Imports Exports Quiz

Global Trade quiz

International / Global Trade test questions:

Question: Which of the following major issues does not relate to the financial aspects of exporting?
(a) the price of the product
(b) the method of payment
(c) location of production
(d) terms of payment

Ans. (c)

Question: All of the following are major types of indirect intermediaries EXCEPT:
(a) the export management company
(b) the export trading company
(c) export agents
(d) distributors

Ans. (d)

Question: Tariff is a __
(a) Quantitative restrictions on imports.
(b) Tax on imports.
(c) License on import.
(d) Both (b) and (c)

Answer. (b)

Question: A bill for goods issued by the seller that contains the description of the goods, the address of the buyer and seller, and delivery and payment terms is known as a:
(a) bill of lading.
(b) commercial invoice.
(c) shipper’s export declaration.
(d) certificate of origin

Ans. (b)

Question: A letter of credit:
(a) is issued by a credit agency to a bank.
(b) cannot be amended.
(c) is more secure than cash in advance.
(d) obligates the importer’s bank to honor a draft presented to it

Ans. (d)

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Question: A revocable letter of credit:
(a) obligates the exporter’s bank to honor a draft presented to it.
(b) can only be amended if all the parties involved agree.
(c) can be amended by any of the parties involved at any point.
(d) obligates the importer’s bank to honor a draft presented to it

Ans. (c)

Question: From the exporter’s point of view, all of the following are major issues that relate to the financial aspects of exporting EXCEPT:
(a) the methods of payment
(b) the financing of receivables
(c) insurance
(d) inter modal transportation

Ans. (b)

Question: Free trade is based on the principle of
(a) Comparative advantage
(b) Comparative scale
(c) Economies of advantage
(d) Production possibility advantage

Answer. (a)

Question: A document that controls exports and is used to compile trade statistics is known as a:
(a) bill of lading.
(b) commercial invoice.
(c) certificate of origin.
(d) shipper’s export declaration

Ans. (d)

Question: An irrevocable letter of credit:
(a) can only be amended if all parties involved agree.
(b) is issued by an irrevocable credit agency.
(c) can be amended by any of the parties involved at any point.
(d) obligates the exporter’s bank to pay interest to the importer

Ans. (a)

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Question: Which of the following basic methods of payment is the least secure in terms of security for the exporter?
(a) letter of credit
(b) draft or bill of exchange
(c) open account
(d) Cash before shipment

Ans. (c)

Question: Gains from trade can be divided into two parts.
(a) gains from exports and gains from imports.
(b) gains from specialization and gains from exchange.
(c) gains from consumption and gains from production.
(d) gains from profit and gains from loss

Answer. (b)

Question: A document that is a receipt for goods delivered to the common carrier for transportation, a contract for the services rendered by the carriers, and a document of title is known as a(n):
(a) export license
(b) commercial invoice
(c) consular invoice
(d) bill of lading

Ans. (d)

Question: Countries often use ___ to determine the specific tariff schedule for imports; it is a document that indicates where products originate.
(a) commercial invoice
(b) shipper’s export declaration
(c) bill of lading
(d) certificate of origin

Ans. (d)

Question: Trade between two countries is considered as __ trade.
(a) External
(b) Internal
(c) Inter- regional
(d) None of the above

Answer. (a)

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Question: A tariff that is levied as a fixed charge per unit of imports is known as a
(a) Specific tariff
(b) Add on tariff
(c) Import tariff
(d) Export tariff

Answer. (a)

Question: A confirmed letter of credit:
(a) obligates the importer’s bank to honor a draft presented to it.
(b) obligates the exporter’s bank to honor a draft presented to it.
(c) cannot be amended.
(d) only has the confirmed guarantee of the importer’s bank

Ans. (d)

Question: Exchange of goods against goods is called
(a) Charter
(b) Barter
(c) Hunter
(d) None of them

Answer. (b)

Question: When tariffs are imposed on imports, which of the following will increase?
(a) Domestic output.
(b) Domestic demand.
(c) Domestic price.
(d) Domestic consumption

Answer. (c)

Question: Comparative advantage occurs when
(a) A country can produce more goods than anyone else
(b) A country has a lower opportunity cost for the production of goods than any other country.
(c) A country has more product lines than other countries
(d) The exchange rate appreciates

Answer. (b)

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Question: This type of trade barrier is the easiest to deal with.
(a) Tariffs
(b) Non-Tariff barriers
(c) Private barriers
(d) International barriers

Answer. (a)

Question: Which of the following is not an export?
(a) sales of domestic cars abroad
(b) purchase of foreign components
(c) students from abroad studying in your country
(d) sales of financial services

Answer. (b)

Question: Freight forwarders do not perform this function.
(a) Packing advice
(b) Freight rate quotation
(c) Preparation of customs documents
(d) Product pricing

Answer. (d)

Question: A tariff __
(a) Increases the volume of trade.
(b) Reduces the volume of trade.
(c) Has no effect on the volume of trade.
(d) Both (a) and (c)

Answer. (b)

Question: A government’s restriction on the quantity of imports from a country is known as
(a) Export quota
(b) Import quota
(c) Import rent.
(d) Embargo

Answer. (b)

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Question: NAFTA is an example of
(a) Common Market
(b) Customers Union
(c) Economic Community
(d) Free Trade Area

Answer. (d)

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Jaspreet Singh

Jaspreet (Masters in Commerce) not only have exceptional command of Accounts and Commerce subjects but also have keen interest in Law. He is consistent in producing high quality assignments.

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