International Logistics Exam 2 with verified
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answers
The |Incoterms |Rule |EXW |specifies |what |regarding |delivery? |- |CORRECT |ANSWER-It |lets |the |exporter |
decide |when |the |goods |are |delivered
Among |the |following, |the |most |customer-friendly |Incoterms |Rule |is |- |CORRECT |ANSWER-DAP
Certain |countries |do |not |allow |importers |to |purchase |insurance |aboard. |Which |Incoterm |is |therefore |
not |available |to |importers |located |in |these |countries? |- |CORRECT |ANSWER-CIP
Incoterms |Rules |determine |- |CORRECT |ANSWER-Which |tasks |will |be |performed |by |the |exporter
The |risks |that |an |exporter |takes |in |requesting |cash |in |advance |as |a |means |of |payment |is/are |- |
CORRECT |ANSWER-It |puts |the |exporter |at |a |competitive |disadvantage
Which |one |of |the |following |answers |is |a |"document |in |which |the |importer's |bank |essentially |promises
|to |pay |the |exporter |if |the |importer |does |not |pay"? |- |CORRECT |ANSWER-Letter |of |credit
Which |one |of |the |following |answers |is |not |a |method |of |payment |in |international |trade? |- |CORRECT |
ANSWER-Bill |of |lading
TradeCard |is |a |proprietary |electronic |system |that |combines |payment |and |document |handling |- |
CORRECT |ANSWER-True
There |are |insurance |policies |that |pay |the |exporter |if |the |importer |does |not |pay |- |CORRECT |ANSWER-
True
Among |other |reasons, |international |transactions |are |perceived |to |have |more |risk |of |non-payment |
because |of |- |CORRECT |ANSWER-- |a |lack |of |credit |info
, - |a |lack |of |personal |contact
- |no |easy |legal |recourse
ALL |OF |THE |ABOVE
An |exporter |can |conduct |its |international |business |in |a |manner |similar |to |the |way |that |most |
companies |conduct |domestic |business |by |using |- |CORRECT |ANSWER-An |open |account
Which |one |of |the |following |answers |is |NOT |among |the |advantages |of |Purchasing |cards? |- |CORRECT |
ANSWER-documents |are |transmitted |electronically
In |valuing |a |currency, |the |direct |quote |is |- |CORRECT |ANSWER-The |value |of |the |foreign |currency |
expressed |in |units |of |the |domestic |currency
Market-based |forecasting |of |exchange |rates |- |CORRECT |ANSWER-All |of |above
The |risk |resulting |from |possible |fluctuations |in |currency |exchange |rates |is |called |- |CORRECT |ANSWER-
Transaction |exposure
Stable |countries |representing |the |greatest |percentage |of |world |trade |all |have |_____ |currencies |- |
CORRECT |ANSWER-Floating
In |its |absolute |form, |the |exchange |rates |determination |theory |of |Purchasing |Power |Parity |- |CORRECT |
ANSWER-All |of |the |above
SDRs |of |the |International |Monetary |Fund |can |be |used |in |international |transactions |- |CORRECT |
ANSWER-As |an |artificial |currency
One |strategy |a |company |can |follow |to |protect |itself |from |currency |fluctuations |is |use |of |- |CORRECT |
ANSWER-Forward |market |hedges
| | | | | |
answers
The |Incoterms |Rule |EXW |specifies |what |regarding |delivery? |- |CORRECT |ANSWER-It |lets |the |exporter |
decide |when |the |goods |are |delivered
Among |the |following, |the |most |customer-friendly |Incoterms |Rule |is |- |CORRECT |ANSWER-DAP
Certain |countries |do |not |allow |importers |to |purchase |insurance |aboard. |Which |Incoterm |is |therefore |
not |available |to |importers |located |in |these |countries? |- |CORRECT |ANSWER-CIP
Incoterms |Rules |determine |- |CORRECT |ANSWER-Which |tasks |will |be |performed |by |the |exporter
The |risks |that |an |exporter |takes |in |requesting |cash |in |advance |as |a |means |of |payment |is/are |- |
CORRECT |ANSWER-It |puts |the |exporter |at |a |competitive |disadvantage
Which |one |of |the |following |answers |is |a |"document |in |which |the |importer's |bank |essentially |promises
|to |pay |the |exporter |if |the |importer |does |not |pay"? |- |CORRECT |ANSWER-Letter |of |credit
Which |one |of |the |following |answers |is |not |a |method |of |payment |in |international |trade? |- |CORRECT |
ANSWER-Bill |of |lading
TradeCard |is |a |proprietary |electronic |system |that |combines |payment |and |document |handling |- |
CORRECT |ANSWER-True
There |are |insurance |policies |that |pay |the |exporter |if |the |importer |does |not |pay |- |CORRECT |ANSWER-
True
Among |other |reasons, |international |transactions |are |perceived |to |have |more |risk |of |non-payment |
because |of |- |CORRECT |ANSWER-- |a |lack |of |credit |info
, - |a |lack |of |personal |contact
- |no |easy |legal |recourse
ALL |OF |THE |ABOVE
An |exporter |can |conduct |its |international |business |in |a |manner |similar |to |the |way |that |most |
companies |conduct |domestic |business |by |using |- |CORRECT |ANSWER-An |open |account
Which |one |of |the |following |answers |is |NOT |among |the |advantages |of |Purchasing |cards? |- |CORRECT |
ANSWER-documents |are |transmitted |electronically
In |valuing |a |currency, |the |direct |quote |is |- |CORRECT |ANSWER-The |value |of |the |foreign |currency |
expressed |in |units |of |the |domestic |currency
Market-based |forecasting |of |exchange |rates |- |CORRECT |ANSWER-All |of |above
The |risk |resulting |from |possible |fluctuations |in |currency |exchange |rates |is |called |- |CORRECT |ANSWER-
Transaction |exposure
Stable |countries |representing |the |greatest |percentage |of |world |trade |all |have |_____ |currencies |- |
CORRECT |ANSWER-Floating
In |its |absolute |form, |the |exchange |rates |determination |theory |of |Purchasing |Power |Parity |- |CORRECT |
ANSWER-All |of |the |above
SDRs |of |the |International |Monetary |Fund |can |be |used |in |international |transactions |- |CORRECT |
ANSWER-As |an |artificial |currency
One |strategy |a |company |can |follow |to |protect |itself |from |currency |fluctuations |is |use |of |- |CORRECT |
ANSWER-Forward |market |hedges
