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InterviewSolution
This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Which document helps to avoid and solve and any ambiguity or confict between exporter and importer? |
| Answer» Correct Answer - Indent. | |
| 2. |
Outsourcing a part of or entire production and concentrating on marketing operations in international business is known asA. LicensingB. FranchisingC. contract manufacturingD. Joint venture. |
| Answer» Correct Answer - c.) contract manufacturing | |
| 3. |
What is international business? How is it different from domestic business? |
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Answer» International business refers to the trade of goods, services, technology, capital and/or knowledge across national borders and at a global or transnational level. It involves cross-border transactions of goods and services between two or more countries. The main difference between Domestic Business and International Business is that Domestic Business is the trade which takes place within the geographical boundaries of the country, whereas International Business is the trade which occurs between two countries internationally. |
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| 4. |
Which of the following modes of entry does the domestic manufacturer give the right to use intellectual property such as patent and trademark to a manufacturer in a foreign country for a feeA. LicensingB. Contract ManufacturingC. Joint VentureD. None of these |
| Answer» Correct Answer - c.) Joint Venture | |
| 5. |
Explain the custom clearance stage in the export procedure. |
| Answer» Customs clearance work involves preparation and submission of documentations required to facilitate export or imports into the country, representing client during customs examination, assessment, payment of duty and co taking delivery of cargo from customs after clearance along with documents. | |
| 6. |
What are hundred per cent export-oriented units? |
| Answer» Under EOU Scheme, manufacturing or service sector units are allowed to be set up with the objective of exporting entire production of goods manufactured or services except limited sale in Domestic Tariff Area (DTA) as provided under the Foreign Trade Policy (FTP). | |
| 7. |
Define Export Processing Zone. |
| Answer» It is the zone created to increase the production base of export. | |
| 8. |
Name any two Export Processing Zones. |
| Answer» (i) Santa Cruz (kandla) (ii) Kandla (Gujrat) | |
| 9. |
What is Bill of Lading? |
| Answer» A bill of lading is a document issued by a carrier to acknowledge receipt of cargo for shipment. Although the term historically related only to carriage by sea, a bill of lading may today be used for any type of carriage of goods. | |
| 10. |
Explain the meaning and features of export procedure. |
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Answer» Processing of an export order starts with the receipt of an export order. An export order, simply stated, means that there should be an agreement in the form of a document, between the exporter and importer before the exporter actually starts producing or procuring goods for shipment. Salient Features of the New Export & Import Policy The following are the salient features of the new export, import policy: Increase in number of Export Items: Special Economic Zones: Role of Public Sector Agencies: Restriction Free Export Policy: Liberalisation of Export- Oriented Import: Convertibility of Rupee: Devaluation of Rupee: |
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| 11. |
List out the various agreements of WTO. |
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Answer» The WTO agreements cover goods, services and intellectual property....Regionalism. The environment. Investment etc. Electronic commerce. Labour standards . |
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| 12. |
How does external trade boost up the econimic growth of a country? |
| Answer» External trade enhances competition, which compels the domestic firms to improve technology of production, production process and quality of the products. It ultimately benefits the consumers in getting better quality products at competitive prices. It also provides a large variety of goods. | |
| 13. |
Explain in brief all the documents used in Exports and Import Procedure. |
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Answer» Documentation in export import business : - Followings are the necessary documents what every exporter and importer needs to provide or receive if you are importing/exporting. All the following docs are needed for clearing import or export custom. 1.Proforma invoice (PI)Mandatory Export import document. This is a document, what will state the value per unit for the goods. And will show the total value of the goods exported. Also, the exporter and importer details are stated. There is no formal format for the proforma invoice, just make sure all the needed data is stated. 2. Sales-purchase contractBelongs to mandatory export import documentation. This is the proof of purchase-sale between the parties. You need to present this to your country custom together with the proforma invoice. Sales purchase contract needs to be well drafted and prepared. Entrepreneurs should use the service of professional lawyers. It is not wise to use the contract forms that are available on the internet for free! We have included professional international sales-purchase contract form ( ready for use and modify) in our premium course. 3. Packing list (PL)Mandatory export import procedures and documentation Packing list states the quantity of the goods exported. Also those packing and weights and CBM,s. also, the amount of the packages are stated on the packing list. On the packing list, also the product HS code is marked.HS code is a code, that all the nations understand same way. This code will determine the import duties and other formalities. 4. Bill of landing/Airway bill/Railway billCrucial Export import document for importers custom. Afer, the goods had been taken on the shipboard, then shipper will issue the Bill of landing ( B/L). This document confirms, that goods had been taken on the ship and are ready for shipping. This is the proof for receivers and banks that the goods are ready for shipment. Similarly, if the goods are transported by the airplane, then there is airway bill. If goods are transported by Train, then there is railway bill. Below is an example of a bill of landing from our own business. Bill of landing in export-import business documentationAttention new entrepreneur! Learn, how you can make money in import export business nowadays, enroll our 100% FREE mini-course below: Enroll and send me lesson # (1) now! 5.Certificate of Origin (C/O) This is very important doc what is required by countries customs. This doc can lower the import duties in some cases and without this sometimes exporting is impossible. This doc will prove, that the goods are from the country by which the C/O is issued. Also, the C/O contains the producer data. This is an official doc what can be issued only by country export and trading authorities. Usually, to issue the certificate of origin, this will cost some money. 6. CE certificate CE belongs to the export import procedures and documentation if you are exporting to Europe. With all the products, the CE certificate is required, in trading with Europe. The producer must have been certified by third country to have CE certificate. CE confirms, that the product meets the European Union safety standards. 7. Material safety sheet (MSD) Sometimes this document is required by importing country custom. This doc can be issued by the exporter and must confirm that product is not harmful to the humans and nature. This doc is usually required for liquids. 8. Freight insurance certificateThis doc is not mandatory in export import documentation. If the goods are precious then usually the buyer requires that exporter signs insurance-policy for the goods. The insurance certificate is issued by companies who provide insurances. Also the international shipping companies like DHL, DSV provide the insurances. |
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| 14. |
What is the major reason underlying trade between nations? |
| Answer» The major reason underlying trade between nations are: → Unequal distribution of natural resources among different nations. → Availability of various factors of production such as labour, capital and raw materials that are required for producing different goods and services differ among nations | |
| 15. |
AT international level, various organisation exist for acceierating the pace of development and trade among the nations. Name one such organisation. |
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Answer» WTO. The World Trade Organization is an intergovernmental organization that is concerned with the regulation of international trade between nations. |
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| 16. |
List various affilliated bodies of World Bank. |
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Answer» (i) IBRD (ii) IDA (iii) IFC (iv( ICSID (v) Multilateral investment Guarantee Agency. |
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| 17. |
Explain the team FOB. |
| Answer» FOB means free on board and FOB importer is liable and bears the risk till delivery of goods on the ship | |
| 18. |
Why do exporters demand letters of credit? |
| Answer» Exporters demand letter of credit to minimise the risk of non-payment by importer. | |
| 19. |
Letter of Credit is issued byA. ImporterB. Banker of importerC. Custom OfficerD. None of the above. |
| Answer» Correct Answer - b.) Banker of importer | |
| 20. |
IEC Number is issued by:A. Import Export Licensing authorityB. Foreign MinisterC. Minister of Commerce and industry.D. Chamber of Commerce. |
| Answer» Correct Answer - a.) Import Export Licensing authority | |
| 21. |
It acts as a proof that goods have actually been manufactured in the country from where the export is taking place. Which certificate is highlighted in this statement? |
| Answer» Certificate of origin. | |
| 22. |
Which certificate is necessary to prove that goods are produced in the home country itself? |
| Answer» Certificate of origin. | |
| 23. |
Which of the following issues certificate of origin?A. Import Export CouncilB. Prime MinisterC. Chamber of CommerceD. President of India. |
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Answer» Correct Answer - c.) Chamber of Commerce The Indian Chamber of Commerce, or ICC as it is popularly known, is the premier body of business and industry in Eastern and North-Eastern India. The membership of the Chamber comprises several of the largest corporate groups in the country, with business operations all over the country and abroad. |
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