CLTD Online Practice Questions and Answers

Consignment inventory requires that manufacturers:

A. deliver their products to the consumer and payment from consumers is based on supply.

B. stock their products on retail stores shelves and payment from consumers is based on forecast.

C. deliver their products to the consumer and wait for payment until consumers requires to refill stock level.

D. stock their products on retail stores shelves and wait for payment until consumers purchase the product.

The international commercial document that serves as a quote to obtain a letter of credit or an import license is called a(n):

A. commercial invoice

B. pro forma invoice

C. export license

D. consular invoice

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

A. Type of goods imported and their value

B. Type of goods imported and their cost

C. Type of goods exported and their value

D. Type of goods exported and their cost

The practice of carriers charging all of their customers more during the peak harvest season is a type of pricing known as:

A. differential rates.

B. incremental rates.

C. distributive rates.

D. commodity rates.

In building a daily route schedule, which of the following factors provides the greatest challenge for a transportation manager?

A. Random demand

B. Fixed traffic patterns

C. Data cleanup

D. Customer base

The primary role of the World Trade Organization (WTO) is to:

A. establish an international system of payment.

B. stabilize international currency exchange rates.

C. enforce free trade on a global basis.

D. create global free trade agreements.

One characteristic that could make it challenging for foreign company to penetrate the United States (U.S.) market is that the U.S. often has:

A. refused to cooperate on sustainability initiatives.

B. adopted multiple standards that are state specific.

C. eliminated all foreign/free trade zones (FTZs) outside of sea ports.

D. followed Customs Trade Partnership Against Terrorism (C-TPAT) rules.

Which of the following modes of transportation is typically associated with detention charges?

A. Rail

B. Water

C. Pipeline

D. Truck

Which of the following theories is illustrated in the list below?

Stage 1: A new product is created to fill a domestic need and produced locally.

Stage 3: The newly created product is offered to international customers.

Stage 4: International customers develop expertise and offer the product at a lower cost to the original country.

A. International product life cycle theory

B. Porter's cluster theory

C. Sheffi's logistics cluster theory

D. Theory of Comparative Advantage

A transportation manager is making a decision to change from common carrier to private carrier. Three key advantages of private carrier are:

A. increased back-haul efficiency, lower transit times, and flexibility.

B. lower freight claims, lower inventory levels, and lower fixed costs.

C. lower transit times, flexibility, and improved customer service.

D. increased driver turnover, lower transit times, and improved customer service.