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International E-commerce Expansion Flashcards

7 cards from real CEC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. A US merchant selling to Canadian customers notices that orders over CAD $150 face unexpected delays. The most likely reason is:

    Answer: Canada's de minimis threshold of CAD $150 triggering formal customs entry requirements

    Canada's de minimis threshold is CAD $150 for customs duties; shipments above this value require formal customs entry, causing potential delays and unexpected duty charges for buyers.

  2. Which strategy best describes 'glocalization' in international e-commerce?

    Answer: Adapting global products and marketing to fit local cultural preferences and needs

    Glocalization combines 'global' and 'local,' meaning a brand standardizes its core offering globally while customizing marketing, UX, and product details to each local market's culture and preferences.

  3. An e-commerce company wants to reduce international shipping costs for low-value orders. Which fulfillment model is most appropriate?

    Answer: Using a third-party international fulfillment network with regional distribution centers

    A third-party 3PL network with regional distribution centers allows merchants to store inventory closer to customers, reducing last-mile shipping costs and transit times without large capital investment.

  4. Under China's Cross-Border E-Commerce (CBEC) policy, which document is typically required for health and wellness products entering China through CBEC channels?

    Answer: CFDA/NMPA registration or a CBEC-specific filing (备案)

    China's CBEC policy allows certain products to bypass traditional import registration requirements through a filing (备案) system, but health products still require registration or filing with China's NMPA (formerly CFDA).

  5. What is the primary purpose of a 'Harmonized System (HS) code' in international e-commerce?

    Answer: To classify traded goods for customs tariff determination and trade statistics

    HS codes are a globally standardized numerical system developed by the World Customs Organization to classify products, which customs authorities use to determine applicable duties and taxes.

  6. A European customer exercises their 'right to erasure' under GDPR against a US e-commerce company. The company is legally obligated to:

    Answer: Delete the customer's personal data from all systems within 30 days unless a legitimate retention reason exists

    GDPR's 'right to erasure' (Article 17) requires controllers to delete personal data without undue delay (generally within 30 days) when the subject requests it and no overriding legal basis for retention exists, regardless of where the company is headquartered.

  7. Which of the following is a key advantage of using a local payment processor versus a global processor for international markets?

    Answer: Higher authorization rates due to local bank relationships and familiarity with regional card networks

    Local payment processors often achieve higher authorization rates because they have direct relationships with regional banks and understand local card network nuances, reducing false declines common with global processors unfamiliar with the local market.