FREE CLTD Overview Questions and Answers

Question 1

Which of the following ships are specifically designed to carry ISO shipping containers?

Accepted Answer

Break-bulk freighter

Answer

Roll-on/roll-off (RORO) vessel

Answer

Dry-bulk freighter

Answer

Cellular vessel

Question 2

Which of the following terms refers to an integrated approach of simultaneously selling to consumers through multiple distribution channels?

Accepted Answer

Multi-channel

Answer

Omni-channel

Answer

Business-to-consumer (B2C)

Answer

E-commerce

Question 3

Which international trade theory is said to be the one underlying most international product trades?

Accepted Answer

Theory of comparative advantage

Answer

International product life cycle

Answer

Theory of absolute advantage

Answer

The cluster theory

Question 4

The task that best describes the value proposition offered by freight forwarders is that they:

Accepted Answer

act as agents for domestic firms in international markets, primarily obtaining orders for their clients’ products.

Answer

export goods and services, and locates overseas buyers on their clients’ behalf.

Answer

consolidate shipments from various customers and offer lower transportation rates.

Answer

operate under power of attorney from the shipper to pay all import duties and are ultimately liable for unpaid duties.

Question 5

If a firm is concerned with high duty rates, on which of the following criteria should it focus?

Accepted Answer

Type of goods imported and their value

Answer

Type of goods imported and their cost

Answer

Type of goods exported and their value

Answer

Type of goods exported and their cost

Question 6

Which of the following prerequisites is essential in order to establish an effective order management system?

Accepted Answer

An ability to plan and build loads

Answer

An ability to reserve inventory and determine a delivery date

Answer

An ability to understand customer needs

Answer

An ability to receive, enter, and validate orders

Question 7

One of the primary reasons that supplier relationship management (SRM) is integral to so many companies’ operations is that the procurement of raw materials:

Accepted Answer

can be equal between 40 to 70 percent of each sales dollar.

Answer

may be slightly more predictable when working with preferred suppliers.

Answer

may be challenging when trying to source raw materials or components that are in high demand for a seasonal product.

Answer

will require the manufacturer to rely exclusively upon a single supplier for the particular component.

Question 8

What illustrates the principle of demurrage?

Accepted Answer

A trailer is left unloaded in the warehouse yard. A fee is added to the transport bill.

Answer

A warehouse operator leases off-site storage facilities to handle occasional stock overflow.

Answer

Goods are stored in the warehouse but not on a "free on board" (FOB) basis.

Answer

Inventory is stored in secure buildings outside the warehouse but on business property.

Question 9

Which of the following categories is a weakness of the rail systems?

Accepted Answer

Routes from city centers

Answer

Safety records

Answer

Inflexible infrastructures

Answer

Effects of the weather

Question 10

As a means to protect domestic industries, which of the following requirements is an example of a non-trade barrier?

Accepted Answer

Mandating compliance with triple bottom line (TBL)

Answer

Requesting a mandatory consular invoice

Answer

Utilizing Convention on International Sale of Goods (CISG)

Answer

Demanding process efficiency