Deck 14: International Logistics

Question 1

Advising on acceptance of letters of credit,booking space on carriers,and obtaining consular documents are principal functions provided by ___________.
a.export packers
b.export management companies
c.international freight forwarders
d.customs brokers

Answer 1

international freight forwarders

Question 2

___________ 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

Answer 2

G ross world product

Question 3

Which of the following is not a method of payment for international shipments?
a.letter of credit
b.open account
c.cash in advance
d.forfaiting

Answer 3

forfaiting

Question 4

Which of the following Incoterms does not apply to sea and inland waterway transport only?
a.free alongside ship (FAS)
b.cost and freight (CFR)
c.free carrier (FCA)
d.free on board (FOB)

Question 5

A(n)___________ limits the amount of product that may be imported from any one country during a particular period of time.
a.embargo
b.import quota
c.confiscation
d.tariff

Question 6

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.bill of exchange
b.letter of credit
c.forfaiting
d.open account

Question 7

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

Question 8

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

Question 9

What is the name for 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 10

Which method of payment for international shipments is extremely risky for the seller and minimally risky for the buyer?
a.letter of credit
b.open account
c.bills of exchange
d.cash in advance

Question 11

Which of the following statements about sachets is false?
a.Sachets can be easier to lose.
b.Sachets are more prone to theft.
c.Sachets need different packaging.
d.Sachets tend to be sold in higher-income countries.

Question 12

___________ was the most recent country to be admitted to the European Union,in 2013.
a.Turkey
b.Serbia
c.Croatia
d.Montenegro

Question 13

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

Question 14

A(n)___________ prohibits trade between countries.
a.expropriation
b.confiscation
c.import quota
d.embargo

Question 15

___________ are taxes that governments place on the importation of certain items.
a.Tariffs
b.Surcharges
c.Quotas
d.Embargoes

Question 16

A ___________ specifies the country or countries 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

Question 17

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

Question 18

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 19

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 (SLI)
d.shipper's export declaration (SED)

Question 20

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

Question 21

Which international logistics service provider is often confused with the international freight forwarder?
a.customs broker
b.nonvessel-operating common carrier (NVOCC)
c.export management company (EMC)
d.export packers

Question 22

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.

Question 23

What concept refers to a situation in which ocean carriers retain their individual identities but cooperate in the area of operations?
a.ocean carrier alliances
b.relational exchanges
c.shipping conferences
d.partnerships

Question 24

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

Question 25

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

Question 26

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

Question 27

The Logistics Performance Index (LPI)___________.
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 28

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 29

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 or commodities,and place of export

Question 30

___________ is the world's busiest container port.
a.Singapore
b.Shanghai
c.Hong Kong
d.Shenzhen

Question 31

The Open Aviation Area is an open skies agreement between the United States and ___________.
a.China
b.Brazil
c.the European Union
d.India

Question 32

An ___________ custom packs shipments when the exporter lacks the equipment or the expertise to do so itself.
a.export management company
b.customshouse broker
c.international freight forwarder
d.export packer

Question 33

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.

Question 34

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

Question 35

___________ 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 36

Seven of the 10 busiest container ports are located in ___________.
a.Europe
b.the United States
c.China
d.the Middle East

Question 37

Ocean carrier alliances provide two primary benefits to participating members,namely,the sharing of vessel space and ___________.
a.antitrust immunity
b.a broader service network
c.lower rates
d.faster transit times

Question 38

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 39

___________ was the top-ranked country in the 2016 Logistics Performance Index (LPI).
a.The United States
b.Germany
c.The Netherlands
d.Luxembourg

Question 40

___________ 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 41

Serbia,in 2013,was the most recent country admitted to the European Union.

Question 42

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

Question 43

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

Question 44

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

Question 45

The use of Incoterms is mandatory for international shipments.

Question 46

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

Question 47

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

Question 48

A certificate of origin specifies the country or countries in which a product is manufactured.

Question 49

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

Question 50

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

Question 51

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

Question 52

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

Question 53

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

Question 54

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

Question 55

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

Question 56

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

Question 57

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

Question 58

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 59

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 60

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

Question 61

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

Question 62

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

Question 63

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

Question 64

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

Question 65

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

Question 66

International freight forwarders' income comes from two primary sources.

Question 67

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

Question 68

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

Question 69

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

Question 70

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

Question 71

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

Question 72

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

Question 73

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

Question 74

The Logistics Performance Index (LPI)was created in recognition of the importance of logistics in international trade.

Question 75

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

Question 76

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

Question 77

Shipping conferences refer to annual meetings of large international shippers.

Question 78

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

Question 79

The Netherlands ranked first in overall performance in the 2016 Logistics Performance Index (LPI).

Question 80

Five of the world's 10 busiest container ports are located in the United States.