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1. Which is not a step to consider when calculating your price?

	a.	Calculation of foreign market landed cost.
	b.	Calculation of the distributor and retail price
	c.	Export controls
	d.	Price comparisons of locally produced products

2. When is an SED (Shippers Export Declaration) required?

	a.	Never
	b.	Always
	c.	When the total value of a single product in a shipment exceeds $2,500
	d.	When the total value of a single product in a shipment exceeds $5,000

3. Which of the following is a basic legal structure used throughout the world?

	a.	Common law
	b.	Civil law
	c.	Theocratic law
	d.	All of the above

4. What was the original goal of the Duty Drawback?

	a.	To make sure American companies paid their "fair share" of import duties
	b.	To make sure American companies could compete in foreign markets
	c.	To make sure American companies didn't import too many foreign products
	d.	None of the above

5. A Value Added Tax (VAT) is a(n):

	a.	National consumption/sales tax
	b.	State sales tax
	c.	Local sales tax
	d.	Export tax

6. Freight forwarders are regulated and certified by which organization?

	a.	International Chamber of Commerce
	b.	Federal Maritime Commission
	c.	National Customs Brokers and Forwarders Association of America Inc.
	d.	None of the above

7. Three critical partners in international finance are:

	a.	Importer, your bank, your freight forwarder
	b.	Your bank, your local trade resources, the federal government
	c.	Your local trade resources, foreign government, importer
	d.	Your bank, credit card company, the federal government

8. Making modifications to marketing material such as product specification sheets, warranty statements and competitive comparisons are best modified or produced by…

	a.	Your marketing department
	b.	A translator
	c.	Your foreign buyer (distributor)
	d.	All of the above

9. Which of the following options for dealing with short-term price problems shifts the focus from pricing to benefits and features?

	a.	Lower your pricing
	b.	Product differentiation
	c.	Challenge the distribution rules
	d.	Pricing structure, discounts and promotions

10. Considering the Foreign Corrupt Practices Act:

	a.	It is acceptable to pay to facilitate or expedite routine governmental actions
	b.	It is acceptable to make payments to foreign officials to obtain or keep business
	c.	It is acceptable for a U.S. company's foreign distributors and agents to make bribes
	d.	None of the above

11. One of the advantages of using the internet in international business is “small can be big”. What is meant by this statement?

	a.	Small buyers can gain access to big companies
	b.	A small company can a afford a website equal to its larger competitor
	c.	A small website can attract big buyers
	d.	None of the above

12. Regarding containerized cargo, if you were going to ship lumber and mill products what type of container would be the best choice?

	a.	Reefer
	b.	Ventilated container
	c.	Open top container
	d.	Flat rack container

13. A "grease payment" is legal

True False

14. The Hannover Messe Fair in Germany is considered the largest _____ in the world.

	a.	Trade mission
	b.	Trade show
	c.	Industry tour
	d.	Buyer delegation

15. What is one of the easiest ways to begin your international advertising program?

	a.	Hire a representative in a foreign country to do it
	b.	Modify your domestic advertising to acknowledge your international activities
	c.	Translate your marketing material
	d.	Copy your competition's advertising

16. Which of the following documents is a part of every export shipment?

	a.	Health certificate
	b.	Commercial invoice
	c.	Export license
	d.	Phytosanitary certificate

17. Which of the following is not one of the downsides of the internet?

	a.	Dangerous substitute for travel
	b.	The internet is not truly global
	c.	Imposters
	d.	A small company can appear too big

18. What is the most common international payment method?

	a.	Open account
	b.	Cash in advance
	c.	Documentary connection
	d.	Letter of credit

19. When importing into the United States, the system of classification is called the...

	a.	Harmonized Tariff Schedule
	b.	Harmonized Tax Schedule
	c.	Import Classification System
	d.	Harmonized Classification System

20. Any coordinated international travel where individuals from various companies make jo int visits to foreign markets is known as a…

	a.	Trade mission
	b.	Trade show
	c.	Industry tour
	d.	Buyer delegation

21. The ability or inability of your customer to pay the receivable in full and on time is known as?

	a.	Foreign exchange risk
	b.	Economic risk
	c.	Credit risk
	d.	None of the above

22. It is a good idea to work with only one freight forwarder to ensure service consistency.

True False

23. Who is in the best position to determine the accuracy of export documents?

	a.	Exporter
	b.	Freight Forwarder
	c.	Importer
	d.	Customs agent

24. Which incoterm states that the product is loaded on board an ocean carrier and the goods are cleared for export, but nothing more?

	a.	EXW
	b.	FAS
	c.	FOB
	d.	CIF

25. The Harmonized System is…

	a.	A free trade system
	b.	A system of describing products based on a ten-digit number
	c.	A system of describing products based on an eight-digit number
	d.	A non-tariff barrier

26. Which of the following is not a primary international financial risk?

	a.	Transportation risk
	b.	Credit risk
	c.	Political risk
	d.	Foreign exchange risk

27. A Duty Drawback is a:

	a.	Tax incentive
	b.	Customs fee on imported items
	c.	Refund on import duties paid
	d.	Tax liability

28. Which of the following options for dealing with a long-term price problem can result in a lower tariff because the commodity may be classified under a different harmonized code?

	a.	Partial manufacturing
	b.	Local assembly
	c.	Licensing
	d.	None of the above

29. What is the most secure international payment method for both the buyer and seller?

	a.	Letter of credit
	b.	Cash in advance
	c.	Open account
	d.	Documentary collection

30. Which of the following is the best way the internet can be used to help expand representation in a foreign market?

	a.	Translating your marketing material is less expensive
	b.	The internet is considered to be the most reliable source of information on foreign markets
	c.	It can be used to identify, profile and communicate with potential agents/distributors
	d.	None of the above

31. It would be a mistake to duplicate your domestic pricing policy when you go global.

True False

32. Which Act did the United States create to preserve technical superiority of the West in the event of a war with Soviet Union, China, North Korea or Vietnam?

	a.	Foreign Corrupt Practices Act
	b.	Export Control Act
	c.	The Sherman Act
	d.	Federal Trade Commission Act

33. When exporting from the United States the system of classification is called the…

	a.	Export Classification System
	b.	Export Commodity System
	c.	Schedule B
	d.	Schedule A

34. The internet is not truly global.

True False

35. An internet plan is not needed because it’s best to simply create a website so something is out there and you can establish a presence.

True False

36. Which of the following is a suggested guideline for placing international advertising?

	a.	Maximize purchase power
	b.	Negotiate the price
	c.	Last minute placement
	d.	All of the above

37. The Harmonized System is used worldwide.

True False

38. The set of transportation terms known as Incoterms were developed to establish which of the following?

	a.	Who pays shipping
	b.	Who pays insurance
	c.	When ownership passes from buyer to seller
	d.	All of the above

39. Which of the following documents serves these three purposes: A receipt for cargo; a contract for the transportation of the goods; and a document of title (ownership)?

	a.	Insurance certificate
	b.	Commercial invoice
	c.	Certificate of origin
	d.	Bill of Lading

40. Import documents must be filed with U.S. customs within ___ days of arrival of the products.

	a.	3
	b.	7
	c.	14
	d.	5