Question 1

What does Ex Works (EXW) mean in trade terms?

Accepted Answer

Buyer is responsible for all transportation costs

Answer

Seller pays for import duties

Answer

Buyer pays only after selling goods

Answer

Seller delivers goods to buyer's premises

Question 2

Which trade term involves the seller assuming all responsibilities including import duties?

Accepted Answer

DDP

Answer

EXW

Answer

FOB

Answer

Consignment

Question 3

What is trade credit?

Accepted Answer

Financing allowing the buyer to pay after delivery

Answer

A form of embargo

Answer

A method of countertrade

Answer

A type of insurance

Question 4

In consignment, when does the buyer pay for the goods?

Accepted Answer

After selling to the final customer

Answer

After receiving goods

Answer

Before delivery

Answer

After inspection

Question 5

What indicates a trade surplus for a country?

Accepted Answer

Exports exceed imports

Answer

Imports exceed exports

Answer

Exports are banned

Answer

Equal import and export

Question 6

How is a trade deficit characterized?

Accepted Answer

Imports exceed exports

Answer

Exports are banned

Answer

Exports exceed imports

Answer

Equal import and export

Question 7

Where does responsibility lie under Freight On Board (FOB) Destination?

Accepted Answer

With seller until delivery

Answer

With buyer upon shipment

Answer

With customs

Answer

With a third party

Question 8

What is the purpose of a Pro Forma Invoice?

Accepted Answer

For advance shipment details

Answer

To finalize a contract

Answer

For payment collection

Answer

To claim insurance

Question 9

What does a trade embargo typically involve?

Accepted Answer

Prohibiting trade for political reasons

Answer

Reducing tariffs

Answer

Increasing imports

Answer

Promoting direct export

Question 10

What is determined by the exchange rate?

Accepted Answer

Currency value conversion

Answer

Trade surplus

Answer

Import quotas

Answer

Goods tariff classification

Question 11

What happens in a bonded warehouse?

Accepted Answer

Goods are stored duty-free

Answer

Goods are sold directly

Answer

Goods are subject to embargo

Answer

Goods incur import duties

Question 12

What is an import duty?

Accepted Answer

A tax on imported goods

Answer

A type of trade credit

Answer

A tax on exported goods

Answer

An insurance against damage

Question 13

How does direct exporting approach international sales?

Accepted Answer

Directly to buyers without intermediaries

Answer

With cargo insurance

Answer

Through agents only

Answer

By using consignment

Question 14

What is countertrade?

Accepted Answer

Exchanging goods without money

Answer

Using currency for trade

Answer

Insurance for cargo

Answer

A form of trade surplus

Question 15

What is the General Agreement on Tariffs and Trade (GATT) aimed at?

Accepted Answer

Promoting international trade

Answer

Prohibiting trade embargoes

Answer

Encouraging protectionism

Answer

Increasing cargo insurance rates

Question 16

What is the role of the World Trade Organization (WTO)?

Accepted Answer

To facilitate international trade

Answer

To promote trade embargoes

Answer

To conduct countertrade

Answer

To increase import duties

Question 17

What does protectionism involve?

Accepted Answer

Restricting imports for domestic protection

Answer

Reducing trade barriers

Answer

Promoting open trade policies

Answer

Increasing trade surplus

Question 18

To what does cargo insurance provide protection?

Accepted Answer

Damage or loss during transportation

Answer

Import duties

Answer

Political risks

Answer

Exchange rate fluctuations

Question 19

What characterizes an Export Processing Zone (EPZ)?

Accepted Answer

Favored conditions for imports and exports

Answer

High import duties

Answer

Trading restricted to domestic markets

Answer

Requires direct exporting

Question 20

What is the Harmonized Tariff Schedule (HTS) used for?

Accepted Answer

Classifying goods for tariffs

Answer

Determining exchange rates

Answer

Obtaining cargo insurance

Answer

Facilitating countertrade

Related quizzes

Related quizzes