LSCM 4360 FINAL EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026

LSCM 4360 FINAL EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026 The commercial invoice: - Answers is sent with the shipment, is separate from a letter of credit, and has no connection to the export license (None of the Above) A government will use an ______ to attempt to control the export of national treasures or antiques. - Answers Export license The United States export policy is mostly concerned about: - Answers Keeping some military technologies away from some countries. In 1996, the ____ was revised to a U.S. export policy stating that "everything is authorized unless specifically prohibited.' - Answers Export Administration Regulation (EAR) A product not on the Commerce Control List, or whos Export Control Classification Number does not call for an export license, is classified as: - Answers EAR99 (None of the Above) Which of the following pieces of information does an international commercial invoice contain? - Answers Incoterms, a precise description of the product, and terms of payment (All of the Above) The pro forma invoice: - Answers must be written with extreme care to avoid discrepancies between the letter of credit and the commercial invoice Even when validated export licenses are not required, exporters are responsible for determining if there are 'red flags' in a transaction such as: - Answers a cash sale for a product generally purchased on credit terms, the product is sold to a company that does not appear to be in the exporter's main line of business, or the importer appears on the BIS's 'List of Specially Designated Nationals' (All of the Above) The sentence "This merchandise licensed by U.S. for ultimate destination [country]. Diversion contrary to U.S. Law prohibited" is: - Answers a Destination Control Statement (None of the Above) Among the reasons for import documents are: - Answers to keep out shoddy goods, to determine appropriate tariff classification, to help determine import goods values (All of the above) Besides a contract and a receipt for goods, an ocean bill of lading is: - Answers a certificate of title Which of the following regulate shipments of dangerous goods? - Answers The International Maritime Dangerous Goods Code Export taxes: - Answers May be used when the shipped goods are minerals in short supply, or when the product has been heavily subsidized by the government Incoterms determine if a Certificate of Insurance is: - Answers the responsibility of the exporter or importer In most cases, an intermodal bill of lading: - Answers is a straight bill of lading An air waybill: - Answers is always straight and nonegotiable EDI is: - Answers Electronic Data Interchange, an electronic exchange of documents from computer to computer, and based on a legal agreement between sender and recipient (All of the Above) An SED is: - Answers a Shipper's Export Declaration (None of the Above) End-Use certificates: - Answers Certify that the product is going to be used for a legitimate purpose A Certificate of Certifcation: - Answers Defines the technical characteristics of a good before it can be imported, may be written by an independent company, and may be written by a trade association (All of the above) For an exporter, one way to avoid having to pay for amendments to a letter of credit is to: - Answers prepare the pro forma invoice particularly carefully. For an American exporter, one way to avoid delays in the port of departure in the United States is to: - Answers Make sure that the Shipper's Export Declaration has been filed on time. A typical container will be handled _____ times in each of the ports of departure and destination. - Answers four to six According to John Waite, chief surveyor of the Salvage Association, the biggest hazard for container ships is: - Answers Fire (None of the Above) Most of the ships that sink each year: - Answers are older ships, are bulk ships, are ships flying third world country flags. (All of the Above) Which of the following is an insurance company? - Answers Cigna The part of a trip during which the cargo is most at risk for theft is: - Answers the inland leg An exporter in a developing country sells under CIF terms to an importer in a developed country. The exporter provides the minimum required insurance coverage. If there is a loss, the importer would: - Answers have to file a claim with an insurer in the developing country Marine cargo insurance can be purchased from: - Answers an insurance agent or freight forwarder (None of the Above) Premiums in a open ocean cargo policy: - Answers are based upon the value of shipments made under the policy. A special cargo policy: - Answers is an insurance policy that covers only one shipment, allows a firm to purchase coverage that specifically fits a particular shipment, results in cumbersome efforts to purchase insurance for each shipment. (All of the Above) A letter of credit usually requires: - Answers a Certificate of Insurance The liability of a single P&I club is limited to: - Answers $7 million Coverage A of the Institute Marine Cargo Clauses requires a special endorsement to cover: - Answers strikes and other civil disturbances Coverage A of the Institute Marine Cargo Clauses is the maximum coverage an exporter or importer would normally need to purchase: - Answers for most trade lanes of the world, for shipments from one developed country to another, for shipments that stay away from political hot spots of the world (All of the Above) Goods shipped "under deck": - Answers are stowed inside the ship Institute for Marine Cargo Clauses Coverage B: - Answers is a "named-perils" policy Institute for Marine Cargo Clauses Coverage C: - Answers is required by Incoterms CIF and CIP Under an American Conditions Free of Particular Average policy: - Answers there is poor coverage for containerized or break-bulk cargo, partial losses are covered if the result directly from a fire, and it would not be enough to cover the minimum insurance requirements of a CIF or CIP shipment (None of the Above) S.R. & C.C. coverage: - Answers includes direct physical damage to the insured goods, does not include incidental damage caused by delay to market, and does not cover financial losses that accompany a delay in the sale of cargo (All of the Above) A "Sue and Labor" clause: - Answers directs the shipper to act in the best interest of the insurance company when a loss occurs Insurance coverage designed to fill the gap between what an importer would like to have covered under its open cargo policy and what is covered under its supplier's CIF or CIP coverage is called: - Answers a Difference in Conditions coverage Airfreight insurance policies: - Answers are written as "All Risks" policies At Lloyd's, individuals assuming (insuring) risks on their personal fortunes are called: - Answers Bespoke Names At Lloyd's the individuals assuming (insuring) risks are grouped together in: - Answers syndicates (None of the Above) At Lloyd's, the individuals assuming (insuring) risks have: - Answers unlimited liability A major financial problem occurred for Lloyd's of London due to its coverage of: - Answers asbestos More companies are selling insurance on "open-account" basis because: - Answers of competitive pressure as customers try to acquire the best possible payment alternatives Condensation damage is covered by All Risk policies and: - Answers Coverage A of the Institute Marine Cargo Clauses "Warehouse to Warehouse" coverage is an extension to the traditional: - Answers All Risks policy, With Average policy, and Free of Particular Average policy (All of the Above) Deadweight tonnage: - Answers is the maximum weight of the cargo that a vessel can carry Gross registered tonnage is: - Answers the total volume capacity of the ship, expressed in hundreds of cubic feet, normally not appropriate for determining the cargo-carrying capacity of a ship (All of the Above) In containerized shipping, the term TEU stands for: - Answers Twenty-foot equivalent unit A characteristic of break-bulk ships is that they are: - Answers labor intensive Countries with an open registry often provide: - Answers flags of convinience Post-Panamax ships have capacities that can reach: - Answers 12,000 TEUs (6,000 - 18,000 TEUs) Break-bulk ships: - Answers can call at just about any port to pick up different kinds of cargo loads. The deck below the main deck which can accommodate smaller break-bulk cargo, is called the: - Answers Tweendeck (None of the Above) Ships dedicated to the transport of petroleum products are called: - Answers crude carriers They type of ship that coal is usually carried in is a: - Answers dry-bulk carriers Refrigerated ships are slowly being replaced by: - Answers refrigerated containers Standardized units of cargo on a LASH ship have a capacity of: - Answers 385 metric tons of deadweight tonnage LNG and LPG ships: - Answers often operate on long-term contracts NVOCCs are: - Answers regulated by the Federal Maritime Commission, they are not prohibited in North America, and in most cases act as freight consolidators and aggregate less-than-container load freight (None of the Above) The total capacity of the ship expressed in long tons is called: - Answers deadweight tonnage Capacity of a ship used to determine taxation of the ship by its country of registry or by port or canal authorities is called: - Answers gross registered tonnage Ships too large to pass through the Panama Canal are called: - Answers post-Panamax ships The increasing size in containerships may eventually result in: - Answers the development of a "hub" system Ships designed to carry one single type of refined petroleum product are sometimes called: - Answers Drugstore ships Which of the following international liability conventions allow carriers to argue that their liability is limited by "17 defenses," such as navigational errors? - Answers the Hauge-Visby Rules FTK stands for - Answers Freight Tonne Kilometers (None of the Above) Among the main types of aviation service are: - Answers passenger planes that happen to carry cargo, pure cargo planes that carry only freight, and scheduled and charter freight service (All of the Above) Among freight often carried in the belly of scheduled international passenger airplanes are: - Answers critical machine or computer parts and fresh produce like fish OBC service stands for: - Answers onboard courier Aircraft designed so that freight is carried on the main deck as well as in the belly hold tend to be: - Answers large, Boeing 747s, DC 10s (All of the Above) In calculating air freight rates, airlines figure the volume-weight of the shipment based on the volume yielding a certain weight value. As a result: - Answers the airline will charge the higher of the volume-weight or the actual weight of the cargo On international airfreight shipments, the volume-weight conversion uses: - Answers 166 cubic inches per pound Large amounts of _______ enter the United States through Miami Airport. - Answers cut flowers The international airfreight business is regulated by: - Answers International Air Transport Association and the International Civil Aviation Organization. (None of the Above) The Paris Convention of 1919: - Answers Established the concept of sovereignty of a country over its airspace. A cargo service that allows an exporter to ship a large quantity of goods to a location not normally served by a cargo airlines would be: - Answers charter airfreight service Airfreighters are fitted with a tail stand during loading operations in order to: - Answers prevent a "nose up" mishap during loading Which of the following sustainability initiatives have not been adopted or tested by airlines and/or airports? - Answers Reduced air speed to reduce carbon emissions The United States governmental agency that has primary responsibility for security issues in air transportation is: - Answers Transportation Security Administration Certified Cargo Screening Facilities are charged with: - Answers conducting one hundred percent inspections of all shipments that will eventually travel on passenger aircraft Trucking from a North American perspective is: - Answers domestic, heavy between the United States and Canada, and involved in some trade across the U.S.-Mexico border (All of the Above) Much trade at the United States-Mexico border is handled: - Answers on a Delivered at Frontier (DAF) basis Trucks carrying international cargo tend to be: - Answers Semi-trucks The biggest problem in international trucking in Europe is: - Answers Different regulations from country to country