International Trade Documentation and Impacts on Corporations Quiz

What document should you obtain if you are shipping goods by ship?

Bill of Lading

If utilizing a Letter of Credit (L/C) in an international trade transaction, what documents should be presented to the buyer?

All the original documents

What economic factors are typically impacted by multinational corporations operating internationally?

GDP and Interest Rate

In terms of legal impacts on international trade, what do FTA and TFA stand for?

Free Trade Agreement and Trade Facilitation Agreement Signup and view all the answers

How does culture affect multinational corporations in terms of product negotiation and import willingness?

Culture influences negotiation style and product preferences Signup and view all the answers

What is a key advantage of E-commerce in international business related to inventory costs?

Able to make products once they are ordered Signup and view all the answers

What is the purpose of an EORI number in international trade?

It identifies the business of the importer and/or exporter Signup and view all the answers

What was the main cause of the Suez Canal crisis mentioned in the text?

Bad weather Signup and view all the answers

What potential consequence did Egypt face as a result of the blocked Suez Canal?

Increased oil cost Signup and view all the answers

What is the purpose of a Letter of Credit (L/C) in international trade?

It guarantees that the seller will receive payment Signup and view all the answers

What potential risk do countries face when signing contracts and receiving financial aid from China for projects, as mentioned in the text?

Debt dependency on China Signup and view all the answers

What is the role of the buyer's bank in a Standby Letter of Credit (L/C)?

Ensuring that the seller will receive payment Signup and view all the answers

What does the red clause in a standby entail?

Sending part of the payment in advance to start production Signup and view all the answers

In which situation would a back-to-back arrangement typically be used?

When the seller doesn't have the product but creates a Letter of Credit with a different manufacturer Signup and view all the answers

What does the term 'transferable' refer to in international trade?

Transferring debt from one party to another Signup and view all the answers

What does the 'green line' signify in international trade?

Products that can be shipped duty-free Signup and view all the answers

Within free trade countries, what does 'blue line' imply?

Products that must be returned to the original country Signup and view all the answers

What are some disadvantages of Free Trade Agreements (FTA) mentioned in the text?

Outsourcing jobs and lowering work conditions Signup and view all the answers