Chapter 1 Brief Introduction to International Trade 21 C. premises A. letter of guarantee B. remittance C. treasury bill D. documentary collection (7) The trade term FOB means Free on Board (named ). A. port of shipment B. port of destination D. place of destinations (8) Under the trade term , the seller might undertake to clear the goods for import into the buyer's country. A. EXW B. FOB C. DDP D. FAS (9) The trade term CIF should be followed by A. named port of destination B. named port of shipment C. named place of destination D. named place (10) Under the trade term FOB Tokyo, the freight should be A. pre-paid by the exporter B. paid C. payable at destination D. payable at the port of loading (11) Under the trade term the importer undertakes the least obligation. . B. DDP C. DDU D. EXW (12) Under the trade term , the exporter undertakes the least obligation. A. CIP B. DDP C. DDU D. EXW (13) According to Incoterms 2000, there are different trade terms. A. 6 B. 11 C. 14 D. 13 (14) The trade term CPT should be followed by A. named port of destination B. named port of shipment C. named place of destination D. named place (15) The trade term DAF should be followed by A. named port of destination B. named port of shipment C. named place of destination D. named place (16) In the Incoterms, any obligation which does not appear in a particular Incoterms must be the responsibility of the A. bank B. seller C. exporter D. buyer (17) Which of the following is based on commercial credit? A. Letter of credit B. Bank letter of guarantee C. Collection D. Insurance policy (18) In credit transactions, the goods and the documents are sent to the importer A. in different ways B. in different directions C. in the same way D. at one time