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Chapters 8-14

Terms in this set (70)

____ are taxes that governments place on the importation of certain items
Tariffs
Which of the following is not a political restriction on international trade?
embargoes,
import quotas, and barring certain types of shipments (all are political restrictions)
What do we call a system of accounts that records a country's international financial transactions?
Balance of payments
Cargo preference rules ____.
require a certain percentage of traffic to move on a nation's flag vessels
When one country's currency is weak relative to other currencies, ____.
It becomes more costly to import products, but exports often surge
A ____ is used in areas in which dockworkers cannot read but need a method to keep documents and shipments together.
Shipper's mark
A ____ specifies the country (ies) 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.
Correct certificate of origin
A ____ is similar in nature to a domestic bill of lading and summarizes the entire transaction.
Correct commercial invoice
A ____ often serves as the basis for a company's official export statistics.
Correct shipper's export declaration
Incoterms refer to:
Correct terms of sale for international shipments
Incoterms have traditionally been revised approximately ____.
Correct Every 10 years
____ distinct international methods of payment exist.
4
What international method of payment is issued by a bank and guarantees payment to a seller provided that the seller has complied with the applicable terms and conditions of the particular transaction?
Correct A letter of credit
Consular documents ____.
Involve obtaining permission from the importing country for the goods to enter
Which international logistics service provider is often confused with the international freight forwarder?
Correct non-vessel operating common carrier
____ act as the export sales department for a manufacturer.
Correct Export management companies
An ____ custom packs shipments when the exporter lacks the equipment or the expertise to do so itself.
Correct export packer
The cost of sending a shipment by air transportation from China to the United States can be ____ times more expensive than sending a shipment by water transportation between the two countries.
8-10
Approximately ____ of cross-border shipments move by water transportation.
60%
____ refer to major ports where thousands of containers arrive and depart each week.
Load centers
____ refers to rapidly moving a shipment through a carrier's system.
Expediting
____ refers to determining a shipment's location during the course of its move.
tracking
Which of the following statements is false?
carriers may be reluctant to accept small shipments because they require a high degree of manual labor

some carriers believe they lose money on small shipments

consolidating small shipments into larger ones could result in poorer service to the final customer

consolidating small shipments into larger ones likely results in higher inventory carrying costs
(all are true)
A ____ provides a variety of shipment information such as shipment preparation, freight invoicing, a list of preferred carriers, and a list of which carrier or carriers to use for shipments moving between two points.
routing guide
____ can be defined as the process of determining how a shipment will be moved between origin and destination.
routing
U.S. freight railroads currently allow ____ hours of free time for unloading railcars and ____hours of free time for loading railcars.
1) 48
2) 24
Demurrage charges are collected by railroads, ____, and ____.
water carriers and pipelines
Small shipments are defined as those that:
Correct weigh more than 150 pounds but less than 500 pounds
If a product destroyed or damaged in transit is intended to be placed into general replacement inventory, then the retailer would likely receive:
the wholesale price, plus freight if previously paid
What is the time limitation within which a freight claim must be filed?
Nine months from delivery date
An invoice submitted by the carrier requesting to be paid is ____.
a freight bill
An order bill of lading is used:
when a shipment is started before the buyer is known
The most important single transportation document is the:
bill of lading
A(n) ____ refers to a transportation manager who purchases a prespecified level of transportation service and is indifferent to the mode and carrier used to provide the transportation service.
amodal shipper
With FOB destination, freight prepaid:
The seller pays the freight charges, and also owns the goods in transit
Suppose that a particular item is Class 200 according to the National Motor Freight Classification. What is the relationship between this item's rate and the rate for an item in Class 100?
The Class 200 rate is higher than the Class 100 rate
Freight rates in the United States are often expressed in dollars or cents per:
Hundredweight
With respect to a commodity's freight classification, shippers tend to prefer a ____ classification number and carriers tend to prefer a ____ classification number.
1) lower
2) higher
____ refers to how easy a commodity is to pack into a load.
stowability
____ refers to how heavy a product is in relation to its size.
Density
A(n) ____ rate simplifies each of the three primary rate factors—product, weight, and distance.
class
A(n) ____ rate refers to a specific rate for every possible combination of product, weight, and distance.
commodity
Which of the following is not one of the three primary factors that transportation rates are based upon?
density
In general terms, ____ accounts for about 6% of U.S. Gross Domestic Product.
transportation
____ refers to the buying and controlling of transportation services by either a shipper or consignee.
Transportation management
___________ is the actual, physical movement of goods and people between two points.
Transportation
There are ____________ modes of transportation.
five
A 3,047 meter (10,000 foot) runway is significant because it ____.
is generally viewed as adequate for accommodating existing wide body aircraft
Rail gauge refers to ____.
the distance between the inner sides of two parallel rail tracks
____ is generally the fastest form of transportation for shipments exceeding 600 miles.
Air
Dimensional weight ____.
considers a shipment's density
Less-than-truckload (LTL) carriers:
operate through a series of terminals
Truckload carriers focus on shipments of greater than ____ pounds.
10,000
Hours-of-service (HOS) rules and speed limits have long been justified in the motor carrier industry on the basis of ____.
safety concerns
The primary advantage for motor carriers is ____.
flexibility
____ is the most reliable form of transportation.
pipeline
Which mode is not the "best" or "worst" on any of the six attributes (e.g., capability, flexibility, etc.) that were used to compare the modes?
railroads
Inland waterways should be dredged to a depth of ____ feet, which tends to be the minimum depth required for most barges.
nine
____ transportation occurs when two or more modes work closely together in an attempt to utilize the advantages of each mode while at the same time minimizing their disadvantages.
intermodal
What container size is often used to rank water ports and measure containership capacity?
20 foot container
The primary advantage to land bridge service is ____.
reduced transit time
Freight forwarders:
consolidate the shipments of several shippers
Shippers' associations:
function in a manner similar to freight forwarderS
A transportation broker:
looks to match a shipper's freight with a carrier to transport it
Firms that specialize in carrying packages that weigh up to 150 pounds are called:
parcel carriers
What is the largest transportation company (by revenues) in the United States?
United Parcel Service
The U.S. ____ is the federal government body with primary responsibility for transportation safety regulation.
Department of Transportation
With respect to U.S. economic regulation, the ____ has primary responsibility for resolving railroad rate and service disputes, reviewing potential rail mergers and some jurisdiction over motor carriers, domestic water transportation, and pipelines.
Surface Transportation Board
Which of the following is not a legal classification of carriers?
exempt, contract, common
(all of the above are legal classifications)
Private transportation is most prevalent in the ____ industry.
trucking
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