TLMT441 and TLMT 342 - [High]

does anyone have quiz 7 for tlmt 342?

TLMT 342 test 2


Part 1 of 1 -  100.0/ 100.0 Points







Question 1 of 10
10.0/ 10.0 Points

A legal dispute in which the loser bears court costs is said to be operating under ___.



   A.common law 
Correct   B.European rules 
   C.contract law 
   D.arbitration 
   E.None of the above 



 Answer Key: B
 

 Feedback: Rationale: European rules is a custom in which the loser bears court costs.

 REF: 5-6
 
 
 


Question 2 of 10
10.0/ 10.0 Points

An agreement between an exporter and an agent/distributor may state that the laws of the exporter’s country apply to governing of the contract. This can be complicated by ___.



   A.the practice of many exporters to bribe the judges in their home countries 
   B.a shortage of lawyers in the exporter’s home country   
   C.it being illegal for the exporter to make such an agreement 
Correct   D.the government of the country where the agent/distributor is located, as it may say it has jurisdiction over the contract 
   E.None of the above 



 Answer Key: D
 

 Feedback: Rationale: The importing country’s government may protect agents/distributors under labor law.

 REF: 5-3
 
 
 


Question 3 of 10
10.0/ 10.0 Points

Unless otherwise specified, contracts between an exporter and an agent and contracts between an exporter and a distributor are called ___.



   A.contract law 
   B.labor law 
   C.common law 
Correct   D.distribution contracts 
   E.None of the above 



 Answer Key: D
 

 Feedback: Rationale: Contract law and labor law are too limited to apply in this case, and common law is simply incorrect. Distribution contracts is an agreement between the parties in the absence of specifics.

 REF: 5-3a
 
 
 


Question 4 of 10
10.0/ 10.0 Points

The choice of the Incoterm is almost always the decision of the ___.



   A.importer 
   B.agent 
Correct   C.exporter 
   D.distributor 
   E.None of the above 



 Answer Key: C
 

 Feedback: Rationale: Agents and distributors are importers, so in this case, these terms are essentially synonymous and they do not select the choice of Incoterm.

 REF: 6-3
 
 
 


Question 5 of 10
10.0/ 10.0 Points

Electronic Data Interchange (EDI) has changed what issue in Incoterms?



   A.who pays for insurance 
   B.who pays for import clearance 
Correct   C.documentation of delivery 
   D.All of the above 
   E.None of the above 



 Answer Key: C
 

 Feedback: Rationale: Exporters can send an Electronic Data Interchange (EDI) notice that acts as a document for both parties.

 REF: 6-17
 
 
 


Question 6 of 10
10.0/ 10.0 Points

Under the Delivered Duty Unpaid Incoterm, unloading costs are borne by the ___.



   A.railroad 
   B.ship line 
   C.exporter 
   D.harbor 
Correct   E.None of the above 



 Answer Key: E
 

 Feedback: Rationale: Unloading costs are borne by the importer.

 REF: 6-15
 
 
 


Question 7 of 10
10.0/ 10.0 Points

International commercial risk can be evaluated by ___.



   A.credit report companies 
   B.factoring houses 
   C.some accounting firms, insurance companies, and banks 
Correct   D.All of the above 
   E.None of the above 



 Answer Key: D
 

 Feedback: Rationale: All of these organizations can be sources of international commercial risk evaluation.

 REF: 7-3b
 
 
 


Question 8 of 10
10.0/ 10.0 Points

A standby letter of credit is similar to a “simple” letter of credit except for ___.



   A.it generally has a much longer validity period 
   B.it usually applies to more than one shipment from the exporter to the importer   
   C.it allows the exporter to extend an open account to the importer, using the letter of credit only if the importer doesn’t meet its obligations 
Correct   D.All of the above 
   E.None of the above 



 Answer Key: D
 

 Feedback: Rationale: All answers are applicable to the ways a standby letter of credit is different from a simple letter of credit.

 REF: 7-6d
 
 
 


Question 9 of 10
10.0/ 10.0 Points

Stable countries representing the greatest percentage of world trade all have ___ currencies.



   A.pegged 
   B.volatile 
Correct   C.floating 
   D.call 
   E.None of the above 



 Answer Key: C
 

 Feedback: Rationale: Pegged currencies are used by countries with unstable, volatile currencies. Whereas, most developed countries have stable currencies for which it is reasonable to expect a predictable exchange rate.

 REF: 8-2b
 
 
 


Question 10 of 10
10.0/ 10.0 Points

Among the companies that are exposed to risks in currency fluctuation are ___.



   A.firms that do not evaluate international currency transaction risks clearly 
   B.firms that do not follow a specific policy on currency exchange 
   C.firms that have management that is not well-versed in the intricacies of international trade 
Correct   D.All of the above 
   E.None of the above 



 Answer Key: D
 

 Feedback: Rationale: All of these options are applicable.

 REF: 8-5a
 
 
 
 

 


 

 
             
 

 

 

 

quiz 1 tlmt 342

Quiz 1

40.0/ 100.0 Points







Question 1 of 10
0.0/ 10.0 Points

According to the International Product Life Cycle Theory, the country(ies) most likely to manufacture a product that has been recently developed (one that is the result of a brand-new design and uses patented technology) and is in its first commercialization year, is (are) ___.



   A.the country of innovation only 
   B.developing countries 
Incorrect   C.any country with the manufacturing technology necessary to manufacture it 
   D.other developed countries 
   E.None of the above 



 Answer Key: A
 

 Feedback: Rationale: According to Vernon, the only country in which products that are newly developed are manufactured is the country of innovation. The manufacturing eventually shifts to other developed countries and then to developing countries.

 REF: 1-5d
 
 
 


Question 2 of 10
0.0/ 10.0 Points

Information on foreign countries, including their economic environment, their political environment and their geography, can easily be found in several publications. Which is not one of the organizations that publishes background information on countries?



   A.The Economist’s Intelligence Unit 
   B.The Central Intelligence Agency 
   C.The U.S. Department of Commerce 
   D.The United Nations’ UNICEF 
Incorrect   E.None of the above 



 Answer Key: D
 

 Feedback: Rationale: All of these options are explicitly listed in Section 1-6, except the UNICEF, which is the United Nations’ Children’s Fund (changed from the United Nations’ International Children’s Emergency Fund in the 1950s).

 REF: 1-6
 
 
 


Question 3 of 10
10.0/ 10.0 Points

Which one was NOT one of the characteristics of the “early days” of logistics?



   A.an emphasis on making sure that the goods arrived in good condition   
   B.an emphasis on low-cost transportation   
   C.long transit times 
Correct   D.an emphasis on customer satisfaction 
   E.None of the above 



 Answer Key: D
 

 Feedback: Rationale: All of the answers are mentioned, but “customer satisfaction” is mentioned as characteristic of the modern concept of logistics.

 REF: 2-1a and 2-1c
 
 
 


Question 4 of 10
0.0/ 10.0 Points

It is not unusual for companies shipping to large manufacturers and retail chains to be penalized financially (not receiving the full invoice amount) for not ___.



Incorrect   A.shipping the correct goods 
   B.shipping the goods in the right quantity 
   C.shipping the entire order at once 
   D.delivering the goods on the day and at the time promised 
   E.None of the above 



 Answer Key: D
 

 Feedback: Rationale: Just-in-time deliveries have to be made at specific times, and suppliers not delivering within these time windows are penalized

 REF: 2-1c
 
 
 


Question 5 of 10
10.0/ 10.0 Points

Of the following, the best definition of a logistics infrastructure would be that it consists of ___.



Correct   A.all of the elements in place to facilitate transportation, communication, and business exchanges 
   B.a country’s electrical supply and road network 
   C.the amount of computerization a country has 
   D.a developed banking system 
   E.None of the above 



 Answer Key: A
 

 Feedback: Rationale: A country’s electrical supply and road network, the amount of computerization a country has, and a developed banking system are incomplete answers. Option “all of the elements in place to facilitate transportation, communication, and business exchanges” incorporates all aspects of logistics infrastructure.

 REF: 3-1
 
 
 


Question 6 of 10
10.0/ 10.0 Points

The busiest cargo airport in the world is ___.



   A.London Heathrow 
   B.Denver International 
   C.Chicago O’Hare 
   D.Dallas-Fort Worth International 
Correct   E.None of the above 



 Answer Key: E
 

 Feedback: The busiest cargo airport in the world is Memphis.

 REF: 3-2c
 
 
 


Question 7 of 10
0.0/ 10.0 Points

In the European Union, the goal for mail delivery sent to a national address is ___.



   A.two days 
   B.three days 
   C.D + 1 
Incorrect   D.D + 2 
   E.None of the above 



 Answer Key: C
 

 Feedback: Rationale: The goal is D + 1, or delivery on the day after the letter is mailed.

 REF: 3-3a
 
 
 


Question 8 of 10
0.0/ 10.0 Points

An export management company earns its revenue through ___.



   A.sales commissions 
   B.receiving quantity discounts by buying in bulk and reselling products at a higher price 
   C.charging fixed fees to exporters 
Incorrect   D.All of the above 
   E.None of the above 



 Answer Key: A
 

 Feedback: Rationale: An export management company is an agent, therefore it is paid by commission.

 REF: 4-2b
 
 
 


Question 9 of 10
0.0/ 10.0 Points

Because agents tend to be individuals or very small firms, governments in some countries put them under ___.



   A.high tariffs 
   B.labor law 
Incorrect   C.contract law 
   D.maritime law 
   E.None of the above 



 Answer Key: B
 

 Feedback: Rationale: Because agents are small businesses, some governments feel they should be protected from exploitation by large exporters, so they are placed under labor law, which is the code of laws that deals with the relationships between employers and employees. Distributors, on the other hand, because they are larger and are assumed to be more sophisticated, are placed under contract law.

 REF: 4-3c
 
 
 


Question 10 of 10
10.0/ 10.0 Points

When a firm realizes that it wants to exploit the possibilities that sales abroad can bring, and decides to become directly involved in its exporting activities, it is said to be involved in ___.



   A.indirect exporting 
   B.parallel imports 
   C.foreign trade zones 
Correct   D.active exporting 
   E.None of the above 



 Answer Key: D
 

 Feedback: Rationale: Only active exporting is correct, as the company becomes involved in export activities.

 REF: 4-3 
 

did you ever get quiz 7?

Quiz 7 TLMT 342

Question 1 of 40 2.5/ 2.5 Points

RORO ships have the advantage of not needing specialized lifting equipment.Correct
 
  A. True
 B. False
 


Answer Key: True
 
Feedback: 11-3b 
 
 
Question 2 of 40 2.5/ 2.5 Points

According to the Jones Act, United States’ cabotage prohibits the use of U.S.-flagged ships. 
Correct
  A. True
 B. False
 


Answer Key: False
 
Feedback: 11-4 
 
 
Question 3 of 40 0.0/ 2.5 Points

At least 200,000 people are employed in dismantling old ships on the beaches of Pakistan, Bangladesh, and India.
Incorrect
  A. True
 B. False
 


Answer Key: True
 
Feedback: 11-4 
 
 
Question 4 of 40 0.0/ 2.5 Points

The American Convention for the Unification of Certain Rules of Law relating to Bills of Lading is known as the Hague Rules.
Incorrect
 
  True
 False
 


Answer Key: False
 
Feedback: 11-5
 
 
Question 5 of 40 2.5/ 2.5 Points

In containerized shipping, the term TEU stands for:


  A.Trans-European Units.   
  B.Terminal Event Utilization. 
  C.Trip Extension Unit.
 
  D.Two-end Undercarriage
 
Correct  E.Twenty-Foot Equivalent Unit
 



Answer Key: E
 
Feedback: Twenty-Foot Equivalent Unit. Ref:11-2e/11-3a

 
 
 
Question 6 of 40 2.5/ 2.5 Points

Countries with an open registry often provide:


  A.secondary registries   
Correct  B.flags of convenience.
 
  C.more strict regulation of ships.
 
  D.an opportunity for ship owners from developing countries to register their ships in the USA
 
  E.None of the above
 



Answer Key: B
 
Feedback: 11-4

Secondary registries are not necessary for countries with an open registry. Countries with an open registry usually have looser regulation of ships.

“An opportunity for ship owners from developing countries to register their ships in the United States” is bogus
 
 
Question 7 of 40 2.5/ 2.5 Points

While the Hague and Hague-Visby Rules allowed ship owners to escape liability in seventeen “defenses,”


  A.there is an attempt to supersede them with the Hamburg Rules.
 
  B.the Hamburg rules allow for the defense of the carrier having taken all reasonable steps to avoid damage. 
  C.the Hamburg rules allow for the defenses of damage by fire and damage due to an attempt by the carrier to save life or property at sea.   
Correct  D.All of the above   
  E.None of the above   



Answer Key: D
 
Feedback: 11-5
 
 
Question 8 of 40 2.5/ 2.5 Points

Not all freight that is within the appropriate size and weight constraints of passenger planes is allowed on such planes Correct
 
  A. True
 B. False
 


Answer Key: True
 
Feedback: 12-3a 
 
 
Question 9 of 40 0.0/ 2.5 Points

The tariff structure of international air cargo is almost as complicated as that of the ocean cargo industry.
Incorrect
 
  A. True
 B. False
 


Answer Key: False
 
Feedback: 12-4 
 
 
Question 10 of 40 2.5/ 2.5 Points

Among freight often carried in the belly of scheduled international passenger airplanes are:


  A.athletic shoes 
  B.television sets   
Correct  C.critical machine or computer parts and fresh produce like fish
 
  D. DVD players 
  E.None of the above   



Answer Key: C
 
Feedback: 12-3a

While athletic shoes, television sets and DVD players might be carried on occasion as freight on a passenger plane, time-sensitive materials like critical parts or produce often need the frequency of passenger plane schedules for expedited shipments.
 
 
Question 11 of 40 2.5/ 2.5 Points

In calculating airfreight rates, airlines figure the volume-weight of the shipment based on the volume yielding a certain weight value. As a result:
  A.the airline will charge the lesser of the volume-weight or the actual weight of the cargo.
 
  B.the airline will be more concerned about volume than weight
 
Correct  C.the airline will charge the higher of the volume-weight or the actual weight of the cargo.
 
  D.the airline will be concerned about the rates it will charge at different altitudes it flies.
 
  E.None of the above   



Answer Key: C
 
Feedback: 12-4

The airline will charge the higher of the volume-weight or the actual weight of the cargo to maximize its revenue. It will not disregard volume to concentrate on weight or disregard weight to concentrate on volume because both are critical values in airfreight transport. There is no differential of rates based on altitudes flown.
 
 
 
Question 12 of 40 2.5/ 2.5 Points

The international airfreight business is regulated by:
  A.The Federal Aviation Administration
 
  B.The Civil Aeronautics Board
 
  C.The Civil Air Patrol   
  D.Aeroflot 
Correct  E.None of the above
 



Answer Key: E
 
Feedback: 12-5

The Federal Aviation Administration regulates only U.S. aviation, mainly from the standpoint of safety; the Civil Aeronautics Board is a defunct regulator of U.S. air carriers, the Civil Air Patrol is a search and rescue organization, Aeroflot is a Russian airline.
 
 
 
Question 13 of 40 2.5/ 2.5 Points

The Paris convention of 1919:
Correct  A.established the concept of sovereignty of a country over its airspace 
  B.limited the liability of international airlines in accidents 
  C.resulted in an “open skies” agreement between the United States and the Netherlands 
  D.All of the above   
  E.None of the above
 



Answer Key: A
 
Feedback: 12-5

The Warsaw Convention of 1929 limited the liability of international airlines in accidents.
The “open skies” agreement between the United States and the Netherlands took place in 1929. 
 
 
Question 14 of 40 2.5/ 2.5 Points

Railroad freight transport in the United States is a dying industry.
 
Correct
  A. True
 B. False
 


Answer Key: False
 
Feedback: 13-2 
 
 
Question 15 of 40 2.5/ 2.5 Points

It is possible that some ocean freight traffic will be replaced by rail service between East Asia and Europe.
Correct
 
  A. True
 B. False
 


Answer Key: True
 
Feedback: 13-2 
 
 
Question 16 of 40 0.0/ 2.5 Points

Liquid-bulk containers cannot be stacked with traditional containers Incorrect
 
  A. True
 B. False
 


Answer Key: False
 
Feedback: 13-3a
 
 
Question 17 of 40 2.5/ 2.5 Points

Much trade at the United States-Mexico border is:
  A.by ocean   
Correct  B.DAF 
  C.involving trucks not regulated by weight, length, and other equipment standards
 
  D.All of the above
 
  E.None of the above
 



Answer Key: B
 
Feedback: 13-1 
 
 
Question 18 of 40 2.5/ 2.5 Points

The biggest problem in international trucking in Europe is/are:
  A.variance in the value of the euro
 
Correct  B.different regulations from country to country 
  C.border controls   
  D.All of the above
 
  E.None of the above
 



Answer Key: B
 
Feedback: 13-1

“Variance in the value of the euro” is bogus.
In the European Union, “Border controls” are no longer a factor.

 
 
 
Question 19 of 40 0.0/ 2.5 Points

U.S. railroads in 2007 had a market share of _____ of all long-distance ton miles shipped.


  A.40 percent   
  B.35 percent   
  C.22 percent   
  D.12 percent   
Incorrect  E. None of the above   



Answer Key: A
 
Feedback: 13-2
 
 
Question 20 of 40 0.0/ 2.5 Points

Not including intermodal shipments, the three main areas of U.S. railroad freight business have been in the areas of:


  A.high-end electronics, cut flowers, and time-sensitive parcels
 
  B.packaged consumer goods, computers, and gasoline   
  C.bulk freight, break-bulk freight, and automobiles
 
  D.mobile homes, fast mail, and gravel   
Incorrect  E.None of the above   



Answer Key: C
 
Feedback: 13-2

High-end electronics, cut flowers, and time-sensitive parcels cannot optimally move by rail unless on fast intermodal trains. Packaged consumer goods require the flexibility of trucks to be properly distributed to retailers, computers are too high-value to move by rail except on fast intermodal trains. Gasoline is better shipped long-distance by pipeline and short distances by truck.
Mobile homes require the flexibility of trucks for delivery, fast mail sometimes goes by Amtrak train or perhaps by fast intermodal, but not by regular freight trains. Gravel regularly goes by rail, but it is related in the answer to mobile homes and fast mail which are not correct 
 
 
Question 21 of 40 2.5/ 2.5 Points

Containers used in air transport are not intermodal. Correct
 
  A. True
 B. False
 


Answer Key: True
 
Feedback: 14-4a 
 
 
Question 22 of 40 2.5/ 2.5 Points

Markings in international air shipments should be handled in much the same way as markings on ocean shipments.
Correct
 
  A. True
 B. False
 


Answer Key: True
 
Feedback: 14-4c 
 
 
Question 23 of 40 2.5/ 2.5 Points

Some countries regulate primary package sizes to be a multiple of simple metric units. Correct
 
  A. True
 B. False
 


Answer Key: True
 
Feedback: 14-9 
 
 
Question 24 of 40 2.5/ 2.5 Points

A freight consolidator is almost always quite good at packaging a container properly, with proper dunnage and protection, but the owners of other cargo on board the consolidated container may not be as careful, and that represents a hazard
Correct
 
  A. True
 B. False
 


Answer Key: True
 
Feedback: 14-3b 
 
 
Question 25 of 40 2.5/ 2.5 Points

Hazardous cargo shipped by sea is regulated by the:
Correct  A.IMO 
  B.country of the ship’s flag 
  C.IATA 
  D.ICAO 
  E.None of the above   



Answer Key: A
 
Feedback: 14-7

The shipment of dangerous goods by sea is regulated by the International Maritime Organization [IMO]. The IATA is the International Air Transport Association and the ICAO is the International Civil Aviation Organization, both of which regulate air transport of dangerous goods.
 
 
Question 26 of 40 2.5/ 2.5 Points

Packaging designed to appeal to and be functional for consumers is called:


Correct  A.primary packaging 
  B.secondary packaging 
  C.tertiary packaging 
  D.commercial packaging 
  E.None of the above
 



Answer Key: A
 
Feedback: 14-1

From the text: Primary packaging is consumer packaging, or what the consumer sees when s/he purchases and handles the product. It is part of the marketing function of the firm and is traditionally covered in marketing management textbooks as part of the promotional efforts of the firm; primary packaging is only occasionally mentioned in this chapter. Secondary packaging is the packaging that usually groups several of the consumer goods into one unit, usually a thin cardboard box or a shrinkwrap. This is what the retailer sees and handles before the goods are placed on the shelves. Tertiary packaging, or transportation packaging, includes all of the activities designed to ensure “safe and efficient delivery of the goods in sound condition” to their foreign purchaser.
The term “commercial packaging” is bogus.
 
 
Question 27 of 40 2.5/ 2.5 Points

Because of the threat to hardwood forests caused by the long-horned beetle:

  A.steel pallets cannot be imported into China unless they have been fumigated, heat-treated, or pressure-treated with a pesticide 
Correct  B.wood pallets from China are not allowed in the United States unless they have been fumigated (gassed), heat-treated, or pressure-treated with a pesticide
 
  C.wood pallets cannot be used in Europe 
  D.aluminum pallets are not allowed into India from the United States unless they have been fumigated, heat-treated, or pressure-treated with a pesticide   
  E.None of the above   



Answer Key: B
 
Feedback: 14-3d

All answers are bogus except “wood pallets from China are not allowed in the United States unless they have been fumigated, heat-treated, or pressure-treated with a pesticide.” 
 
 
Question 28 of 40 2.5/ 2.5 Points

Since the World Trade Organization has pressured importing countries to reduce tariffs, importing countries have done away with non-tariff barriers.
 
Correct
  A. True
 B. False
 


Answer Key: False
 
Feedback: 16-2 
 
 
Question 29 of 40 0.0/ 2.5 Points

A substantial tax break to exporters who use imported parts in the products they produce is called a duty drawback
Incorrect
 
  True
 False
 


Answer Key: False
 
Feedback: 16-3h 
 
 
Question 30 of 40 2.5/ 2.5 Points

A medical device is not legal in country A, but is legal in country B. Despite being restricted from country A, the product is allowed to go through the foreign trade zone of country A on its way to country B.
 
Correct
  A. True
 B. False
 


Answer Key: False
 
Feedback: 16-4
 
 
Question 31 of 40 2.5/ 2.5 Points

Customs offices sometimes can use a “countervailing” duty to tax products that the exporting government is found to have subsidized. Correct
 
  A. True
 B. False
 


Answer Key: True
 
Feedback: 16-1e 
 
 
Question 32 of 40 2.5/ 2.5 Points

The deductive method of valuation is when customs determines at what price identical or similar goods are sold within 90 days of importation in the importing country, and determines an entry value based upon “normal” mark-ups in the distribution channel.
Correct
 
  A. True
 B. False
 


Answer Key: True
 
Feedback: 16-1b 
 
 
Question 33 of 40 2.5/ 2.5 Points

Several countries use "other taxes" to create additional revenues within the boundaries of the (GATT and WTO) -- what are the four known methods in practice today.


  A.sales tax, usages tax, duty free, open market tax
 
Correct  B.punitive duty, border traffic tax, safeguard tax, temporary protection tax
 
  C.running tax, open face duty, safeguard duty, punitive tax
 
  D.temporary selection tax, hold tax, border traffic tax, safe sheld tax
 
  E.value added tax, re-entry tax, open container tax, quotas tax
 



Answer Key: B
 
Feedback: 16-1f 
 
 
Question 34 of 40 0.0/ 2.5 Points

A value-added tax is eventually only paid by:
Incorrect  A.producers 
  B.importers 
  C.consumers 
  D.manufacturers 
  E.None of the above   



Answer Key: C
 
Feedback: 16-1g

Eventually all value-added taxation is reflected in the price paid by consumers
 
 
 
Question 35 of 40 2.5/ 2.5 Points

Duty is usually based upon:
  A.tariff, border traffic taxes, and non-tariff barriers 
  B.value-added taxation, absolute quota, and patriotism campaigns   
  C.pre-shipment inspections and customs bonds.
 
Correct  D.product classification, valuation, and origin
 
  E.None of the above
 



Answer Key: D
 
Feedback: 16-1

Tariff is the amount of duty, border traffic taxes are not always relevant, and non-tariff barriers have nothing to do with duty.
While value-added taxation can be part of a duty, absolute quota is a blanket import restriction and has nothing to do with duty; patriotism campaigns are a non-tariff barrier.
Pre-shipment inspections are not required by all countries; customs bonds—if they are used—are based on duty (not the other way around: duty based on customs bonds as phrased in the question).
 
 
 
Question 36 of 40 2.5/ 2.5 Points

The sentence “We were all fired up about you’re proposal” is written in such a simple way that it is clearly understandable to someone who only has a limited understanding of English as a second language.
 
Correct
  A. True
 B. False
 


Answer Key: False
 
Feedback: 17-2 
 
 
Question 37 of 40 2.5/ 2.5 Points

The metric system is the preferred system of measurement in the entire world, with the exception of the United States and two other small countries
Correct
 
  A. True
 B. False
 


Answer Key: True
 
Feedback: 17-4 
 
 
Question 38 of 40 2.5/ 2.5 Points

When interacting with a foreign business person, it is generally best to adopt a formal form of address first, then to relax that position when it becomes clear that the foreigner is more comfortable with a less formal approach
Correct
 
  A. True
 B. False
 


Answer Key: True
 
Feedback: 17-5 
 
 
Question 39 of 40 0.0/ 2.5 Points

The exporter is responsible for providing good, clear documents in the correct number of originals and copies


  A.in all cases 
  B.only if the exporter is the exporter of record for Customs purposes
 
  C.only if the export in conducted in the exporter’s currency 
  D.only if the importer has requested a shipment under a C-type Incoterm (CIF, CIP or CFR, CPT) 
Incorrect  E.None of the above   



Answer Key: A
 
Feedback: 17-6d

Regardless of the Incoterm used, the exporter is responsible for the providing all of the documents.
 
 
 
Question 40 of 40 2.5/ 2.5 Points

Which is the preferred currency of payment for an importer who expects that the value of his currency will appreciate relative to the value of the currency of the exporter’s country?
Correct  A.Exporter’s country currency   
  B.Importer’s country currency
 
  C.A third country’s currency, such as the euro
 
  D.An artificial currency, such as the SDR   
  E.None of the above   



Answer Key: A
 
Feedback: 17-6b

The best alternative for the importer is to have to pay in the exporter’s currency, since it will, in his opinion, be worth less in the future, at the time of payment, than it does now, at the time at which the contract is negotiated 

does anyone have week 5 exam for TLMT 342?

Week 5 Exam TLMT 342

Part 1 of 1 -   87.5/ 100.0 Points

Question 1 of 40
2.5/ 2.5 Points
World trade in services represents a higher percentage of total world trade than does world trade in merchandise.
Correct   
 A. True
 B. False


Answer Key: False
Feedback: Tables 1-1 through 1-3
Question 2 of 40
2.5/ 2.5 Points
International trade is still mostly concentrated among the developed countries of the Northern Hemisphere. Which country is the largest exporter of the world?

 A.United States   
Correct    B.Germany   
 C.China
 D.Japan   

Answer Key: B
Feedback: REF: 1-3: Figure 1-3

Germany is the largest exporter in the world, and exports about 12% more than the United States and 50% more than China.
Question 3 of 40
2.5/ 2.5 Points
A firm can respond to one of its competitors’ introduction of a lower-priced product by starting to produce its own lower-cost product abroad and importing it. Such a strategy is called:
 A. in sourcing   
 B.foreign investment
 C.just-in-time
Correct    D.outsourcing
 E. None of the above   

Answer Key: D
Feedback: REF: 1-4a

Outsourcing is the process of manufacturing abroad in order to lower production costs.
Question 4 of 40
2.5/ 2.5 Points
Russia can produce 25 tons of steel or 15 chairs using the same amount of resources. Using the exact same amount of resources, India can produce 18 tons of steel and 12 chairs. According to the theory of comparative advantage, the countries will trade with each other. What will Russia produce?
 A.Steel   
Correct    B.Chairs
 C.Some steel and some chairs
 D.Impossible to determine with the information given
 E.None of the above   

Answer Key: B
Feedback: REF: 1-5b

Russia has a comparative advantage in making chairs; it costs Russia 0.6 tons of steel to make a chair, and it costs India 0.67 tons of steel to make a chair. Russia makes chairs more efficiently than it makes steel, and the countries will trade as long as the price of chairs is higher than 0.6 tons of steel (otherwise Russia will not sell) and lower than 0.67 tons of steel (otherwise India will not buy).

Question 5 of 40
2.5/ 2.5 Points
Which of the following is not an element of international logistics, according to the authors, although it is a part of domestic logistics?
Correct    A.Reverse logistics
 B.The management of transportation
 C.The management of inventories
 D.The management of paperwork
 E.None of the above


Answer Key: A
Feedback: REF: 2-2a and 2-3

The definition of the CLM (CSCMP) includes specifically the management of reverse flows of goods (reverse logistics), and the definition of David and Stewart does not mention it. The others (flow, storage and related information) are present in both definitions.
Question 6 of 40
2.5/ 2.5 Points
Which of the following is not among the challenges of international logistics?

 A.Infrastructure differences   
 B.Insurance complexities
Correct    C.Superstructure differences
 D.Paperwork requirements
 E.None of the above   

Answer Key: C
Feedback: REF: 2-5

All others are specifically mentioned, but “superstructure” is not, and is a term referring to, among others, the part of a ship located above the main deck.

Question 7 of 40
0.0/ 2.5 Points
MRP, MRP II, and DRP are inventory management techniques that allow manufacturers to reduce their shipment times (the time that goods spend in transit).
Incorrect
 A. True
 B. False


Answer Key: False
Feedback: REF: 2-1c; Box: “Materials Requirement Planning”
Question 8 of 40
0.0/ 2.5 Points
According to the authors, Supply Chain Management includes both domestic and international logistics activities; there is no practical way of distinguishing between domestic supply chain management and international supply chain management.
Incorrect   
 A. True
 B. False


Answer Key: True
Feedback: REF: 2-4
Question 9 of 40
2.5/ 2.5 Points
There are sometimes problems with electrical supply in:

 A.Sub-Sahara Africa   
 B.Saudi Arabia   
 C.some parts of a developed country like the United States   
Correct    D.All of the above   
 E.None of the above   

Answer Key: D
Feedback: REF: 3-4a

All of these areas have had electrical supply problems, including California.
Question 10 of 40
2.5/ 2.5 Points
Because work in modern ports goes so fast, there is no need for warehousing space.
Correct   
 A. True
 B. False


Answer Key: False
Feedback: REF: 3-2a
Question 11 of 40
2.5/ 2.5 Points
Of the following, the best definition of a logistics infrastructure would be that it consists of:

Correct    A.all of the elements in place to facilitate transportation, communication, and business exchanges   
 B.a country’s electrical supply and road network   
 C.the amount of computerization a country has   
 D.a developed banking system   
 E.None of the above   

Answer Key: A
Feedback: REF: 3-1

A country’s electrical supply and road network, the amount of computerization a country has, and a developed banking system are incomplete answers.
Question 12 of 40
2.5/ 2.5 Points
For security reasons, many companies are switching their mail deliveries to private services like DHL or FedEx.
Correct
 A. True
 B. False


Answer Key: True
Feedback: REF: 3-3a
Question 13 of 40
2.5/ 2.5 Points
An exporter has the most control over its foreign sales through a(n):

Correct    A.sales or marketing subsidiary   
 B.export trading company   
 C.export management company   
 D.agent   
 E.distributor   

Answer Key: A
Feedback: An export trading company and a distributor provide the least amount of control over foreign sales since they take title to the goods and resell them themselves; an export management company and an agent provide a bit more control for the exporter since they do not take title of the goods, yet they make the sales aboard.

REF: 4-2a, 4-2b, 4-3a, 4-3b, 4-3d
Question 14 of 40
2.5/ 2.5 Points
Joint ventures were developed as ways to partner with a politically well-connected company in a foreign country to help prevent things like nationalization of a foreign company by the host government.
Correct
 A. True
 B. False


Answer Key: True
Feedback: REF: 4-4d
Question 15 of 40
2.5/ 2.5 Points
Because of action by the World Trade Organization to lower tariffs in the future, there should be an increase in the importance of Foreign Trade Zones.
Correct   
 A. True
 B. False


Answer Key: False
Feedback: REF: 4-7a
Question 16 of 40
2.5/ 2.5 Points
Attempts to reduce business practices that include corruption and bribery have been made by the:

 A.W.O.F.E.
 B.sogo shosha   
Correct    C.Organization for Economic Cooperation and Development   
 D.foreign labor laws that protect agents   
 E.None of the above   

Answer Key: C
Feedback: W.O.F.E. is a wholly-owned foreign enterprise. A sogo shosha is a Japanese trading company. Foreign labor laws are not normally designed to address corruption and bribery in international trade.

REF: 4-7c

Question 17 of 40
2.5/ 2.5 Points
Under the Uniform Commercial Code (UCC), when a buyer agrees to an offer made by a seller, but indicates a desire for a different schedule of delivery or term of payment, such a response is considered to be a rejection of the offer.
Correct   
 A. True
 B. False


Answer Key: False
Feedback: REF: 5-2a
Question 18 of 40
2.5/ 2.5 Points
In most Middle Eastern countries, agents and distributors are not required to be nationals of the country.
Correct   
 A. True
 B. False


Answer Key: False
Feedback: REF: 5-3b
Question 19 of 40
2.5/ 2.5 Points
The most sensitive issue in an international distribution contract between an exporter and an agent/distributor is:

Correct    A. termination   
 B.advertising   
 C.territories   
 D.product line   
 E.None of the above


Answer Key: A
Feedback: Termination can have legal repercussions if it is not done right. In addition, a spurned former agent/distributor can wreak havoc with future marketing efforts by the exporter and/or its new agent/distributor.

REF: 5-5
Question 20 of 40
2.5/ 2.5 Points
Lex Mercatoria is:

 A.a major calamity like a storm or other natural disaster.
 B.the Uniform Commercial Code   
 C.common law   
Correct    D.trade law made up of a multitude of different sources of law and jurisprudence
 E.None of the above


Answer Key: D
Feedback: A major calamity like a storm or disaster is force majeure; the Uniform Commercial Code is business law for the United States, common law is judge-made law.

REF: 5-1
Question 21 of 40
2.5/ 2.5 Points
While on the surface Incoterms determine who pays what when, ultimately the _____ directly or indirectly pay(s) the costs of transportation and international shipping.

Correct    A.importer
 B.exporter   
 C.customs office   
 D.All of the above   
 E.None of the above   

Answer Key: A
Feedback: The importer ultimately pays since any costs the exporter pays will be built into the price.

REF: 6-3
Question 22 of 40
2.5/ 2.5 Points
Under the ancient maritime custom regarding Free on Board, if a piece of cargo breaks loose while crossing the ship’s rail and lands on the ship, it becomes the responsibility of:

 A.the exporter   
Correct    B.the importer.
 C.the harbor master
 D.All of the above
 E.None of the above


Answer Key: B
Feedback: If the cargo lands on the ship it is the responsibility of the importer. If it falls back on the quay, it remains the responsibility of the exporter. The ship’s rail is the dividing point.

REF: 6-7a
Question 23 of 40
2.5/ 2.5 Points
An Incoterm expressed as “CIP Sofia, Bulgaria, Incoterms 2000” means that under Incoterms as of 2000, the goods are “Carriage and Insurance Paid” to Sofia, Bulgaria, where the importer will take control of them
Correct
 A. True
 B. False


Answer Key: True
Feedback: REF: 6-11
Question 24 of 40
2.5/ 2.5 Points
The Incoterm CPT means “Cargo Placed at Terminal.”
Correct   
 A. True
 B. False


Answer Key: False
Feedback: REF: 6-10
Question 25 of 40
2.5/ 2.5 Points
Among other reasons, international transactions are perceived to have more risk of non-payment because of:

 A.a lack of credit information   
 B.a lack of personal contact
 C.no easy legal recourse   
Correct    D.All of the above   
 E.None of the above   

Answer Key: D
Feedback: Each of these reasons makes international transactions more complex than domestic transactions.

REF: 7-1
Question 26 of 40
2.5/ 2.5 Points
A transaction method in which an exporter conducts its international business similar to the way it and most companies would conduct domestic business is through:

Correct    A.an open account
 B.a letter of credit
 C.a documentary collection
 D.cash in advance   
 E.None of the above   

Answer Key: A
Feedback: While there may be instances of demanding cash in advance or even a letter of credit, in most cases businesses offer open accounts in their domestic transactions. Documentary collections are not necessary for domestic transactions.

REF: 7-5a

Question 27 of 40
2.5/ 2.5 Points
In a letter of credit, the credit-worthiness of the exporter is substituted for the credit-worthiness of the importer.
Correct   
 A. True
 B. False


Answer Key: False
Feedback: REF: 7-6a
Question 28 of 40
2.5/ 2.5 Points
The responsibilities of the presenting bank in the importing country generally stop at notifying the importer that the documents have arrived and at requesting that the importer endorse the draft or at requesting payment before releasing the documents. This is called trade acceptance
Correct
 A. True
 B. False


Answer Key: True
Feedback: REF: 7-7e
Question 29 of 40
2.5/ 2.5 Points
If the exporter and the importer agree that a transaction will be in the currency of the exporter’s country, the exporter then bears all the risks of exchange rate fluctuation.
Correct   
 A. True
 B. False


Answer Key: False
Feedback: REF: 8-1a
Question 30 of 40
0.0/ 2.5 Points
Some currencies are traded in the futures’ market as “commodities.”
Incorrect   
 A. True
 B. False


Answer Key: True
Feedback: REF: 8-2a
Question 31 of 40
2.5/ 2.5 Points
An options market hedge is, in effect, an insurance policy against unfavorable exchange rate fluctuations
Correct
 A. True
 B. False


Answer Key: True
Feedback: 8-5d
Question 32 of 40
2.5/ 2.5 Points
International exchange rates began to float
 A.in 1971
 B.at the end of the gold standard   
 C.and it changed the role of the International Monetary Fund   
Correct    D.All of the above   
 E.None of the above   

Answer Key: D
Feedback: The gold standard ended in 1971 and exchange rates began to float. Prior to that time, the IMF oversaw the fixed exchange rate system.

REF: 8-6b

Question 33 of 40
0.0/ 2.5 Points
A consular invoice can be considered a nontrade barrier.
Incorrect   
 A. True
 B. False


Answer Key: True
Feedback: REF: 9-2c
Question 34 of 40
2.5/ 2.5 Points
A certificate of manufacture is similar to a certificate of origin.
Correct
 A. True
 B. False


Answer Key: True
Feedback: REF: 9-4b
Question 35 of 40
0.0/ 2.5 Points
Besides a contract and a receipt for goods, an ocean bill of lading is:
 A.a certificate of title   
 B.a substitute for a certificate of insurance   
 C.an Incoterm   
Incorrect    D.All of the above   
 E.None of the above   

Answer Key: A
Feedback: Answers “a substitute for a certificate of insurance” and “an Incoterm” are bogus.

REF: 9-5a
Question 36 of 40
2.5/ 2.5 Points
EDI is
 A.electronic Data Interchange   
 B.an electronic exchange of documents from computer to computer.
 C.based upon a legal agreement between sender and recipient   
Correct    D.All of the above   
 E.None of the above


Answer Key: D
Feedback: Answers a, b, and c all apply.

REF: 9-6a

Question 37 of 40
2.5/ 2.5 Points
One of the most complex areas of international logistics is international insurance.
Correct
 A. True
 B. False


Answer Key: True
Feedback: REF: 10-2
Question 38 of 40
2.5/ 2.5 Points
Most piracy occurs near Northwest Asia
Correct   
 A. True
 B. False


Answer Key: False
Feedback: REF: 10-3j
Question 39 of 40
2.5/ 2.5 Points
Air cargo can be damaged because cargo pilots do not maneuver or fly as gently as passenger pilots do
Correct
 A. True
 B. False


Answer Key: True
Feedback: REF: 10-4
Question 40 of 40
2.5/ 2.5 Points
A letter of credit usually requires

 A.an open ocean cargo policy   
 B.a special cargo policy   
Correct    C.a certificate of insurance   
 D.All of the above   
 E.None of the above   

Answer Key: C
Feedback: A letter of credit usually requires a certificate of insurance. The answers “an open ocean cargo policy” and “a special cargo policy” are not directly relevant in this case.

REF: 10-7a