EXW Pricing or Export pricing is a common cost approach for international trade where the seller has to pay for the transport cost. *

True

False

Frequency of coups and labour unrest, prevailing commercial and economic philosophies, and belief systems are all examples of a country's political risk and need to be assessed. *

True

False

Conducting business internationally requires planning for foreign exchange rates, varying inflation rates, and applicable laws and regulationsat home and abroad. *

True

False

International trade finance instruments are popular risk mitigation tools used by exporters. *

True

False

When and how the payment must be made for goods and/or services is a matter of negotiation, and are part of the terms and conditions of the contract. *

True

False

Price Ceiling is the maximum price the buyer is willing to pay, whereas the Price Floor is the minimum price the seller will charge for the goods. *

True

False

International trade presents a spectrum of risk, which causes uncertainty over the timing of payments between the exporter (seller) and importer (foreign buyer). *

True

False

The Customized Schedule consists of a series of dates that define exactly when payments will be made based on the milestones completed *

True

False

The contract should always specify the governing law. To reduce the likelihood of a dispute, the contract should specify which countrys laws will govern the agreement. *

True

False

The Parameterised schedule defines the frequency of payment along with the payment date, date of first and last payment. *

True

False

A sudden increase in the property tax and vehicle insurance premium is considered as the main risk of doing business globally. *

True

False

While doing the contract negotiation, you can skip details about the payment method and payment terms and leave it until after signing the contract. *

True

False

There are fewer costs involved in International trade compared to domestic trade. *

The key elements of International Trade Finance include payment, risk mitigation, financing, and access to information regarding the cash flow and flow of goods *

True

False

International trade is the exchange of goods and services between nations. *

True

False

The Incoterms rules are created and published by the International Chamber of Commerce (ICC) and are revised from time to time. The Incoterms rules are standard sets of trading terms and conditions designed to assist traders when goods are sold and transported. *

True

False

Because of the high cost of market entry and intense competition, planning for international trade has become unnecessary and irrelevant. *

True

False

Commercial risks include non-tariff trade barriers, central bank exchange regulations, or ban on the sale of certain products in specific countries. *

True

False

Careful planning and preparation up front can help determine risk factors and the necessary mitigation tools and provide a basis for a successful commercial relationship. *

True

False

The declining cost of transportation is one of the primary reasons for the growth of International Trade in Canada *

True

False

Cargo insurance, freight forwarders, trading houses are considered as some of the delivery factors for exporters. *

True

False

Doing business in international markets is different from handling domestic business transactions. *

True

False

Technology and Information risks are the greatest financial risks facing exporters and importers alike. *

True

False

Foreign exchange rates are in flux constantly. Hence, businesses would be forced to make conversions of the funds generated overseas at rates lower than what is budgeted. *

True

False

Exporters want to receive payment as late as possible, preferably after the goods are sent to the importer. *

True

False

When negotiating an international contract, it is important to draft a comprehensive contract first, including all essential terms for clarity. *

True

False

Participation in trade fairs and missions abroad is one of the unique costs of domestic trade. *

True

False

Cost-based pricing, Penetration pricing, and Value-based pricing are all examples of Cost-Cutting Strategies. *

True

False

Non-Vessel Operating Common Carriers or NVOCC book space on cargo ships in large quantities at lower rates, and sell space to shippers in small amounts at a higher rate. *

True

False

Risks of international trade include loading the products onto a truck, transferring them to a ship or plane, dealing with customs officials, unloading them at their destination, and storing or reselling them. *

True

False

Country risk is the risk of loss from political or economic actions that affect export receivables or import payables, or other disrupt of a transaction. *

True

False

Third-party logistics provider or 3PL is a service industry that offers a wide range of advisory, administrative and physical services to shippers including packaging, storage, handling, export credits, and insurance and trade documentation necessary for customs clearance in international trade. *

True

False

When entering a new international market, a company must assess a foreign importer's creditworthiness or a foreign supplier's business capabilities. *

True

False

A transaction may prove unrealistic if the cost of entering a market is too high, the competition is too challenging or the price in the new market is not competitive. *

True

False

Credit limit assessment must be obtained from recognized credit information sources like the credit bureau. *

True

False