SCMT 3643 Final Exam Questions AND Correct Answers
Are bills of lading negotiable? - ✔✔Yes - owner can sign the title over
Are there more documents in an import or export situation? - ✔✔Import; governments want to be in
control of what is coming in
How do INCOTERMS add value? - ✔✔INCOTERMS are a type of service that is added to the end
customer
Each INCOTERM has a cost and risk associated with it, most of which will be transferred to the end
consumer
How do you determine the duties? - ✔✔Type of goods
Value of goods
Country from which the goods arrived
How does a letter of credit work? - ✔✔Document issued by buyer's bank that guarantees the payment
of invoice iff established conditions are met (even if importer doesn't make payment the bank will)
In what situation would you want the supplier to perform all tasks for you (as the importer)? - ✔✔When
you know very little about the foreign market (the less you know the more services you will want)
Should you visit a supplier before contracting with them? - ✔✔Probz. makes the most sense
What are INCOTERMS? - ✔✔The international commerce rules that decide who is responsible for the
transport of goods at each stage, the customs clearance and the risks involved with international
transportation
What are some non-tariff barriers that countries impose? - ✔✔Policies and actions
Quotas for the number of goods coming from a country
, National standards of inspection or safety
What are some other import taxes that may be added to the imported goods? - ✔✔Punitive duty
Border traffic tax
Safeguard tax
Temporary protection tax
Value added tax (final customer actually pays for this one)
What are the alternative methods of valuation if the invoice is deemed unreliable? - ✔✔Comparative
method
Deductive method
Computed or reconstructed method
Method of last resort
What are the benefits of international distributors? - ✔✔Reach foreign market more easily and offer
after sale services
What are the factors influencing the distribution choice? - ✔✔Risk and return
What are the four families of INCOTERMS? - ✔✔E - everything (importer does everything)
F - free on board
C - carriage (main transportation leg)
D - delivery (exporter does everything)
What are the main purposes of documentation? - ✔✔Foster common understanding
Need to fulfill regulations
Manage risk
Record keeping
Security
Are bills of lading negotiable? - ✔✔Yes - owner can sign the title over
Are there more documents in an import or export situation? - ✔✔Import; governments want to be in
control of what is coming in
How do INCOTERMS add value? - ✔✔INCOTERMS are a type of service that is added to the end
customer
Each INCOTERM has a cost and risk associated with it, most of which will be transferred to the end
consumer
How do you determine the duties? - ✔✔Type of goods
Value of goods
Country from which the goods arrived
How does a letter of credit work? - ✔✔Document issued by buyer's bank that guarantees the payment
of invoice iff established conditions are met (even if importer doesn't make payment the bank will)
In what situation would you want the supplier to perform all tasks for you (as the importer)? - ✔✔When
you know very little about the foreign market (the less you know the more services you will want)
Should you visit a supplier before contracting with them? - ✔✔Probz. makes the most sense
What are INCOTERMS? - ✔✔The international commerce rules that decide who is responsible for the
transport of goods at each stage, the customs clearance and the risks involved with international
transportation
What are some non-tariff barriers that countries impose? - ✔✔Policies and actions
Quotas for the number of goods coming from a country
, National standards of inspection or safety
What are some other import taxes that may be added to the imported goods? - ✔✔Punitive duty
Border traffic tax
Safeguard tax
Temporary protection tax
Value added tax (final customer actually pays for this one)
What are the alternative methods of valuation if the invoice is deemed unreliable? - ✔✔Comparative
method
Deductive method
Computed or reconstructed method
Method of last resort
What are the benefits of international distributors? - ✔✔Reach foreign market more easily and offer
after sale services
What are the factors influencing the distribution choice? - ✔✔Risk and return
What are the four families of INCOTERMS? - ✔✔E - everything (importer does everything)
F - free on board
C - carriage (main transportation leg)
D - delivery (exporter does everything)
What are the main purposes of documentation? - ✔✔Foster common understanding
Need to fulfill regulations
Manage risk
Record keeping
Security
