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TEST BANK
CHAPTER 14: INTERNATIONAL LOGISTICS
Multiple Choice Questions (correct answers are bolded)
1. ___________ refers to the sum of the gross domestic product of all countries.
2. ___________ are taxes that governments place on the importation of certain items.
3. A(n) ___________ limits the amount of product that may be imported from any one country
during a particular period of time.
4. A(n) ___________ prohibits trade between countries.
2
5. What is the name for a system of accounts that records a country’s international financial
transactions?
6. Cargo preference rules ___________.
7. When one country’s currency is weak relative to other currencies, ___________.
8. Which of the following statements about sachets is false?
9. ___________ was the most recent country to be admitted to the European Union, in 2013.
3
10. A ___________ is used in areas where dockworkers cannot read but need a method to keep
documents and shipments together.
11. Which of the following is not a cultural factor that can influence international logistics?
12. A ___________ specifies the country or countries in which a product is manufactured and
can be required by governments for control purposes or by an exporter to verify the location of
manufacture.
13. A ___________ is similar in nature to a domestic bill of lading and summarizes the entire
transaction.
4
14. A ___________ often serves as the basis for a country’s official export statistics.
15. Incoterms refer to ___________.
16. Which of the following Incoterms does not apply to sea and inland waterway transport only?
17. Which of the following is not a method of payment for international shipments?
5
18. Which method of payment for international shipments is extremely risky for the seller and
minimally risky for the buyer?
19. What international method of payment is issued by a bank and guarantees payment to a seller
provided that the seller has complied with applicable terms and conditions of the particular
transaction?
20. Advising on acceptance of letters of credit, booking space on carriers, and obtaining consular
documents are principal functions provided by ___________.
21. Consular documents ___________.
22. Which of the following is not a source of income for international freight forwarders?
6
23. Which international logistics service provider is often confused with the international freight
forwarder?
24. ___________ act as the export sales department for a manufacturer.
25. An ___________ custom packs shipments when the exporter lacks the equipment or the
expertise to do so itself.
26. Approximately ___________ percent of cross-border shipments move by water
transportation.
7
27. ___________ is the world’s busiest container port.
28. Seven of the 10 busiest container ports are located in ___________.
29. ___________ refer to major ports where thousands of containers arrive and depart each
week.
30. Shipping conferences refer to ___________.
31. What concept refers to a situation in which ocean carriers retain their individual identities but
cooperate in the area of operations?
32. Ocean carrier alliances provide two primary benefits to participating members, namely, the
sharing of vessel space and ___________.
33. Integrated air carriers ___________.
34. The Open Aviation Area is an open skies agreement between the United States and
___________.
35. Which countries rank first, second, and third, respectively in terms of highway mileage?
36. Which of the following statements is false?
37. Short-sea shipping (SSS) is widely accepted and practiced in ___________.
38. Which of the following statements about international inventory management is false?
39. The Logistics Performance Index (LPI) ___________.
40. ___________ was the top-ranked country in the 2016 Logistics Performance Index (LPI).
True-False Questions
[LO: Material at the beginning of the chapter; Easy; Concept; AACSB Category 3: Analytical
thinking]
[LO 14.1: To discuss macroenvironmental influences on international logistics; Easy; Concept;
AACSB Category 3: Analytical thinking]
[LO 14.1: To discuss macroenvironmental influences on international logistics; Moderate;
Synthesis; AACSB Category 3: Analytical thinking]
4. Embargoes are physical limits on the amount that may be imported from any one country
[LO 14.1: To discuss macroenvironmental influences on international logistics; Moderate;
Concept; AACSB Category 3: Analytical thinking]
5. Some nations with weak balance-of-payment positions issue an import license on the
[LO 14.1: To discuss macroenvironmental influences on international logistics; Moderate;
Synthesis; AACSB Category 3: Analytical thinking]
6. Cargo preference rules indicate how each shipment should be loaded into a transport vehicle.
11
[LO 14.1: To discuss macroenvironmental influences on international logistics; Moderate;
Concept; AACSB Category 3: Analytical thinking]
7. When one country’s currency is weak relative to other currencies, it is more costly to import
[LO 14.1: To discuss macroenvironmental influences on international logistics; Moderate;
Application; AACSB Category 3: Analytical thinking]
8. Sachets (single-use packets) require different packaging and are easier to lose and more prone
[LO 14.1: To discuss macroenvironmental influences on international logistics; Moderate;
Synthesis; AACSB Category 3: Analytical thinking]
[LO 14.1: To discuss macroenvironmental influences on international logistics; Moderate;
Application; AACSB Category 3: Analytical thinking]
[LO 14.1: To discuss macroenvironmental influences on international logistics; Easy; Synthesis;
AACSB Category 3: Analytical thinking]
11. National holidays have no impact on the effectiveness and efficiency of international
[LO 14.1: To discuss macroenvironmental influences on international logistics; Moderate;
Synthesis; AACSB Category 3: Analytical thinking]
12. The documentation requirements for international shipments can act as a nontariff barrier to
[LO 14.2: To explain documentation as well as terms of sale and methods of payment for
international shipments; Easy; Synthesis; AACSB Category 3: Analytical thinking]
13. A certificate of origin specifies the country or countries in which a product is manufactured.
[LO 14.2: To explain documentation as well as terms of sale and methods of payment for
international shipments; Easy; Concept; AACSB Category 3: Analytical thinking]
14. A shipper’s letter of instruction (SLI) contains relevant export transaction data such as the
transportation mode(s), transaction participants, and description of what is being exported.
[LO 14.2: To explain documentation as well as terms of sale and methods of payment for
international shipments; Moderate; Concept; AACSB Category 3: Analytical thinking]
15. Some free trade agreements have actually resulted in an increase in documentation
[LO 14.2: To explain documentation as well as terms of sale and methods of payment for
international shipments; Moderate; Synthesis; AACSB Category 3: Analytical thinking]
16. Incoterms 2010 now divides terms of sale into two groups, one of which applies to any mode
[LO 14.2: To explain documentation as well as terms of sale and methods of payment for
international shipments; Moderate; Synthesis; AACSB Category 3: Analytical thinking]
[LO 14.2: To explain documentation as well as terms of sale and methods of payment for
international shipments; Moderate; Application; AACSB Category 3: Analytical thinking]
[LO 14.2: To explain documentation as well as terms of sale and methods of payment for
international shipments; Moderate; Synthesis; AACSB Category 3: Analytical thinking]
[LO 14.2: To explain documentation as well as terms of sale and methods of payment for
international shipments; Moderate; Application; AACSB Category 3: Analytical thinking]
20. Consular documents involve obtaining permission from the importing country for goods to
[LO 14.3: To distinguish among the unique activities of international trade specialists;
Moderate; Concept; AACSB Category 3: Analytical thinking]
[LO 14.3: To distinguish among the unique activities of international freight specialists;
Moderate; Synthesis; AACSB Category 3: Analytical thinking]
22. From a shipper’s perspective, a nonvessel-operating common carrier (NVOCC) is a carrier;
13
[LO 14.3: To distinguish among the unique activities of international freight specialists;
Moderate; Application; AACSB Category 3: Analytical thinking]
[LO 14.3: To distinguish among the unique activities of international freight specialists;
Moderate; Synthesis; AACSB Category 3: Analytical thinking]
24. Export packers custom pack shipments when the exporter lacks the equipment or expertise to
[LO 14.3: To distinguish among the unique activities of international trade specialists; Easy;
Concept; AACSB Category 3: Analytical thinking]
25. International transportation cannot be effective or efficient without fairly identical handling
[LO 14.4: To illustrate transportation and inventory considerations in international distribution;
Moderate; Synthesis; AACSB Category 3: Analytical thinking]
[LO 14.4: To illustrate transportation and inventory considerations in international distribution;
Moderate; Application; AACSB Category 3: Analytical thinking]
[LO 14.4: To illustrate transportation and inventory considerations in international distribution;
Moderate; Synthesis; AACSB Category 3: Analytical thinking]
[LO 14.4: To illustrate transportation and inventory considerations in international distribution;
Moderate; Synthesis; AACSB Category 3: Analytical thinking]
29. Load centers refer to major ports where thousands of containers arrive and depart each week.
[LO 14.4: To illustrate transportation and inventory considerations in international distribution;
Easy; Concept; AACSB Category 3: Analytical thinking]
[LO 14.4: To illustrate transportation and inventory considerations in international distribution;
Moderate; Concept; AACSB Category 3: Analytical thinking]
14
31. Ocean carrier alliances provide two primary benefits to participating members, namely, the
[LO 14.4: To illustrate transportation and inventory considerations in international distribution;
Moderate; Synthesis; AACSB Category 3: Analytical thinking]
[LO 14.4: To illustrate transportation and inventory considerations in international distribution;
Moderate; Concept; AACSB Category 3: Analytical thinking]
33. Bilateral agreements liberalize international aviation opportunities and limit federal
[LO 14.4: To illustrate transportation and inventory considerations in international distribution;
Moderate; Concept; AACSB Category 3: Analytical thinking]
[LO 14.4: To illustrate transportation and inventory considerations in international distribution;
Moderate; Synthesis; AACSB Category 3: Analytical thinking]
[LO 14.4: To illustrate transportation and inventory considerations in international distribution;
Moderate; Synthesis; AACSB Category 3: Analytical thinking]
36. Drayage refers to ocean shipping, often along a region’s coast, rather than across oceans.
[LO 14.4: To illustrate transportation and inventory considerations in international distribution;
Moderate; Concept; AACSB Category 3: Analytical thinking
37. Because greater uncertainties, misunderstandings, and delays often arise in international
[LO 14.4: To illustrate transportation and inventory considerations in international distribution;
Moderate; Application; AACSB Category 3: Analytical thinking]
38. Inventory valuation on an international scale is difficult because of continually changing
[LO 14.4: To illustrate transportation and inventory considerations in international distribution;
Moderate; Synthesis; AACSB Category 3: Analytical thinking]
15
39. The Netherlands ranked first in overall performance in the 2016 Logistics Performance Index
[LO 14.5: To introduce you to the Logistics Performance Index; Moderate; Application;
AACSB Category 3: Analytical thinking]
40. The Logistics Performance Index (LPI) was created in recognition of the importance of
[LO 14.5: To introduce you to the Logistics Performance Index; Moderate; Synthesis; AACSB
Category 3: Analytical thinking]
