Import and Export Practice Exam

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• A country with exports exceeding imports is said to have a trade surplus.
• Which is the global market where currencies are bought and sold?
• Producing goods internally.
• Which economy type focuses on extraction and export of natural resources rather than manufactured goods?
• Which term refers to abstract ideas about what is good, right, and desirable in a society?
• Which form of inflation is caused by an oversupply of money in the economy?
• Which of the following best describes the purpose of a certificate of origin?
• Documentary collection is a process in which banks collect payment or acceptance against documents.
• How are import duties and taxes typically calculated in cross-border trade?
• Which statement best describes the scope difference between ITAR and EAR?
• Which pricing approach adjusts prices based on local market conditions?
• What is the process of acquiring raw materials, components, or products called?
• Which term denotes the electronic transfer of business paperwork between companies?
• Produces for a specific local/regional market.
• Which concept involves offsetting potential losses by taking positions that reduce risk in financial markets?
• Which term refers to important norms tied to morality, laws, and ethics, with serious consequences if violated?
• Regional groups promoting trade (e.g., SACU, ECOWAS).
• Which term is used for evaluating the decision to produce in-house versus outsource?
• How does temporary import work under temporary import regimes?
• Negotiation style varies by country; example: China slow, India bargaining. This is called?
• Which term describes the ongoing process of adjusting the marketing mix to local conditions?
• Gathers market intelligence and trends.
• What is the purpose of a Certificate of Origin?
• Which manufacturing technology enables producing a variety of products at low cost?
• Which phrase captures the expansion of IT, finance, and outsourcing industries?
• A decrease in the value of a currency relative to others?
• What does CIF include that CFR does not?
• Institute Cargo Clauses (A, B, C) in marine cargo insurance refer to what?
• What is a Letter of Credit and what three assurances does it provide?
• Which ratio compares export prices to import prices, multiplied by 100?
• Which market directly influences exchange rates by supply and demand for currencies?
• Which term refers to everyday customs, such as dress and manners, that are not serious if broken?
• Which statement best describes the purpose of a standby letter of credit?
• What is an ATA Carnet and when is it used?
• What is an Import Declaration and who typically files it?
• Which term describes collaboration across supply chain partners?
• Which sanctions regime is NOT commonly screened in US/EU trade compliance?
• In Hofstede's dimension, which type of society would be more likely to emphasize equal opportunities and quality of life across genders?
• Which production model concentrates manufacturing in one main location?
• What role does a customs broker play?
• Which term describes the system that plans and ensures quality across production and delivery?
• What is the primary purpose of the Harmonized System (HS) code?
• The unique factor that makes a company successful is its?
• Engages in product development and innovation.
• Under EXW, which party bears nearly all costs and risks from pickup?
• Which term represents currency value decreasing?
• What are the main WTO valuation methods besides transaction value?
• Which approach is a quality management system aiming for near-zero defects?
• Which concept forms the foundation of culture and influences norms, politics, and the economy?
• Which term best describes a currency that is widely accepted in international transactions and considered stable?
• How do Institute Cargo Clauses A, B, and C differ in coverage?
• Which term is defined as coordinating all activities from raw materials to final customer?
• What is a Certificate of Conformity used for in international trade?
• Which term denotes the degree of hierarchy and acceptance of unequal power within a society?
• What are end-use and end-user restrictions?
• Which term refers to abstract ideas about what is good, right, and desirable in a society?
• A health certificate is typically used for which product categories?
• Which term means choosing partners to sell products abroad?
• Which document is used to verify the country of origin for tariff purposes?
• When is a phytosanitary certificate typically required?
• What is the strategic plan for entering new markets called?
• Economies based on extraction of raw materials.
• Which category considers how advances in technology influence where production activities are located?
• Which term denotes inventory arriving exactly when needed to minimize storage costs?
• Who generally handles export declarations in the United States and what form is commonly used?
• Which statement about HS classification is true?
• Which statement best describes the transaction value method used in customs valuation?
• Which metric expresses living standards by dividing a country's GDP by its population?
• Which term best describes formal and informal arrangements among firms to coordinate production and distribution across borders?
• Trade program reducing tariffs for developing countries?
• What is CE marking and what does a conformity assessment entail?
• Which scholar defined culture as a complex whole including knowledge, belief, art, morals, law, and customs?
• What term describes legal but unauthorized resale of goods?
• Which term refers to producing customized products efficiently at scale?
• What is a bonded warehouse?
• Which term refers to protecting and handling products across packaging levels (primary, secondary, transit)?
• Inflation caused by high demand and limited supply.
• Which term describes a rapidly growing economy with increasing global importance?
• Which organization administers export controls on defense articles and related data?
• Choosing between in-house production or outsourcing.
• Which term refers to controlling stock levels and storage?
• Outsourcing to suppliers in other countries.
• Inflation caused by an oversupply of money in the economy.
• Which term is a software system that manages business operations?
• Costs that do not change with production level.
• Which function manages the flow and storage of goods from origin to consumer?
• What does EAR stand for in export controls?
• Which organization controls global oil production and pricing?
• Which term best describes producing goods at low cost with minimal strategic role?
• Which practice involves exploiting price differences across markets by buying low and selling high?
• What is a Confirmed LC?
• Which term is associated with producing for a specific local market?
• In FOB, who is responsible for unloading and export clearance?
• Which term describes a method that minimizes inventory on hand by matching orders with production and demand?
• Which entity issues a Letter of Credit?
• In Hofstede's cultural dimensions, a society characterized by high Masculinity typically emphasizes:
• Which term captures the foundational influence of beliefs on a culture's norms, politics, and economy?
• What is a Certificate of Conformity and when is it used?
• Short-term orientation would emphasize which of the following?
• Develops new technologies and processes for the company.
• Which term describes a facility that stores goods prior to distribution to customers?
• What does freight collect mean?
• A program that reduces tariffs for developing countries and their exports is known as which?
• Which item is NOT a PESTLE factor?
• What is an Inspection Certificate and when is it used?
• Which statement about D/P and D/A is true?
• Which term describes the legal but unauthorized resale of goods?
• Which concept describes buying low and selling high across markets?
• What are typical steps in the export licensing process?
• Modifying products for local markets?
• Which WTO valuation method uses the value of the goods plus manufacturing costs in the country of export?
• Which concept is a data-driven improvement program aimed at reducing defects to near zero?
• Which term describes an increase in a currency's value relative to others?
• Which concept describes a firm’s ability to outperform rivals?
• Which dimension would examine government policy, tax regime, and trade barriers?
• What are possible consequences of misclassifying goods for customs purposes?
• What is the difference between an irrevocable LC and a revocable LC?
• Which term describes the 1991 shift toward liberalizing India's economy?
• What is the official currency of China?
• Under EXW (Ex Works), what is the seller's primary obligation?
• If a country has a high long-term orientation, they are more likely to:
• What determines transportation cost efficiency?
• Which framework analyzes Political, Economic, Social, Technological, Legal, and Environmental factors?
• When performing PESTLE, environmental factors would include:
• What term denotes the reduction of government control over India's economy?
• A sustained increase in prices, causing a decrease in purchasing power?
• Which term covers the coordination of all activities from raw materials to final customer?
• Which of the following is a typical step in the export licensing process?
• Which term refers to managing returns and recycling of goods?
• Which concept concerns tolerance for risk and ambiguity?
• Which term describes the process of handling returns and recycling of goods?
• Which market involves buying in low-price regions and reselling in higher-price regions?
• How do non-preferential origin and preferential origin differ?
• Who handles export declarations in the United States and what form is commonly used?
• Which term describes outsourcing to nearby countries?
• Which factor describes the role of technology in determining production location?
• Denied Party Screening is primarily used to ensure compliance by checking against sanctions and restricted-party lists.
• In PESTLE analysis, the legal factor would consider which of the following?
• Which term best fits the concept of building global business relationships?
• Which practice ensures quality across all stages of production?
• What is a health certificate and what products typically require it?
• PESTLE Analysis stands for which categories?
• Which standard is commonly used to demonstrate quality management for international trade, especially in the EU?
• Which approach emphasizes trust and long-term partnerships in business relationships?
• What term describes the total value of goods and services produced within a country?
• A stable, widely accepted currency used in international trade (e.g., USD, EUR)?
• Which pricing approach modifies prices to reflect local market conditions?
• Which function is primarily concerned with planning and controlling the movement and storage of goods, information, and finances?
• Which term focuses on cost efficiency and strategic supply chain role?
• What is the difference between a 'shipping bill' and a 'customs declaration' in practice?
• Which term best describes a rapidly growing economy with increasing global importance?
• Purchasing goods/services from external suppliers.
• What is the concept of substantial transformation in rules of origin?
• Which term describes collaboration between a company and external suppliers?
• Which incoterm requires the seller to pay import duties and deliver ready for unloading at named place?
• What is the lowest production level at which costs are minimized?
• Which term means the digital exchange of business documents?
• A company secures inputs from suppliers to ensure timely delivery. Which term best describes this activity?
• What payment guarantee is commonly used in international trade?
• Which option is NOT a main WTO valuation method?
• A theory that compares currencies based on what they can buy domestically.
• Which document is primarily used to facilitate temporary admission of goods for exhibitions or samples with limited duties?
• Which factor best explains why a firm can charge premium in some markets?
• Why is a destination control statement used on commercial documents?
• Which is a typical consideration under the economic factor in PESTLE?
• Which description matches an economy heavily dependent on petroleum exports?
• EAR99 indicates items that are
• Which standard is internationally recognized for quality management in global trade?
• Which term describes a factory focused on gathering market intelligence and trends?
• Which metric measures the cost of living?
• Free Trade Zone (FTZ) is a bonded area where duties are suspended or reduced until withdrawal.
• Which term refers to a system that coordinates and automates core business processes across departments?
• A society with low Masculinity (high Femininity) is likely to value:
• Which term describes continuing efforts despite challenges?
• Which term describes manufacturing in multiple locations closer to markets?
• A plan for entering a foreign market?
• Which term describes the creation of goods or services?
• Which concept covers political, economic, and cultural conditions influencing production?
• Which agency administers ITAR?
• Largest free trade area by number of countries?
• Which term best describes areas that offer tax incentives to attract foreign investment?
• Which scholar is associated with defining culture as the complex whole including knowledge, belief, art, morals, law, and customs?
• Which term describes the degree of independence versus group integration in a society?
• What term refers to partnerships based on trust between companies?
• What does freight prepaid mean?
• A large population of foreign workers is referred to as what?
• Which term represents the everyday practices that are not morally binding?
• What is a negotiable Bill of Lading?
• What are end-use and end-user restrictions?
• Under WTO valuation, which method is used when there are no identical or similar goods and no transaction value available?
• Which zones are designed to boost exports with incentives?
• What is the difference between 'in-transit' and 'transshipment' under customs procedures?
• Which term describes tailoring products for local markets?
• Which term denotes producing abroad to reduce costs with limited strategic involvement?
• The amount of goods/services a unit of money can buy?
• What is true about a negotiable Bill of Lading?
• Which phrase best describes the collective programming of the mind that distinguishes one group from another?
• Which payment term places the most credit risk on the seller?
• Which statement best reflects the environmental factor in PESTLE?
• Which phrase denotes a system of ideas that forms a design for living?
• An increase in the value of a currency relative to others?
• Which term refers to long-term business decision-making?
• Awareness and respect for cultural differences in business?
• Which statement about the destination control statement is accurate?
• Which term refers to a facility used to store and distribute goods?
• What is the value of one country's currency in relation to another currency?
• Which term describes regional groups promoting trade with common policies?
• How do CPT and CIP differ regarding insurance obligations?
• Denied Party Screening is used to identify and avoid illegal or risky transactions by screening against sanctions/restricted lists.
• Which Incoterm places the buyer at risk from the seller's premises?
• Which form of inflation is driven by too much demand relative to supply in the economy?
• Which term describes the process of defining long-term goals and allocating resources for international operations?
• Which production model involves manufacturing in multiple locations closer to markets?
• Which term is primarily associated with product development and innovation within the organization?
• Areas with low taxes and incentives for foreign investment are commonly called what?
• Which documents are typically required to prove origin under rules of origin?
• Which term denotes the acceptance of inequality in society?
• Which pricing approach is used to maintain the same pricing strategy across all markets?
• Which location is a major re-export and trade hub connecting global markets, often described as an entrepôt?
• General Export License is defined as
• Which statement best describes the function of an inspection certificate in trade?
• Which term represents currency value increasing?
• Which concept describes cost advantages achieved by producing more units?
• What does Purchasing Power Parity (PPP) compare?
• Differentiate a documentary LC from a documentary collection.
• What is the significance of origin criteria for preferential tariffs?
• Which term describes social rules that guide behavior and expectations in society?
• Which entity controls foreign trade in China?
• Gathering information about demand and competition?
• Which description fits an economy that relies heavily on petroleum exports?
• The difference between long-term orientation and short-term orientation can be described as which of the following?
• Which concept describes the social rules that guide behavior and expectations in society?
• Duty drawback is
• Long-term Orientation describes emphasis on which of the following?
• Which term describes the movement of goods with ocean being cheapest and air the most expensive?
• How does an Air Waybill differ from a Bill of Lading?
• Which practice is used to reduce financial risk in trading or investing?
• Which development involves growth in IT, finance, and outsourcing industries?
• Which market involves buying goods in low-price regions and reselling in higher-price regions?
• Under DAP, who pays duties?