With the INCOTERM FOB (named shipment port), when does the risk pass?

AWhen the goods are unloaded at the destination port

BWhen the goods are delivered to the named destination port

CWhen the goods have passed over the ship's rail at the port of shipment

DWhen the goods have been handed over to the first carrier or forwarder.

Answer : A

Which of the following is the least desirable technique to reduce the risks associated with exchange rate fluctuations?

AUse of forward exchange contracts

BSpeculation on the international markets

CProcuring the required foreign currency at the time of order placement

DUse of a neutral currency such as the US dollar

Answer : A

Before visiting a new overseas supplier to negotiate a large contract, which of the following is the most important activity to undertake?

AMake sure that you possess an adequate supply of business cards

BCarefully research the customs and values of the supplier's country

CTranslate all technical documentation into the language of the supplier's country

DProcure gifts for the supplier's representatives.

Answer : C

Which of the following statements relating to multimodal transportation systems is true?

AMultimodal transportation systems always involve all four main transport modes

BMultimodal transportation systems lend themselves to the use of standard containers

CMultimodal transportation systems eradicate the need for customs formalities at borders

DMultimodal transportation systems require less sophisticated tracking systems.

Answer : D

In shipments by sea, which of the following is the term used to describe charges payable for delays at ports or customs?

ADetention

BDemurrage

CDunnage

DCabotage

Answer : D

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