Deck 10: Global Transportation Planning

Question 1

Which INCOTERM obligates the exporter to incur all costs related to delivery of the shipment to the foreign destination?

A) C
B) D
C) E
D) F

Answer 1

B

Question 2

With respect to global transportation,economic downturns ____.

A) Lead to increased transportation demand and rates.
B) Lead to decreased transportation demand and rates.
C) Have no impact on transportation demand and rates.
D) Cause shippers to shy away for international trade.

Answer 2

B

Question 3

When a company purchases international freight insurance it is practicing:

A) Risk transfer
B) Risk elimination
C) Risk retention
D) Risk acceptance

Answer 3

A

Question 4

Which of the following is a distribution channel activity in global transportation?

A) Transfer of ownership
B) Documentation of freight
C) Carrier and route selection
D) Timely information sharing

Question 5

A key NAFTA stumbling block has been the inability to resolve:

A) Improved free trade between the U.S., Mexico and Canada
B) Balance of trade between Canada and Mexico
C) Reduction of duties between the three countries
D) U.S.-Mexico cross-border truck operations

Question 6

Based on combined exports and imports,who is the U.S.'s largest trading partner?

A) Mexico
B) China
C) Japan
D) Canada

Question 7

Which global transportation mode provides high capacity and low cost for intercontinental trade?

A) Air
B) Pipeline
C) Water
D) Truck

Question 8

Which type of INCOTERM is used when the importer takes total responsibility for a shipment at the origin point?

A) C
B) D
C) E
D) F

Question 9

What is a Maquiladora plant?

A) a factory created within the confines of a free trade zone
B) a truck terminal on the border where shipments can be transloaded and delivered by any carrier from the U.S., Canada, or Mexico
C) a manufacturing facility in Mexico where products can be assembled and returned to the U.S. without duty being paid
D) a manufacturing facility in U.S. where products can be assembled and returned to Mexico without duty being paid

Question 10

Which INCOTERM is used when the main carrier is paid by the exporter?

A) C
B) D
C) E
D) F

Question 11

A regular-route containership service is an example of _______:

A) Direct service
B) Indirect service
C) Private service
D) Domestic service

Question 12

What is the second step in global transportation planning?

A) Carrier selection
B) Mode Selection
C) Route Planning
D) Customer approach

Question 13

Spending on global freight transportation services exceeds____.

A) $800 million
B) $400 million
C) $900 billion
D) $500 trillion

Question 14

What problem has led to carrier mergers,acquisitions,and operating consortia?

A) Product loss and damage
B) Industry overcapacity
C) Peak season congestion
D) Security requirements

Question 15

What governs decision making authority for movement of the product in an international transaction?

A) Terms of trade
B) Cargo insurance
C) Commercial contract
D) Terms of payment

Question 16

Which of the following is a transaction channel activity in global transportation?

A) Transfer of ownership
B) Documentation of freight
C) Monitoring performance
D) Timely information sharing

Question 17

Which of the following Terms of Payment has the least risk to the seller?

A) Letter of Credit
B) Cash in Advance
C) Letter of Credit
D) Open Account

Question 18

Export preparation activities include:

A) Carrier and route selection
B) Order fulfillment and packing
C) Production of goods
D) Trade terms selection

Question 19

Which is the international organization that has begun the e-freight initiative aimed at replacing paper documents?

A) IATA
B) FMC
C) DOT
D) ICAO

Question 20

Which mode is appropriate for the movement of high value finished goods between continents?

A) Rail
B) Truck
C) Water
D) Air

Question 21

What is the purpose of the communication channel in global logistics and transportation?

Question 22

Describe the importance of global route planning.

Question 23

Please describe a transaction channel as part of the logistics channels.

Question 24

What is the purpose of the distribution channel?

Question 25

What is a Maquiladora plant? What is its primary purpose?

Question 26

Describe the F Group of Incoterms:

Question 27

What is the purpose of payment terms?

Question 28

Why is international cargo subject to a wide array of loss and damage risk?

Question 29

What are free trade agreements and what impact do they have on transportation?

Question 30

Please compare different transportation modes with respect to strength,limitation,primary role,primary product characteristic,and example products.

Question 31

Why is cargo insurance is a challenge?

Question 32

What types of challenges must global transportation managers deal with?

Question 33

What is the purpose of Incoterms?

Question 34

What is the purpose of the North American Free Trade Agreement? How has it impacted trade between the U.S. ,Canada and Mexico?

Question 35

What options do exporters and importers have to manage risk?