QUESTION 1

What are 4 factors to be considered when accessing Risk? Select the best answer.

Bank Risk, Foreign Currency Risk, Risk of Product Not Selling, Risk of Incorrect Shipment

Foreign Currency Risk, Risk of Importer Not Liking Product, Gas Risk, Bank Risk

Bank Risk, Foregin Currency Risk, Commercial Risk, Gas Prices Risk

Country Risk, Foreign Currency Risk, Bank Risk, Commercial Risk

QUESTION 2

An international trade contract can use an older version of Incoterms, providing it is stated in the contract.

True

False

1 points

QUESTION 3

Who bears the payment risk in a letter of credit?

		The exporter
		The importer
		The issuing bank
		Both a and b

1 points

QUESTION 4

What are potential costs that a seller would have to incur when exporting goods to a foreign country. Please select the best answer.

		Travel, Communication, Marketing, Packaging/Insurance, Professional Service Fees
		Communication, Marketing, Gas for Freighter, Travel, Insurance
		Travel, Communication, Marketing, TV Commercials, Insurance
		Travel, Communication, Marketing, Inruance, Goodwill Gesture

2 points

QUESTION 5

A Canadian company is exporting goods into the US and being paid in Canadian dollars. An increase in the US dollar versus the Canadian dollar, will have which of the following effects on their business.

		No effect
		Revenue from sales will decrease due to change in exchange rate
		Volume of business may increase due to lower prices to US consumer
		Both b and c

1 points

QUESTION 6

A solid, well written international trade agreement will help avoid disputes.

True

False

1 points

QUESTION 7

What are 5 important elements to be included in an international trade contract? Select the best answer.

		How are Disputes Settled, What Penalties and Warranties are there, When does the Contract Become Effective, What Bank does the Importer Use, What is the Importers Credit Score?
		Title of Goods, How are Disputes Settled, What Penalties and Warranties are there, When does the Contract Become Effective, When and How to Pay?
		Title of Goods, How are Disputes Settled, What Penalties and Warranties are there, When does the Contract Become Effective, What Price is the Importer Selling at?

2 points

QUESTION 8

Which of the following tactics will NOT reduce currency exchange (FX) risk?

		Selling in your domestic currency
		Buying foreign currency futures
		Obtaining a letter of credit from a bank
		Keeping payment terms short

1 points

QUESTION 9

Which of the following organizations provides services to Canadian exporters?

		Canadian Government
		Canadian banks
		EDC
		All of the above

1 points

QUESTION 10

What does a Freight Forwarder do?

		Helps negotiate international trade terms
		Arranges for payment of goods once they are shipped
		Facilitates and manages the shipment of goods on the exporters behalf
		Determines what Incoterms are used in the shipment of goods

1 points

QUESTION 11

Which of the following organizations developed Incoterms?

		ECD
		International Freight Forwarders Association
		International Chamber of Commerce
		Federation of International Trade Associations