Question 1

When a shipment reaches the United States,the consignee (usually the importer)will file ______________ with the port director at the port of entry.

Accepted Answer

When a shipment reaches the United States, the importer or consignee will file the necessary entry documents with the port director at the port of entry. These documents are used to declare the contents of the shipment and provide information for customs clearance. The other options (visas, product passports, bills of landing, and bills of shipping) are not typically required for this process.

Question 2

___________________ risk refers to the chances that payment will not be made due to the importer's inability to obtain U.S.dollars and transfer them to the
Exporter.

Accepted Answer

Transfer risk refers to the risk that the importer may not be able to transfer funds to the exporter. This can be due to a variety of reasons, including restrictions on foreign currency exchange, government regulations, or economic instability in the importer's country. This type of risk is distinct from credit risk, which refers to the risk that the importer may not be able to pay for the goods or services despite having the funds to do so. Exchange risk refers to the risk that fluctuations in currency exchange rates may affect the value of the payment. The importer and exporter are parties involved rather than types of risk.

Question 3

A(n)__________________ is a payment form where a shipment is held by the importer until the merchandise has been sold,at which time payment is made to the
Exporter.

Accepted Answer

Consignment is a payment form where the importer holds the merchandise until it is sold, and payment is made to the exporter only after the merchandise has been sold. This reduces risk for the importer, as they do not have to pay for the merchandise until they know they can sell it, and for the exporter, as they do not have to worry about the importer defaulting on payment.

Question 4

___________________ risk exists when the sale is in the importer's currency and that currency depreciates in terms of the dollar,leaving the exporter with a lesser
Number of dollars.

Accepted Answer

Foreign exchange risk, also known as currency risk, refers to the risk of financial loss that an exporter may face due to fluctuations in currency exchange rates. This type of risk arises when the sale is denominated in a foreign currency and the exchange rate of that currency falls against the exporter's domestic currency. As a result, the exporter may receive fewer dollars upon exchange, which can impact profitability. Therefore, having a foreign exchange risk management strategy is crucial for exporters who engage in international trade.

Question 5

Ex-Im Bank is not an aid or development agency,but a_____________________ corporation.

Accepted Answer

The answer of Ex-Im Bank is not an aid or...

Question 6

Ex-Im Bank has two major programs in place which include:

Accepted Answer

Ex-Im Bank has a Project Finance Division which provides financing for long-term projects, and a Working Capital Guarantee Program which provides financing for short-term export needs. Therefore, option D is the best choice as it accurately lists both of these major programs.

Question 7

Since most world trade is done in dollars,the U.S.importer does not usually need to _____________ foreign exchange transactions.

Accepted Answer

Since most world trade is done in dollars, U.S. importers are not exposed to currency risk, and they do not need to monitor or survey foreign exchange transactions. However, they may choose to hedge currency risk by securing a forward exchange rate, which locks in the exchange rate at the time of the transaction to eliminate the possibility of currency fluctuations affecting the pricing or profitability of the transaction.

Question 8

The terms of payment between the exporter and importer are a matter of negotiation and depend on a variety of factors.All of the following might be on that list of
Factors EXCEPT:

Accepted Answer

The answer of The terms of payment between the exporter...

Question 9

A shipment that is held by the importer until the merchandise has been sold is called:

Accepted Answer

A shipment that is held by the importer until the merchandise has been sold is called consignment. In this case, the ownership of the goods remains with the exporter until the importer sells the merchandise, at which point the importer pays the exporter for the goods sold. This arrangement is commonly used in industries such as art and antiques, where the importer may not be able to predict the demand for specific items.

Question 10

The Ex-Im Bank is described as being a:

Accepted Answer

The Ex-Im Bank (Export-Import Bank) is a federally supported bank whose mission is to support exporters with necessary credit. It provides loans, loan guarantees, and insurance to U.S. companies exporting goods and services. Its goal is to increase the level of U.S. exports, thereby supporting American jobs and economic growth.

Question 11

The main emphasis of the Ex-Im Bank's lending practices today is in the area of:

Accepted Answer

The article mentioned that the Ex-Im Bank's lending practices today have shifted towards project finance, such as infrastructure projects like roads and dams. Therefore, choice E is the best answer.

Question 12

The Japan External Trade Organization (JETRO)which helps foreign businesses to export to Japan is affiliated with Japan's _____________________________.

Accepted Answer

JETRO is affiliated with Japan's Ministry of Economy, Trade, and Industry (METI), which is responsible for developing and implementing economic, trade, and industrial policies, as well as promoting Japan's economic ties with other countries.

Question 13

All of the following are activities that an importer would normally go through in order to complete the purchase process.Which of the items listed below does not
Logically fit?

Accepted Answer

It is not necessary to always use an export or import middleman to complete the purchase process as the importer can directly deal with the exporter. The other options listed are necessary steps in the purchase process to ensure smooth completion of the transaction.

Question 14

Merchandise arriving from Canada and Mexico,trade fair goods,and perishable goods and shipments assigned to the U.S.government almost always utilize the
____________________ to enable fast delivery after arrival.

Accepted Answer

The Special Permit for Immediate Delivery is used for merchandise that requires expedited clearance through U.S. customs. It enables fast delivery after arrival, making it the most appropriate option for merchandise arriving from Canada and Mexico, trade fair goods, perishable goods, and shipments assigned to the U.S. government. Therefore, the best choice is D, Special Permit for Immediate Delivery.

Question 15

A(n)_______________________ is a payment form where a cash payment occurs when the order is placed.

Accepted Answer

A cash with order payment requires the customer to pay in full at the time the order is placed, before the goods or services are provided. This type of payment is typically used for smaller orders or orders from new customers to ensure immediate payment and reduce risk for the seller.

Question 16

_______________ risk is the risk that the importer will not pay or fail to pay on the agreed terms.

Accepted Answer

Credit risk refers to the importer's ability to pay the agreed amount on time. It arises when the importer becomes bankrupt or is unable to pay the amount due to any other financial circumstances.

Question 17

With respect to shipments entering the United States,a(n)__________ is a guarantee by someone that the duties and any potential penalties will be paid to the customs
Of the importing country.

Accepted Answer

A bond is a guarantee by the importer or a third party that the duties and penalties will be paid to the customs in the importing country. This is required for shipments entering the United States, and failure to provide a bond can result in the detention or seizure of the shipment. A line of credit is a financial arrangement between the importer and the bank, while a transfer is a process of transferring funds from one account to another. A permit is a document that grants permission to carry out a specific activity, and a tariff is a tax on imports or exports.

Question 18

A(n)________________________ is a payment form where a draft is so drawn as to be payable on presentation to the drawee (usually the buyer).

Accepted Answer

A sight draft is a payment form that is payable on presentation to the drawee (usually the buyer). This means that the seller can receive payment immediately upon presenting the draft to the buyer, giving them more immediate access to funds. The other options listed are all different types of payment forms, but do not specifically involve a draft that is payable on presentation.

Question 19

One of the biggest advantages the United States has in importing is that U.S. companies can:

Accepted Answer

Paying in U.S. dollars is an advantage because it is a widely accepted currency in international trade, which reduces the risk of foreign exchange fluctuations and simplifies the transaction process. However, the other options presented are incorrect. Companies cannot order unlimited amounts of goods, cannot always sell what they order abroad, cannot be assured that the government will support their trade efforts, and cannot always turn a profit with the goods they buy because of market demand.

Question 20

A confirmed irrevocable letter of credit is issued by the ____________ bank and confirmed by a bank usually in the ____________ country.

Accepted Answer

A confirmed irrevocable letter of credit is issued by the importer's bank and confirmed by a bank usually in the exporter's country to ensure payment security for the exporter.

Quiz 16: Export and Import Management

When a shipment reaches the United States,the consignee (usually the importer) will file ______________ with the port director at the port of entry.

___________________ risk refers to the chances that payment will not be made due to the importer's inability to obtain U.S.dollars and transfer them to the Exporter.

A(n) __________________ is a payment form where a shipment is held by the importer until the merchandise has been sold,at which time payment is made to the Exporter.

___________________ risk exists when the sale is in the importer's currency and that currency depreciates in terms of the dollar,leaving the exporter with a lesser Number of dollars.

Ex-Im Bank is not an aid or development agency,but a_____________________ corporation.

Ex-Im Bank has two major programs in place which include:

Since most world trade is done in dollars,the U.S.importer does not usually need to _____________ foreign exchange transactions.

The terms of payment between the exporter and importer are a matter of negotiation and depend on a variety of factors.All of the following might be on that list of Factors EXCEPT:

A shipment that is held by the importer until the merchandise has been sold is called:

The Ex-Im Bank is described as being a:

The main emphasis of the Ex-Im Bank's lending practices today is in the area of:

The Japan External Trade Organization (JETRO) which helps foreign businesses to export to Japan is affiliated with Japan's _____________________________.

All of the following are activities that an importer would normally go through in order to complete the purchase process.Which of the items listed below does not Logically fit?

Merchandise arriving from Canada and Mexico,trade fair goods,and perishable goods and shipments assigned to the U.S.government almost always utilize the ____________________ to enable fast delivery after arrival.

A(n) _______________________ is a payment form where a cash payment occurs when the order is placed.

_______________ risk is the risk that the importer will not pay or fail to pay on the agreed terms.

With respect to shipments entering the United States,a(n) __________ is a guarantee by someone that the duties and any potential penalties will be paid to the customs Of the importing country.

A(n) ________________________ is a payment form where a draft is so drawn as to be payable on presentation to the drawee (usually the buyer) .

One of the biggest advantages the United States has in importing is that U.S. companies can:

A confirmed irrevocable letter of credit is issued by the bank and confirmed by a bank usually in the country.