Deck 14: International Logistics

Question 1

International freight forwarders can provide a number of functions.Which is not one of them?

A)booking space on carriers
B)obtaining consular documents
C)preparing an export declaration
D)arranging for insurance
E)all are possible functions

Answer 1

E

Question 2

From a seller's perspective,the most basic Incoterms transaction is:

A)free on board
B)ex-works
C)cost and freight
D)delivered ex ship

Answer 2

B

Question 3

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)Currency fluctuations

Answer 3

B

Question 4

Which of the following is not a political restriction on international trade?

A)embargoes
B)tariffs
C)barring certain types of shipments
D)nontariff barriers
E)all are political restrictions

Question 5

Consular documents ____.

A)Involve obtaining permission from the importing company for the goods to enter
B)Must be filed for every export shipment
C)Can be used in place of a shippers' export declaration
D)List the shipper,consignee,commodity
E)None of the above

Question 6

Which of the following is not a cultural factor that can influence international logistics?

A)Language
B)Population
C)Time orientation
D)National holidays
E)All of the above are cultural factors

Question 7

Which of the following is not a characteristic of sachets?

A)Easier to lose
B)More prone to theft
C)Different packaging is needed
D)Sold in higher-income countries
E)All of the above are characteristics

Question 8

A ____ specifies the country

A)Commercial invoice
B)Shipper's export declaration
C)Consular document
D)Waybill
E)None of the above

Question 9

The ratio of merchandise exports to world domestic product today is approximately ____ percent

A)45
B)35
C)25
D)15

Question 10

Incoterms refer to:

A)terms of sale for international shipments
B)a specific method of payment for international shipments
C)standardization of international trade terminology
D)standardized procedures for handling international shipments

Question 11

A ____ is used in areas in which dockworkers cannot read but need a method to keep documents and shipments together.

A)RFID tag
B)Shipper's mark
C)Bar code
D)Shipment coordinator

Question 12

A ____ is similar in nature to a domestic bill of lading and summarizes the entire transaction.

A)shipper's letter of instruction
B)shipper's export declaration
C)commercial invoice
D)certificate of origin

Question 13

When one country's currency is weak relative to other currencies,____.

A)It becomes more costly to import products,but exports often surge
B)Both imports and exports surge
C)It becomes more costly to export products,but imports often surge
D)It becomes more costly to import and export products

Question 14

A ____ often serves as the basis for a company's official export statistics.

A)certificate of origin
B)commercial invoice
C)shipper's export declaration
D)shipper's letter of instruction
E)none of the above

Question 15

Which is not a source of export forwarders' income?

A)buying space wholesale and selling it retail
B)commissions on shipping revenues generated for carriers
C)fees for document preparation and performing research
D)payment for freight pick up and delivery
E)all are sources of income

Question 16

____ are taxes that governments place on the importation of certain items.

A)Tariffs
B)Embargoes
C)Surcharges
D)Reciprocities

Question 17

Incoterms have traditionally been revised approximately ____.

A)Every 25 years
B)Every 20 years
C)Every 10 years
D)Every 5 years

Question 18

____ distinct international methods of payment exist.

A)An unlimited number of
B)10
C)6
D)4

Question 19

Cargo preference rules ____.

A)are synonymous with embargoes
B)indicate how each shipment should be loaded into / onto a transport vehicle
C)indicate preferred shippers
D)require a certain percentage of traffic to move on a nation's flag vessels

Question 20

What international method of payment is issued by a bank and guarantees payment to a seller provided that the seller has complied with the applicable terms and conditions of the particular transaction?

A)An open account
B)Import / export financing
C)A bill of exchange
D)A letter of credit

Question 21

Approximately ____ of cross-border shipments move by water transportation.

A)40%
B)50%
C)60%
D)70%

Question 22

The primary purpose of a non-tariff barrier is to encourage exports.

Question 23

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

Question 24

Six of the world's 10 busiest container ports are located in:

A)Europe
B)China
C)The United States
D)Japan

Question 25

Shipping conferences refer to ____.

A)annual meetings of large international shippers
B)the same thing as 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 26

Which international logistics service provider is often confused with the international freight forwarder?

A)customshouse broker
B)export management company
C)non-vessel operating common carrier
D)export trading company

Question 27

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

A)Drayage
B)Intramodal
C)Land bridge
D)Short sea

Question 28

Because the distances associated with international shipments are often much greater than those associated with domestic shipments,the buyer and seller must often choose between ____ and ____ transportation.

A)Air; water
B)Rail; air
C)Water; rail
D)Water; truck

Question 29

Which of the following is not a type of international air freight operations?

A)chartered aircraft
B)scheduled air carriers
C)integrated air carriers
D)tramp air carriers

Question 30

Which of the following statements about international inventory management is false?

A)return items are quite difficult to accommodate
B)inventory valuation is difficult because of continually changing exchange rates
C)inefficient warehousing practices can impact inventory carrying cost
D)an inventory in one nation generally serves the needs of markets in nearby nations
E)all are true statements

Question 31

____ act as the export sales department for a manufacturer.

A)International freight forwarders
B)Shippers associations
C)Export management companies
D)Export trading companies

Question 32

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 33

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

A)Hubs
B)Consolidation points
C)Ship parks
D)Load centers

Question 34

Within five percent,the ratio of merchandise exports to world domestic product is currently approximately 15%.

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 packer
C)export trading company
D)international freight forwarder

Question 36

The Logistics Performance Index:

A)Was created in recognition of the importance of logistics in global 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 logistical activities

Question 37

Which of the following is false?

A)Freight is given lower priority than passengers in rail transportation in China
B)China ranks first in the world in terms of highway mileage
C)A truck shipment between Kolkata and Mumbai,India can take between 7 and 10 days because of poor road conditions
D)Some countries limit a motor carrier's operations to within a particular state's borders
E)All of the above are true

Question 38

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

Question 39

Integrated air carriers:

A)are those that own several modes of transportation
B)utilize the services of scheduled airlines
C)own all their vehicles as well as pick up and delivery facilities
D)perform transportation in tightly linked supply chains

Question 40

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

Question 41

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

Question 42

A certificate of origin specifies the country

Question 43

An Ex-Works (EXW) transaction is considered the most basic transaction in the Incoterms framework.

Question 44

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

Question 45

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

Question 46

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

Question 47

International freight forwarders' income comes from two sources.

Question 48

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

Question 49

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

Question 50

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

Question 51

International freight forwarders can handle either vessel shipments or air shipments.

Question 52

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

Question 53

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

Question 54

A shipper's letter of instruction contains relevant export transaction data such as the transportation mode

Question 55

The use of Incoterms is mandatory for international shipments.

Question 56

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

Question 57

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

Question 58

From the shipper's perspective,a non-vessel operating common carrier

Question 59

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

Question 60

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

Question 61

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

Question 62

What additional information would be helpful for answering question 2?

Question 63

Shanghai is the world's busiest container port.

Question 64

Theft of rail freight is rare in China.

Question 65

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

Question 66

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

Question 67

Inefficient warehousing practices in international logistics have no impact on inventory carrying costs.

Question 68

The three types of international airfreight operations are chartered aircraft,scheduled air carriers,and integrated carriers.

Question 69

The Brazilian buyer wants the buses "delivered" at Santos.Weiss looks up the International Chamber of Commerce's year 2000 Incoterms and finds two categories of "delivered" at a receiving port.They are:

Question 70

Shipping conferences refer to annual meetings of large international shippers.

Question 71

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

Question 72

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

Question 73

Inventory valuation on an international scale is difficult because the value of various currencies continually change.

Question 74

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

Question 75

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

Question 76

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

Question 77

Approximately 80 percent of cross-border shipments move by water transportation.

Question 78

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

Question 79

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

Question 80

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