Question 1

Which of the following involves conducting business activities beyond the geographical boundaries of one's own country?

Accepted Answer

International business involves commercial activities that take place across national frontiers. It includes not only international trade (export and import of goods and services) but also larger operations such as foreign investments, licensing, franchising, and operating joint ventures globally.

Question 2

Which document is issued by the shipping company to acknowledge the receipt of goods on board the ship?

Accepted Answer

A Bill of Lading is issued by the shipping company (or its agent) after the goods have been loaded on board the vessel. It serves as an official receipt of the goods and acts as a document of title, which is transferable by endorsement and delivery.

Question 3

What is the primary objective of establishing Export Processing Zones (EPZs)?

Accepted Answer

Export Processing Zones (EPZs) are industrial estates specially established with the primary objective of promoting foreign exchange earnings by encouraging the production of goods exclusively meant for export, free from stringent customs duties and regulations.

Question 4

Which of the following documents is prepared by the exporter and contains details regarding the description, quantity, and price of goods sold?

Accepted Answer

A Commercial Invoice is a statement prepared by the exporter detailing the goods sold, their description, quantity, price per unit, and total value. It is a crucial document used by customs authorities to assess duties and by importers to clear goods.

Question 5

Which institution provides a guarantee of payment to the exporter on behalf of the importer?

Accepted Answer

A Letter of Credit is a guarantee issued by the importer's bank stating that the bank will honor the payment to the exporter up to a certain amount, provided the specified shipping documents are submitted within the stipulated time.

International Business