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China: The country has a compulsory product certification system for vehicles, tires and seat belts. China also has a specific crash test and sample-testing standards that differ from international ones. This barrier is classified as:

  Non-Tariff Barriers
  Tariff Barriers
  Certification Barrier
  Hybrid Barrier

In general, protectionism contributes to industrial efficiency and makes a nation competitive ?

 False
 True

For an importer, sight bill (L/C) is more convenient than the usance bill (L/C) ?

 True
 False

In August 2006, International Commodities Export Corporation (ICEC) entered into an agreement for the sale of 230 tons of Chinese white beans to North Pacific Lumber company (NPL). According to the agreement, the beans were to conform to sample pc-16 and the shipment was to be made on the basis of C&F. Thirteen separate containers of beans were loaded on board two vessels at the port of Hong Kong to Portland, Oregon. An independent surveyor of quality found the bean quality to be in-conformity with the description of the goods in the shipper’s invoice. The U.S. Food and Drug Administration (FDA) detained the shipment on arrival in Portland, Oregon, on the grounds that the goods contained filth and were unfit for human consumption. The beans were stored in a warehouse under federal government detention. After efforts to obtain release of the cargo, the buyer rejected the shipments for failure to conform to the contract (sample pc-16). Is the seller responsible for the goods under C&F?

 Yes
 No

Assume that goods are available to an importer before payment that payment is made by the importer after the buyer sells the goods, and that the risk to the importer is negligible. Which type of payment method for international trade is likely being used in this example?

 Time draft / usance bill
 Sight draft
 Consignment

A tariff on imports benefits domestic producers of the imported good because?

 It raises the price for which they can sell their product on the domestic market
 It prevents imports from rising above a specified quantity
 It reduces their producer surplus, making them more efficient.
 They get the tariff revenue.
 All of the Options.  

A specific tariff is?

 A tax on imports defined as an amount of currency per unit of the good.
 Any tax on a particular imported good (as opposed to one on all imports)
 A requirement to pay the government a specified fraction of the monetary value of an imported good
 The revenue that the government earns by auctioning off import quotas
 An import tax that must be paid in kind (giving the government the good itself).

In document against acceptance method, the buyer can take possession of goods without making the payment.

 True
 False

Sialkot Dry Port is under the management of Pakistan Railways ?

 False
 True

There are --------- or more parties involved in a letter of credit transaction. Whereas -------- parties are involved in a bank guarantee.

 2, 2
 4, 5
 3, 5
 2, 3
 5, 3

Seller agreed to deliver 300 tons of coffee to buyer CFR port of Karachi, Pakistan. The goods were transported and unloaded at the port of discharge and kept at customs shed for inspection and payment of duties. The buyer was notified of the arrival of the merchandise and its location. Before the buyer picked up the goods, the customs shed (including the merchandise in it) was destroyed by fire. The buyer claims refund of the purchase price stating that she did not receive the goods. Is the seller responsible?

 Yes
 No

The correct country-currency pairing is: (Country: A-China; B-Korea; C-Mexico; D-Turkey)(Currency: 1-Lira; 2-Piso; 3-Won; 4-Yuan))

 None of the Options
 A-2, B-4, C-3, D-1
 A-1, B-3, C-4, D-2
 A-4, B-2, C-1, D-3

Starting from free trade, when a tariff is applied to imports in a small country, which of the following increase? I. Domestic output II. Domestic demand III. Domestic price IV. Tariff revenue V. Quantity of imports

 I and III only
 All but V
 II and V only
 II, and IV only
 I, III, and IV only

In bonded transportation, the customs formalities performed at port of arrival instead of ICD ?

 True
 False

Airway Bill can be a negotiable instrument ?

 False
 True

A bill for goods from the seller to the buyer that contains the description of the goods, the address of the buyer and seller, and delivery and payment terms is known as a:

 Certificate of origin.
 Shippers export declaration
 Commercial invoice.
 Bill of lading