Deck 6: Export Sales Contracts and Global Business Theories

Question 1

CISF pricing includes the following

A)Commission is paid to the agent involved in the transaction
B)Cost of the goods exported
C)Freight & Insurance charges for the goods exported
D)All of the above

Answer 1

All of the above

Question 2

When the transaction is of high value, complex In nature and more technical __________ method of the export sales contract is used.

A)Performa invoice
B)Purchase order
C)Sales contact
D)None of the above

Answer 2

Sales contact

Question 3

Which one of the following is a method for an exporter to get a contract

A)Proforma invoice
B)Purchase order
C)Sales contract
D)All the above

Answer 3

All the above

Question 4

Credits transferable by original beneficiary in favor of secondary beneficiary are known as

A)Deferred credits
B)Transit credits
C)Instalment credits
D)Transferable credits

Question 5

When the exporter, expects the importer, to make the payment immediately upon the draft being presented to him is called.

A)Sight Draft.
B)Usance Draft
C)Demand draft
D)Pay Note

Question 6

The basic objective of export Promotion Council is to promote and develop the Exports of the

A)Particular products of country
B)Only attractive projects of the country
C)Only services industry products of the country
D)Overall exports of the country.

Question 7

The theory of Comparative cost advantage is given by

A)Porter
B)Adam Smith
C)Varnoon
D)Richardo

Question 8

Trade Related Investment Measures (TRIMS) doesn't apply for

A)Measures that lead to restrictions in quantities.
B)Discouraging measures that limit a company's imports
C)Discouraging measures that limit a company's exports.
D) all of the above

Question 9

As a part of WTO guidelines, Agreement on Agriculture (AOA) doesn't consider

A)Direct payments to farmers are permitted.
B)Indirect assistance and support to farmers including R & D support by govt. are not permitted
C)Domestic policies which directly effect on production and trade have to be cut back.
D)Least developed countries do not need to make any cuts.

Question 10

Power distance Index (PDI) of 77 compared to a world average of 56.5 for India indicates

A)High level of inequality of power and wealth within the society
B)Normal Power and Wealth
C)High level of political corruption
D)Low level of Human Development Index

Question 11

Identify a factor that doesn't play an important role in attracting FDI

A)Language
B)Laws, rules and regulations
C)Cost of resources
D)Infrastructure related factors

Question 12

The first phase of globalization started around 1870 and ended with …

A)The World War I
B)The World War II
C)The Establishment of GATT
D)In 1913 when GDP was high

Question 13

Which of these is a characteristic of multinational corporations>

A)At least one -third directors are foreign nationals
B)The company does 40% of its business in foreign markets
C)The overseas markets are larger than the domestic market
D)The affiliates are responsive tio a number of important environmental forces

Question 14

According to this theory the holdings of a country's treasure primarily in the form of gold constituted its wealth.

A)Gold Theory
B)Ricardo Theory
C)Mercantilism
D)H .O. THEORY

Question 15

The Theory of Absolute Cost Advantage is given by

A)Adam smith
B)D. Richardo
C)Raymond Varnoon
D)Porter

Question 16

The Theory of Relative Factor Endowments is given by

A)Ohilin-Hecksher
B)FY Taylor
C)Richardo
D)Porter

Question 17

…………… is application of knowledge which redefine the boundaries of global business

A)Cultural Values
B)Society
C)Technology
D)Economy

Question 18

Capitalistic, communistic and mixed are the types of

A)Economic system
B)Political system
C)Social System
D)Cultural Attitudes

Question 19

General Agreement on Trade in Services will not be applicable to

A)Services supplied from one country to another - cross border supply
B)Transaction of goods across the border - Export Import
C)Individuals traveling from own country to supply services in another - presence of natural persons.
D)Consumers/firms making use of a service in another country - consumption abroad

Question 20

Quantitative restrictions refer to limit set by countries to curb

A)Imports
B)Exports
C)Imports and Exports
D)All of the above

Question 21

India is an

A)Emerging economy
B)Developed economy
C)Less developed economy
D)None of these

Question 22

________theory states that, lack of resources often helps countries to become competitive

A)Competitive theory
B)Porters Diamond Model
C)Theory of Mercantilism
D)Product life cycle theory

Question 23

The country that attract the largest FDI inflow is

A)USA
B)INDIA
C)CHINA
D)BRAZIL