Question 1

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 2

Random stocking can be greatly improved through the use of a(n):

Options :

A : advanced planning system (APS)

B : inventory management system (IMS)

C : transportation management system (TMS).

D : warehouse management system (WMS).

Answer: A

Question 3

Which of the following rules specifies whether the importer or exporter is responsible for insuring cargo?

Options :

A : World Trade Organization (WTO) rule

B : Lloyds of London rule

C : Incoterms® rule

D : Shipper’s rule

Answer: A

Question 4

Which of the following items undermines the attempts to simplify transportation pricing?

Options :

A : rate-basis numbers

B : Class rate

C : Commodity rate

D : Incentive rate

Answer: A

Question 5

Which of the following port-related issues constitutes the greatest challenge when considering the use of post-panamax container ships?

Options :

A : Number of ships available

B : Available workforce

C : Railway connections

D : Bridge clearance

Answer: D