on the country of origin of the product, which of the following statement is true

The importer has to pay more duty if the product is from Cuba and North Korea

Each Incoterm specifies the following, except:

Which party owns the goods at each point of the shipment.

Each Incoterm specifies the following, except:

Which payment method will be used for this transaction

Teenagers all over the world listen to Lady Gaga and buy Nike sneakers. These are examples of:

globalization of markets

According to the factor endowment theory, which of the following is not a factor?

innovation

Which party issues the letter of credit?

issuing bank

Which of the following are classification of packaging:

primary and secondary packaging

Which of the following is not a driver for firms to conduct international business?

regulation driver

There are two types of rules to determine the product's country of origin: Substantial transformation and Change in the HS classification​.

true

According to the factor endowment theory, which of the following is not a factor?

technology

What is an Harmonized System of Classification code root?

the first six digits of the code, which refers to a broader product category shared by all countries

Who ultimately pays for transportation and other shipping costs, even if these costs are "pre-paid" by the exporter?

the importer

What is the delivery point under Incoterms?

the point of transfer of responsibility for the goods from the exporter to the importer

Tariffs, or duties, are assessed based on the following factors, except

the standing of the importer on the white list of law-abiding importers.

Benefits for flying a flag of convenience include few regulatory requirements and a lower tax rate for the shipowners.

true

Importers must pay the exporter immediately when they are presented with a sight draft.

true

In the case of factoring without recourse, the factoring bank is responsible for the payment even if the collection is not successful.

true

Joint venture (JV) is an approach for firms to produce overseas.

true

Logistics is a segment of supply chain management.

true

One potential threat of licensing is that intellectual property​ might not be well-protected.

true

Secondary packaging is the package that retailers will see

true

The exporter is called Beneficiary in a letter of the credit transaction basis transaction.

true

The importer is known as the Applicant in a letter of credit transaction

true

The plimsoll mark is a mark on the side of the ship that indicates the classification society.

true