SCMN 3720 Strickland Final Exam Questions and Answers Already Passed

SCMN 3720 Strickland Final Exam Questions and Answers Already Passed Which country is the largest trading partner of the US based on combined exports and imports? Canada -US trading partners: Exports -US trading partners: Imports -Canada, Mexica, China -China, Canada, Mexico What is the term for the manufacturing facility in Mexico where products can be assembled and returned to the US without duty being paid? Maquiladora Plant Transaction Channel: -Transfer of ownership Linked to responsibility for managing goods in transit. Responsibilities include mode and carrier, insurance, routing, who pays for insurance and duties, who assumes risk. International terms of trade INCOTERMS (international chamber of commerce) Defines the buyers & sellers obligations for transporting goods from seller's premises to buyer's place in global marketplace. The objective is to avoid confusion and misunderstanding. Requirements address the following questions: Who is responsible for what? Who is going to pay for what? Where do responsibilities begin / end? Who assumes the risk? How many Incoterms? In 2010 reduced from 13-11. Available for domestic use 3 types of payment terms? Cash in advance, Open account, letter of credit Which of the terms of payment have the least risk to the SELLER? Highest risk to buyer Cash in Advance Which of the terms of payment have the least risk to the BUYER? Highest risk to seller Open Account Most expensive, issued by bank and charges a fee to the importer. Ensures that the exporter gets paid and the importer receives the goods. Letter of Credit Which international organization has begun the e-freight initiative aimed at replacing paper documents? International Air Transport Association (IATA) NAFTA North American Free Trade Agreement. Multilateral free trade agreement between the United States, Canada and Mexico. Eliminates most tariff and non tariff barriers to investment and free trade Difference between the global freight service options- direct and indirect services? -Direct service- is commonly used in situations when international freight is moving relatively sort distances between directly accessible origin and destination points -Indirect service- is used where freight is moving long distances between continents or facilities that are not directly accessible by the mode of choice Container ships are built specifically for the purpose of moving containers of what length? 20 ft and 40 ft Which incoterms requires the EXPORTER to assume responsibility for all risk of loss, customs costs, and delivery costs to the importer's premises? Lowest risk to Buyer DDP (Delivered Duty Paid) Which incoterm gives the IMPORTER the total responsibility for the shipment? Lowest risk to Seller EXW (Ex Works) What is a Bill of Lading Transportation document, when signed the carrier acknowledges that it has received the cargo in good condition in the right quantity Which transportation document acts as a contract of carriage between the transportation company and the cargo owner? Bill