Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

CIPS L4M4 > Chapter 3 > Flashcards

Chapter 3 Flashcards

1
Q

What organisation regulates international trade and what does it aim to achieve

A

WTO is the organisation that regulates international trade
It aims to mediate disputes (Arbitration)
Provides a forum for negotiating trade agreements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the advantages and disadvantages of International Trade

A

Advantages: Peaceful and Collaborative relationships
Economy market stimulation
Emerging country support

Disadvantages:
Poor political relations
Change in currency values

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is a trade bloc?

A

Group of nations that create preferential trade conditions, they lesser restrictions on tariffs and import duties
Common Market
Free Trade

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is the role of a custom agency

A

Custom agencies ensure prohibited goods do not make it to the end user
They have already restricted the limit on commodity quotas and aim to ensure these are not exceeded

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is a T1 document

A

A T1 document accompanys goods in transit through the EU

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is a Single Administrative Document

A

A document that accompanies goods leaving or entering the EU

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is a New Computerised Transit System

A

Electronically tracks the movement of goods being transported within the EU

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is a Customs Declartion Service

A

Allows users to submit electronic import and export requests

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is non-preferential origin and preferential origin

A

Non preferential- goods are subject to tariff quotas between nations
Preferential- no duty charges or limitations (remember as preferential, preferred option)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is a call for competition

A

A call for competition is released by OJEU to make potential suppliers aware that they may participate in a sourcing competition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

When discussing the public sector what restrictions do they have when it comes to rendering

A

Pressure
Public scrutiny
Requires a good audit trail
Over a certain £ must be open to competition, start with a call for competition in the OJEU. A PIN can be released before.
Public interest test: should the info be released to the public

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Import duties- what needs to be considered

A

Need good understanding and frequent communication with supplier to avoid any unexpected pricing increases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the reasons for limiting imported goods

A

To protect end users
To protect infant industries
National defence products
Strictly monitor goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is a bill of lading

A

A bill of lading is a document stating what is required of those transporting, consigning and carrying the goods until delivery

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the certificate of origin

A

The certificate of origin specifies the origin of goods, where the goods came from I.e. a particular country

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is a carnet?

A

A temporary free movement of goods within a designated boundary, within the EU under the Single EU act allows free movement of goods for member states

17
Q

What is the order of Incoterms from highest risk of buyer to supplier

A

Highest risk for Buyer: Ex-Works
FCA
CIF
Highest risk for Supplier: DAP, DDP, DAP

18
Q

What payment mechanism benefits the buyer?

A

Open Account as this is where the supplier delivers the items before payment is made

19
Q

What payment mechanism benefits the supplier?

A

Cash in Advance benefits the supplier as the buyer will pay upfront for goods before receiving them

20
Q

What is the payment mechanism, time draft?

A

Time draft is more favourable to the buyer as it is a guarantee of payment from the bank, once the goods have been delivered there is a delay with payment so the buyer can inspect the goods

21
Q

What is sight draft?

A

Sight draft is similar to term draft but is more favourable to the supplier as there is no delay for inspection

22
Q

What is a letter of credit?

A

A letter of credit is where the supplier is paid once the conditions of the contract have been met

23
Q

What is currency hedging

A

Currency hedging is buying currency ahead of a future payment to secure the value

24
Q

How can an organisation safe guard themselves against price fluctuations?

A

Paying the supplier upfront
Ensuring the buyers nations value is greater than the suppliers so they can exchange a small quantity for a large quantity

25
Q

What are the advantages of competitive tendering?

A

Advantages: fair process with all suppliers receiving equal attention
Reduce potential for unbiased selection
Information on multiple suppliers
Encourages competition

26
Q

What are the disadvantages of competitive tendering?

A

May prevent quick selection of preferred supplier
May drive the wrong behaviours
Time to assess and validate

27
Q

What are the key regulations affecting all sectors?

A

Data protection
Ethical practice
Health, safety and worker rights
Market place competition I.e. cartels

28
Q

Time scales within the public sector (tendering)

A

The UK Public Contract Regulations 2015 specify the minimum time periods
These time scales exist to ensure a fair and equal process
Time scales can reduce if electronic systems are used and if a PIN has been released beforehand.

29
Q

What is working capital

A

Assets over Liabilities

30
Q

What is Bill of Exchange

A

Written order, 1 party pay fixed sun to another party on demand
Used in international trade
Specifiy terms of contact

31
Q

What is competitive bidding

A

Competitive bidding is RFI and RFQ

32
Q

What is reverse logistics ?

A

Customer —— Seller
I.e. returning items

33
Q

Consignment sales

A

Trade agreement 1 party provided goods to another to sell.
3rd party entrusted
Retains ownership until goods sold

34
Q

ISO Standards

A

ISO 9001- Quality Management
ISO 1400:2015- Supplier accreditation
ISO 20400:2017- Standardisation, ethical and sustainable practices

35
Q

How do you mitigate against currency fluctuations?

A
  • Pay the supplier upfront
  • Fixed cost pricing within the contract
  • Currency Hedging
36
Q

What is a facilitation payment?

A

A form of bribe also referred to as a grease payment that speeds up the process

37
Q

What is offset?

A

Offset is a requirement to win the contract where an agreement is in place that the supplier will invest in the buying organisations nation

CIPS L4M4 (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions