INCOTERMS EXAM QUESTIONS AND
ANSWERS CHAPTER 6, 7, 17, 9, 4
Which of these aspects are NOT defined by INCOTERMs?
-Time of delivery.
-All answers are defined by the incoterm used.
-tasks performed by importer.
-point of which resposibility of the goods shifts. - answer- Time of delivery.
Which of the following family of INCOTERMs puts more risk on the shoulder of the
supplier/exporter/seller?
-F
-C
-D
-E - answer- D
Which of the following statements is FALSE?
-INCOTERMs can be specific to a transportation mode.
-The International Chamber of Commerce is responsible for the INCOTERMs.
-the Importer always chooses the INCOTERM.
-Each INCOTERM has syntax for a way it has to be stated on documents. - answer-
The Importer always chooses the INCOTERM.
What is the delivery point under Incoterms?
-the point of transfer of responsibility for the goods from the exporter to the importer.
-the final destination of goods.
-the last international border crossing point.
-the international port or airport of arrival in the import country. - answer- the point of
transfer of responsibility for the goods from the exporter to the importer
Which of the following factors is NOT important for choosing the INCOTERM to use?
-Transportation mode.
-Packaging to be used.
-Trust level between importer and exporter.
-Type of product. - answer- Packaging to be used.
Incoterms rules formally define the following aspects of an international sale:
,-Which tasks will be performed by the exporter and which ones by the importer
-Which activities will be paid by the exporter and which ones by the importer
-All of these possible answers are correct
-The exact point at which the responsibility for the goods transfers from the exporter
tothe importer - answer- All of these possible answers are correct
Regardless of the Incoterm, the exporter is always required to...
-assist in export customs clearance.
-buy insurance.
-use a freight forwarder.
-pay terminal handling charges.
-Arrange for transportation of goods in the exporting country. - answer- assist in
export customs clearance.
The choice of a proper Incoterms Rule is a critical decision because
-it is linked to the level of customer service the firm is attempting to provide
-All other answer choices are correct
-it can be a competitive advantage because
-it influences price negotiations-it can be an integral part of export strategy - answer-
-All other answer choices are correct
Which of the following are parts of every INCOTERM rule?
-Syntax, reach, method
-Modality, syntax, price
-Reach, scope, price
-Scope, modality, syntax - answer- Scope, modality, syntax
Which of the following family of INCOTERMs puts more risk on the shoulder of the
customer/importer/buyer?
-E
-F
-D
-C - answer- E
Which of the following is correct regarding how to split the impo/expo transaction for
the purpose of describing INCOTERMs?
-packaging, transportation, unpacking
-loading, transportation, unpacking
-pre-packaging, land-bridge, tariff determination
-pre-carriage, carriage, on-carriage - answer- pre-carriage, carriage, on-carriage
Incoterms Rules stands for
-in-country termination-terminal incorporation procedures
-international company terminology
, -international commerce terms
-intercontinental term standards - answer- international commerce terms
Which of the activities below may fall under the responsibility of BOTH the
exporterand the importer to arrange for the same international shipment?
-Import customs clearance.
-All other option choices are correct.
-Export customs clearance.
-Marine insurance purchase.
-Transportation of goods. - answer- Transportation of goods.
Which of the following family of INCOTERMs should be expected to be "more
expensive" to the customer/importer/buyer? That is, if the supplier provides a quote
for each Incoterm, which one should be a higher price quoted to the customer?
-E
-D
-C
-F - answer- D
Consider these three methods of payment: cash in advance, letter of credit, open
account. Sort them, from HIGH to LOW, by the probability that the
exporter/seller/supplier looses the sale.
-cash in advance, open account, letter of credit
-open account, cash in advance, letter of credit
-letter of credit, cash in advance, open account
-cash in advance, letter of credit, open account - answer- cash in advance, letter of
credit, open account
Which of the following activities is/are performed by the issuing bank in letter of
credit operations?
-Identifies the exporter as the beneficiary.
-Issues the Letter of Credit.
-Processes importer's request.
-All of these are correct. - answer- All of these are correct.
What is the term used to name the probability of not being paid?
-Exposure.
-Certification
-Declaration.
-Risk. - answer- Risk.
...is the consequence of a loss.
-Risk.
-Exposure.
ANSWERS CHAPTER 6, 7, 17, 9, 4
Which of these aspects are NOT defined by INCOTERMs?
-Time of delivery.
-All answers are defined by the incoterm used.
-tasks performed by importer.
-point of which resposibility of the goods shifts. - answer- Time of delivery.
Which of the following family of INCOTERMs puts more risk on the shoulder of the
supplier/exporter/seller?
-F
-C
-D
-E - answer- D
Which of the following statements is FALSE?
-INCOTERMs can be specific to a transportation mode.
-The International Chamber of Commerce is responsible for the INCOTERMs.
-the Importer always chooses the INCOTERM.
-Each INCOTERM has syntax for a way it has to be stated on documents. - answer-
The Importer always chooses the INCOTERM.
What is the delivery point under Incoterms?
-the point of transfer of responsibility for the goods from the exporter to the importer.
-the final destination of goods.
-the last international border crossing point.
-the international port or airport of arrival in the import country. - answer- the point of
transfer of responsibility for the goods from the exporter to the importer
Which of the following factors is NOT important for choosing the INCOTERM to use?
-Transportation mode.
-Packaging to be used.
-Trust level between importer and exporter.
-Type of product. - answer- Packaging to be used.
Incoterms rules formally define the following aspects of an international sale:
,-Which tasks will be performed by the exporter and which ones by the importer
-Which activities will be paid by the exporter and which ones by the importer
-All of these possible answers are correct
-The exact point at which the responsibility for the goods transfers from the exporter
tothe importer - answer- All of these possible answers are correct
Regardless of the Incoterm, the exporter is always required to...
-assist in export customs clearance.
-buy insurance.
-use a freight forwarder.
-pay terminal handling charges.
-Arrange for transportation of goods in the exporting country. - answer- assist in
export customs clearance.
The choice of a proper Incoterms Rule is a critical decision because
-it is linked to the level of customer service the firm is attempting to provide
-All other answer choices are correct
-it can be a competitive advantage because
-it influences price negotiations-it can be an integral part of export strategy - answer-
-All other answer choices are correct
Which of the following are parts of every INCOTERM rule?
-Syntax, reach, method
-Modality, syntax, price
-Reach, scope, price
-Scope, modality, syntax - answer- Scope, modality, syntax
Which of the following family of INCOTERMs puts more risk on the shoulder of the
customer/importer/buyer?
-E
-F
-D
-C - answer- E
Which of the following is correct regarding how to split the impo/expo transaction for
the purpose of describing INCOTERMs?
-packaging, transportation, unpacking
-loading, transportation, unpacking
-pre-packaging, land-bridge, tariff determination
-pre-carriage, carriage, on-carriage - answer- pre-carriage, carriage, on-carriage
Incoterms Rules stands for
-in-country termination-terminal incorporation procedures
-international company terminology
, -international commerce terms
-intercontinental term standards - answer- international commerce terms
Which of the activities below may fall under the responsibility of BOTH the
exporterand the importer to arrange for the same international shipment?
-Import customs clearance.
-All other option choices are correct.
-Export customs clearance.
-Marine insurance purchase.
-Transportation of goods. - answer- Transportation of goods.
Which of the following family of INCOTERMs should be expected to be "more
expensive" to the customer/importer/buyer? That is, if the supplier provides a quote
for each Incoterm, which one should be a higher price quoted to the customer?
-E
-D
-C
-F - answer- D
Consider these three methods of payment: cash in advance, letter of credit, open
account. Sort them, from HIGH to LOW, by the probability that the
exporter/seller/supplier looses the sale.
-cash in advance, open account, letter of credit
-open account, cash in advance, letter of credit
-letter of credit, cash in advance, open account
-cash in advance, letter of credit, open account - answer- cash in advance, letter of
credit, open account
Which of the following activities is/are performed by the issuing bank in letter of
credit operations?
-Identifies the exporter as the beneficiary.
-Issues the Letter of Credit.
-Processes importer's request.
-All of these are correct. - answer- All of these are correct.
What is the term used to name the probability of not being paid?
-Exposure.
-Certification
-Declaration.
-Risk. - answer- Risk.
...is the consequence of a loss.
-Risk.
-Exposure.
