QN1: In Latin America, more than 75 percent of industries engage in countertrade.
a. Defense
b. Technology
c. Textile
d. Metals
Answer
Answer: a
QN2: Which of the following is not a challenge of countertrade with Latin American countries?
a. It often involves complex and time consuming negotiations.
b. It may result in decrease in transaction costs.
c. It may cause problems with disposition of acquired (lack of ready) merchandise, pricesetting, and loss of purchasing flexibility.
d. The involvement of third parties and the possibility of customers becoming competitors.
Answer
Answer: b
QN3: Which of the following is not a reason to countertrade?
a. Lack of difficulty of obtaining credit for the buyer
b. Increases production capacity and helps achieve growth
c. Availability of expertise in countertrade for buyer or seller
d. All of the above
Answer
Answer: a
QN4: Which of the following is a concern of the WTO with regard to countertrade?
a. Countertrade represents a significant departure from the principles of free trade based on comparative advantage.
b. Countertrade results in higher transaction costs.
c. Countertrade is inconsistent with the national treatment standard which is embodied in most trade agreements.
d. All of the above
Answer
Answer: d
QN5: What is the U.S. policy toward countertrade?
a. U.S. government prohibits federal agencies from promoting countertrade in their business.
b. A hands-off approach in relation to private transactions with U.S. corporations.
c. The U.S. government allows federal agencies to promote countertrade.
d. a and b
Answer
Answer: a
QN6: The capital needs and financing alternatives of an export-import business are determined by which of the following options?
a. Stage of evolution
b. Ownership structure
c. Distribution channel choice
d. All of the above
Answer
Answer: d
QN7: What type of financing occurs when an export-import firm borrows money from a lender with a promise to repay (principal and interest) at some predetermined future date?
a. Debt
b. Intermediate
c. Short-term
d. a and c
Answer
Answer: a
QN8: It is the best source of financing for initial capital needs or expansion because no interest must be paid back or equity in the business must be surrendered.
a. Internal
b. External
c. Intermediate
d. Long-term
Answer
Answer: a
QN9: Which type of institution remains the cheapest source of borrowed capital for export-import firms as well as other small businesses?
a. Family and friends
b. Private lenders
c. Public lenders
d. Banks
Answer
Answer: d
QN10: Commercial lenders usually provide loans up to percent of accounts receivable and percent of inventory.
a. 50; 60
b. 50; 70
c. 50; 75
d. 50; 80
Answer
Answer: d
QN11: What types of capital sources are generally not required for new or existing export-import businesses because they are one of the costliest forms of business financing?
a. Personal loans
b. Commercial loans
c. Credit cards
d. SBCs
Answer
Answer: c
QN12: This type of guarantee by the SBA permits a lending institution to provide long-term loans to start-up or existing small businesses.a. 7(a) Loan Guarantee Program
b. 7(b) Loan Guarantee Program
c. 7(c) Loan Guarantee Program
d. All of the above
Answer
Answer: a
QN13: Identify the correct SBA funding program that best fits this description: designed to increase the availability of funds under $100,000 and to expedite the loan review process.
a. International trade loan
b. Fast track
c. Low documentation
d. Export working capital
Answer
Answer: c
QN14: The loan ranges from $100 to $25,000, and funds are available to nonprofit intermediaries, who in turn make loans to small business borrowers. Collateral and personal guarantee are required. What type of loan is this?
a. Macroloan
b. Microloan
c. Working capital loan
d. International loan
Answer
Answer: b
QN15: Which of the following are different ways of raising capital from finance companies to start or expand an export-import business?
a. Commercial finance companies
b. Loans from insurance companies
c. Loans from pension funds
d. All of the above
Answer
Answer: d
QN16: The source(s) of equity funding include
a. Business angles
b. Family and friends
c. Venture capitalists
d. All of the above
Answer
Answer: d
QN17: Which of the following is a reason why venture capitalists may not be suitable for small export-import firms?
a. Their minimum investment is $100,000–$300,000
b. They expect high returns (10 to 25 percent) on their investments over a relatively short period of time
c. They seldom provide funding for start-up capital because they are interested in companies with a proven track record and market position
d. None of the above
Answer
Answer: c
QN18: When extending credit to overseas customers, it is important to recognize the following:
a. Normal commercial terms range from 40 to 120 days for sales of consumer goods, industrial materials, and agricultural commodities.
b. An allowance may have to be made for longer shipment periods than are found in domestic trade because foreign buyers are often unwilling to have the credit period start before receiving the goods.
c. Customers are usually charged interest on credit periods of a year or longer and seldom on short-term credit of up to 200 days.
d. Overseas consumers must understand the provision of unfavorable financing terms, where the importer should carefully assess such financing against considerations of cost and risk of default.
Answer
Answer: b
QN19: International factoring has grown by about percent during the last ten years, amounting to
$ billion in 1994.
a. 110; 20
b. 110; 25
c. 500; 20
d. 500; 25
Answer
Answer: c
QN20: The export factoring business has been traditionally associated with the sale of:
a. Textiles and apparel
b. Carpets
c. Footwear
d. All of the above
Answer
Answer: d
QN21: Identify the step that best describes this statement: The export factor provides (cash in advance) funds to the exporter against receivables until money is collected from the importer. The exporter often receives up to 30 percent of the value of the receivables ahead of time and pay the factor interest on the money received, or the factor pays the exporter, less a commission charge, when receivables are due (or shortly thereafter). The commission often ranges between 1 and 3 percent. Under factoring, exporters offer terms of sale on:
a. Consignment
b. Documentary draft
c. Open account
d. Letter of credit
Answer
Answer: c
QN22: Which of the following is not an advantage of export factoring?
a. Factoring allows immediate payment against receivables and increases working capital.
b. Factors conduct credit investigations, collect accounts receivable from importer, and provide other bookkeeping services.
c. Factoring is not a good substitute for bank credit when the latter is too restrictive or uneconomical.
d. Factors assume credit risk in the event of buyer’s default or refusal to pay.
Answer
Answer: c
QN23: Which of the following statement(s) are not true?
a. Factoring is not available for shipments with value of less than $100,000. It is appropriate for continuous or repetitive transactions.
b. Factors do not work for receivables with maturity of over 90 days.
c. Factors generally do not work with most developing countries because of their inadequate legal and financial framework.
d. a and c
Answer
Answer: b
QN24: is the practice of purchasing deferred debts arising from international sales contracts without recourse to the exporter.
a. Buyer credit
b. Forfeiting
c. Discrepancy
d. Discounting
Answer
Answer: b
QN25: Which of the following is a difference between factoring and forfeiting?
a. Forfeiting is often used to finance consumer goods, whereas factors usually work with capital goods, commodities, and projects.
b. Factors work with receivables from developing countries whenever they obtain an acceptable bank guarantor; forfeiters do not finance trade with most developing countries because of unavailability of credit information, poor credit ratings, or inadequate legal and financial frameworks.
c. Factors generally work with short-term receivables, whereas forfeiters finance receivables with a maturity of more than 180 days.
d. Forfeiters are used for continuous transactions, but factors finance one-time deals.
Answer
Answer: c
QN26: Which of the following is not an advantage of forfeiting?
a. Forfeiters purchase receivables as a one-shot deal without requiring an ongoing volume of business, as in the case of factoring
b. Financing can cover 100 percent of the sale
c. Forfeiter also assumes all of the payment risk
d. Transaction size is usually limited to $250,000 or more
Answer
Answer: d
QN27: Which of the following is an example of forfeiting?
a. The Bankers Association for Foreign Trade (BAFT) arranged with a cotton machinery company to sell over $500,000 worth of cotton lint removal machinery payable eleven months from the date on the bill of lading.
b. Morgan Grenfell Trade Finance Limited purchased receivables from U.S. exporters to Peru. The finance company required the guarantee of one of the large Peruvian banks and accepted a repayment period of up to five years.
c. The Export Development Corporation (EDC) of Canada purchases accounts receivable from Canadian exporters provided the promissory notes issued by the overseas customer are guaranteed by a bank acceptable to the EDC, the transaction complies with the Canadian content requirement, and the promissory note does not exceed 85 percent of the contract price.
d. All of the above
Answer
Answer: d
QN28: Which of the following is not an advantage of leasing?
a. One can lease up-to-date equipment that may be too expensive to purchase.
b. The lessee can always trade in the old equipment in the event of obsolescence and obtain new even before the end of the lease.
c. The cost of leasing is often lower than other financing methods.
d. All of the above
Answer
Answer: c
QN29: Major changes in small business financing include which of the following?
a. Technology
b. Nationalization
c. Regulation
d. Distribution channels
Answer
Answer: a
QN30: Determinants of capital needs and financing alternatives include which of the following?
a. Stage of evolution
b. Ownership structure
c. Distribution channels
d. All of the above
Answer
Answer: d
QN31: What types of institutions are able to provide buyer credits?
a. Banks
b. Government agencies
c. Private parties
d. All of the above
Answer
Answer: d
QN32: Which organization has developed guidelines on export credits to its members in order to provide the institutional framework for an orderly export credit market, thus preventing an export credit race in which exporting countries compete on the basis of who provides the most favorable financing terms rather than on the basis of who provides the best quality product at the lowest price?
a. OECD
b. OCED
c. CEOD
d. DEOC
Answer
Answer: a
QN33: Which of the following is a guideline developed by the Organization for Economic Cooperation and Development?
a. A minimum of 25 percent of the contract price to be paid in cash
b. Rapid abolition of subsidized interest rates and adjustment of discount rates for aid loans to better reflect market realities
c. Maximum interest rates for set periods of up to five, eight and a half, and ten years
d. The establishment of related conditions for certain sectors, including agriculture, that are not covered by the guidelines
Answer
Answer: d
QN34: The Ex-Im Bank was created in and established under its present law in , with the aim of assisting in the financing of U.S. export trade. It was originally established to finance exports to Europe after World War II.
a. 1934; 1955
b. 1934; 1945
c. 1936; 1955
d. 1936; 1945
Answer
Answer: b
QN35: Ex-Im Bank’s role in promoting U.S. exports is likely to be more significant now than in the past few decades for which of the following reasons?
a. The U.S. economy is more internationalized, and imports constitute a growing share of the GNP
b. The volume of international trade has substantially increased, and competition for export markets is quite intense
c. The U.S. economy is more internationalized, and exports and imports constitute a growing share of the GNPd. The volume of international trade has substantially increased, but competition for export markets is not intense
Answer
Answer: b
QN36: In its more than 70 years of operations, the bank has supported more than $ billion of U.S. exports.
a. 155
b. 255
c. 355
d. 455
Answer
Answer: d
QN37: The highest exposure for Ex-Im Bank over the past five years has been in what region?
a. Asia
b. Eastern Europe
c. Latin America
d. Africa
Answer
Answer: a
QN38: According to Table 14.1, which country had the highest exposure of Ex-Im Bank authorizations in 2004?
a. China
b. Indonesia
c. Mexico
d. Venezuela
Answer
Answer: c
QN39: According to Table 14.2, which industry had the highest Ex-Im Bank exposure in 2004?
a. Power projects
b. Oil
c. Aircraft
d. Manufacturing
Answer
Answer: c
QN40: The four major export financing programs provided by Ex-Im Bank include which of the following?
a. Working capital loan guarantees for U.S. exporters
b. Credit insurance
c. Guarantees of commercial loans to foreign buyers
d. All of the above
Answer
Answer: d
QN41: U.S. government support for the bank has been the subject of criticism from various groups, including which of the following?
a. The environmental community contends that the bank provides loans and loan guarantees for projects that harm the environment.
b. It is often stated that the bank’s assistance is largely provided to a small number of large U.S. firms such as Airbus, Bechtel, GE, and Halliburton.
c. Some of Ex-Im Bank’s loans to foreign companies have harmed domestic industries; for example, it is has been alleged that the $18 million loan to the Chinese Iron and Steel industry adversely affected the competitiveness of local industries.
d. All of the above
Answer
Answer: d
QN42: Ex-Im Bank’s loans, guarantees, and intermediate-term insurance cover percent contract price.
a. 65
b. 75
c. 85
d. 95
Answer
Answer: c
QN43: In the event of default by the exporter, Ex-Im Bank will cover percent of the principal of the loan and interest, up to the date of claim for payment, insofar as the lender has met all the terms and conditions of the guarantee agreement.
a. 70
b. 80
c. 90
d. 100
Answer
Answer: c
QN44: For small businesses, the Ex-Im Bank offers a short-term insurance policy in which political losses are covered at what percentage?
a. 75
b. 80
c. 90
d. 100
Answer
Answer: d
QN45: is extended to a foreign entity by a financial institution for the importation of U.S. goods and services; whereas the reimbursement loan is the financial institution’s reimbursement of a buyer’s payments to U.S. suppliers?
a. Direct buyer credit loan
b. Indirect buyer credit loan
c. Direct seller credit loan
d. Indirect seller credit loan
Answer
Answer: a
QN46: The Ex-Im Bank provides a fixed-rate loan directly to creditworthy foreign buyers for the purchase of U.S. capital equipment, projects, and related services. The loan covers up to 85 percent of the U.S. export value?
a. Indirect Loans Program
b. Direct Loans Program
c. Project Finance Program
d. Guarantee Finance Program
Answer
Answer: b
QN47: Which program supports exports of U.S. capital equipment and related services for projects whose repayment depends on project cash flows, as defined in the contract, and is suitable for major U.S. suppliers and sponsors that do not have adequate access to bank or government guarantees?
a. Indirect Loans Program
b. Direct Loans Program
c. Project Finance Program
d. Guarantee Finance Program
Answer
Answer: c
QN48: In order to be classified as a small business by the SBA, which of the following must hold true?
a. Retail and service $7.0 to $24.5 million in average annual receipts
b. Construction $12.0 to $28.5 million in average annual receipts
c. Agriculture $0.85 to $6.0 million in average annual receipts
d. Wholesale no more than 200 employees
Answer
Answer: b
QN49: Under the SBA Export Express, the SBA provides participating lenders with a payment guarantee up to a maximum loan amount of $ .
a. 150,000
b. 250,000
c. 350,000
d. 500,000
Answer
Answer: b
QN50: OPIC programs are presently available for new and expanding businesses in some countries worldwide.
a. 140
b. 145
c. 150
d. 155
Answer
Answer: a
QN51: Investments by OPIC clients may take many forms, including which of the following?
a. Equity investments
b. Loans
c. Service contracts
d. All of the above
Answer
Answer: d
QN52: Which organization is a major source of capital for intermediate- and long-term, fixed-rate loans for U.S. exporters?
a. PEFCO
b. OPIC
c. OECD
d. OEFCO
Answer
Answer: a
QN53: Which program offers credit guarantees with terms of greater than three but not more than ten years?
a. GSM-101
b. GSM-102
c. GSM-103
d. GSM-480
Answer
Answer: c
QN54: Which public law authorizes U.S. government financing of sales of U.S. agricultural products to friendly countries on concessional terms?
a. Public Law 440
b. Public Law 450
c. Public Law 470
d. Public Law 480
Answer
Answer: d
QN55: In addition to government programs, more than a dozen state governments have introduced export financing programs. Some of the programs implemented in California and Illinois have the following essential features, including which of the following?
a. State-funded loan guarantee programs
b. Preshipment and postshipment assistance in the form of loans to lenders and loan guarantees to exporters and their banks
c. State agency acting as a delivery agent for Ex-Im Bank programs
d. All of the above
Answer
Answer: d
QN56: The amendment prohibited the president from imposing export controls without providing adequate evidence with regard to its importance to U.S. national security interests.
a. 1977
b. 1978
c. 1979
d. 1980
Answer
Answer: a
QN57: As of 1998, restrictions based on national emergencies have been imposed against which of the following countries?
a. Nigeria
b. Kenya
c. North Korea
d. Cuba
Answer
Answer: c
QN58: Since the events of September 11, 2001, the U.S. government introduced certain restrictions on exports, including which of the following?
a. The prohibition of the conduct of business with any group whose names appear on the lists of denied persons maintained by the Office of Foreign Assets Control
b. A deemed export license required before foreign nationals engaged in research in the United States receive technology or technical data on the use of export-controlled equipment/materials
c. Efforts to strengthen the multilateral regime on export controls
d. All of the above
Answer
Answer: d
QN59: U.S. Export controls are primarily imposed for the following reasons:
a. To restrict the export/import of items that would make a significant contribution to the military potential of any other country that would prove detrimental to the national security of the United States
b. To restrict the export/reexport of goods and technology to further the foreign policy objectives of the United States, such as human rights, regional stability, and antiterrorism
c. To restrict the import of goods, wherever necessary, to protect the domestic economy from the excessive drain of scarce resources (crude petroleum, certain inorganic chemicals) and to reduce the serious inflationary impact of foreign demand
d. All of the above
Answer
Answer: b
QN60: Which agency is the primary licensing agency for dual use of exports?
a. BIS
b. EAR
c. RAI
d. IBS
Answer
Answer: a
QN61: According to Figure 15.1, which step states that a request can also be made if an item has been incorrectly classified and/or should be transferred to another agency, and that any item controlled by the Department of Commerce has an ECCN?
a. Step 1: Is the item subject to EAR?
b. Step 2: Is the item classified under the ECCN on the CCL?
c. Step 3: Do the general prohibitions apply?
d. Step 4: Are there any controls on the country chart?
Answer
Answer: b
QN62: According to Figure 15.1, which step states that the commerce country chart allows you to determine the export/reexport requirements for most items listed on the CCL? If an “X’ appears in a particular cell, transactions subject to that particular reason for control/destination combination require a license unless a license exception applies.
a. Step 1: Is the item subject to EAR?
b. Step 2: Is the item classified under the ECCN on the CCL?
c. Step 3: Do the general prohibitions apply?
d. Step 4: Are there any controls on the country chart?
Answer
Answer: d
QN63: Which service has an automated voice response system that provides applicants with the status of their license and product classification applications?
a. EAR
b. STELA
c. ELAIN
d. ERIC
Answer
Answer: b
QN64: The was formed in 1984 to harmonize export controls on chemical and biological weapons. It has 34 member countries.
a. GA
b. AG
c. GC
d. CG
Answer
Answer: b
QN65: Which organization was established in 1992 by a group of nuclear supplier countries (44 member countries) and seeks to contribute to the nonproliferation of nuclear weapons through the implementation of guidelines for nuclear and nuclear related exports?
a. GNS
b. SGN
c. NGS
d. None of the above
Answer
Answer: c
QN66: Which of the following categories can have license exceptions?
a. GBS
b. LVS
c. GFT
d. All of the above
Answer
Answer: d
QN67: Which license exception allows exports/reexports of gift parcels to an individual, religious, or charitable organization located in any country?
a. GBS
b. LVS
c. GFT
d. TMP
Answer
Answer: c
QN68: In September 2004, St. Jude Medical Export, an Australian subsidiary of a Minnesota-based U.S. exporter, agreed to pay a civil penalty to settle charges that it violated the antiboycott provisions of the EAR.
a. $25,000
b. $30,000
c. $35,000
d. $50,000
Answer
Answer: b
QN69: The sources of U.S. antiboycott regulations can be found in:
a. Export Administration Act (EAA)
b. Export Administration Regulations (EAR)
c. Internal Revenue Code
d. All of the above
Answer
Answer: d
QN70: Some exceptions to the antiboycott prohibitions include which of the following?
a. Compliance with import requirements of a boycotting country
b. Compliance with a boycotting country’s requirements regarding shipment and transshipment of exports
c. Compliance with immigration, passport, visa, employment, and local requirements of a boycotting country
d. All of the above
Answer
Answer: d
QN71: According to International Perspective 15.5, which of the following identifies that a request is not reportable?
a. Supplying a certificate from an insurance company stating that the company has an agent or representative in the boycotting country including the name and address of such agent
b. Complying with the laws of a country other than one that requires compliance with the country’s boycott laws
c. Supplying information about the exporter or exporter’s family for immigration, passport, or employment purposes
d. All of the above
Answer
Answer: d
QN72: A person who knowingly violates the antiboycott regulations is subject to a fine of up to
$ or five times the value of the exports involved whichever is greater.
a. 40,000
b. 50,000
c. 60,000
d. 70,000
Answer
Answer: b
QN73: The of 1977 was enacted as a public response to the Watergate Scandal and the disclosure of corrupt payments by U.S. multinationals to foreign government officials in order to obtain business.
a. FCOPA
b. FERPA
c. FCPA
d. REFA
Answer
Answer: c
QN74: The accounting provisions of the FCPA are intended to prevent companies from escaping detection by maintaining dubious accounts or slush funds. It requires any corporation that has certain classes of shares with the SEC to do which of the following?
a. Make but not keep accurate books or accounts that fairly reflect the transactions
b. Maintain a system of internal financing and accounting controls in order to prevent the unauthorized use of corporate assets and transactions and to ensure the accuracy of corporate records
c. Maintain a system of only internal accounting controls in order to prevent the unauthorized use of corporate assets and transactions and to ensure the accuracy of corporate records
d. a and c
Answer
Answer: c
QN75: Enforcement of the FCPA is the joint responsibility of which of the following agencies?
a. SEC and USTR
b. SEC and Department of Commerce
c. SEC and Department of Justice
d. SEC only
Answer
Answer: c
QN76: According to FCPA, criminal penalties may reach up to $2 million for public corporations and domestic concerns and $100,000 and/or a maximum of five years for which of the following parties?
a. Officers
b. Directors
c. Employees
d. All of the above
Answer
Answer: d
QN77: Which of the following is not an international effort to control corruption?
a. The OECD Antibribery Resolution, 1992
b. The OECD Convention on Combating Bribery, 1997
c. The ICC Rules of Conduct to Combat Extortion and Bribery, 1977 (revised in 1996)
d. Transparency International (TI)
Answer
Answer: a
QN78: Which of the following countries are known to have the highest level of corruption according to International Perspective 15.6?
a. Nigeria
b. Kenya
c. Pakistan
d. All of the above
Answer
Answer: d
QN79: U.S. antitrust laws are grouped into three categories, including which of the following?
a. GSP
b. Exemptions
c. International GSP
d. None of the above
Answer
Answer: b
QN80: The is a tax deferral vehicle (on the first $10 million U.S. export sales) that can be used by small and medium sized exporting companies.
a. IC-DISC
b. IC-ISDC
c. IC-CISD
d. IC-SIDC
Answer
Answer: a
QN81: Which of the following are the three different methods used to levy tariffs on dutiable products?
a. Ad valorem duty, specific duty, and merchandise duty
b. Ad valorem duty, specific duty, and services duty
c. Ad valorem duty, specific duty, and compound duty
d. None of the above
Answer
Answer: c
QN82: The rules of nontariff barriers includes which of the following?
a. The prohibition or limitation on the entry of some imports
b. Limitation to the entry of certain ports
c. Restriction on routing, storage, or use or require treatment
d. All of the above
Answer
Answer: d
QN83: Imports prohibited without a license include arms and ammunition, and products from which countries?
a. Cuba, Iran, North Korea
b. Cuba, Syria, Iraq
c. Iran, Syria, Lebanon
d. Syria, North Korea, Lebanon
Answer
Answer: a
QN84: Which of the following imports require a permit before they can enter the United States?
a. Alcoholic beverages
b. Wool or fur products
c. Metallic products
d. All of the above
Answer
Answer: a
QN85: Which of the following imports are limited by absolute quotas in the United States?
a. Wool and fur products
b. Sugars and syrups
c. Plant products
d. All of the above
Answer
Answer: b
QN86: The tariff rates on which of the following imports are raised after a certain quantity have been imported?
a. Cattle
b. Whole milk
c. Motorcycles
d. All of the above
Answer
Answer: d
QN87: Aerospace products, live animals and animal products, beverages, chemicals, combustibles, cosmetics, and drugs are among the few products or product categories that ?
a. Have numerous import restrictions
b. Are subject to certain restrictions or requirements
c. Are generally prohibited
d. a and b
Answer
Answer: b
QN88: Which respective government agencies oversee wildlife and pets, and textile, wool, and fur products?
a. U.S. Department of Commerce; USDA
b. U.S. Department of Commerce; FTC
c. U.S. Department of Interior; USDA
d. U.S. Department of Interior; FTC
Answer
Answer: d
QN89: Identify the country that has the following rules on tariffs: Average tariff is about 12 percent ad valorem, whereby external tariff will range from 0 to 35 percent and high tariffs are placed in certain protected sectors such as autos, textiles, and computers.
a. Canada
b. South Korea
c. Brazil
d. Argentina
Answer
Answer: c
QN90: Identify the country that has the following rules on nontariff barriers: cost of service markups and other barriers to imports of wines and spirits, and tariff quotas on dairy products, poultry, eggs, and barley products.
a. Canada
b. South Korea
c. Germany
d. Argentina
Answer
Answer: a
QN91: Identify the country that has the following rules on tariffs: tariffs range from 4 to 17 percent. Raw materials enter with higher rates.
a. Canada
b. South Korea
c. Germany
d. Japan
Answer
Answer: c
QN92: Identify the country that has the following rules on nontariffs: Slow and cumbersome import clearance procedures, product standards, and testing and certification requirements. Highly regulated, inefficient distribution system.
a. Japan
b. South Korea
c. Germany
d. Argentina
Answer
Answer: a
QN93: Which free trade agreement provides for the elimination of tariffs on over 97 percent of nonagricultural exports to the United States?
a. USFATA
b. USAFTA
c. CAFTA-DR
d. AGOA
Answer
Answer: b
QN94: Under the GSP system, imports from eligible countries are subject to tariff exemptions or reductions if:
a. The merchandise is destined to the United States without contingency for diversion at the time of exportation
b. The cost or value of materials produced in the beneficiary country and/or the direct cost of processing performed is no less than 35 percent of the appraised value of the goods
c. The UN certificate of origin is prepared and signed by the exporter and filed with the entry of the goods
d. All of the above
Answer
Answer: d
QN95: Which of the following is a limitation to the application of the GSP?
a. The vice president is required to suspend GSP eligibility on imports of specific articles from a particular country when the latter supplied more than $19 million in the value of the article during the previous calendar year or over 50 percent of the value of U.S.
imports.
b. The provision of GSP is not restricted for advanced developing nations.
c. The president is required to suspend GSP eligibility on imports of specific articles from a particular country when the latter supplied less than $19 million in the value of the article during the previous calendar year or over 50 percent of the value of U.S. imports.
d. The provision of GSP is restricted for advanced developing nations.
Answer
Answer: d
QN96: In order to receive the CBI duty-free treatment, the merchandise must be wholly produced or substantially transformed in the beneficiary country and meet the percent value-added requirement similar to the GSP scheme.
a. 35
b. 40
c. 45
d. 50
Answer
Answer: a
QN97: Customs brokers provide services through which of the following ways?
a. The entry and admissibility of merchandise
b. Its classification and valuation
c. The payment of duties and other charges assessed by customs or the refund or drawback thereof
d. All of the above
Answer
Answer: d
QN98: Which of the following is not a duty or responsibility of customs brokers?
a. Record of transactions
b. Diligence in corresponding and paying monies
c. Proper filing of information
d. Provide banking materials on all import related items
Answer
Answer: d
QN99: To obtain a customs broker license, an individual must be:
a. A resident-alien of the United States
b. Be least 18 years of age
c. Of good moral character
d. All of the above
Answer
Answer: c
QN100: Which of the following is considered a customs broker?
a. Individual
b. Partnership
c. Corporation
d. All of the above
Answer
Answer: d
