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Question
Discuss the four factors used in determining a product's freight classification.Answer
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The Brazilian buyer wants the buses delivered at Santos. Weiss looks up the International Chamber of Commerce's Incoterms and finds three categories of "delivered" at a receiving port. They are:
DAT (Delivered at Terminal). In this type of transaction, the seller clears the goods for export and bears all risks and costs associated with delivering the goods and unloading them at the terminal at the named port or place of destination. The buyer is responsible for all costs and risks from this point forward including clearing the goods for import at the named country of destination.
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a. was created in recognition of the importance of logistics in international trade
b. measures a company's logistics cost as a percentage of its total cost
c. compares inventory turnover for major retailers
d. applies the Balanced Scorecard approach to international logistics activities
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Shipping conferences refer to ____.
a. annual meetings of large international shippers
b. international shippers' associations
c. cartels of ocean vessel operators operating between certain trade areas
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Incoterms are generally revised approximately every ____ years.
a. 25
b. 20
c. 10
d. 5
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A ____ is similar in nature to a domestic bill of lading and summarizes the entire transaction.
a. certificate of origin
b. commercial invoice
c. shipper's letter of instruction
d. shipper's export declaration
e. none of the above
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A ____ is used in areas where dockworkers cannot read but need a method to keep documents and shipments together.
a. RFID tab
b. shipper's mark
c. shipment coordinator
d. bar code
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When one country's currency is weak relative to other currencies, ____.
a. it becomes more costly to import products to the country, but its exports surge
b. both imports and exports surge
c. it becomes more costly to export products from the country, but its imports surge
d. it becomes more costly to import and export products
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a. net world product
b. world net income
c. gross world product
d. gross world income
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