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I need help with more practice problems Incoterms are generally divided into which following categories? A. Importer vs. exporter B. Freight vs. service C. Insured

I need help with more practice problems

Incoterms are generally divided into which following categories?

A.

Importer vs. exporter

B.

Freight vs. service

C.

Insured vs. non-insured

D.

Any transport mode vs. ocean transport mode

2. A misuse of Incoterm rules is common due to

A.

Government restrictions

B.

Language translaton issues

C.

Confusion with domestic terms

D.

Differences between importer and exporter policies

3.If an exporter chooses Incoterms properly, it can

A.

Avoid litigation

B.

Reduce its shipping costs

C.

Increase its profit

D.

Keep level market share

In a forward hedge strategy

A.

the exporter locks into a contract for exchanging the due amount with a bank at the forward rate

B.

the exporter purchases an option to buy the due amount at a contract rate or exchange at the spot rate

C.

the exporter bills the importer using the forward exchange rate

D.

None of these

Theory holds that forward currency exchange rates are

A.

Good predictors of current forward currency rates

B.

Good predictors of future spot interest rates

C.

Good predictors of current spot currency rates

D.

Good predictors of future spot currency rates

In a money market hedge strategy,

A.

the exporter purchases an option to sell the due amount at a contract rate or exchange at the spot rate

B.

the exporter locks into contract for exchanging the due amount with a bank at the forward rate

C.

the exporter iInvests the present value of the amount, then withdraws when they have to pay the importer

D.

the exporter borrows the present value of the due amount, then pays off the bank when they get paid by the customer

In general, transaction risks are usually minimal for

A.

the party who is in the least risk country

B.

the party whose is receiving paid insurance coverage

C.

the party belonging to the country of the currency of the transaction

D.

the party who has the least business risk

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