is an order written by an exporter instructing the importer, or an importer's

agent, to pay a specified amount of money at a specified time

A. A bill of exchange (draft)

B. A bill of lading

C A certificate of origin

D. A certificate of inspection

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

A. Letter of credit

B. Open account

C Clean collection

D. Both letter of credit and open account

Specific tariffs are

A levied as a proportion of the value of the imported good.

B. levied as a fixed charge for each unit of a good imported.

Cin the form of manufacturing or production requirements of goods

D. government payment to domestic producers

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 channel increases the contact/feedback from end users.

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.

Which of the following is not a feature of direct distribution channel?

A. It can be cheap and not time consuming

B. It offers manufacturers opportunities to learn about their markets and

customers

It allows firms greater control over their activities.

D. It offers manufacturers a chance to gain better relationship with their trading

partners.

Oral contract means

A. A contract need not be concluded or evidenced in writing.

B. A contract must be concluded or evidenced in writing.

CA contract is decided by the exporter only

D. A contract is decided by the importer only.

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 contingericy for

diversion at the time of exportalion

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

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

A JATA

B. AITA

C TAIA

D. AAIT

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

merchandise is appraised.

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

The method(s) used to protect against foreign exchange risks include:

A. Shifting the risk to third parties only

B. Shifting the nsk to the other party in an export contract only

Both shifting the risk to third parties and shifting the risk to the other party in an
export contract

D. None of these

If cargo insurance policy is written for a single trip or shipment, it is..

A. Voyage policy

B. Time policy

C Open policy

D. Closed policy

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.

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

An air waybill acts as.

A. Document of title only.

B. Contract of carnage only

Shipper's receipt of goods only

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

…..products is common in industries that have few competitors or in which the

companies produce differentiated

A. Skimming pricing

B. Marginal pricing

C Penetrating pricing

D. Demand-based pricing

Which party opens the letter of credit, and has responsible for making payment
to the beneficiary if they present complied documents?

A. Issuing bank

B. Applicant

C Negotiating bank
D. Beneficiary

A letter of credit is issued by a bank at the request of a (an)..... and states that the
bank will pay a specified sum of money to a (an) on the presentation of
particular, specified documents

A. Importer, beneficiary

B. Importer, custom broker

C Beneficiary, importer

D. Beneficiary, custom 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

….is a direct restriction on the quantity of some good that may be imported into
a country

A. Specific tariff

B. Import quota

C Subsidy

D. Ad valorem tariff

In countries where exchange control restrictions are in place,... is quite common.

A. Countertrade

B. Exporting

C Importing

D. Both exporting and importing

In Incoterms 2020, what does FAS stand for?

A. Free alongside ship

B. Free after ship

C Fund alongside ship

D. Fund after ship

A gence" in

A. Making the rail land worthy

B. Making the ship safe and fit for their reception, carriage, and preservation of
goods

C Making the cost of using ship at lowest cost

D. Making the airplane and airport most convenience

This agreement came into effect on January 1, 1994. It is also the first reciprocal
free trade pact between a developing nation and industrial countries. What is it?

A NAFTA

B. AFTA

C EVFTA

D. AKFTA

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

insurance for the goods in:

A CIE

B. FOB

C EXW

D CPT

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

Countertrade
A. Accounts for a very small percentage of total world trade.

B. Refers to a range of barterlike agreements by which goods and services can

be traded for other goods and services.

C Makes sense when a country's currency is freely convertible

D. Is totally consistent with national treatment standard (NT) which is embodied

in most trade agreements.

At the Doha Round of the WTO in late 2001,

A. the WTO was established

B. GATT was extended to include services.

C world trade volume increased.

D. an agenda was established to phase out subsidies to agricultural producers.

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

A document that specifies the conditions under which an exchange of goods

and/or services is to occur and details the rights and obligations s of the parties
involved is best known as a

A. Sales contract

B. Business letter

C Memorandum

D. Civil code

Which of the following is seen as a disadvantage of the euro?

A. Higher foreign exchange and hedging costs.

B. National authorities losing control over monetary policy.

It becomes difficult to compare prices across Europe

D. Undermines the development of a pan-European capital market.

According to Incoterms 2020, an importer has responsible for arranging and

paying the main carriage in

A eXW

B. CIF

C CIP

D.DDP

Who issues a bill of lading?

A A carrier

B. An exporter

An importer

D. A Chamber of commerce

Which type of risk a business has to face with if the government may impose
severe restrictions on export-import trade, such as limitation or control il of
exports/imports?

A Political risk.

B. Foreign credit risk

C Transportation risk

D. Foreign exchange risk

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

Final selection of is based on their international knowledge and experience,

willingness to devote sufficient time to develop the product and willingness to
provide training
A supplier

B. importer

C customs

D. arbitrator

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

On January 1, 1993, moved toward a single market with 340 million consumers.

A. the European Union

B. MERCOSUR

C the Andean community

ID NAFTA

Which statement is incorrect?

A. The exporter has an obligation to do export clearance in CIF (Incoterms

2020)

B. The importer has an obligation to do import clearance in FOB (Incoterms

2020).

The exporter has an obligation to do export clearance in EXW (Incoterms 2020)

D. The importer has an obligation to do import clearance in CPT (Incoterms

2020

Trade shows provide importers with the following advantages, except

A. A variety of products to buy

B. Opportunities for personal contact

Information on competitors

D. Increase in trade barriers among countries

Under a letter of credit, which of the following party will present the documents
to claim payment from issuing bank?

A. Applicant

B. Beneficiary

C Freight forwarder

D. Customs broker

Low trade barriers

A. have facilitated the globalization of production.

B. have hurt nations more than they have helped.

Cincrease the costs of imported goods and services

D. All of these

The primary purpose of in the context of foreign trade is to reduce the financial
burden of losses arising from the movement of goods over long distances

A. Insurance

B. Transportation

C Investment

D. Inventory

Which of the following is not a main institution in the political structure of the
EU?

A. The European Parliament

B. The European Central Bank

The European Commission

D. The Council of the European Union

Action of legitimate government authorities to confiscate cargo, war, revolution

that impede the conduct of international business belongs to

A. Foreign credit risk

B. Political risk
C Transportation risk

D. Foreign exchange risk

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?

A Climate

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

Religion and culture of that market

D. Natural resources of that market

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 tois

The is, in essence, an independent body whose function is to act as a referee

who can monitor trade between countries, make sure that no side cheats, and
impose sanctions on a country if it break the rules in the trade game.

A. United Nations (UN)

B World Trade Organization (WTO)

C. International Chamber of Commerce (ICC)

D World Bank (WB)