With a CIF transaction, all costs of transportation are

1. With a CIF transaction, all costs of transportation are included in the invoice price.

   True

   False

2.22 points

QUESTION 2

1. Trade agreements that the U.S. has with your target market may have an effect on your pricing considerations.

   True

   False

2.22 points

QUESTION 3

1. For the exporter, payment on an open account basis is the most secure method of payment.

   True

   False

2.22 points

QUESTION 4

1. In an ex-works transaction the shipper/exporter will prepare the shipment for export, including packing, at a named premise.

   True

   False

2.22 points

QUESTION 5

1. With a negotiable bill of lading the goods may be bought or sold while the goods are in transit.

   True

   False

2.22 points

QUESTION 6

1. Engaging in anti-trust activities in a foreign country could be a violation under U.S. law.

   True

   False

2.22 points

QUESTION 7

1. U.S. exporters must honor boycotts of foreign nations against nations friendly to the United States and in which the United States continues to conduct trade.

   True

   False

2.22 points

QUESTION 8

1. A documentary collection is a transaction whereby the exporter entrusts the collection of a payment to the remitting bank, which sends the documents to the collecting bank.

   True

   False

2.22 points

QUESTION 9

1. Any product that might be used as a weapon of war would most certainly require a license.

   True

   False

2.22 points

QUESTION 10

1. A shipment arriving at a foreign destination without a required consular invoice will be refused admittance to the country.

   True

   False

2.22 points

QUESTION 11

1. Cash in advance payment terms are the least attractive to potential buyers.

   True

   False

2.22 points

QUESTION 12

1. When preferential duty rates are claimed under a particular trade agreement, the importing country may require a country of origin certificate.

   True

   False

2.22 points

QUESTION 13

1. “Facilitating payments for routine government action” would not be violations of the Foreign Corrupt Practices Act.

   True

   False

2.22 points

QUESTION 14

1. In utilizing a letter of credit the risk is evenly spread between the buyer and the seller.

   True

   False

2.22 points

QUESTION 15

1. Shipping your product to third country other than indicated on your shipping documents is prohibited.

   True

   False

2.22 points

QUESTION 16

1. In a transaction that is Delivered Duty Unpaid (DDU) the buyer will be responsible for the fees of the foreign customs broker.

   True

   False

2.22 points

QUESTION 17

1. When using documentary collections as a method of payment, the title of the goods can be controlled with ocean shipments but in the case of air and overland shipments the buyer may receive the goods with or without payment.

   True

   False

2.22 points

QUESTION 18

1. A letter of credit is a separate contract from the sales contract on which it is based; therefore, the bank is not concerned whether each party fulfills the terms of the sales contract.

   True

   False

2.22 points

QUESTION 19

1. INCOTERMS are critical in developing a price for your overseas customer.

   True

   False

2.22 points

QUESTION 20

1. When pricing for a DDP shipment the duty rate of the foreign market must be known.

   True

   False

2.22 points

QUESTION 21

1. Letters of credit are the least secure methods of payment available to international traders.

   True

   False

2.22 points

QUESTION 22

1. Ninety per cent (90%) of all exports from the United States require an export license.

   True

   False

2.22 points

QUESTION 23

1. The Small Business Administration provides financial assistance to U.S. exporters.

   True

   False

2.22 points

QUESTION 24

1. A Shippers Export Declaration must be prepared for all exports no matter what the value of the shipment is.

   True

   False

2.22 points

QUESTION 25

1. The commercial invoice contains the details of the transaction between the buyer and the seller.

   True

   False

2.22 points

QUESTION 26

1. The bill of lading or airway bill is the contract for transportation between the shipper and the carrier.

   True

   False

2.22 points

QUESTION 27

1. Market penetration is a pricing strategy with a goal of long-term of selling within that market.

   True

   False

2.22 points

QUESTION 28

1. A pro forma invoice is used in presenting quotations to a potential buyer.

   True

   False

2.22 points

QUESTION 29

1. By not extending credit through an open account to a potential customer could cause the loss of the sale.

   True

   False

2.22 points

QUESTION 30

1. The identity of the contents of the shipping cartons must be clearly visible.

   True

   False

2.22 points

QUESTION 31

1. A Foreign Trade Zone is a designated area in which goods may be imported, manipulated, re-packed, and exported free of duties.

   True

   False

2.22 points

QUESTION 32

1. Your competitor’s pricing strategy should be of no consequence in determining your own.

   True

   False

2.22 points

QUESTION 33

1. In a consignment sale, the exporter will retain title of the goods until the foreign distributor who already has possession of the goods sells them. Once the goods are sold the distributor will pay the exporter. There is virtually no risk for the exporter in a consignment sale.

   True

   False

2.22 points

QUESTION 34

1. It is not necessary to be aware of the import regulations of the country to which you are shipping.

   True

   False

2.22 points

QUESTION 35

1. The transaction cost of the merchandise should never be shown on the invoice.

   True

   False

2.22 points

QUESTION 36

1. When preparing a cost-plus price quotation for CIF transaction, it is not necessary to include the fees of the foreign freight forwarder.

   True

   False

2.22 points

QUESTION 37

1. A Shipper’s Letter of Instructions (SLI) informs the freight forwarder of the exporter’s instructions as to the export.

   True

   False

2.22 points

QUESTION 38

1. The Export Administration can regulate to what countries we may export to.

   True

   False

2.22 points

QUESTION 39

1. With an FOB transaction the ocean freight costs and any international insurance would be the responsibility of the buyer.

   True

   False

2.22 points

QUESTION 40

1. INCOTERMS will apply to contract for services.

   True

   False

2.22 points

QUESTION 41

1. Many countries require that a consular invoice be presented at the time of importation. Consular invoices are certified by the buyer’s country’s consulate in the exporting country.

   True

   False

2.22 points

QUESTION 42

1. Paying a foreign official in order to obtain additional business in his country would be a violation of the Foreign Corrupt Practices Act.

   True

   False

2.22 points

QUESTION 43

1. An open account transaction is a sale where the goods are shipped and delivered before payment is due, which is usually 30 to 90 days.

   True

   False

2.22 points

QUESTION 44

1. Utilization of letters of credit as a payment method is not recommended for use in new or less-established trade relationships.

   True

   False

2.22 points

QUESTION 45

1. In preparing a quotation for a potential overseas buyer, utilizing the “cost plus” method is preferable especially when both the seller and buyer have agreed upon terms of sale.

   True

   False

I have about 1.5 hours to complete this….can anyone help?