Chapter 9 - International trade

6) When calculating total landed costs, one uses the total of which two costs?

A) Primary Costs Minus Freight Costs

B) Primary and Secondary Costs

C) Secondary and Tertiary Costs

D) All Costs Minus Freight Costs

7) When using the CPT Incoterm, who is responsible for storage and related labour once

delivered?

A) The Buyer

B) The Seller

C) The Buyer and the Seller

D) This would be negotiated on a separate contract outside of the Incoterm.

8) The letter of credit has to involve certain parties to legally and efficiently expedite the

documents, the payment guarantee, and the payment process. Who are the primary

parties to a letter of credit?

A) When they are written into the Letter of Credit

B) When they are written into the sales contract

C) When they are stated on the packing list

D) When they are presented in writing on any document used in international

trade

9) Incoterms are considered legally enforceable when:

A) When they are written into the Letter of Credit

B) When they are written into the sales contract

C) When they are stated on the packing list

D) When they are presented in writing on any document used in international

trade

10)The Business Development Bank of Canada plays an important role for new and

smaller international shippers. Their primary role is to:

A) Guarantee full payment of costs to foreign banks

B) Share in liabilities for losses

C) Offer loan guarantees to lending institutions for partial repayment of letters of

credit

D) Establish best in class international trade supply chains