International Logistics
Pre-Test Questions
Course Introduction
International Logistics explores the strategies, processes, and challenges involved in managing the movement of goods, information, and resources across international borders. The course covers key topics such as global supply chain management, transportation modes, international trade regulations, documentation, warehousing, and customs procedures. Students will analyze case studies to understand how cultural, economic, and political environments impact logistics decision-making. By integrating theory and real-world applications, the course equips students with the knowledge and skills to efficiently plan, coordinate, and control international logistics operations within a dynamic global marketplace.
Recommended Textbook
International Logistics Management of International Trade Operations 3rd Edition by David
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Chapter 1: Introduction
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Sample Questions
Q1) International trade is still mostly concentrated among the developed countries of the Northern Hemisphere.Which country is the largest exporter of the world?
A) United States
B) Germany
C) China
D) Japan
E) None of the above.
Answer: B
Q2) The common currency of most of the countries of the European Union is called
A) the euro-dollar.
B) the european currency unit (ECU).
C) the thaler.
D) the euro.
E) None of the above
Answer: D
Q3) The Heckscher-Ohlin Theory can also be called the ____________________.
Answer: Falseactor-Endowment Theory
Q4) The International Product Life Cycle Theory was developed by ____________________.
Answer: Raymond Vernon
Page 3
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Chapter 2: International Supply Chain Management
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Q1) Caterpillar operates 14 plants worldwide where it disassembles used heavy equipment received from its customers,with the goal of ____________________ the machines.
Answer: remanufacturing
Q2) The globalization of markets is a recent phenomenon.
A)True
B)False
Answer: False
Q3) Reverse logistics activities are similar to the traditional activities of logistics,but occur after the product has been ____________________.
Answer: sold/consumed
Q4) "Supply chain management" is now considered to include not only the management of all of the activities that are part of "logistics," but also the management of the relationships of a company with its suppliers and customers.
A)True
B)False
Answer: True
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Chapter 3: International Logistics Infrastructure
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Q1) There are sometimes problems with electrical supply in
A) Sub-Sahara Africa.
B) Saudi Arabia.
C) some parts of a developed country like the United States.
D) All of the above
E) None of the above
Answer: D
Q2) The busiest cargo airport in the world is
A) London Heathrow.
B) Denver International.
C) Chicago O'Hare.
D) Dallas-Fort Worth International.
E) None of the above
Answer: E
Q3) The current trend in shipbuilding is toward post-Panamax ships.
A)True
B)False
Answer: True
Q4) The tunnel between France and Great Britain is called the ____________________.
Answer: Chunnel
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Chapter 4: Methods of Entry into Foreign Markets
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Q1) The granting of rights to intellectual property owned by a company to another company for a fee is the definition of a licensing agreement between two corporations.
A)True
B)False
Q2) If tariffs on a finished product are higher than tariffs on the parts of the product,the product is said to be in an inverted tariff structure.
A)True
B)False
Q3) An advantage of gray markets is the increased amount of control that a company has over a product after it has been sold.
A)True
B)False
Q4) The customs status of a maquiladora is similar to that of
A) a foreign trade zone located only in the United States.
B) a foreign trade zone located only in Mexico.
C) a Customs office.
D) what is outlined in the Foreign Corrupt Practices Act.
E) None of the above
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6
Chapter 5: International Contracts
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Q1) How trade secrets and other strategic advantages are to be handled is included in a _____________________ clause of a contract.
Q2) The scope of appointment clause of a contract usually prevents an agent or distributor to "cherry pick" the most profitable products for extra selling effort and to minimize effort toward less profitable products.
A)True
B)False
Q3) In general,the choice of law,or the choice of which country's laws will regulate a dispute between international parties,is made by the agent or distributor rather than by the exporter.
A)True
B)False
Q4) Under the Uniform Commercial Code (UCC),when a buyer agrees to an offer made by a seller,but indicates a desire for a different schedule of delivery or term of payment,such a response is considered to be a rejection of the offer.
A)True
B)False
Q5) An arbitration panel is usually made up of ____________________ arbitrators.
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Chapter 6: Terms of Trade or Incoterms
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Q1) The CFR Incoterm means "Cost and Freight."
A)True
B)False
Q2) Under the DAF Incoterm,the exporter is responsible for the costs of transportation from the border city to the final destination and for the costs of clearing customs.
A)True
B)False
Q3) Incoterms determine
A) how much the agents commission will be.
B) which tasks will be performed by the exporter.
C) how much duty will be charged by the importing country.
D) All of the above
E) None of the above
Q4) The Incoterm DDU means "Delivered _____________________ Unpaid."
Q5) Under the DDU Incoterm,it is the responsibility of the importer to arrange and pay for the unloading of the goods.
A)True
B)False
Q6) The Incoterm CPT means "____________________ Paid To."
Page 8
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Chapter 7: Terms of Payment
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Q1) In a cash-in-advance transaction,all risk is transferred to the ____________________.
Q2) A payment guarantee is the most commonly used type of guarantee and is used to ensure that the contractor finishes the project.
A)True
B)False
Q3) A standby letter of credit is similar to a "simple" letter of credit except for A) it generally has a much longer validity period.
B) it usually applies to more than one shipment from the exporter to the importer.
C) it allows the exporter to extend an open account to the importer, using the letter of credit only if the importer doesn't meet its obligations.
D) All of the above
E) None of the above
Q4) The majority of transactions issued in the European Union are conducted on a "documentary collection" basis.
A)True
B)False
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Chapter 8: Currency of Payment (Managing Transaction Risks)
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Q1) In fundamental forecasting methods,the exchange rate of a specific currency is the dependent variable.
A)True
B)False
Q2) A characteristic of options hedging is that options are commonly traded for many different currencies.
A)True
B)False
Q3) International exchange rates began to float
A) in 1971.
B) at the end of the gold standard.
C) and it changed the role of the International Monetary Fund.
D) All of the above
E) None of the above
Q4) A money market hedge consists of using the ____________________ system of the country of the currency in which the receivable or the payable is going to be paid.
Q5) If an exporter chooses to quote in his country's currency,or quotes in the importer's country currency and hedges with a money market hedge,it is to minimize his ____________________ risks.
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Chapter 9: International Commercial Documents
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Sample Questions
Q1) Most End-Use Certificates are provided by the governments of exporting countries.
A)True
B)False
Q2) Requirements for an export license can be used by a country to control the outflow of certain goods.
A)True
B)False
Q3) A detailed Shipper's Letter of Instruction can be critical in ____________________ shipments.
Q4) Which of the following pieces of information does an international commercial invoice contain?
A) Incoterms
B) a precise description of the product
C) terms of payment
D) All of the above
E) None of the above
Q5) A consular invoice can be considered a trade barrier.
A)True
B)False
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Chapter 10: International Insurance
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Sample Questions
Q1) Lloyd's of London is the oldest insurance company in the history of shipping.
A)True
B)False
Q2) Premiums in an open ocean cargo policy
A) are based upon the value of shipments made under the policy.
B) are based on the number of pro forma invoices that a company has outstanding.
C) mean the shipper can make one shipment under the insurance policy.
D) All of the above
E) None of the above
Q3) Modern shipping methods mean that container cargo is rarely damaged by water.
A)True
B)False
Q4) One of the most complex areas of international logistics is international insurance. A)True
B)False
Q5) Hull insurance does not cover the owner's liability toward the cargo owners in the case of a general average.
A)True
B)False
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Chapter 11: International Ocean Transportation
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Q1) In intermodal shipping,while the liability limits depend on the nationality of the carrier,the limits are the same for domestic transport in the exporting country,international transport by ocean,and domestic transport in the importing country.
A)True
B)False
Q2) What used to be exclusively bulk cargo,like forestry products and grain,is now being shipped in containers.
A)True
B)False
Q3) ____________________ ships are designed to carry all sorts of different loads in a single voyage.
Q4) The increasing size in containerships may eventually result in
A) more products being shipped by break-bulk ships.
B) more ports being able to handle these ships.
C) the development of a "hub" system.
D) All of the above
E) None of the above
Q5) The deepest draft a ship can sit is called the ____________________ line.
Page 13
Q6) A long ton is ____________________ pounds.
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Chapter 12: International Air Transportation
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Q1) Some airfeighters can be loaded through the aircraft's nose.
A)True
B)False
Q2) In calculating airfreight rates,airlines figure the volume-weight of the shipment based on the volume yielding a certain weight value.As a result,
A) the airline will charge the lesser of the volume-weight or the actual weight of the cargo.
B) the airline will be more concerned about volume than weight.
C) the airline will charge the higher of the volume-weight or the actual weight of the cargo.
D) the airline will be concerned about the rates it will charge at different altitudes it flies.
E) None of the above
Q3) The largest cargo airfreighter in the world is made by Boeing.
A)True
B)False
Q4) UPS invented "time defined" deliveries in 1981.
A)True
B)False
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Chapter 13: International Land and Multi-Modal Transportation
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Q1) The shipping container was developed in 1970 by Marshall McLuan.
A)True
B)False
Q2) Companies involved in the Customs-Trade Partnership Against Terrorism (C-TPAT)have been given expedited Customs clearance at border crossings,through the use of
A) Free and Secure Trade (FAST) lanes.
B) Secure and Safe Speedy (SASSY) lanes.
C) Security of Free Trade (SOFT) lanes.
D) Cleared Transportation (CT) lanes.
E) None of the above
Q3) Intermodal has become popular because
A) it offers "one-stop" shopping for shippers.
B) it means shippers do not have to worry about making changes between transport modes.
C) it means ocean shipping companies offer transportation in modes other than in their core competency.
D) All of the above
E) None of the above
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Q4) Overloaded trucks are common in ____________________ and some parts of Asia.
Chapter 14: Packaging for Export
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Q1) Characteristic(s)of steel drums is/are
A) they can be used for dry or wet cargo.
B) they are fairly resilient containers.
C) they can withstand a good amount of abuse.
D) All of the above
E) None of the above
Q2) For air cargo sensitive to humidity,a possible way to avoid condensation damage is to add small packets of ____________________ material in the box with the goods.
Q3) For air shipments,the best form of packaging would be tertiary in nature and would include one additional layer of cardboard.
A)True
B)False
Q4) About 43 percent of all claims made by shippers to their insurance companies are for ____________________ of goods in transit.
Q5) Softwood used in crates and boxes is obtained from leafy trees such as poplar or oak.
A)True
B)False
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Chapter 15: International Logistics Security
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Q1) ____________________ is a strategy that attempts to eliminate all imports of a particular type of goods and all entries of a specific group of persons into a country.
Q2) European countries have experienced significant violent attacks from which of the following terrorist group(s)?
A) the Organisation de l'Armée Secrète
B) the Provisional Irish Republican Army
C) Rote Armee Fraktion
D) the Baader-Meinhof Gang
E) All of the above
Q3) The United States and the European Union approach security issues in more or less the same way.
A)True
B)False
Q4) The ____________________ initiative coordinates the efforts of Customs authorities worldwide in their effort to combat terrorism.
Q5) The United States' initial strategy to combat terrorism focused on interdiction.
A)True
B)False
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Chapter 16: Customs Clearance
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Q1) A tariff-rate quota
A) places a two-tiered tariff rate on a specific category of products.
B) keeps the tariff low until the quota is reached.
C) raises the tariff after the quota is reached.
D) All of the above
E) None of the above
Q2) Required documentation for entry into essentially all countries includes
A) a form designated for entry, a Certificate of Origin, and a commercial invoice.
B) a bill of lading, EDI documentation, and a value-added tax certificate.
C) a packing list, health certification, and corporate identification.
D) All of the above
E) None of the above
Q3) Non-tariff barriers may appear in the form of
A) requiring a special sticker to be applied to an imported product.
B) slowing down Customs clearance processes.
C) multiplying the number of documents required for importing products.
D) All of the above
E) None of the above
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Chapter 17: Using International Logistics for Strategic Advantage
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Q1) The main reason(s)for an exporter to consistently offer quotes in the importer's currency is that it makes it easier for the importer
A) to determine what its actual costs will be.
B) to avoid currency fluctuation risks.
C) to be able to use its own bank.
D) All of the above
E) None of the above
Q2) International English was designed to reduce communication errors between native speakers of English and people who speak English as a second language.
A)True
B)False
Q3) The Voice of America broadcasts can be heard in the United States on AM and FM stations.
A)True
B)False
Q4) When providing a quote to a potential customer abroad,it is best to provide the importer with ____________________ Incoterm alternatives.
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