1. The exporter instructs the presenting bank to hand over shipping and title documents (representing title to the goods shipped) to the importer only if the importer accepts the accompanying bill of exchange or draft by signing it.

This refers to Documents Against Acceptance.

Select one:

True

False

2. Businesses that engage in international trade can mitigate commercial risk and protect their interests through various forms of insurance, such as which of the following?

a. Cargo insurance, political risk insurance, foreign accounts receivable insurance

b. Business income insurance, political risk insurance, foreign accounts receivable insurance

c. Employment practices liability insurance, commercial umbrella insurance, business income insurance

d. Commercial umbrella insurance, cargo insurance, foreign accounts receivable insurance

3. When an exporter and importer are negotiating a contract that is spread over a period of time, parties tend to outline a schedule of payments that defines the dates at which payments are made from the importer to the exporter. What is this called?

a. Milestone-based contract

b. Segmented payment contracting

c. Term based contracting

d. Aligned payment scheduling

4. Which of the following is the approach used when a company adds the Cost of Goods Sold (COGS) to Selling, General and Administrative (SG&A) expenses, and an additional profit margin, before adding all additional costs associated with an export sale?

a. Cost-plus approach to pricing

b. Marginal cost pricing approach

c. Penetration pricing approach

d. Fixed cost pricing approach