export final

126) If the seller delivers the purchased good to a port determined by the buyer, where risk and transport expenses become the responsibility of the buyer, use A) FCA B) FAS C) FOB D) FAC

C) FOB

146) A classification system developed in 1950 and reported to the United Nations is the A) ECCN B) CTPAT C) SITC D) SIC

C) SITC

13) Vertical trade missions and trade shows A) are better attended than other trade shows or missions B) are for any type of product C) are industry specific D) have very little focus

C) are industry specific

3) The numerical segment sequence of commodity codes is A) statistical subdivisions, heading, subheading, chapter B) heading, subheading, chapter, statistical subdivisions C) chapter, heading, subheading, statistical subdivisions D) subheading, heading, statistical subdivisions, chapter

C) chapter, heading, subheading, statistical subdivisions

14) Tips to help U.S. firms sell products in a particular foreign market can be gained by reviewing information provided by A) Veritas Commerical Review. B) the Commercial Service Country Commercial Guide C) the World Bank. D) UNCOMTRADE.

D) UNCOMTRADE

125) Which of the following is NOT a benefit of indirect exporting? A) The product will enter the international marketplace faster. B) Management can continue to work on national priorities while not needing to focus overseas sales and marketing. C) All international sales are treated the same as domestic sales, thus eliminating foreign exchange risk. D) A very high risk for the product's manufacturer.

D) a very high risk for the product's manufacturer

1) Companies should attend trade shows for A) hands-on learning B) cost savings C) exposure D) all of the above

D) all of the above

135) Which one of the following is a major issue to identify whether to export directly or indirectly? A) Identify company strengths B) the exporting company's priorities for international expansionC C) determination of the most cost effective approach D) all of the above are essential to the decision

D) all of the above are essential to the decision

The value for insurance certification is generally established

D) by adding product cost, insurance cost, and a 10% margin of safety

127) The six guiding rules on determining harmonized codes as shown in the book are a brief description of A) Customs Binding Rules B) Classification Interpretation Guide C) International Trade Resource D) General Rules of Interpretation

D) general rules of interpretation

112) Of the choices below, which requires the most overseas involvement?

D) overseas assembly

2) An SED is a A) security export document B) select environmental document C) standard export document D) shipper's export declaration

D) shipper's export declaration

150) MERCOSUR is an agreement concerning trade on the continent of A) Asia B) Europe C) Africa D) South America

D) south america

All of the following experienced substantive change by Incoterm 2000 ruling EXCEPT

DEQ

Gannon's metaphor for the U.S. is

Football

The commodities trade statistics database that's used the 5 digit SITC code known as:

UNCOMTRADE

121) The largest trade show in the world is ___ and in the United States is ____/

A) Hannover Messe and COMDEX

7) In the United States, codes for a product being either imported or exported A) may vary in the last 4 digit segment of the code. B) are interchangeable. C) are always exactly the same code number. D) come under different section headings.

A) may vary in the last 4 digit segment of the code.

To determine the demand of ink cartridges in a market, the market researcher looked at the number of households with computers. This is an example of

A) national statistics substitution

141) There are two types of BILLS OF LADING, these are: A) negotiable and non-negotiable B) insurance covered or no insurance coverage C) binding and non-binding D) title and non-title bearing

A) negotiable and non-negotiable

147) Which of the following is not a pitfall of secondary research? A) cost B) culture C) outdated D) comparability

B) Culture

118) NAICS stands fo

B) North American Industry Classification

129) Which is not one of the resources listed in class to find airport codes? A) World Air Codes B) Raymond's guide C) Leonard's guide D) USaircode

B) Raymond's Guide

9) Harmonized codes are needed to prevent misinterpretation in all areas listed below except: A) quotas B) VAT C) duties D) tariffs

B) VAT

10) Reducing risk exposure when entering a market, is a reason to choose A) to not enter at all B) a small scale of entry strategy C) a moderate scale of entry startegy D) a large scale of entry strategy

B) a small scale of entry trade

A freight forwarder can handle all the following tasks except

B) collections from customers

149) The "grandfather clause" in export contracts does include: A) the assumption that sales after contract expiration are a result of the former distributor B) commission on sales after expiration of a contract C) warranty issues D) none of the above

B) commission on sales after expiration of a contract

Which of the following is not an opportunity of travel when considering partners for direct export?

B) get out of the office once in a while

5) When a government takes private property within each national borders of foreign entities this process is known as A) nationalization B) optimization C) expropriation D) condemnation

B) nationalizations

108) If advertising sells products, public relations sells:

companies

A pitfall of secondary data is

comparability

Tax benefits for U.S. exporters are:

in a state of flux

Group C of INCOTERMS automatically indicates:

main carriage is paid and selected by the seller.

Researching monetary unions and the trade alliances while selecting new markets is part of:

market analysis.

124) Challenges that impact the decision to go beyond exporting include..

transportation costs

One purpose of the Bill of Lading is as a contract for

transportation of goods

What is the distinction between C and INCOTERM groups?

when responsibility for the goods pass from seller to buyer

8) The INCOTERM that put the biggest burden onto the seller is A) DDU B) EXW C) DDP D) DAF

C) DDP

A declaration is not required for shipments in which the total value of each single harmonized code product category does not exceed:

$2500

Exporters have access to roughly ___ potential markets in the world.

200

A TEI indicates

: the total volume of a 20's intermodal container

115) The most important part of Export Documentation is

Accuracy

Which of the following responsibilities are included in EXW costs

All of the above

Wyatt is concerned about having pricing control with a partner he is considering working with to indirectly export his product. His best hope is to work with:

An EMC

144) The penalities for knowingly providing false information on the NAFTA Certificate of Origin can range from A) $5,000 to $10,000 B) $1,000 to $1,500 C) $10,000 to $100,000 D) $2,000 to $2,500

C) 10,000-100,000

11) CFR is the INCOTERM for A) creating freight B) carrying freight resources C) cost and freight D) cost free onboard

C) cost and freight

138) Which is not one of the seven factors to consider when choosing the appropriate INCOTERM? A) buyer B) country C) shipping route D) origin of shipment

C) shipping route

117) When negotiating a new contract or agreement, it may be necessary for each party involved to relax some of it's demands to meet the other party's demands or needs. This negotiation style is known as

C) the sequential approach

6) When selecting a distributor, Paul takes his time, makes multiple contacts and tries not to let emotions cloud his judgment. According to Griffin, Paul is A) only holding up progress for his company B) being ridiculously cautious C) training distributors like murder-suspects and cross checking data D) overly conservative and lacking commitment

C) training distributors like murder-suspects and cross checking data

137) Tariffs are put into place by governments to protect A) foreign exporters B) domestic retailers C) domestic producers D) foreign importers

C)domestic producers

122) All of the following are air transport INCOTERMS except:

CIF

Since the terrorist attacks of 2001, a news program has been instituted to insure incoming and outgoing cargo are safe: what is the acronym for that program?

CTPAT

109) Which of the following is NOT a characteristic of INCOTERMS?

D) 15 terms created for the use in national and international transactions

4) Yilu cannot find statistics for a certain country, whose economy is similar to a country in the region where her firm is already exporting. Using data between her home country and the current export country, she will project forecasts for the new country. She is using a shortcut known as

D) timeline comparisons

INCOTERMS that indicate the seller delivers to a chosen destruction point, are found in:

Group D

When the main carriage is unpaid, an incoterm from which group will be selected?

Group F

The set of business dimensions that explores 10 dimensions is listed by:

IBM's research

130) A service provider wishing to expand internationally that does not have the resources to handle the risk of owing foreign asset should consider the _______ entry mode.

Piggyback

INCOTERMS are: always accompanied by a geographic location

always accompanied by a geographic location

Packing lists are most needed on International shipments

are used

Most research on culture has been completed

by European Researchers

Criteria F of the NAFTA preference criteria is for

dairy and eggs

The SIC classification:

describes the activity of the organization

The document that consist of an order or set of instructions that generally clarifies payment terms is a

draft

A company is utilizing electronic documents for transactions would wish to consult guidelines of the....

eUCP

120) Which of the following is NOT one of the nine basic documents?

export licenses

Grease payments are defined as

payments to facilitate or speed up routine governmental activities.

which citizens will be most likely to directly say "no" during negotiations

russians

The accuracy of the SED is the responsibility of the

seller