Import/Export Test

Question 1

What is The Importance of Importing

Answer 1

Consumer demand for products unique to foreign countries, Lower costs of foreign-made products, Sources of parts needed for domestic manufacturing

Question 2

4 Importing Activities

Answer 2

Determine Demand, Contact Suppliers, Finalize Purchase, Receive Goods

Question 3

Customs Official

Answer 3

is a government employee authorized to collect duties levied on imports

Question 4

The Exporting Process

Answer 4

Find potential customers, Meet the needs of customers, Agree on sales terms, Deliver products or Services, Complete the Transaction

Question 5

Indirect Exporting

Answer 5

occurs when a company sells its products in a foreign market without actively seeking out those opportunities

Question 6

Direct Exporting

Answer 6

conducts business by actively seeking export opportunities

Question 7

Free on Board (FOB)

Answer 7

means the selling price of the product includes the cost of loading the exported goods onto transport vessels at the specified place

Question 8

Cost, Insurance, Freight (CIF)

Answer 8

means that the cost of the goods, insurance, and freight are included in the price quoted

Question 9

Cost and Freight (C&F)

Answer 9

indicates that the price includes the cost of the goods and freight, but the buyer must pay for insurance separately

Question 10

Freight Forwarder

Answer 10

a company that arranges to ship goods to customers

Question 11

Trade Surplus

Answer 11

Occurs when a country exports more than it imports

Question 12

Trade Deficit

Answer 12

Occurs when a country imports more than it exports

Question 13

Balance of Payments

Answer 13

total flow of money coming into a country minus the total flow going out

Question 14

Direct Barter

Answer 14

The exchange of goods and services between two parties with no money involved

Question 15

Countertrade

Answer 15

is the exchange of products or services between companies in different countries with the possibility of some currency exchange

Question 16

Money

Answer 16

is anything people will accept for the exchange of goods and services

Question 17

Barter

Answer 17

The direct exchange of goods and services for other goods and services

Question 18

Interest rate

Answer 18

The cost of using someone else’s money. Higher interest rates mean more expensive products and lower demand among consumers

Question 19

5 Main Characteristics of Money

Answer 19

Acceptability, Scarcity, Durability, Divisibility, Portanbility

Question 20

3 Main Purposes of Money

Answer 20

Medium Exchange, Measure of Value, Store of Value

Question 21

Medium Exchange

Answer 21

Money is useful only if people are willing to accept it in exchange for goods and services

Question 22

Foreign Exchange

Answer 22

The process of converting the currency of one country into the currency of another country

Question 23

Exchange Rate

Answer 23

is the amount of currency of one country that can be traded for one unit of the currency of another country

Question 24

3 Factors of Forex

Answer 24

Balance of Payments, Economic Conditions, Political Stability

Question 25

Soft Currency

Answer 25

A currency that is not easy to change to other currency

Question 26

Hard Currency

Answer 26

is a monetary unit that is freely converted into another currency

Question 27

Floating Exchange Rate

Answer 27

is a system in which currency values are based in supply and demand

Question 28

Foreign Exchange Market

Answer 28

is the network of banks and other financial institutions that buy and sell different currencies

Question 29

Currency Option

Answer 29

is a contract a person or company buys that allows the buyer the option to purchase a foreign currency sometime in the future at today’s rate

Question 30

Exchange Controls

Answer 30

Are government restrictions to regulate the amount and value of a nation’s currency

Question 31

World Bank

Answer 31

is a bank whose major function is to provide economic assistance to less developed countries

Question 32

International Monetary Fund (IMF)

Answer 32

is an agency that helps promote economic cooperation by maintain an orderly system of world trade and exchange rates

Question 33

Bonds

Answer 33

A contract usually between 5 and 30 years that promises a company to pay back another party