QUESTION 12

The volume (or size) of an export order should not influence the price.

True

False

1 points

QUESTION 13

Incoterms determine payment terms of international trade.

True

False

1 points

QUESTION 14

*BONUS*

What are Incoterms designed to do? List 3 benefits in point form.

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3 points

QUESTION 15

Which of the following payment options provides the greatest risk for an exporter?

		Letter of credit
		Consignment
		Prepayment
		Schedulized payment terms

1 points

QUESTION 16

The cost of translation does not always need to be considered when setting the price of an exported good or service.

True

False

1 points

QUESTION 17

Which is one of the following is NOT a pillar of International Trade Finance?

		Information
		Risk mitigation
		Incoterms
		Payments

1 points

QUESTION 18

Generally, the COST PLUS approach will set a more competitive price for an export good than the MARGINAL COST approach.

True

False

1 points

QUESTION 19

Which of the following payment terms is most attractive for an importer?

		Prepayment
		Letter credit
		Open account with 90-day terms
		Payments based on milestones

1 points

QUESTION 20

A company considering exporting their product, should first:

		Talk to their bank about financing options
		Explore potential new markets
		Ensure their domestic operations are stable and profitable
		Access the country risk of the potential markets