Deck 14: International Logistics

Question 1

Which of the following is not a political restriction on international trade?
a. embargoes
b. import quotas
c. barring certain types of shipments
d. tariffs
e. all of the above are political restrictions

Answer 1

all of the above are political restrictions

Question 2

Which of the following is not a source of income for international freight forwarders?
a. payment for freight pick up and delivery
b. buying space wholesale and selling it retail
c. commissions on shipping revenues generated for carriers
d. all of the above are sources of income
d. fees for document preparation and performing research

Answer 2

payment for freight pick up and delivery

Question 3

A ____ specifies the country (ies) in which a product is manufactured and can be required by governments for control purposes or by an exporter to verify the location of manufacture.
a. commercial invoice
b. waybill
c. certificate of origin
d. shipper's export declaration

Answer 3

certificate of origin

Question 4

Which of the following is not true of sachets?
a. they can be easier to lose
b. they are more prone to theft
c. different packaging is needed
d. they tend to be sold in higher-income countries
e. all of the above are true

Question 5

____ are taxes that governments place on the importation of certain items.
a. tariffs
b. surcharges
c. reciprocities
d. embargoes

Question 6

Which of the following is not a cultural factor that can influence international logistics?
a. language
b. time orientation
c. population
d. national holidays
e. all of the above are cultural factors

Question 7

A ____ often serves as the basis for a country's official export statistics.
a. shipper's export declaration
b. carnet
c. certificate of origin
d. commercial invoice

Question 8

What international method of payment is issued by a bank and guarantees payment to a seller provided that the seller has complied with applicable terms and conditions of the particular transaction?
a. a bill of exchange
b. a letter of credit
c. forfaiting
d. an open account

Question 9

Incoterms refer to ____.
a. standardized procedures for handling international shipments
b. standardized international trade terminology
c. a specific method of payment for international shipments
d. terms of sale for international shipments

Question 10

A ____ is used in areas where dockworkers cannot read but need a method to keep documents and shipments together.
a. RFID tab
b. shipper's mark
c. shipment coordinator
d. bar code

Question 11

Which international logistics service provider is often confused with the international freight forwarder?
a. customshouse broker
b. non-vessel operating common carrier
c. export management company
d. export trading company

Question 12

____ refers to the sum of the gross domestic product of all countries.
a. net world product
b. world net income
c. gross world product
d. gross world income

Question 13

What do we call a system of accounts that records a country's international financial transactions?
a. tariffs
b. balance of payments
c. import / export accounts
d. gross domestic product

Question 14

When one country's currency is weak relative to other currencies, ____.
a. it becomes more costly to import products to the country, but its exports surge
b. both imports and exports surge
c. it becomes more costly to export products from the country, but its imports surge
d. it becomes more costly to import and export products

Question 15

International freight forwarders can provide a number of functions. Which of the following is not one of them?
a. booking space on carriers
b. preparing an export declaration
c. arranged for insurance
d. preparing and sending shipping notices and documents
e. all of the above are possible functions

Question 16

Cargo preference rules ____.
a. are synonymous with embargoes
b. indicate how each shipment should be loaded into a transport vehicle
c. indicate a shipper's preferred carrier(s)
d. require a certain percentage of traffic to move on a nation's flag vessels
e. none of the above

Question 17

A ____ is similar in nature to a domestic bill of lading and summarizes the entire transaction.
a. certificate of origin
b. commercial invoice
c. shipper's letter of instruction
d. shipper's export declaration
e. none of the above

Question 18

Consular documents ____.
a. involve obtaining permission from the importing country for the goods to enter
b. must be filed for every export shipment
c. can be used in place of a shipper's export declaration
d. list the shipper, consignee, commodity (ies), and place of export
e. none of the above

Question 19

____ distinct international methods of payment exist.
a. 10
b. 8
c. 6
d. 4
e. none of the above

Question 20

Incoterms are generally revised approximately every ____ years.
a. 25
b. 20
c. 10
d. 5

Question 21

Approximately ____ of cross-border shipments move by water transportation.
a. 40%
b. 50%
c. 60%
d. 70%

Question 22

____ refer to major ports where thousands of containers arrive and depart each week.
a. load centers
b. break-bulk centers
c. consolidation points
d. hubs

Question 23

Which of the following statements is false?
a. in China, freight is often given lower priority than passengers in rail transportation
b. China ranks first in the world in terms of highway mileage
c. highway freight transportation can be provided by animals and carts in some countries
d. some countries limit a motor carrier's operations to within a particular state's borders
e. all of the above are true

Question 24

Which of the following is not open for negotiation in a bilateral air agreement?
a. the carriers that will service particular city pairs
b. the types of aircraft to be used
c. the number of flights between the two countries
d. the total number of seats to be offered
e. all of the above are open for negotiation

Question 25

The ratio of merchandise exports to gross world product is currently approximately 20%.

Question 26

Which countries rank first, second, and third, respectively in terms of highway mileage?
a. United States, China, India
b. China, India, United States
c. China, United States, India
d. Russia, United States, China

Question 27

Integrated air carriers ____.
a. perform transportation in tightly linked supply chains
b. are those that own several modes of transportation
c. utilize the services of scheduled airlines
d. own all their vehicles as well as pick up and delivery facilities

Question 28

Gross world product refers to the sum of the gross domestic product of all countries.

Question 29

Ocean carrier alliances provide two primary benefits to participating members, namely, the sharing of vessel space and ____.
a. anti-trust immunity
b. the ability to offer shippers a broader service network
c. lower rates
d. faster transit times
e. none of the above

Question 30

As of 2012, ____ is the world's busiest container port.
a. Singapore
b. Shanghai
c. Hong Kong
d. Shenzhen

Question 31

The Logistics Performance Index ____.
a. was created in recognition of the importance of logistics in international trade
b. measures a company's logistics cost as a percentage of its total cost
c. compares inventory turnover for major retailers
d. applies the Balanced Scorecard approach to international logistics activities

Question 32

Tariffs refer to taxes that governments place on the importation of certain items.

Question 33

Embargoes are physical limits on the amount that may be imported from any one country during a period of time.

Question 34

The cost of sending a shipment by air transportation from China to the United States can be ____ times more expensive than sending a shipment by water transportation between the two countries.
a. 2-4
b. 4-6
c. 6-8
d. 8-10

Question 35

An ____ custom packs shipments when the exporter lacks the equipment or the expertise to do so itself
a. export management company
b. export trading company
c. international freight forwarder
d. export packer
e. none of the above

Question 36

Short-sea shipping is widely accepted and practiced in ____.
a. North America
b. South America
c. Europe
d. Asia

Question 37

____ act the export sales department for a manufacturer.
a. international freight forwarders
b. shippers associations
c. export management companies
d. export trading companies

Question 38

Which of the following statements about international inventory management is false?
a. product return policies are a concern
b. inventory valuation is difficult because of continually changing exchange rates
c. safety stocks generally need to be larger
d. inventory for sale in one nation generally serves the needs of markets in nearby nations
e. all of the above are true

Question 39

The primary purpose of a nontariff barrier is to encourage exports.

Question 40

Shipping conferences refer to ____.
a. annual meetings of large international shippers
b. international shippers' associations
c. cartels of ocean vessel operators operating between certain trade areas
d. water ports that are located in the same geographic area

Question 41

The use of Incoterms is mandatory for international shipments.

Question 42

The documentation requirements for international shipments can act as a nontariff barrier to trade.

Question 43

Some nations with weak balance-of-payment positions issue an import license on the condition that the goods move on an aircraft or vessel flying that nation's flag.

Question 44

When one country's currency is weak relative to other currencies, it is more costly to import products into that country.

Question 45

National holidays have no impact on the effectiveness and efficiency of international logistics.

Question 46

An open account is of minimal risk to the seller and extremely risky to the buyer.

Question 47

It might not be unusual for cargo handlers in some countries to be illiterate.

Question 48

Consular documents involve obtaining permission from the importing country for goods to enter.

Question 49

Albania and Montenegro are currently candidates to be admitted to the European Union.

Question 50

Cargo preference rules indicate how each shipment should be loaded into a transport vehicle.

Question 51

Export trading companies act as the export sales department for a manufacturer.

Question 52

A shipper's letter of instruction contains relevant export transaction data such as the transportation mode(s), transaction participants, and description of what is being exported.

Question 53

Some free trade agreements have actually resulted in an increase in documentation requirements.

Question 54

Four distinct international methods of payment (e.g., letters of credit) exist.

Question 55

Export packers custom pack shipments when the exporter lacks the equipment or expertise to do so itself.

Question 56

International freight forwarders' income comes from two primary sources.

Question 57

A certificate of origin specifies the country (ies) in which a product is manufactured.

Question 58

From a shipper's perspective, a non-vessel operating common carrier (NVOCC) is a carrier; from an ocean carrier's perspective, an NVOCC is a shipper.

Question 59

Sachets (single-use packets) require different packaging and are easier to lose and more prone to theft than products sold in larger quantities.

Question 60

Incoterms 2010 now divides terms of sale into two groups, one of which applies to any mode of transport and the other which applies to sea and inland water transport only.

Question 61

Inventory valuation on an international scale is difficult because of continually changing exchange rates.

Question 62

The Logistics Performance was created in recognition of the importance of logistics in international trade.

Question 63

Integrated air carriers own all their vehicles and the facilities that fall in between.

Question 64

Drayage refers to ocean shipping, often along a region's coast, rather than across oceans.

Question 65

How important, in fact, are the transport costs for the initial shipment of 25 buses?

Question 66

Assume that you are Weiss. How many viable alternatives do you have to consider regarding the initial shipment of 25 buses?

Question 67

Shipping conferences refer to annual meetings of large international shippers.

Question 68

What additional information would be helpful for answering Question 2?

Question 69

Germany ranked first in overall performance in the most recent Logistics Performance Index.

Question 70

Some countries conduct inspections of trucks as they move from one state to another.

Question 71

Because greater uncertainties, misunderstandings, and delays often arise in international movements, safety stocks must be larger.

Question 72

China ranks first in the world in terms of highway mileage.

Question 73

Bilateral agreements liberalize international aviation opportunities and limit federal government involvement.

Question 74

In terms of container throughput, Shanghai is the world's busiest container port.

Question 75

What kinds of "customer service" support must be provided for this initial shipment of 25 buses? Who is responsible?

Question 76

Approximately 75% of cross-border shipments move by water transportation.

Question 77

International transportation cannot be effective or efficient without fairly identical handling equipment being in place at each end of the trip.

Question 78

Load centers refer to major ports where thousands of containers arrive and depart each week.

Question 79

Which of the routing alternatives would you recommend to meet the initial 90-day deadline for the 25-bus shipment? Train or waterway? To which port(s)? What would it cost?

Question 80

Ocean carrier alliances provide two primary benefits to participating members, namely, the sharing of vessel space and lower rates.