EXIM

Importers do not prefer: (a) Advance payment (b) Documentation (c) Payment in Euro

(c) Payment in Euro

The certificate of origin will not have: (a) Shipping port details (b) Country of origin details (c) Description of goods (d) Chamber of commerce seal

(a) Shipping port details

Which of these is not a form of pre-shipment finance? (a) Advance against export bills sent on collection (b) Advances against incentives receivable from government (c) Packing credit (d) Pre-shipment credit in foreign currency

(a) Advance against export bills sent on collection

How specific must the location of shipment be made? (a) As precise as possible (b) Just the port (c) Just the address (d) None of the above

(a) As precise as possible

One of the following is NOT among the top five logistics services supported by IT: (a) B2B logistics hubs (b) Warehouse management (c) Transport management (d) Transport planning

(a) B2B logistics hubs

One of the following is NOT a benefit of containerization: (a) Big container ports dominating the shipping industry (b) More cargo carrying capacity on a ship (c) Higher return on investment (d) Less port congestion

(a) Big container ports dominating the shipping industry

Free on board is a term for? (a) Boats (b) Planes (c) Trucks (d) Trains

(a) Boats

Which of the following is the most commonly used method of payments when dealing with EXIM? (a) Credit transfers (b) Direct debits (c) Payment cards (d) Check

(a) Credit transfers

Electronic Data Interchange system is known as (a) EDI (b) EIS (c) ICC (d) RFID

(a) EDI

ONE OF the following is NOT used in EXPORT-IMPORT (a) Electronic currency (b) EDI (c) Electronic Fund transfer (d) RFID

(a) Electronic currency

Which incoterm is most efficient for a small company to use? (a) FOB (Free on Board) (b) CFR (Cost and Freight) (c) FAS (Free alongside Ship) (d) FCA (Free Carrier)

(a) FOB (Free on Board)

Which of these accurately describes CIF? (a) FOB + Shipping + Freight + Insurance (b) A+ unloading charges (c) B+ customs charges (d) C+ transport to importers surroundings

(a) FOB + Shipping + Freight + Insurance

FAS stands for (a) Free Alongside Ship (b) Free Alongside Shipment (c) Freight And Sea (d) Fuel And Shipment

(a) Free Alongside Ship

Incoterms are devised and published by: (a) International Chamber of Commerce (b) World Bank (c) World Trade Organization (d) United Nations

(a) International Chamber of Commerce

Mexican currency (a) Peso (b) Beso (c) Mexican dollar (d) Mehican Peso

(a) Peso

One of the following does not help to maintain the loyalty of shippers with conference lines: (a) Priority loading of the cargo (b) Service contracts (c) Deferred rebates (d) Volume-related discounts

(a) Priority loading of the cargo

This is NOT an objective of conducting customs examination of goods: (a) To create trade barrier for the export-import business (b) Determine proper documentation for custom clearance (c) Help gov't gather statistics of all goods imported/exported

(a) To create trade barrier for the export-import business

A sight bill of exchange is used when the exporter wants the payment before goods are collected (a) True (b) False

(a) True

Both the seller and buyer must agree and decide who will organize shipping insurance (a) True (b) False

(a) True

LC is part of the working capital limit of an importer (a) True (b) Bamo (c) False (d) El Banyo

(a) True

Letter of Credit is issued by a banker undertaking the guarantee on behalf of the importer (a) True (b) False (c) Nono (d) Yaya

(a) True

Systems & procedures involved in distribution of products and services is termed as logistics (a) True (b) False

(a) True

VAN stands for (a) Value added network (b) Value anticipated network (c) Varied additional news (d) Very anticipates news

(a) Value added network

Name the currency of South Korea (a) Won (b) Yuan (c) Yen (d) Peso

(a) Won

Incoterms are subject to change every .year(s) (a) 1 (b) 10 (c) 5 (d) 20

(b) 10

The product idea for e-marketing is: (a) Perfumes (b) Books (c) Footwear (d) Garments

(b) Books

Which document is critical (most important) to avail the benefits of free trade agreement? (a) Invoice (b) Certificate of origin (c) Bill of lading (d) LC

(b) Certificate of origin

If real interest rate is low, the currency of the country is weak (a) True (b) False (c) Nono (d) Yaya

(b) False

Shipping conferences are established to remove monopoly practices in shipping industry (a) True (b) False

(b) False

Where does the shipowners register their ships under the Open Registry system? (a) Home country (b) Flag of convenience country (c) No registration (d) USA

(b) Flag of convenience country

Import LC is issued by: (a) Exporter (b) Importer's bank (c) Exporter's bank (d) Advising bank

(b) Importer's bank

Bank finally collects the documents from the exporter and pays the exporter (a) Advising bank (b) Negotiating bank (c) Opening bank (d) None of these

(b) Negotiating bank

Which is not a principal export document? (a) Invoice (b) Proforma invoice (c) Bill of Lading (d) Certificate of origin

(b) Proforma invoice

Which of the following theory best defines the relationship between currencies on the basis of rate of inflation? (a) Interest rate parity theory (b) Purchasing power parity theory (c) Relative inflation theory (d) Foreign exchange parity theory

(b) Purchasing power parity theory

Keeping other things constant, logic demands that US dollar should definitely become costlier when: (a) Both US interest rate and US inflation rate decreases (b) The US interest rate increases whereas the US inflation rate decreases (c) The US interest rate decreases whereas the US inflation rate increases (d) Both US interest rate and US inflation rate increases

(b) The US interest rate increases whereas the US inflation rate decreases

There are currently .incoterms (a) 10 (b) 14 (c) 11 (d) 13

(c) 11

How many different steps are there for successful exporting? (a) 5 (b) 10 (c) 14 (d) 30

(c) 14

A document that is a receipt for goods delivered to the common carrier for transportation, a contract for the services rendered by the carriers, and a document of title is known as a(n): (a) Export license (b) Commercial invoice (c) Bill of lading

(c) Bill of lading

Which of the following is not a payment method for international trade? (a) Prepayment (b) Bill of exchange (c) Consignment (d) Factoring (e) Open account

(c) Consignment

Which is NOT a group D Incoterm (a) DDP (b) DAT (c) DDT (d) DAP

(c) DDT

Which of the following is true: (a) EDI is a substitute for email (b) EDI can be replaced by voice code technology (c) EDI is operated on value added network (d) Only small companies use EDI

(c) EDI is operated on value added network

One of the following is NOT used in international business: (a) Electronic Fund Transfer (b) Electronic Data Interchange (c) Electronic Currency (d) Radio Frequency Identification

(c) Electronic Currency

Forwarding transactions involve exchange of currency at .rate. (a) Swap rate (b) Reverse transaction rate (c) Forward rate (d) Spot rate (e) None of the above

(c) Forward rate

Which of the following is not a party to a letter of credit: (a) Advising bank (b) Confirming bank (c) Governing bank

(c) Governing bank

Which of the following is not a party to a letter of credit? (a) Advertising bank (b) Confirming bank (c) Governing bank (d) Issuing bank (e) Reimbursing bank

(c) Governing bank

A price agreed on CIF basis: (a) Does not include the freight charges (b) Includes freight charges up to the port of loading (c) Includes freight charges up to the port of unloading (d) Includes freight charges up to the importer's works

(c) Includes freight charges up to the port of unloading

When an exporter avails post-shipment credit in foreign currency, what is taken as the benchmark for the interest rate? (a) Benchmark lending rate (b) MIBOR (c) LIBOR (d) Indian bank rate

(c) LIBOR

When an importer doesn't want to pay in advance, what is the best method of payment to use? (a) Open Account (b) Bill of Exchange (c) Letter of Credit (d) Payment in Advance

(c) Letter of Credit

Which of these is not a principal export document? (a) Commercial invoice (b) Packing list (c) Pro forma invoice (d) Bill of lading

(c) Pro forma invoice

One of the following is NOT an element of logistics system (a) Nature of product (b) Availability of infrastructure (c) Quality of product (d) Government policies

(c) Quality of product

What is the major advantage of conference lines (Liner ships) to exporters? (a) Door-to-door service (b) Competitive freight rate (c) Regular sailings to scheduled ports

(c) Regular sailings to scheduled ports

What is the full form of UCPDC? (a) Uniform Civil Practices for Duty on Customs (b) Unity for Common Purposes in Duty on Customs (c) Uniform Customs and Practice for Documentary Credits (d) Uniform Customs and Purposes for Documentary Credits

(c) Uniform Customs and Practice for Documentary Credits

Management must do what to have a successful exporting strategy? (a) Assess export potential by examining opportunities/resources (b) Select a market or markets (c) Formulate and implement an export strategy (d) All of the above

(d) All of the above

What does the bill of lading consist of? (a) The shipping companies name & address (b) The port of loading and the port of discharge (c) Shipping marks and particulars (d) All of the above

(d) All of the above

The company that uses ONLY the e-marketing platform is: (a) Microsoft (b) Acer Computers (c) Dell Computers (d) Amazon.com

(d) Amazon.com

Which of the following is NOT a commonly used container for shipping? (a) Open top container (b) Reefer container (c) Platform container (d) Bronze container

(d) Bronze container

Which document specifies the name of the country where goods are produced? (a) Shipping bill (b) Packing note (c) Custom invoice (d) Certificate of origin

(d) Certificate of origin

The service that is NOT offered by a C&F agent to shippers is (a) Coordination with shippers and shipping lines (b) Storing the cargo in his own warehouse at the port (c) Securing port permit for the cargo (d) Completing customs formalities at the port for the shippers

(d) Completing customs formalities at the port for the shippers

One of the following is NOT among the top FIVE container ports in the world: (a) Singapore (b) Hong Kong (c) Shanghai (d) Dubai

(d) Dubai

Which of the following is not a part of E-Business (a) E-procurement (b) E-marketing (c) E-logistics (d) E-trade

(d) E-trade

A major hurdle in the wider application of RFID is: (a) Lack of awareness about RFID (b) Yet to be proven technology (c) Popularity of bar coding (d) High per unit cost

(d) High per unit cost

One of the following is NOT a voyage or operational overhead (a) Port charges (b) Canal toll charges (c) Fuel charges (d) Interest on borrowed capital

(d) Interest on borrowed capital

ICC stands for (a) Internal Chamber of Communication (b) International Committee of Commerce (c) Internal Communication Channel (d) International Chamber of Commerce

(d) International Chamber of Commerce

A reason for the dominance of developed countries in the shipping industry is (a) Available credit to developed countries by commercial banks (b) Historical maritime superiority (c) Developing areas don't have long-term finances to fund fleets (d) Lack of ship building expertise in developing countries

(d) Lack of ship building expertise in developing countries

The bank which finally collects the documents and claims reimbursement is called the: (a) Advising bank (b) Confirming bank (c) Paying bank (d) Negotiating bank

(d) Negotiating bank

The product suitable for air transport is: (a) Heavy machinery (b) Oil (c) Fertilizers (d) None

(d) None

Benefit of an efficient logistics system is: (a) Lowering advising costs (b) Improved product quality (c) Better utilization of resources (d) None of the above

(d) None of the above

Countries Currencies A - China 1 - Lira B - Korea 2 - Peso C - Mexico 3 - Won D - Turkey 4 - Yuan The correct country-currency pairing is: (a) A-1, B-3, C-4, D-2 (b) A-4, B-2, C-1, D-3 (c) A-2, B-4, C-3, D-1 (d) None of the above

(d) None of the above

The major advantage offered by conference lines to shippers is: (a) Door to door services (b) Competitive freight rates (c) Offices all over the world (d) Regular sailings to scheduled ports of call

(d) Regular sailings to scheduled ports of call

Which of the following is NOT a type of LC? (a) Revocable LC (b) Irrevocable LC (c) Transferable LC (d) Reimbursing LC

(d) Reimbursing LC

Which of the following is NOT a party involved in the transaction of an LC? (a) Applicant (b) Advising bank (c) Confirming bank (d) Shipping company

(d) Shipping company

Purpose for demanding certificate of origin for customs clearance is: (a) To know the port of dispatch of goods (b) To assess the value of goods (c) To know if the country is a member of ATA carnet (d) To claim preferential duty

(d) To claim preferential duty

What does TEU stand for? (a) Tonne Equivalent Unit (b) Twelve Equal Units (c) Ten Feet Equivalent Units (d) Twenty Feet Equivalent Units

(d) Twenty Feet Equivalent Units

The main advantage for direct exporters is that they have _______________ over export, pricing, sales promotion, after-sales-service, etc.

Direct control

For an Importer, sight bill is more convenient than the Usance bill.

False

If the real interest rate in a country is low, then the currency of that country is weak.

False

In a CIF contract; it is not the responsibility of the seller to procure a contract of insurance for the shipped goods.

False

Letter of credit is issued by a banker undertaking the guarantee for the quantity of goods shipped.

False

Special Import License and General license are of same nomenclature.

False

Strengthening of the foreign currency is good from the point of view of importer while it is bad from the perspective of the exporter.

False

The exporter draws a Usance bill under the documents against payment method.

False

Letter of credit issued by the banker is considered as a part of working capital limit of the exporter.

False (Note: considered for importer)

____________ means that the price quoted includes all costs, including transport and other charges, incurred up to the time the goods are loaded onto a ship for transporting them abroad.

Free-on-board

An exporter prepares the __________ to give an idea to the importer that 'if you place the order with me and when I export, your invoice will look like this.

Pro forma invoice

When the drawer, i.e., exporter, expects the drawee, i.e., the importer, to make a payment immediately upon the draft being presented, the draft is called ____________. However, when the exporter agrees to give credit of say 30 days or 60 days, the draft is called ___________.

Sight draft, Usance draft

SWIFT stands for

Society for Worldwide Interbank Financial Telecommunication

__________ is a document through which the buyer's bank guarantees invoice payments to a supplier; it promises to pay the beneficiary if the buyer fails to pay.

Standby letter of credit

EDI stands for Electronic Data Interchange.

True

Exchange Rate of JPY is always quoted in terms of 100 JPY against 1 US Dollar.

True

It is necessary to hire Clearing & Forwarding agent in the export/import business.

True

LIBOR stands for London Inter-bank Offer Rate.

True

The customs appraiser examines the value of goods.

True

The forward premium (or discount) usually reflects the difference between the home and foreign interest rates.

True

The prime objective of export promotion council is to promote and develop the exports of the country.

True

Two-way (Buying & Selling rates) exchange rate quote is being used in most of the countries.

True