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1.	In case of sight draft, the documents are delivered to the importer against his/ her acceptance of the bill of exchange.True/False? Given reason.
Answer» False: In case of sight draft, the documents are handed over to the importer only against payment.

2.	In India, all foreign exchange transactions are regulated by the Central government.True/False? Given reason.
Answer» False: In India, all foreign exchange transactions are regulated by the Exchange Control Department of the Reserve Bank of India (RBI).

3.	Which of the following documents is notrequired for obtaining export license ?A. IEC numberB. Letter of creditC. Registration-cum-membershipD. Bank account number certificate
Answer» Correct Answer - B b.Letter of credit

4.	Which one of the following is not a document related to fulfil the customs formalities?A. Shipping billB. Export licenceC. Letter of insuranceD. Performa invoice
Answer» Correct Answer - B b.Export licence

5.	Name any one method of sending an enquiry to different exporters for quotations by an importing firm.
Answer» Advertisement in the press.

6.	Differentiate between the following: (i) Sight and usance drafts (ii) Bill of lading and airway bill (iii) Pre-shipment and post -shipment finance
Answer» (i) In case of sight draft, importer releases the payment when relevant documents are delivered, while in case of usance draft , importer accepts the bill of exchange and makes the payment on maturity of bill. (ii) Bill of lading issued by the shipping company when goods are loaded on the ship, while the airway bill is issued by airlines company when goods are loaded on the aircraft. (iii) Pre-shipment finance is provided to an exporter to finance the purchase, processing, manufacturing or exporter from the date of shipment of goods to the date of receipt of export proceeds.

7.	Why is advanced planning for financing imports necessary?
Answer» To avoid huge demurrages, (i.e., penalties ) on the imported goods lying uncleared at the port for want of payments.

8.	Why should the indent be carefully dradfbed?
Answer» The indent or import order should be carefully drafted so as to avoid any ambiguity and consequent conflict between the importer and exporter.

9.	What information does performa invoice contain?
Answer» Performa invoice contains information about the price at which the exporter is ready to sell the goods and also provides information about the quality, grade, size, weight, mode of delivery, type of packing and payment terms.

10.	It is an instruction to the captain of the ship that the specified goods after custom clearance at a designated port be received on board. Name it.
Answer» Correct Answer - Shipping Order

11.	What is carting order?
Answer» Carting order is the instruction to the staff at the gate of the port permitting the entry of the cargo inside the dock.

12.	A change for services dock authorities is called customs duty. True/False? Give reason.
Answer» False: It is called dock charges.

13.	International business is more than international trade. True/false? Given reason.
Answer» True: International trade comprises exports and imports of goods only while international business includes not only international trade but export and import of services, licensing and franchising, foreign investment, etc. also.

14.	Which is the most appropriate and secure method of payment to settle international transactions?
Answer» Correct Answer - Letter of credit

15.	What is bill of lading? How does it differfrom bill of entry?
Answer» Bill of Lading is a document prepared by the shipping company to acknowledge the receipt of goods on board the ship and gives an undertaking to carry them to the port of destination. On the other hand, bill of entry is a document prepared by the importer to show the details of goods imported and is used by custom authorities determine import duty.

16.	Why do most exporters demand a letter of credit from the importer?
Answer» To minimise the risk of non-payment by the importer once the goods reach the import destination.

17.	Which of the following documents is notrequired in connection with an import transaction?A. Bill of ladingB. Shipping billC. Certificate of originD. Shipment advice
Answer» Correct Answer - B Shipping bill

18.	It is main document on the basis of which the custom office given the permission for export. Name it.
Answer» Correct Answer - Shipping Bill

19.	It acts as a proof that goods have actually been manufactured in the country from where the export is taking place. Which certificate is highlighbed in this statement?
Answer» Certificate of Origin