BUSI 3250 Panama Exam 4 Questions
and Answers
US Department of Commerce - Answer-The International Trade Administration is under
this umbrella
Incoterms - Answer-Universal trade terminology developed by the International
Chamber of Commerce, describe which party does which tasks, which party covers the
costs, and which party bears the risk
Letter of credit - Answer-"basically riskless," document issued by the buyer's bank that
promises to pay the seller a specified amount when the bank has received certain
documents
U.S. Export-Import Bank (Ex-Im Bank) - Answer-The principal government agency that
provides loans, guarantees, and insurance programs to support U.S. exporters
Overseas Private Investment Corporation (OPIC) - Answer-A government corporation
that offers U.S. investors in developing countries insurance against expropriation,
currency inconvertibility, and damages from wars and revolutions
Ex-Works (named place) - Answer-Seller makes goods available at factory or
warehouse, where risk passes
FCA (named place) - Answer-Free carrier, seller hands over goods to carrier at a
named place, where risk passes
CPT (named destination) - Answer-Carriage paid to destination, seller pays for carriage,
while risk passes when goods handed to carrier
FAS (named loading port) - Answer-Free alongside ship; seller clears the goods for
export and places them by the ship, risk passes at rail.
FOB (named loading port) - Answer-Free on board; seller loads goods, risk passes at
rail.
CFR (named destination port) - Answer-Cost and freight; seller pays costs of freight to
bring goods to destination port. This does not include insurance. Risk passes once
goods are loaded.
CIP (named place of destination) - Answer-Carriage and insurance paid to destination,
while risk passes when goods are handed to carrier
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