Question 1

May Ling Chin has had poor success in collecting monies owed from clients in Hong Kong even though she understands that ins and outs of doing business with the Chinese there.In future arrangements she plans to pursue _____________ where,after offering the buyer a long-term financing deal,she will sell the account receivable to a Hong Kong bank and let them worry about collecting.She will not receive as much money as she would like but she will at least be assured of receiving a fair amount.

Accepted Answer

A) letters of credit 
B) bills of exchange 
C) forfaiting 
D) consular invoicing 
E) express financing

Question 2

What is the function of an Export Control Classification Number?

Accepted Answer

The answer of What is the function of an Export...

Question 3

The Export License Application and Information Network enables exporters that have authorization to submit license applications via the Internet for all commodities except supercomputers to all free-world destinations.

Accepted Answer

A) True 
 B)False

Question 4

____________ are (is)presented at the port of exit,includes the names and addresses of the principles involved,the destination of the goods,a full description of the goods,and their declared value.

Accepted Answer

A) The Bill of Lading 
B) Commercial Invoice 
C) Export Documents 
D) Insurance Policy or Certificate 
E) Consular Invoice

Question 5

When an exporter agrees to sell to a foreign buyer using the letter-of-credit format for payment,the next step after the exporter and customer agree on terms of sale is to have the buyer:

Accepted Answer

A) send payment documents to the seller. 
B) request its foreign bank to open a letter of credit. 
C) check the financial background of the seller. 
D) place an escrow document with a local lawyer. 
E) provide a statement of earnings.

Question 6

When goods are shipped overseas,ocean shipping is usually the least expensive and most frequently used for heavy bulk shipment of goods.

Accepted Answer

A) True 
 B)False

Question 7

The best way to determine if you need an export license to export into a country is to check the International Country Registry List maintained by the United Nations.

Accepted Answer

A) True 
 B)False

Question 8

Apple Computer operates an in-bond facility in Nuevo Laredo,Mexico,where it processes,packages,assembles,and even repairs Apple computers.Once the tasks are completed,Apple sends the goods back to the United States without ever paying exporting or importing fees from either country.Such an arrangement (facility)is popularly called:

Accepted Answer

A) companaros. 
B) an EX-IM warehouse. 
C) a refuge zone. 
D) Maquiladoras. 
E) a Norazi facility.

Question 9

Merge-in-transit is a distribution method in which goods shipped from several supply locations are consolidated into one final customer delivery point while they are in transit and then shipped as a unit to the customer.

Accepted Answer

A) True 
 B)False

Question 10

A __________ duty combines both specific and ad valorem taxes on a particular item.

Accepted Answer

The answer of A __________ duty combines both specific and...

Question 11

A total systems approach to management of the distribution process that includes such activities as physically moving raw material,in-process inventory,and finished goods inventory is called:

Accepted Answer

A) distributing. 
B) reseller management. 
C) intermediary control. 
D) physical management. 
E) logistics management.

Question 12

A common form of in-bond company used in Mexico is the ____________.

Accepted Answer

The answer of A common form of in-bond company used...

Question 13

Maquiladora is the name given to an operation that allows processing,packaging,assembling,and/or repair plants to be located in Mexico (in-bond areas)where goods may be processed without import taxes as long as they are re-exported to the United States or to another foreign country.

Accepted Answer

A) True 
 B)False

Question 14

Maquiladora management is a name given to a total systems approach to management of the distribution process that includes such activities as physically moving raw materials,in-process inventory,and finished goods inventory from point of origin to the point of use or consumption.

Accepted Answer

A) True 
 B)False

Question 15

If goods are delivered to a customer and the customer is billed at the end of the month for the goods,a(n)__________ account has been created by the seller.

Accepted Answer

The answer of If goods are delivered to a customer...

Question 16

Amos Washington would like to sell his urban sports wear line abroad but knows nothing about shipping his goods to markets that might be willing to sell his goods.A friend has recommended that he use a foreign freight forwarder to aid him.Would this be a good idea? Explain and elaborate on the role of the foreign freight forwarder in international trade.

Accepted Answer

The answer of Amos Washington would like to sell his...

Question 17

An important form of international commercial payment is ___________ (dollar drafts)where the seller assumes all risk until the actual dollars are received.

Accepted Answer

A) letters of credit 
B) forfaiting 
C) cash-in-advance 
D) commercial invoicing 
E) bills of exchange

Question 18

______________ an alternative to paper license submissions,enables an exporter to submit export and re-export applications,high-performance computer notices,and commodity classification requests via the Internet.

Accepted Answer

A) ELAIN (Export License Application and Information Network) 
B) STELA (System for Tracking Export License Applications) 
C) ERIC (Electronic Request for Item Classification) 
D) SNAP (Simplified Network Application Process) 
E) ITIS (International Trade Information System)

Question 19

According to the exporting process,all of the following would be considered to be types of documentation for goods leaving a country EXCEPT:

Accepted Answer

A) confidentially agreement 
B) commercial invoice 
C) bar codes of goods 
D) exchange rate agreement 
E) retained earnings statement

Question 20

__________ regulations may be imposed to protect health,conserve foreign exchange,serve as economic reprisals,protect home industry,or provide revenue in the form of tariffs.

Accepted Answer

The answer of __________ regulations may be imposed to protect...

Exam 15: Exporting and Logistics: Special Issues for Business

What is the function of an Export Control Classification Number?

The Export License Application and Information Network enables exporters that have authorization to submit license applications via the Internet for all commodities except supercomputers to all free-world destinations.

____________ are (is) presented at the port of exit,includes the names and addresses of the principles involved,the destination of the goods,a full description of the goods,and their declared value.

When an exporter agrees to sell to a foreign buyer using the letter-of-credit format for payment,the next step after the exporter and customer agree on terms of sale is to have the buyer:

When goods are shipped overseas,ocean shipping is usually the least expensive and most frequently used for heavy bulk shipment of goods.

The best way to determine if you need an export license to export into a country is to check the International Country Registry List maintained by the United Nations.

Merge-in-transit is a distribution method in which goods shipped from several supply locations are consolidated into one final customer delivery point while they are in transit and then shipped as a unit to the customer.

A __________ duty combines both specific and ad valorem taxes on a particular item.

A total systems approach to management of the distribution process that includes such activities as physically moving raw material,in-process inventory,and finished goods inventory is called:

A common form of in-bond company used in Mexico is the ____________.

Maquiladora is the name given to an operation that allows processing,packaging,assembling,and/or repair plants to be located in Mexico (in-bond areas)where goods may be processed without import taxes as long as they are re-exported to the United States or to another foreign country.

Maquiladora management is a name given to a total systems approach to management of the distribution process that includes such activities as physically moving raw materials,in-process inventory,and finished goods inventory from point of origin to the point of use or consumption.

If goods are delivered to a customer and the customer is billed at the end of the month for the goods,a(n)__________ account has been created by the seller.

An important form of international commercial payment is ___________ (dollar drafts) where the seller assumes all risk until the actual dollars are received.

______________ an alternative to paper license submissions,enables an exporter to submit export and re-export applications,high-performance computer notices,and commodity classification requests via the Internet.

According to the exporting process,all of the following would be considered to be types of documentation for goods leaving a country EXCEPT:

__________ regulations may be imposed to protect health,conserve foreign exchange,serve as economic reprisals,protect home industry,or provide revenue in the form of tariffs.