CIPS A9 Exam Practice Test Instant Access

Question 1

What is sometimes referred to as 'the lifeblood of international trade'?

AThe WTO

BThe Letter of Credit

CIncoterms

DThe Bill of Lading

Answer : A

Question 2

Why is it important to conduct supplier appraisal when buying internationally?

AForeign suppliers are unreliable and incompetent

BIt is an essential tool for limiting risk and reducing uncertainty

CCorruption and unethical practices abound in overseas markets

DIt allows the buyer to travel and experience other cultures.

Answer : A

Question 3

For relatively small value purchases, which of the following is the most desirable method of payment for an international buyer?

AOpen Account

BBill of Exchange

CPayment in advance

DLetter of Credit

Answer : C

Question 4

Which of the following best describes the term 'quotas'?

ATariffs levied to discourage foreign imports

BCosts associated with delays at customs

CA restriction on import quantities

DThe consolidation of consignments for distribution.

Answer : D

Question 5

Which of the following best defines the term 'dunnage'?

AA charge payable for delays

BDelivery by a third country carrier

CMaterial used for internal packing

DThe weight of a shipment.

Answer : B

Question 6

Which of the following Incoterms reflects that the seller is responsible for goods up to the buyers premises?

ACOD

BDDP

CEXW

DFAS

Answer : B

Question 7

Which of the following is a risk factor associated only with buying internationally?

AEconomies of scale

BLevel of quality

CFluctuating exchange rates

DAvailability of raw materials

Answer : B

CIPS International Logistics A9 Exam Practice Test