CREDIT BUSINESS ASSOCIATE CBA DETAILED NEWEST QUESTIONS AND VERIFIED CORRECT ANSWERS EXAM 2026

CREDIT BUSINESS ASSOCIATE CBA DETAILED NEWEST QUESTIONS AND VERIFIED CORRECT ANSWERS EXAM 2026 The ____ Doctrine holds that international trade cases should be tried under local, not foreign, law. Calvo What payment terms can exporters offer to foreign buyers? Consignment letters of credit cash in advance open account Which payment term requires the seller to assume all the payment risk? Open account Which payment term involves goods being shipped to the buyer and payment being held until the goods have been sold? consignment An exporter's formal quotation that includes a description of the merchandise, price, delivery time, shipping method, terms of sales, and points of exit and entry is called pro forma invoice Which items are indicated on the export packing list? shipper mode of transport seller buyer What is the form required by the U.S. Department of Commerce that is filed electronically and supplies export statistics as well as the names of the shipper and consignee? CBA CBA shipper's export declaration What are the benefits of using a container when shipping internationally? reduce theft reduce the risk of damage reduce handling costs Which kind of marine insurance policies is the most expensive? all risks The Conformité Européene mark indicates that the goods conform to which European Union requirements? environmental safety health True or false: A principal duty of all foreign government representatives is to promote exports. True The U.S. version of the global tariff code is called the Tariff Schedule of the United States. Harmonized If goods are subject to an import____ and it fills during shipment, the goods cannot be imported for the remainder of the fiscal year. quota What are the independent businesses that handle import shipments for compensation? customhouse brokers What are ways for prospective importers to identify import sources? online bulletin boards accidental importing foreign country visits foreign country consul What is the area authorized by customs authorities for storage of goods on which payment of import duties is deferred until removal? bonded warehouse CBA CBA The HTSUS is the U.S. version of the global ___code. tariff The independent businesses that handle import shipments for compensation are known as customhouse brokers A(n) (importer/exporter) buys in foreign markets and sells domestically. importer What are advantages of shipping by air? lower packing costs lower inventory costs lower insurance rates A shipping ___ is a larger box that the shipper fills with goods at the firm's warehouse to help reduce theft and handling costs. This box is sealed and transported via ship to the destination. container invoice will include such things as the origin of the goods and a clause indicating that the goods will not be transshipped to another nation. commercial Comparison of shipping costs for exporters show that costs are often lower for ___ freight due to lower insurance and packing rates, and a smaller chance of damage during shipment. air What indicates that the goods being shipped conform to the European Union's health, safety, and environmental requirements? Conformité Européene mark What does a commercial invoice include? export packing marks origin of goods clause stating no transshipping What serves as evidence that the shipment is insured against loss or damage while in transit? CBA CBA insurance certificate What are the three types of marine insurance policies? broad named perils all risks basic named perils True or false: If good have been sold on CFR terms, then there is no need for the exporter to purchase insurance. False An export bill of lading is issued by the carrier Which three types of goods require a license in order to be exported from the United States? scarce materials technology goods with military applications What three items are included on the shipper's export declaration? foreign port of unloading value of the goods U.S. port of exit Which items are included in the shipping documents? insurance certificate export packing list export declaration bill of lading What are the three purposes of an export bill of lading? It is a certificate of ownership. It is a contract for carriage between the shipper and the carrier. It is a receipt from the carrier for the goods shipped. True or false: Almost all exports from the United States require export licenses. False Which tasks are performed by a foreign freight forwarder? CBA CBA act as export traffic department book space with carrier complete documents A customs ____ is a rebate on customs duties. drawback When goods are in a free trade zone, they can be combined repackaged inspected stored A foreign freight acts as the firm's export traffic department. forwarder Which of the following are typical foreign trade zones? export processing zones transit zones free ports free perimeters free trade zones Which of the foreign trade zones is the most common? free trade zones True or false: When a product is assembled in a free trade zone, no duties have to be paid if the product is exported. True The Overseas Private Investment Corporation stimulates investment in developing countries by offering investors insurance against damages from war currency inconvertibility expropriation What is the principal government agency that provides loans, guarantees, and insurance programs to support U.S. exporters? U.S. Ex-Im Bank CBA CBA A foreign zone is a duty-free area created to facilitate trade by reducing the effect of customs restrictions. trade Which government corporation stimulates private investment in developing countries by offering investors insurance against expropriation? OPIC The U.S. Export-Import Bank supports U.S. exporters with Guarantees insurance loans Forfaiting is the sale of an exporter's accounts receivable on Commodities capital goods high-value goods Selling an exporter's accounts receivable on ordinary goods with the balance due upon delivery or soon after is called Factoring True or false: A banker's acceptance is a form of commercial paper and can be bought and sold in the financial markets. True True or false: A documentary draft comes with a guarantee of payment. False (import/export) draft is an unconditional order drawn by the seller on the buyer instructing the buyer to pay the amount of the order on presentation (sight draft) or at an agreed future date (time draft). export Which financing technique allows the exporter to get cash for its long-term, credit-based sales? forfaiting What are characteristics of the factoring technique? CBA CBA +The exporter has complete protection against bad debts. +The exporter can be more competitive by selling on open account. +The factoring house acts as the exporter's credit department. A time draft with a maturity date of less than 270 days that has been accepted by the bank on which it was drawn is called a banker's acceptance Which payment term is similar to a letter of credit but doesn't have the guarantee? documentary draft An export draft is (less/more) costly to the buyer than a letter of credit. less Which payment term involves the buyer's bank becoming an intermediary in the sale? letter of credit A pro forma invoice would be requested (before/after) a buyer opens a letter of credit. before If the letter of credit is _____, then the customer cannot alter or cancel the credit without the seller's consent. irrevocable An air waybill is a bill of lading issued by a(n) air carrier ______ is a document issued by a buyer's bank promising to pay the seller a specified amount under specified conditions. letter of credit Which payment term is frequently used when multinationals sell goods to their subsidiaries? consignment Which payment term should be offered only to reliable customers because it ties up the exporter's capital until payment is made? open account An air carrier will issue an air ____ as proof that shipment has been made. waybill Which payment term does an exporter desire if the buyer's credit standing is uncertain? CBA CBA cash in advance Generally, the seller will request that letters of credit be irrevocable confirmed If there is little competition or the competitive prices are higher and the exporter matches the competition price, then the exporter is using a ______ strategy. price skimming What are the two areas that need special attention in the terms of sale for exports? + designation of the country whose laws govern contractual disputes + designation of the responsibilities for patent and trademark registration Which costs do exporters add to the factory door cost? +direct cost of making the export sale +profit margin +percentage of general overhead What two terms of sale are convenient for foreign buyers? CFR CIF What issues are described by Incoterms? which party bears the risk which party does which tasks which party covers the costs Local managers being unfamiliar with corporate culture, policies, and practices is a disadvantage of ______ staffing policy, polycentric Who established the predefined commercial terms known as Incoterms? International Chamber of Commerce A person who lives outside of his or her country of citizenship is called a(n) expatriate Which of the following are dimensions associated with labor conditions? immigration labor unions CBA CBA aging populations overall size of the workforce urbanization of workforces What two factors are contributing to the decline in population in many developed countries? low levels of immigration low birthrates By 2050, in developed countries, the population aged 65 or over is expected to be over ______. 25% Predefined commercial terms established by the International Chamber of Commerce are known as Incoterms Which of the following are a result of the urbanization of workforce? a vulnerable workforce a pool of low-skilled workers increase in industry sector employment Bruce works for a Houston-based energy company and has been assigned to live and work in Indonesia for the next three years. When Bruce is living in India, he is an example of a(n) Blank______. expatriate The pool of available employees with the necessary knowledge. skills, and abilities within commuting distance of an employer is called the labor market Which two developing countries contain over one-third of the world's 15- to 24-year olds? China India True or false: The aging population is more evident in developing countries than in developed countries. False CBA CBA Which of the following are characteristic of developing countries? increase in economic development increase in population increase in the level of urbanization of the workforce What three countries are losing the largest number of their population to emigration? Mexico China Russia The term "3-D" jobs refers to work that is _______. dirty degrading dangerous The term_______refers to people moving from country to country in search of work. labor mobility Studies have shown that if immigration increases the labor supply by 10%, then wages will (increase/decrease) by 3% to 4%. decrease Which of the following are characteristic of "3-D" jobs? They employ vulnerable workers. Workers do not have a contract. Workers are often paid under the table. Employment often violates local laws. A guest ____ is a person who goes to a foreign country temporarily and legally in order to perform certain types of jobs. guest worker Which of the following has led to the loss of skilled professionals, such as scientists, in developing countries? brain drain 1. polycentric 2. regiocentric CBA CBA 3. geocentric 4. ethnocentric 1. based on the specific local context in which the subsidiary operates 2. based on the specific regional context in which the subsidiary operates 3. based on ability and experience without considering race or citizenship on the parent company's home-country frame of reference In the United States, immigrants created Blank______ of U.S. venture capital-backed public companies. 25% The process of recruitment and selection is also called staffing A home-country national is also called a ______-country national. parent Which approach to international human resource management is based on the parent company's home-country frame of reference? ethnocentric Which international human resource management approach would be utilized by a company with a primarily international strategic orientation characterized by low pressures for cost reduction and low pressures for local responsiveness? ethnocentric Which of the following are drawbacks of ethnocentric staffing policies? +relocation expenses for home-country managers +higher salaries for home-country managers working abroad +language and cultural barriers for expatriates Which of the following are characteristic of a polycentric approach to staffing? CBA CBA +Human resource policies are made at the local level. +The company hires PCNs for headquarters positions. +The company hires host-country nationals to work in foreign subsidiaries. Which of the following are characteristic of an ethnocentric staffing policy? +Decisions are made at headquarters. +It uses labor negotiators to troubleshoot problems. +It uses teams from the home country to assist with new plant start-up. Staffing includes which two activities? recruitment selection Beijing's Thousand Talents Program, which attempts to recapture talent that emigrated from China, attempts to create Blank______. reverse brain drain Which of the following are the effects of immigration? a decline in wages international cost competitiveness a net positive for inflation Labor unions _________ from one nation to another. vary significantly Countries such as Switzerland and France have experienced low birthrates that have brought about labor shortages. As a result, these countries bring in people from foreign countries to legally work in the factory and construction jobs that need employees. The people who come into the country to do these jobs are known as ______ workers. guest For which of the following reasons do migrating skilled workers choose the United States as a destination? open, merit-based economic system standard of living top-quality universities _____ brain drain occurs when highly skilled, educated immigrants return to their home country. CBA CBA Reverse In which process does a union represent the interests of its members in negotiations with management? collective bargaining Which of the following explain declining union membership? +Increase in lower-wage secondary-income workers +movement of jobs to lower-cost countries +employers' efforts to keep their businesses union-free True or false: Vastly more money and effort have been spent on cooperating with unions in other countries than on lobbying for the protection of national industries. False A____ is an organization of workers formed to promote the interest of its members. Need help? Review these concept resources. Labor union True or false: In the United States, native-born citizens create new businesses at a rate 30% greater than do immigrants do. False Which of the following are international human resource management approaches to hiring and promoting employees? regiocentric geocentric polycentric ethnocentric The salary and moving expenses associated with using employees from the home country are potential drawbacks of ______ staffing policies. ethnocentric The ______ human resource approach utilizes a variety of host-country nationals and third-country nationals for key positions in the region. regiocentric Which of the following are disadvantages of a polycentric staffing policy? CBA CBA +local managers creating their own upward immobility +local managers unfamiliar with corporate culture +differences in local managers' values and attitudes Which two human resource management activities include efforts to help employees acquire knowledge, skills, and abilities? development training Prior to being sent on an international assignment, parent-country nationals may be required to ______. +study the language of the foreign country +take short trips abroad to be exposed to foreign surroundings +study the culture of the foreign country If a company is driven simultaneously by high pressures for cost reduction and high pressures for local responsiveness, it is likely to follow a ______ staffing policy. geocentric What international human resource approach would be used by companies with slightly higher pressures for cost reductions and slightly lower pressures for local responsiveness than is the case for the multidomestic strategy? regiocentric Training and , (hiring/development) which help employees acquire knowledge, skills, and abilities, will vary depending on whether the employee is from the host country, the home country, or a third country. development True or false: After being hired, host-country graduates from home-country business schools are sent directly to the host-country subsidiaries. False When hiring host-country nationals in the host country, the international company may do which of the following to impart knowledge of business techniques? +utilize business courses in host-country universities +set up in-house training programs in subsidiaries +send new employees to home-country business schools CBA CBA True or false: Third-country nationals often accept lower wages than employees from the home country. True True or false: The number of host-country nationals graduating from home-country universities is unlimited. False Which of the following practices should be a part of the repatriation process? + Offer access to counseling to promote adjustment. + Allow expatriates to make regular visits back to home-country office. + Set up a mentoring program for the expatriate. Which of the following are potential benefits for children joining their parents on an expatriate assignment? + learning new languages + developing a global mind-set + exposure to multiple cultures Which of the following are characteristic of third-culture kids? + they hold multiple passports. + They speak several languages. + They have no sense of home. Equal-pay-for-equal-work means paying ________ base salaries to host-country nationals and home-country nationals. equal Which of the following compensation approaches provides a limited set of options from which the expatriate can choose? cafeteria The _______ approach pays the expatriate a base salary equal to that of a domestic counterpart plus a variety of allowances and bonuses. balance sheet 1. work content 2. general environment interaction CBA CBA 1. inherent conflict in the person's role 2. differences in housing 3. differences in behavioral norms The______ compensation approach begins with a home-country-based salary and then provides an additional sum the expatriate can use for housing, education, and so on. lump-sum For the expatriates' compensation plan to be effective, it must be equitable and consistent When employees become accustomed to the host country's culture, upon return home they can experience reverse culture shock Which compensation approach is favored by a majority of American international companies? balance sheet approach Compensation payments added to the base salaries of expatriates because of higher expenses encountered when living abroad are known as ______. allowances About______ of expatriates have children when they take an international assignment. 26% About______ of expatriates have children when they take an international assignment 26% Cost-of-living allowances are based on difference in the prices paid for ______. food utilities transportation entertainment What percentage of international companies provide an educational allowance for dependent children of long-term expatriates? 53% What term is used for compensation payments in addition to base salaries to compensate employees for hardships, inconveniences, or danger? CBA CBA bonuses Moving allowances provide for the cost of ________. hotel expenses transporting the family moving household effects What is the typical range for an overseas premium? 10%-25% The objective of the ______ is to ensure that expatriates will not have less after-tax take-home pay in the host country than they would in the home country. tax differential allowance Which of the following are types of bonuses? home leave reimbursement contract termination payments overseas premiums The additional payments to expatriates to compensate them for disagreeable or challenging living conditions are called overseas premiums Orientation allowances provide for _________. language instruction hiring domestic help shopping assistance In countries with high tax rates on personal incomes, companies pay executives___salaries and give them expensive perquisites. lower What are two reasons why companies do not export? + preoccupation with home market + reluctance to embark on a new and unknown operation Firms can use an export __ program for help in determining the need for their products in foreign markets. assistance Which of the following characterize perks? CBA CBA 1. They are symbols of rank in the corporate hierarchy. 2. They are used to minimize executives' tax burdens. 3. They are used to compensate executives. According to the U.S. Census Bureau's 2017 report, small and medium-sized companies in the United States account for almost _____ percent of all exports. 98 True or false: An export marketing plan should take a completely different approach than the domestic marketing plan. False What are the conditions of a sale that stipulate when the costs and risks are transferred to the buyer? terms of sale 1. price skimming 2. penetration pricing 1. match the competition price in the market 2. set a low price to gain market share Which pricing method is preferred by exporters? factory door cost The __of __ are the conditions of a sale that stipulate when the costs and risks are borne by the buyer. term/ sale What are required elements of an export marketing plan? product characteristics pricing policies promotional plans sales forecasts What do foreign buyers have to add to pricing when using CIF and CFR terms of sale? freight charges import duties landing charges Which of the following is NOT an issue described by Incoterms? CBA CBA which party has ownership True or false: One mistake often made by new exporters is taking too much time to select overseas sales representatives and distributors. False What are common mistakes made by new exporters? +taking insufficient care in selecting overseas distributors +making an insufficient commitment to overcome the initial financial requirements +failing to develop a master international strategy Which government institution offers a matching service that brings together potential exporters with business partners in specific markets? U.S. Department of Commerce Which government institution initiated a state-based financial grant to support state efforts to build the export capacity of its businesses? Small Business Administration Which of the following government programs supports education related to international business and trade in 17 universities? CIBER What are units within the International Trade Administration? Global Markets Unit Enforcement and Compliance Unit Industry and Analysis Unit In 2017, small and medium-sized U.S. businesses accounted for approximately _______ percent of the total value of exporting goods. 36 What type of assistance in export-related matters does the U.S. Department of Commerce provide? trade events an acquisitions support program a matching service What U.S. government agency provides the Center for International Business and Research? CBA CBA U.S. Department of Education Which government institution offers business development and financial assistance to encourage small businesses to export? SBA Nearly_____ of all U.S. workers receive no paid holidays or vacations. 25% Which allowance is based on the differences in prices paid for basic necessities in the host country compared to the home country? cost-of-living allowance Which type of expenses are typically paid in home-country currency? + purchases during home leave + professional society memberships + payments on outstanding debts in the home country Compensation packages must take _______ into account inflation exchange rates Expatriates' compensation is denominated in the (home/host)-country currency but established in terms of (home/host)-country currency. host home Which of the following is the current trend towards compensating third-country nationals? paying them the same as home-country expatriates Which of the following are potential issues when compensating third-country nationals? calculating income tax differentials home leave reimbursements Because countries with nonconvertible currencies are generally______ at the official rate, expatriates can be ______. overvalued; shortchanged What are some common considerations when employees are deciding whether to take an international job assignment? CBA CBA safety of personnel cost of living schools housing In which areas do non-exporting firms typically lack knowledge? +identification of foreign markets +payment and financing procedures +export procedures In addition to the World Bank, which foundation offers support targeted to building export capabilities in firms located in less developed nations? Hinrich Foundation Which institution offers export promotion activities that include export counseling and analysis of foreign markets? International Trade Administration Which of the following can be found on the U.S. government's trade portal, ? +announcements of foreign trade missions +announcements of training programs +case studies of recent export successes Which unit within the International Trade Administration develops trade missions, fairs, and seminars? Industry and Analysis Unit What type of services are offered through the International Trade Association (ITA) + export counseling + sales representation through export promotion events + asessment of industry competitiveness + analysis of foreign markets What two institutions assist potential exporters from less developed nations? World Bank Hinrich Foundation Along with the European Union, which of the following countries have export assistance programs? CBA CBA United States Japan What is the U.S. government's trade portal where almost everything from the federal government related to trade can be found? E What is the first step in locating foreign markets? Determine whether there is a need for the firm's product. What entitles the expatriate employee to all the allowances and bonuses applicable to the place of residence and employment? international status Generally about 65% to 70% of an expatriate's base salary and all allowances are paid in the _________ currency. host-country Moving allowances provide for the cost of ________ transporting the family hotel expenses moving household effects Orientation allowances provide for hiring domestic help shopping assistance language instruction Which of the following are valued reasons for promoting host-country employees to international status? +rewarding valuable employees +putting host-country employees at a level comparable to their peers in other countries +preventing employees from leaving for better jobs Jeremiah has a company car, and his company pays for his gym membership. These two items are examples of _________. perks A(n) ______ covers the expenses of home-country visits for expatriates. home leave reimbursement CBA CBA A(n) ___ for an expatriate is the combination of many types of payments or reimbursements and must take into consideration exchange rates and inflation. compensation package Contract___ payments are made as incentives for employees to stay on their international assignments. termination Which of the following are reasons why companies offer expatriates home leave reimbursement bonuses? +They understand that employees need a break from a hardship posting. +They do not want their employees to lose touch with home-country culture. +Employees need to continue relationships with headquarters staff. Contract termination payments are common in which of the following? construction industry hardship foreign post petroleum industry If the host-country taxes are ___than the taxes of the home country, then the company will often pay the tax differential. higher In China, private schools for children can cost as much as ______ per child. $100,000 A common rule of the housing allowance is for an international company to pay all the rent in excess of _____ of the expatriate's base salary. 15% The objective of the _____ is to ensure that expatriates will not have less after-tax take home pay in the host country than they would in the home country. tax differential allowance Which of the following are the most common types of allowances provided to expatriates? moving tax differentials housing CBA CBA education cost of living A housing_____permits expatriates to live in housing comparable to their housing in the home country. allowance Which of the following are common services offered to expatriates and their families? + culture and language training + house-hunting assistance + health care programs True or false: A good compensation plan will over-compensate the overseas executive. False What is the most common second language in the world? English The anxiety experienced when moving to an entirely different culture is known as culture shock is more likely to help transfer and install company-wide systems or cultures. expatriate What is the common length of time for most expatriate assignments? 2 - 5 years What are the possible advantages of hiring a third-country national? +The person may accept lower wage and benefits. +The person may come from a similar culture of the host country. +The person may have worked for another subsidiary of the company. 1. inpatriates 2. expatriates 3. flexpatriates 1. employees hired in the host country 2. home- or third-country employees relocated to host country for extended periods of time CBA CBA 3. home- or third-country employees relocated to host country for short-term assignments Approximately what percentage of expatriates are accompanied by a spouse or partner? 80% Which of the following are symptoms of culture shock? +physical and emotional discomfort +disorientation +feelings of confusion +feelings of inadequacy What is the main reason that employees decline international relocation assignments? family concerns The children of expatriate families are often called ______ kids. third-culture True or false: Locals can teach expats where to shop and where not to shop as well as the social norms. True More than half of the citizens of the European Union are multilingual. What percentage of native-born Americans can speak multiple languages? 25% About______ of expatriates' spouses are employed during the course of their partner's expatriate assignment, which can increase financial pressures and strain relationships. 8% About _____ of expatriates have children when they take an international assignment. 26% What are the three dimensions associated with cross-culture adjustment? +general environment +interaction with local nationals +work context Which of the following are advantages of hiring an expatriate? CBA CBA +They have technical and managerial expertise. +They can help transfer corporate culture. +They may provide trusted connections for facilitating oversight. What is the main cause for expatriate failure? family-related issues To find employees who understand advanced business techniques, international companies are hiring______ students upon graduation from home-country business schools. host-country Which of the following are characteristic of HCNs? They lack knowledge of advanced business techniques. They lack knowledge of corporate operations. If a company is driven simultaneously by high pressures for cost reduction and high pressures for local responsiveness, it is likely to follow a Blank______ staffing policy. geocentric The______ human resource approach utilizes a variety of host-country nationals and third-country nationals for key positions in the region. regiocentric Which group of employees is most likely to lack knowledge of advanced business techniques? host-country nationals Prior to being sent on an international assignment, ______ may be required to take an international business course at a business school. parent-country nationals What international human resource management approach would be used by companies with a transnational strategic orientation? geocentric What international human resource management approach would be used when a company's primary strategic orientation is multidomestic? polycentric CBA CBA What international human resource approach would be used by companies with slightly higher pressures for cost reductions and slightly lower pressures for local responsiveness than is the case for the multidomestic strategy regiocentric In which one of the following regions are labor unions weak and union leaders inexperienced? Latin American countries Over the past several years, the number of union members in developed countries has been declining What have unions done to combat the increase of international outsourcing? +coordinate policies and tactics with unions in other countries to deal with companies that are trying to outsource jobs +consult with unions in other countries +encourage international company codes of conduct +disseminate information about companies CBA