Chapter 10 Review Questions

Let us see how much you have learned in this chapter by going over these review questions.

1. Which is not a factor in determining whether you need an export license?
   1. Classification of the item.
   2. Size and weight of the product.
   3. The country of ultimate destination for an export or reexport.
   4. The ultimate end use.
   5. The ultimate end user.

2. What is a rolling contract?
   1. One that continues until an agreed period of notice rather than until a particular date.
   2. One that must be agreed regularly, but is always continued automatically.
   3. One that must be agreed to every year before it can be renewed.
   4. One that must rolls from one country to an another.
   5. One that prevents an unscrupulous manufacturer from rolling away with the market.

3. Which statement is false regarding duties?
   1. Duties are imposed on foreign goods as a form of political retaliation.
   2. Duties are imposed on foreign goods as a source of revenue.
   3. Duties are imposed on foreign goods to protect local industries.
   4. Duties vary depending on where the imports originate and the type of product.
   5. You do not have to pay duty if you have an import permit.

4. Which statement is false regarding import permits?
   1. Countries require import permits because they want to eliminate bribery.
   2. Countries require import permits because they want to protect their foreign currency reserves.
   3. Countries require import permits because they want to protect local industries.
   4. Countries require import permits because they want to insure that local standards are adhered to.
   5. You may have to obtain import permits from more than one government agency.

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© 2004 John Michael Pierobon

Notes