IEI301 Chap 7|62 Questions With 100% Correct Answers|2024

1.Export prices should be low enough to remain competitive in the market, yet high enough to make reasonable profit. - ️️T 2. Parallel or gray markets are created when the product is purchased at a high price in one market and sold in markets that enjoy higher prices. - ️️F 3. One of the external forces that influences export pricing is location and environment of the foreign market. - ️️T 4. FCA, Ex-Works, DAF, and Ex-Store are all terms that are part of Group E terms. - ️️F 5. Under a CIF contract, when goods are lost or destroyed during transit the buyer is entitled to claim the purchase price against presentation of proper shipping documents to the seller. - ️️F 6. Common features shared by D terms include the arrival/destination terms, seller's requirement to arrange for transportation, and that Incoterms do not require insurance during transportation - ️️T 7. In arrival contracts, the buyer is under no obligation to pay the purchase price if the goods are lost in transit. However, in CIF the buyer is required to pay against documents. - ️️T 8. The UCC states that where a second-party carrier is not involved, risk of loss passes not upon mere tender of delivery but when the seller ships the goods. - ️️F 9. In cost-based pricing, the export price is based on the variable cost of producing the product. - ️️F