1. What does traffic management in logistics involve?

A. Selecting the fastest mode of transportation

B. Consolidating large cargo shipments
C. Handling inventory and storage issues
D. Choosing transportation carriers, documenting shipments, and managing
claims
2. What is the purpose of a pro-forma invoice in international trade?
A. To certify the origin of the export product
B. To provide insurance coverage details
C. To request a certificate of inspection
D. To give a provisional price quotation to the prospective buyer
3.All of the following are true of tariffs except:
A. they reduce the revenue for the government.
B. they can be levied as a proportion of the value of the imported goods
C. they can be levied as a fixed charge for each unit of goods imported.
D. they impose significant costs on domestic consumers.
4. Incoterms 2020: Under which Incoterm does the seller have the least
responsibility for transportation, and the buyer is responsible for all costs and
risks from the seller's premises?
A. FOB (Free on Board)
B. CIP (Carriage and Insurance Paid To)
C. CFR (Cost and Freight)
D. EXW (Ex Works)
5. Establising the export potential of a product or service does NOT include
A. researching the product/service success in domestic markets
B. participating in domestic trade shows
C. collecting the market data
D. advertising
6. Incoterms 2020: Under the Incoterm "DAP" (Delivered at Place), who is
responsible for the payment of import customs duties and taxes?
A. Seller
B. Buyer
C. Shipping company
D. Freight forwarder
7. Trade shows provide importers with the following advantages, except:
A. A variety of products to buy
B. Opportunities for personal contact
C. Information on competitors
D. Increase in trade barriers among countries
8. What type of duty is used in this case: $10.00 per ton (wheat) or $4.00 per
dozen (fountain pens)?
A. Ad valorem duty
B. Specific duty
C. Compound duty
D. Flexible duty
9. The definition of Price is one of the major clauses in Representation
Agreement, in which it states that: All sales of products are made in accordance
with and agreed upon between the parties.
A. the price list, discount structure.
B. applicable law, the price list
C. purchase of goods; the basis for renewal
D. dispute settlement, contract
10.How have technology improvements impacted the logistics industry?
A. They have increased export controls.
B. They have led to import restrictions.
C. They have transformed the industry.
D. They have decreased the need for logistics networks
11 In selecting the export product, indicates the products/services that
consumers regard as "luxuries" due to consuming in response to rising incomes.
A. product adaptability
B. quality and niche marketing
C. shifting spending patterns
D. demographic and physical environment
12 In customs valuation, this method starts with the costs of materials, labor, and
overheads in producing the imported goods.
13 Customs then adds profits and general expenses incurred by the producer.
Which method is mentioned here?
A. Computed value
B. ISM value
C. Deductive value
D. Transaction value
14 Specific tariffs are:
A. levied as a proportion of the value of the imported good.
B. levied as a fixed charge for each unit of a good imported
C. in the form of manufacturing or production requirements of goods.
D. government payment to domestic producers.
15 Which of the following reasons does not give rise to the termination of a
contract?
A. Bankruptcy
B. Unpredictable events such as war, international conflicts
C. Change of ownership
D. Change of business name and management
16 Final selection of is based on their international knowledge and experience,
willingness to devote sufficient time to develop the product and willingness to
provide training.
A. supplier
B. importer
C. customs
D. arbitrator
17 What is the primary determinant of competitive pricing in the context of
export pricing?
A. Market demand
B. Variable production costs
C. The desired return on investment
D. Competitive pressures in the market
18 …is the activity that controls the transportation of physical materials through
the value chain, from procurement through production and into distribution.
A. Outsourcing
B. Production
C. Logistics
D. Distribution
19 Under what conditions can either party typically cancel an export contract for
delay or default in performance?
A. If the price escalation clause is triggered
B. If the contract specifies the applicable law
C. If the delay or default is caused by conditions beyond its control
D. If the exporter performs through an agent, branch, or subsidiary

20 This is an overseas production arrangement, usually based on a government-

to-government agreement that permits a foreign government or producer to
acquire the technical information to manufacture all or part of an equipment or
component originating in the exporting country. It may include a government-
to-government production under license.
A. Subcontractor production
B. Coproduction
C. Investment production
D. Technology transfer production
21 What is the central consideration in the opportunity-cost approach to logistics
when making decisions about sourcing components abroad versus buying from
domestic sources?
A. Minimizing transportation costs
B. Maximizing the benefits of individual units
C. Ensuring the total opportunity cost is not greater than other options
D. Reducing warehousing costs
22 Which type of marine insurance primarily covers the hull of a vessel and its
furnishings?
A. Cargo insurance
B. Liability insurance
C. Freight insurance
D. Hull insurance
23 Incoterms 2020: In the case of an Incoterm like DPU (Delivered at Place
Unloaded), what does "Unloaded" specifically indicate in the delivery process?
A. The seller is responsible for unloading goods from the carrier's vehicle.
B. The buyer is responsible for unloading goods from the carrier's vehicle
C. The goods are unloaded by a third party, not the seller or buyer
D. The goods are automatically unloaded by the carrier upon arrival.
24 Which of the following is NOT an institution of the European Union?
A. The European Council
B. The European Commission
C. The European Parliament
D. The European Chamber of Commerce
25 What does the total-cost approach in logistics focus on?
A. Maximizing corporate system benefits
B. Evaluating the interaction of materials
C. Evaluating the total cost implications of various activities
D. Considering the trade-off in logistic decisions
26 Incoterms 2020: Under the Incoterm "CIP" (Carriage and Insurance Paid To),
at what point does the risk transfer from the seller to the buyer?
A. When the goods are loaded onto the vessel
B. When the goods are cleared for export
C. When the goods are handed over to the first carrier
D. When the goods are delivered to the named place of destination
27 Which of the following is true about International Trade?
A. It is the exchange of goods and service within a certain country.
B. It requires the least commitment and risk to the companies' resources.
C. It is an expensive way of testing a product.
D. None of the above
28 An air waybill acts as:
A. Contract between buyers and sellers (*)
B. Document of title (**)
C. Shipper's receipt of goods (***)
D. (**) and (***)
29Which license exception allows exports/reexports of gift parcels to an
individual, religious, or organization located in any country?
A. EAR
B. STELA
C. GFT
D. ELAIN
30 The sources of U.S. antiboycott regulations can be found in:
A. Export Administration Act (EAA)
B. Import Administration Regulations (EAR)
C. External Revenue Code
D. Import Code
31 Smaller nations enter into the Regional Integration Agreements (RIA) for
which reasons:
A. Market access and creation of joint ventures with other less developing
nations
B. Market access and establishing trade and FDI relations with transition
economies
C. Market access and to deal more effectively with larger economies in
multilateral trade tall
D. None of these
32 Which is not true for outsourcing?
A. Firms can achieve lower price
B. Firms can gain benefits from advanced technology available from foreign
sources
C. Firms can improve their international competitiveness.
D. Firms will face no problem with quality and delivery time.
33 The method(s) used to protect against foreign exchange risks include:
A. Shifting the risk to third parties only
B. Shifting the risk to the other party in an export contract only
C. Both shifting the risk to third parties and shifting the risk to the other party in
an export contract
D. None of these
34 The payment terms offered by exporters to foreign buyers are all of the
following except:
A. Cash in advance
B. Consignment but negotiable note
C. Open account
D. Documentary collection
35 Under the GSP system, which condition is NOT required for imports from
eligible countries to enjoy tariff
exemptions or reductions?
A. The merchandise is destined to the United States without contingency for
diversion at the time of exportation.
B. The cost or value of materials produced in the beneficiary country and/or the
direct cost of processing performed is no less than 35 percent of the appraised
value of the goods.
C. The United Nations certificate of origin is prepared and signed by the
exporter and filed with the entry of the goods.
D. The merchandise must be high-technology products.
36 Which of the following is a reason to not protest actions in cases when the
buyer refuses to pay or honor the sales contract?
A. A limited time is allowed for such actions
B. They can be quite costly
C. They could hinder future business dealings with customer
D. All are correct

37 What is the U.S. policy toward countertrade?

A. U.S. government prohibits federal agencies from promoting countertrade in
their business. (*)
B. A hands-off approach in relation to private transactions with U.S.
government. (**)
C. The U.S. government allows federal agencies to promote countertrade. (***)
D. (*) and (**)
38 In United States, once the has been released from customs, a bond must be
posted to guarantee payment of duty upon final assessment of duty.
A. merchandise
B. documentations
C. company staffs
D. sales contract
39 Which of the following is not an international effort to control corruption?
A. The OECD Antibribery Resolution, 1992
B. The OECD Convention on Combating Bribery, 1997
C. The ICC Rules of Conduct to Combat Extortion and Bribery, 1977 (revised in
1996)
D. Transparency International (TI)
40 Which of the following is not a major factor in international supplier
selection?
A. Quality assurance
B. Financial conditions
C. Buyer-supplier relationships
D. Exporter-freight forwarder relationships
Parallel transactions include clearing arrangements and counter-purchase
A. TRUE
B. FALSE
41 Which of the following is the advantage of exporting through indirect
channels?
A. Having little initial investment or marketing experience needed.
B. Great opportunity to learn international business know-how and develop
marketing contacts from the beginning.
C. Easily access to countless contacts and feedback from end-users.
D. Possess full control over marketing and pricing.
42 What type of government actions can contribute to political risks in foreign
trade?
A. Promoting free trade agreements
B. Imposing restrictions on currency exchange
C. Facilitating the ease of international trade
D. Limiting or controlling exports and imports, and imposing trade restrictions
43 Export drafts must be paid before the seller receives shipping documents
A. TRUE
B. FALSE
44 A letter of credit contains a typographical error of some significance. An
amendment requires approval by:
A. The account party (*)
B. The beneficiary (**)
C. The issuing bank (***)
D. (*) and (***)
45 Buybacks, counter-purchase, or offsets require the use of one or separate
contracts. Its key provisions include which of the following?
A. The compensation ratio.
B. Range of products to be countertraded
C. Assignment clause
D. All are correct
46 What does freight insurance provide protection for?
A. Damage to the ship's hull
B. Loss of cargo during transportation
C. Compensation for induced attacks on the ship
D. Loss of money in the form of freight due to accidents
47 Which of the following is the consequence of the growing trade imbalances
between nations?
A. Destabilizing capital flows.
B. Rise in merchandise trade costs.
C. Weak currencies
D. Low savings
48 Why is it important to establish guidelines for inventory and storage in
logistics?
A. To increase maximum holding periods
B. To reduce the cost of transportation
C. To ensure timely shipment of inventories to the supplier
D. To promote international trade regulations
49 In which type of transaction can a private firm sell or license technology or
build a plant (with payment in hard currency) and agree to purchase, over a
given number of years, a certain proportion of the output produced from the use
of the technology or plant?
A. Simple (*)
B. Compensation agreement (**)
C. Clearing (***)
D. (*) and (**)
50 By entering into regional agreements, groups of countries aim to achieved
under the auspices of the World Trade Organization. trade barriers more than
can be
A. reduce, rapidly
B. reduce, slowly
C. increase, rapidly
D. increase, slowly