International Trade Terminology Clarifications

Classified in Economy

Written on January 18, 2026 in English with a size of 4.93 KB

Freight forwarders are licensed specialists in traffic operations.
An Export Management Company is an independent marketing intermediary.
A duty that represents a certain percentage of the value is an ad valorem duty.
A nontariff barrier (NTB) includes all of the following except: ad valorem duty.
A nontariff barrier (NTB) is a hidden trade barrier. TRUE

A strong U.S. dollar translates into less affordable prices in export markets.
If the dollar, the yen, or the euro becomes seriously valued, it affects production by shifting production among different sites.

Agricultural subsidies are particularly controversial because of their impact on countries like India.
Governments commonly use activities to support domestic industries, sometimes leading to restrictions on free trade zones.
Restrictive administrative and technical regulations are often associated with common agricultural policies.
Sweden applies a system of variable import levies to certain categories.

CVDs (Countervailing Duties) are additional duties levied by governments; the statement that they are always false is FALSE.
Duty drawback refers to refunds of duties paid, which is generally TRUE.
Developed under the auspices of the Custom Cooperation Council is the Harmonized Tariff Schedule.
Officially, the EU tariffs on Chinese goods are often categorized as Antidumping duties.

An irrevocable letter of credit transfers the payment responsibility to the issuing bank.
Direct representation, as opposed to indirect methods, helps selling products directly to the consumer in the market country.
Export marketing requires all of the following except: reaching retail customers directly (often handled by local distributors).
In which of the following forms of payment security is there more risk for the exporter: with a documentary collection but not an L/C.

After the aftermath of the tragedy involving fire in garment factories in Bangladesh, Walmart implemented a "zero-tolerance policy." The Workers Rights Consortium and International Labor Organization are involved, and organizations monitoring labor standards ensure that those auditing facilities are audited by BSCI's qualified engineers.
After the aftermath of the tragedy, there was increased focus on the Business Social Compliance Initiative (BSCI).

Outsourcing means shifting production to external parties; the statement that it always means FALSE is noted.
Research has shown that exporting is essentially a process where firms often first receive unsolicited export orders.

Several research findings or statements are marked as TRUE or FALSE:

A nontariff barrier (NTB) is a hidden trade barrier. TRUE
After the research effort has zeroed in on potential issues, an ad valorem duty is confirmed as TRUE (context unclear).
Export selling involves tailoring various elements; the statement includes F for one aspect, T for Foreign purchasing, and F for another.
In an effort to attract assembly operations, Brazil offers preferential tariffs.
In an export/import transaction, the statement regarding ease of transaction is marked T, and another related statement is marked T.
In general, the greater the distance between the product origin and consumer, the risk is often considered FALSE (implying risk management is possible).
In the post-September 11 business environment, security initiatives like C-TPAT became important.
It was found by research that even the most sophisticated firms face challenges, marked as TRUE.
Potential export problems include various risks, marked as TRUE. Representatives of the apparel industry also face challenges, marked as TRUE.
Tariffs can be thought of as the "F" (Tax incentives are T, The Buy American Act is T).

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