Which of the following is false about the impact of tariff?

A. The government gains because it increases government revenues.

B. Domestic producers gain because the tariff affords them some protection
against foreign competitors by increasing the cost of imported foreign goods.

C. Consumers lose since they must pay more for certain imports

D. There is no impact of tariff on price of import and/or export products.

Which of the following is not true for indirect distribution channel?

A. Indirect channel needs little or no investment or marketing experience, and it

is suitable for firms with limited resources or experience.

B. Indirect channel helps increase overall sales for the firms.

C Indirect channel is a good way to test market products before making

substantial commitment.

D. Indirect chanriel increases the contact/feedback from end users.

All of the following are true of tariffs except

A. they reduce the revenue for the government.

B. they can be levied as a proportion of the value of the imported goods.

C they can be levied as a fixed charge for each unit of goods imported

D. they impose significant costs on domestic consumers.

Which organization is the forum in which fares and rates are negotiated among
member airlines?

A. IATA

B. AITA

Ο TAIA

D. AAIT

is the activity that controls the transportation of physical materials through the
value chain, from procurement through production and into distribution.

(Choose answer)

A. Outsourcing
B. Production

C. Logistics

D. Distribution

If a firm faces a possibility that changes in foreign currency values could either
reduce their future receipts or increase their payments in foreign currency, it is
called

A. Political risk

B. Foreign credit risk

C. Transportation risk

D. Foreign exchange risk

In market research, which issue(s) should be examined when assessing financial

and economic condition?

(Choose answer)

A. Climate

B. Trends in inflation, interest rates, exchange rate stability

C. Religion and culture of that market

D. Natural resources of that market

In Incoterms 2020, FAS (Free Alongside Ship) and FOB (Free On Board) are
rules for which kind of transport?

A. Any mode of transport

B. Inland waterway or sea transport

C. Rail transport only

D. Air transport only

An importer in Vietnam buys equipment from an exporter from U.S.A. The

importer requires the exporter to provide them with a document which attests the
specifications of the goods, and this document must be issued by the third party.
Which of the following documents should best match this requirement?

A. A commercial invoice issued by an exporter

B A packing list issued by an exporter

C. A certificate of origin which states the origin of goods only

D. An inspection certificate issued by an inspection company in the U.S

Which statement is false about countertrade?

A. Countertrade helps firms contact directly with their customers.

B. Countertrade helps firms control over the operation and make sure its
confidentiality.

C Countertrade is costly and mostly suitable for multinational companies with

broad-based product lines

D. Countertrade is very consistent with the national treatment standard under

GATT/WTO

Which document is often issued to the exporter by the carrier transporting the
merchandise and it serves as a receipt, a contract, and a document of title?

A. A bill of lading

B. A draft

C. A commercial invoice

D. An insurance certificate

Direct exporting is likely to provide opportunities for commitment even though

it requires a high degree of financial

A. High profit margins

B. Low profit margins

C. Medium profit margins

D. No profit margins

The procurement and physical transmission of material through the supply

chain, from suppliers to customers is called:

A. Material management

B. Logistics

C. Distribution

D. Warranty
An air waybill acts as

A. Document of title only

B. Contract of carnage only

C Shipper's receipt of goods only

D. Both contract of carriage and shipper's receipt of goods

Trade shows provide importers with the following advantages, except

A. A variety of products to buy

B. Opportunities for personal contact

C Information on competitors

D. Increase in trade barriers among countries.

Which of the following is not belonged to the Group for maritime transport only
under Incoterms 2020?

CIA

A CIE

B FAS

C FOB

D. FCA

Which level of international economic integration involves the free flow of

products and factors of production between members, the adoption of a common
extemal trade policy, as well as requiring a common currency, harmonization of
a tax rates, and a common monetary and fiscal policy?

A. Free trade area

B Customs union

C. Economic union

D. Common market
Who often arranges for goods to be picked up and delivered to a carrier, selects
the transportation mode, and books the necessary space for the cargo?

A. A freight forwarder

B. A bank

CA state-owned committee

D. A customs broker

A price agreed in CIF (Incoterms 2020)

A. Includes freight charges up to port of loading

B. Includes freight charges up to port of discharge

C Includes freight charges up to exporter's factory

D. Does not include any freight charge to any location

Which is not true for outsourcing?

A. Firms can achieve lower price

B. Firms can gain benefits from advanced technology available from foreign
sources

C. Firms can improve their international competitiveness.

D. Firms will face no problem with quality and delivery time.

The ultimate controlling unit within the European Union is the

A. European Council

B. European Commission

C European Parliament

D. European Central Bank

According to Incoterms 2020, an exporter has responsible for arranging the

insurance for the goods in

A CIE

B. FOB

C EXW
D. CPT

According to CIF Incoterms 2020

- seller must pay the costs and freight includes insurance to bring the goods to
(1)..

-risk is transferred to the buyer once the goods are loaded on the ship at (2)

A. (1) port of loading, (2) port of loading

B (2) port of destination, (2) port of destination

C. (1) port of destination, (2) port of loading

D. (1) port of loading, (2) port of destination

Which payment method guarantees that the beneficiary/exporter will be paid by

the issuing bank provided that they presented a complied documents?

A. Documentary credit

B. Open account

C. Collections

D. Cash in advance

Low trade barriers

A. have facilitated the globalization of production

B. have hurt nations more than they have helped.

C increase the costs of imported goods and services

D. All of these

Which of the following are potential risks faced by an applicant under a letter of
credit?

(1) Loss or damage to goods in transit

(2) Foreign exchange risk

(3) Failure of the issuing bank

(4) Fraud in the presented documents

A. (1), (2) and (3)

B. (2), (3) and (4)

C. (1), (3) and (4)

D. (1), (2), (3) and (4)

Which of the following is false?

A. Exporters often face voluminous paperwork, complex formalities, and many

potential delays and errors

B. The United States Department of Commerce stands ready to help potential

American exporters find potential export opportunities.

C. Only a very few states and cities are involved in trade commissions whose
purpose is to promote exports

D. There are a number of private organizations ready to provide assistance to

would-be exporters

In a free trade area

A. barriers to the trade of goods and services among member nations are
removed.

B. a common currency is adopted.

Ca single parliament determines political and foreign policy

D. a common external trade policy is adopted.

In Incoterms 2020, what does FAS stand for?

A. Free alongside ship

B. Free after ship

C Fund alongside ship

D. Fund after ship

Under the GSP system, which condition is NOT required for imports from
eligible countries to enjoy tariff exemptions or reductions?

A. The merchandise is destined to the United States without contingency for

diversion at the time of exportation.
B. The cost or value of materials produced in the beneficiary country and/or the
direct cost of processing performed is no less than 35 percent of the appraised
value of the goods

C. The United Nations certificate of origin is prepared and signed by the

exporter and filed with the entry of the goods

D. The merchandise must be high-technology products

Which of the following is true of a common market?

A. All barriers to the trade of goods and services among member countries are
removed and each country maintains its own policy toward nonmember
countries.

B. It involves the free flow of products and factors of production between

member countries and adoption of individual external trade policies

C. It has no barriers to trade between member countries, includes a common

external trade policy, and allows factors of production to move freely between
members.

D. It eliminates trade bamers between member countries and adopts a common

external trade policy and a common currency

In order to limit foreign credit risk from the importer in international trade,
which payment method the exporter can use?

(Choose answer)

A. Letter of credit

B. Open account

C Clean collection

D. Both letter of credit and open account

Which of the following is NOT a motive behind the move toward the
harmonization of international contract law?

A. Increase in trade and other economic relations between nations

B. The growth of international customary law

C. The adoption of international conventions and rules

D. Reduction in trade and other economic relations between nations

Which of the following transport documents is not appropriate for transportation
by sea?

A. A bill of lading

B. A charter party bill of lading

C An airway bill

D. A through bill of lading.

According to the United States customs regulations, who may not make an entry
for imported goods?

A. Owner of the goods

B. Unauthorized employee

C Licensed customs broker

D. Purchaser of the goods

In customs valuation, please select the correct order in which imported

merchandise is appraised.

(Choose answer)

A. Deductive value, transaction value, computed value

B. Transaction value, deductive value, computed value

C Computed value, transaction value, deductive value

D. Computed value, deductive value, transaction value

Economic theory suggests that import levels are affected by different factors,
including which of the following?

A. Price of imports, exchange rate, and price of international goods relative to

exports

B. Price of imports and exchange rate only

C Price of imports and price international goods relative to exports

D. Price of imports, exchange rate, and price of domestic goods relative to

imports

Identify the type of countertrade transaction that best fits this example: Levi
Strauss transfers its know-how and trademark to a Hungarian firm for the
production and sale of its products, with an agreement to purchase and market
the output in Western Europe.

A. Buyback

B Clearing

C. Simple

D. Compensation

Which GATT Negotiation Round resulted in the establishment of the World

Trade Organization (WTO)?

A. Geneva Round (1956)

B. Kennedy Round (1962-1967)

Tokyo Round (1973-1979)

D. Uruguay Round (1986-1994)

A method of payment requiring the buyer to pay before shipment is effected is

called

A. Cash in advance

B. Collection

C Open account

D. Documentary credit

offsets are contractual arrangements in which goods and services unrelated to

the exports are acquired from or produced in the host (purchasing) country.
These include, but are not limited to, certain forms of foreign investment,
technology transfer, and countertrade.

A. Direct

B Indirect

C Bilateral

D. Unilateral

In all barriers to trade of goods and services among member countries are
removed and the countries adopt a common extemal trade policy

A. Free trade area

B. Customs union

C Preferential agreement

D. None of the others

Which of the following describes a method of protection against fluctuations in

the importer's currency?

A. The addition of risk premium on the price at the time of the contract

B. The reduction of risk premium on the price at the time of the contract

C Establishment of a risk account in the importer's country

D. Establishment of a risk account in the exporter's country

The means that once imported goods have been cleared customs, a contracting
party of GATT is required to treat foreign imports in the same way as it treats
similar domestic products

A. Most favored nations (MFN) standard

B. National treatment (NT) standard

C. Fair standard

D. Discrimination standard

International trade can bring some following benefits, except

A. To acquire a variety of goods and services

B. To increase cost of production

C. To increase incomes and employment

D. To learn about advanced technical methods used abroad

This a common clause in sales contracts that essentially frees both parties from
liability or obligation when an extraordinary event or circumstance beyond the
control of the parties, such as a war, strike, riot crime, or an event described by
the legal term act of God (hurricane, flood, earthquake, volcanic eruption, etc.)
prevents one or both parties from fultiling their obligations under the contract.
What clause is it?

A. Force majeure

B. Delivery
C. Packing

D. Payment

USMCA (formerly called NAFTA) consists of

A. The United States, Canada, and Mexico

B. The United States, Mexico, and Chile

C. The United Kingdom, Canada, and Mexico

D. The United Kingdom, Chile and Mexico

In logistics deals with the inbound flow of materials and productions

A. Physical distribution

B. Packaging

C. Material management

D. Labeling

Free Trade Zones are certain designated areas, usually located in or... a customs
port of duty, where merchandise admitted a tariff until it is entered into the
customs territory.

A. near, is not subject to

B. near, is subject to

C far from is not subject to

D. far from, is subject to

International Logistics

A. Is using different currency and exchange rate

B. Is facing only one national regulation on customs procedures, documentation,

packing and labeling requirements.

C is suitable for very short distance, and no need for high inventory levels.

D. has the goods transported mostly by trucks.