Chapter 2
1.Choose the right answer from each of the following.
1) Incoterms are a standard set of terms and abbreviations developed by _______.
A. the International Law Association
B. the International Chamber of Commerce
C. the United Nations Conference on Trade and Development
D. American commercial groups
2) In the international trade practices regarding trade terms, which of the following is the most influential and widely used _______.
A. Hague Rules
B. Warsaw-Oxford Rules 1932
C. Revised American Foreign Trade Definitions 1941
D. Incoterms
3) INCOTERMS2010 includes _________ trade terms.
A.11 B. 12 C 13 D.14
4) As far as risks taken by the seller are concerned,
A. CIF is bigger than CFR. B. CIF is as the same as CFR.
C. CFR is bigger than CIF. D. FOB is bigger than CFR.
5) The term FOB should be followed by:
A. point of origin B. port of importation
C. port of destination D. port of shipment
6) Under the trade term CFR, the _______ must contract for the cargo transport insurance.
A. buyer B. seller C. consignor D. carrier
7)FOB, CIF and CFR terms should only be used for ________transport.
A. sea and inland waterway B. rail C. air D. road
8) Under term______, the buyer bears the loading cost.
A. FOB Free In B. FOB Trimmed
C. FOB Stowed D. FOB Liner Terms
9) Under term______, the buyer clears the goods for export.
A. EXW B. FOB C. DAP D. DDP
10) Which of the following prices quoted is correct?
USD1000 per M/T CIF USA
B. USD 200 per ton CIFC3 New York
C. USD150 per case CIF
D. USD 100 per dozen CIFC3 New York
2. Decide whether the following statements are true or false.
1) Under CFR, the seller must pay the usual freight rate and any additional costs that arise en route. ( )
2) The terms FOB, CFR and CIF are applicable to all modes of transport. ( )
3) Each term has a “liability point”, which means that costs and risks are all moved over to another party from that very point. ( )
4) EXW contract is called "physical delivery" while CFR is “symbolic delivery”.( )
5)Under CIF the seller also has to procure marine insurance against the buyer’s risk of loss of or damage to the goods during the carriage. ( )
Chapter 3
1. Review and Discussion Questions
How is packing of goods classified in international trade? What are some of the major functions of each type of packing?
Please describe the standardized form of shipping mark suggested by ISO?
What is neutral packing? Why is it used in international trade?
2. Choose the right answer from each of the following.
1)________ , usually made of jute, are suitable for transporting such cargoes as cement, fertilizer, flour, animal feeding products, chemicals, etc.
A. Bales B. Sacks C. Cartons D. Cases
________ are a kind of portable platforms intended for handling, storing, or moving materials and packages;
A. Flexible containers B. Large metal containers
C. Corrugated boxes D. Pallets
3) ______ acts as “a silent salesman”.
A. Shipping packing B. Shipping mark
C. Sales packing D. Neutral packing
4) Neutral packing is chiefly used for _______different limitations and political
discriminations of importing countries and regions.
A. opening B. setting up
C. setting aside D. breaking through
5) _______ is composed of a specific geometric figure, abbreviations of consignee, the port of
destination and the package number.
A. Shipping mark B. Indicative mark
C. Warning mark D. No mark
6) _______ , also called dangerous cargo marks, are used to remind the cargo
handlers to take necessary safety measures.
A. Indicative marks B. Warning marks
C. Shipping marks D. Sales packing
7) ________ are mainly used for transport packing of hazardous goods.
A. Warning marks B. Shipping marks
C. Indicative marks D. Subsidiary marks
8) _______ should clearly stipulate the packing material, manner of packing, packing specification, packing expenses to be borne, shipping marks and so on.
A. Quality clause B. Quantity clause
C. Shipment clause D. Packing clause
9) According to international trade practice, shipping marks are usually designated by _________ and it is not necessary to specify them in the contract.
A. the importer B. the exporter
C. the carrier D. the forwarder
3. Decide whether the following statements are true or false
1) The primary function of sales packaging is to protect the product . ( )
2) Transport packing is not only adopted as a form of protection to reduce the risks of goods being damaged in transit and prevent pilferage, but also used for the propose of promoting sales. ( )
3) UPC and EAN are the two main bar codes used internationally. ( )
4) Neutral packing is a kind of packing which only shows the origin of country and doesn’t show the name and address of the manufacturer. ( )
5) Shipping marks are not only stenciled on the transport packing of cargoes but also appear on the commercial documents such as invoices, insurance policy or certificate, bills of lading, etc. ( )
6) ISO has suggested a standardized form of shipping mark, which is composed of a specific geometric figure, abbreviations or initials of a consignee, the port of destination and the package number. ( )
7) Requirements for shipping marks for road, railway and air transport are the same as those for ocean transport. ( )
8) Generally speaking, the packing expenses are included in the price, and shall be borne by the exporter. ( )
9) In international sales of goods, “seaworthy packing”, “customary packing” and “seller’s usual packing” are commonly used in the packing clause. They are favorable for the seller. ( )
Chapter 4
1. Review and Discussion Questions
1) What are the major types of transportation in international cargo transport?
2) What are the characteristics of liner transport?
3) What are the differences between voyage charter and time charter?
4) What are the main functions of B/L?
5) What main points are included in the clause of shipment
2. Choose the right answer from each of the following.
1) If items marked with “AD Val.”, the freight is to be calculated on the basis of _______ of the cargo concerned.
A. weight B. price or value
C. measurement D. volume
2) Freight under liner transportation _______.
A. needs to stipulate demurrage and dispatch money between the shipper and the carrier
B. does not include loading and unloading cost
C. consists of basic charges and additional charges
D. is collected based on gross weight of the goods
3) Airway bill is NOT________.
A. a transport contract between the consignor and the carrier
B. a document for customs clearance
C. a document for bank negotiation
D. a document of title
4) ________is the most commonly used transportation mode, which occupies 2/3 of international transportation
A. Railway transportation B. Maritime transportation C. Air transportation D. Parcel