Tag: nature and scope of foreign trade

Quizzes (9) Questions (73)

Questions Related to nature and scope of foreign trade

Multiple choice business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

The payment collection mechanism that allows exporters to retain ownership of the goods or reasonably ensures their receiving payments is known as _______.

  1. Letter of Credit

  2. Documentary Collection

  3. Bill of exchange

  4. Consignment
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Documentary Collection allows the exporter to use a bank to collect payment in exchange for documents, ensuring the importer cannot take possession of the goods without paying or accepting a draft.

Multiple choice business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

Under _______ price quotation, goods are delivered to the buyers at their door-step.

  1. Free Alongside Ship (FAS) Price Quotation

  2. Franco Price Quotation

  3. Cash On Delivery (COD) Price Quotation

  4. Cost and Freight (C & F) Price Quotation
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Franco price quotation (often referred to as DDP or Delivered Duty Paid) implies that the seller bears all costs and risks, including delivery to the buyer's premises.

Multiple choice business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

Under ________ price quotation, seller's responsibility is to send the goods to the nearest railway station from his warehouse.

  1. Station

  2. Free On Rail

  3. Cost and Freight

  4. Loco
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Station price quotation indicates that the seller's responsibility ends once the goods are delivered to the specified railway station.

Multiple choice business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

These are officials appointed by the Government to represent the country's interests abroad.

  1. Trade Commissioners

  2. Merchant Exporter

  3. Export Houses

  4. Indent Houses
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Trade Commissioners are government officials stationed abroad to promote their country's commercial interests and assist local businesses in international markets.

Multiple choice business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

_______ carries goods on behalf of exporters on payment of freight charges, and undertakes to deliver the same to the importer.

  1. Merchant Exporter

  2. Trade Representatives

  3. Shipping Company

  4. Export Houses
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A shipping company (or carrier) is the entity that physically transports goods from the exporter to the importer in exchange for freight charges.

Multiple choice business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

Exporting/importing is the most preferred way for business firms when they are getting initially involved with international business.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

An import in the receiving country is an export from the sending country.Importation and exportation are the defining financial transactions of international trade. In international trade, the importation and exportation of goods are limited byimport quotas and mandates from the customs authority.

Multiple choice business organisation import and export procedure types of foreign trade exports and imports nature and scope of foreign trade

For importing or exporting, the business or individual must obtain _________.

  1. Commercial invoice

  2. Import Export Code

  3. Airway bill

  4. Bill of Lading
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

IMPORTER EXPORTER CODE ( in short IEC ) is a ten digit number granted by Directorate General of Foreign Trade under Ministry of Commerce and Industry, to any bonafide person/ company for carrying out import/export.