Question 1

A seller wishes to pay for all carriage to a named destination (except for costs related to import clearance) and assume all risks prior to the point that the goods are ready for unloading by the buyer. Which of the following Incoterms is being applied?

Options :

A : DAT – delivered at terminal

B : DAP – delivered at place

C : DDP – delivered duty paid

D : CPT – carriage paid to

Answer: A

Question 2

Which of the following methods of payment involves complete trust in the importer given that the exporter ships the merchandise without any guarantee of payment by the importer?

Options :

A : Open account

B : Cash is advance

C : Factoring

D : Letter of credit (L/C)

Answer: A

Question 3

A company is sending a shipment to its customer in Italy. It elects to pay the freight and be responsible for any liability and damage claims. Which of the following free on board (FOB) terms is the company using?

Options :

A : FOB destination, freight collect

B : FOB destination, freight prepaid

C : FOB origin, freight prepaid

D : FOB origin, freight collect

Answer: B

Question 4

Which of the following forecasting methods attempts to identify patterns of repeating demand over a period of time?

Options :

A : Trend

B : Seasonality

C : Exponential smoothing

D : Delphi

Answer: C

Question 5

Which of the following categories is a weakness of the rail systems?

Options :

A : Safety records

B : Inflexible infrastructures

C : Effects of the weather

D : Routes from city centers

Answer: D