Answer:
Free On Board (FOB) indicates that the supplier pays the shipping costs that include the insurance costs from the point of production to a specified destination, at which point the buyer takes responsibility.
Description: The FOB is an important part in a purchase contract. It indicates who selects the carrier, which party is to bear the freight charges and who has the title to the goods during the shipment.
There are two types of FOB contract.
FOB Destination: In FOB destination (the standard and most commonly used) the seller is the owner of goods while in transit and is responsible for any loss or damage up to the time of delivery. It is expressed as FOB Mumbai or FOB Cochin. It could be to negotiate the shipping separately from the purchase of goods or if a party wants all the shipping to be done by a specific carrier.
FOB Origin: When no FOB terms are discussed or not mentioned in the contract or purchase order, then, in accordance with the Uniform Commercial Code (UCC) the term is FOB Origin. The buyer is then responsible for freight and damaged goods.
International Business II
Q 1.
List various affiliated bodies of World Bank.
Q 2.
Name any two WTO Agreements.
Q 3.
Explain the meaning of the following documents used in connection with import transactions
- Trade enquiry,
- Import license,
- Shipment of advice,
- Import general manifest,
- Bill of entry.
Q 4.
What is Advance License Scheme?
Q 5.
Discuss the process involved in securing for exports.
Q 6.
What is Shipping Bill?
Q 7.
What was the objective of MIGA?
Q 8.
Name the most important document of export.
Q 9.
List out major affiliated bodies of the World Bank.
Q 10.
Write short notes on the following:
- UNCTAD
- MIGA
- World Bank
- ITPO
- IMF
Q 11.
Write a detailed note on features, structure, objectives and functioning of WTO.
Q 12.
Why is export promotion necessary?
Q 13.
What is the main objective of WTO?
Q 14.
How many Export Promotion Councils are there in India?
Q 15.
Define Export Processing Zones.
Q 16.
Name the most important document used in import.
Q 17.
What is pre-shipment finance?
Q 18.
Why is it necessary for an export firm to go in for pre-shipment inspection?
Q 19.
When was State Trading Corporation established?
Q 20.
Explain briefly the process of customs clearance of export goods.
Q 21.
Discuss the principal documents used in exporting.
Q 22.
Santa Cruz is famous for which exclusive items?
Q 23.
How many regional and international offices does ITPO have?
Q 24.
Discuss the formalities involved in getting an export license.
Q 25.
What is IMF? Discuss its .various objectives and functions.
Q 26.
Give full form of EPZ and SEZ.
Q 27.
Write the full form of ICSID.
Q 28.
Explain the term FOB.
Q 29.
Explain different organizations involved in export promotion or facilitating foreign trade.
Q 30.
Why is it necessary to get registered with an Export Promotion Council?
Q 31.
List and explain various incentives and schemes that the government has evolved for promoting the country's foreign trade.
Q 32.
How many Commodity Boards are there in India?
Q 33.
Your firm is planning to import textile machinery from Canada. Describe the procedure involved in importing.
Q 34.
Who is a clearing agent?
Q 35.
Which agency of World Bank provides loan to private sector of developing countries?
Q 36.
Write short note on Indent House and Dock Challan.
Q 37.
Why did WTO establish? What are its objectives?
Q 38.
Explain the meaning of Mate's Receipt.
Q 39.
What is a Letter of Credit? Why does an exporter need this document?
Q 40.
Discuss the principal documents used in exporting.
Q 41.
When was IIFT formed?
Q 42.
Name the certificate which is used for ensuring timely payment.
Q 43.
Define Mate's Receipt.
Q 44.
What is Performa Invoice?
Q 45.
What is IEC number?
Q 46.
Rekha Garments has received an order to export 2000 men's trousers to Swift Imports Ltd. located in Australia. Discuss the procedure that Rekha Garments would need to go through for executing the export order.
Q 47.
What is Bill of Lading? How does it differ from bill of entry?
Q 48.
Discuss the process involved in securing for exports.
Q 49.
Identify various organizations that have been set up in the country by the government for promoting country's foreign trade.
Q 50.
Explain the term FOB.
