Question 1

CISF pricing includes the following
A)Commission is paid to the agent involved in the transaction
B)Cost of the goods exported
C)Freight & Insurance charges for the goods exported
D)All of the above

Accepted Answer

CISF pricing includes the commission paid to the agent involved in the transaction, the cost of the goods exported, and the freight & insurance charges for the goods exported.

Question 2

When the transaction is of high value, complex In nature and more technical __________ method of the export sales contract is used.
A)Performa invoice
B)Purchase order
C)Sales contact
D)None of the above

Accepted Answer

When a transaction is of high value, complex, and more technical, a Sales Contract method is typically used. This is because sales contracts can be detailed and tailored to address the specific needs, obligations, and conditions of both the buyer and the seller, ensuring clarity and legal protection for both parties involved in such significant transactions.

Question 3

Which one of the following is a method for an exporter to get a contract
A)Proforma invoice
B)Purchase order
C)Sales contract
D)All the above

Accepted Answer

All the options listed are methods through which an exporter can secure a contract. A proforma invoice is often used as a preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods. A purchase order is a document issued by the buyer to the seller, indicating types, quantities, and agreed prices for products or services. A sales contract is a formal agreement between a buyer and seller outlining the terms of the sale. Each of these documents serves as a method to formalize the agreement or intent to enter into a contract for exporting goods or services.

Question 4

Credits transferable by original beneficiary in favor of secondary beneficiary are known as
A)Deferred credits
B)Transit credits
C)Instalment credits
D)Transferable credits

Accepted Answer

The answer of Credits transferable by original beneficiary in favor...

Question 5

When the exporter, expects the importer, to make the payment immediately upon the draft being presented to him is called.
A)Sight Draft.
B)Usance Draft
C)Demand draft
D)Pay Note

Accepted Answer

A Sight Draft requires the importer to pay immediately upon presentation of the draft.

Question 6

The basic objective of export Promotion Council is to promote and develop the Exports of the
A)Particular products of country
B)Only attractive projects of the country
C)Only services industry products of the country
D)Overall exports of the country.

Accepted Answer

The answer of The basic objective of export Promotion Council...

Question 7

The theory of Comparative cost advantage is given by
A)Porter
B)Adam Smith
C)Varnoon
D)Richardo

Accepted Answer

The theory of Comparative Advantage was given by David Ricardo. It explains how trade can benefit all parties involved (countries, regions, individuals) if they produce goods with lower opportunity costs than others.

Question 8

Trade Related Investment Measures (TRIMS) doesn't apply for
A)Measures that lead to restrictions in quantities.
B)Discouraging measures that limit a company's imports
C)Discouraging measures that limit a company's exports.
D) all of the above

Accepted Answer

The answer of Trade Related Investment Measures (TRIMS) doesn't apply...

Question 9

As a part of WTO guidelines, Agreement on Agriculture (AOA) doesn't consider
A)Direct payments to farmers are permitted.
B)Indirect assistance and support to farmers including R & D support by govt. are not permitted
C)Domestic policies which directly effect on production and trade have to be cut back.
D)Least developed countries do not need to make any cuts.

Accepted Answer

The Agreement on Agriculture (AOA) under the WTO guidelines allows for indirect assistance and support to farmers, including research and development support by governments. This means that such indirect support measures are permitted under the AOA, contrary to what option B suggests.

Question 10

Power distance Index (PDI) of 77 compared to a world average of 56.5 for India indicates
A)High level of inequality of power and wealth within the society
B)Normal Power and Wealth
C)High level of political corruption
D)Low level of Human Development Index

Accepted Answer

A high Power Distance Index (PDI) score, such as 77 for India compared to the world average of 56.5, indicates a high level of acceptance of inequality in the distribution of power and wealth within the society. This reflects societal acceptance of hierarchical order without much demand for justification.

Question 11

Identify a factor that doesn't play an important role in attracting FDI
A)Language
B)Laws, rules and regulations
C)Cost of resources
D)Infrastructure related factors

Accepted Answer

Language, while important for communication and operations, is not a primary factor in attracting Foreign Direct Investment (FDI). Laws, rules and regulations, cost of resources, and infrastructure are more significant factors that investors consider when deciding on FDI locations.

Question 12

The first phase of globalization started around 1870 and ended with …
A)The World War I
B)The World War II
C)The Establishment of GATT
D)In 1913 when GDP was high

Accepted Answer

The first phase of globalization is generally considered to have started around 1870 and ended with the beginning of World War I in 1914, as the war significantly disrupted global trade and economic interactions.

Question 13

Which of these is a characteristic of multinational corporations>
A)At least one -third directors are foreign nationals
B)The company does 40% of its business in foreign markets
C)The overseas markets are larger than the domestic market
D)The affiliates are responsive tio a number of important environmental forces

Accepted Answer

The answer of Which of these is a characteristic of...

Question 14

According to this theory the holdings of a country's treasure primarily in the form of gold constituted its wealth.
A)Gold Theory
B)Ricardo Theory
C)Mercantilism
D)H .O. THEORY

Accepted Answer

Mercantilism is the economic theory that trade generates wealth and is stimulated by the accumulation of profitable balances, which a government should encourage by means of protectionism. It specifically posits that the wealth of a nation is augmented through a positive balance of trade, especially in precious metals like gold.

Question 15

The Theory of Absolute Cost Advantage is given by
A)Adam smith
B)D. Richardo
C)Raymond Varnoon
D)Porter

Accepted Answer

The Theory of Absolute Cost Advantage was given by Adam Smith, who argued that countries would benefit from specializing in and exporting goods in which they have an absolute advantage.

Question 16

The Theory of Relative Factor Endowments is given by
A)Ohilin-Hecksher
B)FY Taylor
C)Richardo
D)Porter

Accepted Answer

The Theory of Relative Factor Endowments, also known as the Heckscher-Ohlin model, was developed by Eli Heckscher and Bertil Ohlin. This economic theory explains patterns of international trade by the differences in factor endowments (such as labor, land, and capital) among countries.

Question 17

…………… is application of knowledge which redefine the boundaries of global business
A)Cultural Values
B)Society
C)Technology
D)Economy

Accepted Answer

Technology redefines the boundaries of global business by enabling new ways of communication, production, and distribution, making it possible to reach wider markets and innovate in products and services.

Question 18

Capitalistic, communistic and mixed are the types of
A)Economic system
B)Political system
C)Social System
D)Cultural Attitudes

Accepted Answer

Capitalistic, communistic, and mixed refer to types of economic systems. Capitalism is characterized by private ownership of resources and businesses, communism by community or state ownership of property and the means of production, and a mixed economy incorporates elements of both capitalism and communism.

Question 19

General Agreement on Trade in Services will not be applicable to
A)Services supplied from one country to another - cross border supply
B)Transaction of goods across the border - Export Import
C)Individuals traveling from own country to supply services in another - presence of natural persons.
D)Consumers/firms making use of a service in another country - consumption abroad

Accepted Answer

The General Agreement on Trade in Services (GATS) is specifically designed to regulate international trade in services, not the transaction of goods. The transaction of goods across borders falls under the General Agreement on Tariffs and Trade (GATT) and other trade agreements focused on goods, not services.

Question 20

Quantitative restrictions refer to limit set by countries to curb
A)Imports
B)Exports
C)Imports and Exports
D)All of the above

Accepted Answer

Quantitative restrictions are measures imposed by countries to limit the quantity of goods that can be imported or exported, affecting both imports and exports.

Quiz 6: Export Sales Contracts and Global Business Theories

CISF pricing includes the following

When the transaction is of high value, complex In nature and more technical __________ method of the export sales contract is used.

Which one of the following is a method for an exporter to get a contract

Credits transferable by original beneficiary in favor of secondary beneficiary are known as

When the exporter, expects the importer, to make the payment immediately upon the draft being presented to him is called.

The basic objective of export Promotion Council is to promote and develop the Exports of the

The theory of Comparative cost advantage is given by

Trade Related Investment Measures (TRIMS) doesn't apply for

As a part of WTO guidelines, Agreement on Agriculture (AOA) doesn't consider

Power distance Index (PDI) of 77 compared to a world average of 56.5 for India indicates

Identify a factor that doesn't play an important role in attracting FDI

The first phase of globalization started around 1870 and ended with …

Which of these is a characteristic of multinational corporations>

According to this theory the holdings of a country's treasure primarily in the form of gold constituted its wealth.

The Theory of Absolute Cost Advantage is given by

The Theory of Relative Factor Endowments is given by

…………… is application of knowledge which redefine the boundaries of global business

Capitalistic, communistic and mixed are the types of

General Agreement on Trade in Services will not be applicable to

Quantitative restrictions refer to limit set by countries to curb