Professional Documents
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ARC.2 - Đề Trắc Nghiệm
ARC.2 - Đề Trắc Nghiệm
TEST 1
1. This method of payment creates cash flow problems and increases risk for the
buyer
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
2. Clients look for ………… from an arbitration service.
A. speed and cost effectiveness
B. reliability of the arbitrators and their decisions
C. confidentiality
D. all of the above (A, B and C)
3. The three main business areas which have traditionally been resolved by
arbitration are …………
A. shipping, commodity and construction
B. shipping, commerce and wine
C. commodity, construction and share
D. construction, shipping and convenience
4. The term used to describe attempts to restrict imports into the country
A. tax
B. quota
C. protectionism
D. tariff
5. You can ………… a house and ………… a car.
A. hire/rent
B. hire/hire
C. rent/rent or hire
6. When the Bill of lading marked "freight collected”. Who pays for the freight?
A. The Buyer
B. The Seller
C. The agent
D. It depends on the agreement
7. The clause covers General Average.
A. A
B. B
C. A,B,C
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English for Special Purposes - International Business Compiled by Khang Béo
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English for Special Purposes - International Business Compiled by Khang Béo
22. With this method of payment, banks play an active role. Banks are responsible
for paying for the exporter in case the importer fails to do so
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
23. ………… is open-ended.
A. tailor-made
B. floating
C. open cover
24. If the price is quoted CPT Vancouver, who pays for the freight?
A. The exporter.
B. The forwarding agent.
C. The buyer.
D. The confirming bank.
25. Cultural differences are one of the potential ………… of international mergers.
A. threats
B. pitfalls
C. attraction
D. benefits
26. Earthquake, volcanic eruption and lighting are not covered under the cargo
clause …………
A. A
B. B
C. C
D. B and C
27. Transfer of risk from the seller to the buyer (Incoterm 2000): FOB
A. When the goods are At the seller’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
28. A document used for transporting goods in containers by road, rail and ship
without being open is a …………
A. Bill of exchange
B. invoice
C. contract of carriage
D. container bill of lading
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29. The Mexican peso is trading for more than its usual value. You can talk about
…………
A. a big peso
B. a good peso
C. a strong peso
30. She looked at the ………… to check where the goods were produced
A. certificate of origin
B. test certificate
C. postmark
D. trade mark
31. Transfer of risk from the seller to the buyer (Incoterm 2000): CFR
A. When the goods are At the seller’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
32. ………… from a source country into a destination country for the purpose of
exporting to a third country.
A. Horizontal FDI
B. Platform FDI
C. Vertical FDI
33. ………… is the money paid for the right to use the property of another person.
A. Compensation payment
B. Royalty payment
C. Property charges
D. Royalty fees
34. The bill of lading issued by the carrier for combined transport is called
…………
A. Combined bill of lading.
B. Combined bill.
C. Combined transportation bill of lading.
D. Combined transport bill of lading.
35. One problem in international mergers is the difference in ………… and benefits
for managers with similar positions.
A. duties
B. output
C. activity
D. compensation
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43. Many countries, such as the United Kingdom and New Zealand, are …………
dependent on international trade
A. favorable
B. heavily
C. perfectly
D. grossly
44. ………… is the situation when a ship in a storm might have to jettison certain
cargo to protect the ship and the remaining cargo
A. Average clause
B. Particular average
C. General average
D. Average clause general
45. Collecting, analyzing and reporting data relevant to a specific market situation
(such as a proposed new product) is …………
A. market analysis
B. market segmentation
C. marketing
D. market research
46. A monetary system whereby the value of currencies could be converted into gold
at a country‟s central bank
A. gold system
B. gold standard
C. gold value
D. gold convertible
47. When the Bill of lading marked "freight prepaid”. Who pays for the freight?
A. The Buyer
B. The Seller
C. The agent
D. It depends on the agreement
48. War risk is not included in …………
A. A clause
B. B clause
C. A,B,C clause
49. ………… original(s) Bill of lading constitute(s) a full set.
A. 1
B. 2
C. 3
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English for Special Purposes - International Business Compiled by Khang Béo
50. A bankrupt person's ………… can be taken and used to repay his/her debts.
A. things
B. items
C. property
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English for Special Purposes - International Business Compiled by Khang Béo
TEST 2
1. Buying a company for less than the value of its assets, the selling these assets to
make a profit is called …………
A. asset stripping
B. An acquisition
C. A takeover bid
D. A raid
2. All mergers aim to create ………… for the two companies‟ shareholders.
A. added value
B. lower costs
C. economies of scale
D. tax benefits
3. Many countries, such as the United Kingdom and New Zealand, are …………
dependent on international trade
A. favorable
B. heavily
C. perfectly
D. grossly
4. In Britain, it's not usual to discuss your personal …………
A. money
B. finances
C. money arrangements
5. Why do sellers or buyers insure their cargoes?
A. To protect themselves from loss or damage to their goods
B. To protect themselves from loss only
C. To protect themselves from damage only
D. To protect the third party from loss or damage to their goods
6. Anything that acts as a security or guarantee for a loan
A. Collateral
B. Mortgage
C. Warranty
D. Guarantee
7. ………… original(s) Bill of lading constitute(s) a full set.
A. 1
B. 2
C. 3
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English for Special Purposes - International Business Compiled by Khang Béo
8. Earthquake, volcanic eruption and lighting are not covered under the cargo
clause …………
A. A
B. B
C. C
D. B and C
9. A force majeure is an ………… event such as strike, riot or natural disaster
which prevents a contract from being …………
A. unforeseen / fulfilled
B. unseen / fulfilled
C. unforeseen / filled
10. The term used to describe attempts to restrict imports into the country:
A. tax
B. quota
C. protectionism
D. tariff
11. The exporter‟s bank then ………… the documents to the importer‟s bank.
A. signs
B. forwards
C. remits
D. defers
12. With the open account method of payment, payment is made
A. before the goods are shipped.
B. when there is no contract involved.
C. after the goods have arrived.
D. when the exporter doesn’t trust the buyer.
13. Undertaking to indemnify means …………
A. Disagree to pay compensation for loss or damage
B. Agree to pay compensation for loss or damage
C. Agree to pay for loss or damage without compensation
D. Agree to pay compensation for the broker
14. Buying another company‟s shares on the stock exchange, hoping to persuade
enough other shareholders to sell to take control of the company.
A. A merger
B. An acquisition
C. An integration
D. A raid
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15. Joining with firms in other stages of the production or sale of a product.
A. horizontal integration
B. vertical integration
C. backward integration
D. forward integration
16. Two parties sign a contract.
A. The contract is binding
B. The contract is effective
C. The contract is binding and effective
17. Employing more staff has reduced our ………… time in the port
A. turning
B. turn-round
C. turn back
D. turnover
18. A company which makes a profit can be described as profitable or …………
A. profit-getting
B. profit-making
C. profit-having
19. The agreed amount of money to give insurance cover is …………
A. Premium
B. life insurance
C. marine insurance
D. compensation
20. Here's the fifty dollars I …………
A. owe you
B. pay you back
C. must return
21. If the price is quoted FOB Singapore, who pays for the insurance and freight?
A. The exporter.
B. The buyer
C. The forwarding agent.
D. The confirming bank.
22. Multinational companies usually have ………… in different countries.
A. daughter companies
B. subsidiaries
C. factories
D. colleagues
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English for Special Purposes - International Business Compiled by Khang Béo
23. The government has imposed protective tariffs to stop the ………… of cheap
imports which threatened to destroy domestic industries
A. rain
B. famine
C. flood
D. storm
24. What do we call the difference between a country‟s imports and exports?
A. the balance of trade
B. the balance of payments
C. the surplus
D. the deficit
25. Multinational companies can adapt their management method to the …………
in each country or continent.
A. their culture
B. local conditions
C. local culture
D. local people
26. Insurance companies can be considered as professional ………… Takers
A. life
B. risk
C. chance
D. misfortune
27. The payment method needs complete trust between the exporter and the
importer.
A. Bill for collection
B. Letter of credit
C. Advance payment
D. Open account
28. After dispatching the goods, the exporter ………… the documents to his bank.
A. demands
B. collects
C. issues
D. presents
29. You can ………… a house and ………… a car.
A. hire/rent
B. hire/hire
C. rent/rent or hire
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English for Special Purposes - International Business Compiled by Khang Béo
37. Currency bought or sold today with delivery two business days later
A. Spot transaction
B. Forward transaction
C. business transaction
D. Futures transaction
38. Who issues ocean bill of lading?
A. Captain
B. Exporter
C. Shipping company
D. Agent
39. Some manufacturers were accused of …………, in other words selling goods
abroad at a lower price than they were sold domestically.
A. dumping
B. revaluing
C. flooding
D. devaluation
40. Transfer of risk from the seller to the buyer (Incoterm 2000): DES
A. When the goods are ex-ship
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
41. My endowment policy will ………… when I‟m sixty-five
A. ripen
B. mature
C. flourish
D. break
42. The bill of lading issued by the carrier for rail transport is called …………
A. Railway bill.
B. Rail waybill.
C. Railway consignment note.
D. Railway bill of lading.
43. Merging with or taking over other firms producing the same type of goods or
services is known as …………
A. horizontal merger
B. diversification
C. vertical merger
D. backward merger
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44. Make sure all this equipment is insured ………… accidental damage
A. over
B. against
C. with
D. from
45. Transfer of risk from the seller to the buyer (Incoterm 2000): DAF
A. When the goods are at frontier
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
46. All risks covered is under ………… clause
A. A
B. B
C. C
47. Factors that can give a country an absolute or comparative advantage in goods
and services over other countries are …………
A. factors of production, most importantly raw materials, but also labor pool
B. climate, economies of scale.
C. natural resources and location
D. All of these above
48. If the price is quoted CPT Vancouver, who pays for the freight?
A. The exporter.
B. The forwarding agent.
C. The buyer.
D. The confirming bank.
49. The person who goes between the person who wants the insurance and the
person who underwrites it is …………
A. a shipper
B. a client
C. a broker
D. an insurer
50. Normally, Risks are transferred at the point of …………
A. Delivery
B. Payment
C. Arrival
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TEST 3
1. The person who goes between the person who wants the insurance and the
person who underwrites it is …………
A. a shipper
B. a client
C. a broker
D. an insurer
2. Transferring money from Britain to another country is called sending money
…………
A. overseas
B. over-water
C. over-waves
3. The ………… form you fill in is the basis of your contract with the insurance
company
A. proposition
B. application
C. enrolment
D. proposal
4. Factors that can give a country an absolute or comparative advantage in goods
and services over other countries are …………
A. factors of production, most importantly raw materials, but also labor pool
B. climate, economies of scale.
C. natural resources and location
D. All of these above
5. One problem in international mergers is the difference in ………… and benefits
for managers with similar positions.
A. duties
B. output
C. activity
D. compensation
6. When the total value of a country‟s imports is greater than its exports, it is a
trade …………
A. balance
B. loss
C. debit
D. deficit
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14. ………… takes place when a firm through FDI moves upstream or downstream
in different value chains i.e., when firms perform value-adding activities stage
by stage in a vertical fashion in a host country.
A. Horizontal FDI
B. Platform FDI
C. Vertical FDI
15. A bank that issues a letter of credit (i.e. the importer‟s bank).
A. Collecting bank
B. Issuing bank
C. Confirming bank
D. Advising bank
16. Collecting, analyzing and reporting data relevant to a specific market situation
(such as a proposed new product) is …………
A. market analysis
B. market segmentation
C. marketing
D. market research
17. Clients look for ………… from an arbitration service.
A. speed and cost effectiveness
B. reliability of the arbitrators and their decisions
C. confidentiality
D. all of the above (A, B and C)
18. Which market is bigger?
A. Super market is bigger than traditional market
B. Street market is bigger than home market
C. An open air market is bigger than a home market
D. Product market is bigger than consumer market
19. A bill of exchange become payable upon …………
A. remittance
B. acceptance
C. dispatch
D. maturity
20. Multinational companies usually have ………… in different countries.
A. daughter companies
B. subsidiaries
C. factories
D. colleagues
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English for Special Purposes - International Business Compiled by Khang Béo
21. ………… are raw materials such as agricultural products and metals that are
traded on special exchanges.
A. Goods
B. Raw materials
C. Productivity
D. Commodities
22. ………… is the situation when a ship in a storm might have to jettison certain
cargo to protect the ship and the remaining cargo
A. Average clause
B. Particular average
C. General average
D. Average clause general
23. What is the most complete cover of insurance?
A. No partial loss is payable
B. Partial loss is payable
C. It only covers total loss
D. Against all risks
24. Insurance companies can be considered as professional ………… Takers
A. life
B. risk
C. chance
D. misfortune
25. An evidence that an insurance contract has been made is …………
A. An insurance certificate
B. A certificate of origin
C. A health certificate
D. A compensation certificate
26. The point of delivery is much the same for all ………… terms and …………
terms – when the exporter hands the goods over to the carrier.
A. C and F
B. D and F
C. C and D
27. She looked at the ………… to check where the goods were produced
A. certificate of origin
B. test certificate
C. postmark
D. trade mark
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English for Special Purposes - International Business Compiled by Khang Béo
28. Transfer of risk from the seller to the buyer (Incoterm 2000): FAS
A. When the goods are ex-quay
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
29. A life insurance policy pays out ………… your death or after a set period,
whichever is first.
A. in case of
B. if
C. in the event of
30. In the UK, mergers and acquisitions are not ………… by the government.
A. controlled
B. checked
C. regulated
31. Transfer of risk from the seller to the buyer (Incoterm 2000): DES
A. When the goods are ex-ship
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
32. When a company‟s top executives buy the company they work for is known as
…………
A. a raid
B. a takeover bid
C. a merger
D. an acquisition
33. Normally, Risks are transferred at the point of …………
A. Delivery
B. Payment
C. Arrival
34. Two parties sign a contract.
A. The contract is binding
B. The contract is effective
C. The contract is binding and effective
35. A country with very low taxes is known as a …………
A. tax heaven
B. tax haven
C. tax paradise
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TEST 4
15. Some countries try to be ………… in certain commodities so that they are not
dependent on imports.
A. economic
B. sufficient
C. self-sufficient
D. self-financing
16. If alternative means of transport or partial shipments are allowed perhaps by
different modes of transport, the letter of credit should have the words …………
between the names of transport documents.
A. and.
B. or.
C. and/or.
D. Either B or C.
17. A document used for transporting goods in containers by road, rail and ship
without being open is a …………
A. Bill of exchange
B. invoice
C. contract of carriage
D. container bill of lading
18. The fact that labour cots are lower in other countries ………… us at a
tremendous disadvantage
A. makes
B. does
C. puts
D. sells
19. The technical ………… for electrical equipment can vary from country to
country
A. justification
B. rules
C. specifications
D. uniforms
20. A certain climate in a particular country may allow that country to grow
agricultural products in abundance
A. This country probably has a comparative advantage in agriculture
B. This country most likely exports farm products
C. This country can grow food efficiently
D. All of the above.
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21. The exporter didn‟t receive payment for his goods because the buyer …………
A. defaulted
B. deferred
C. declines
D. denied
22. A bank that issues a letter of credit (i.e. the importer‟s bank).
A. Collecting bank
B. Issuing bank
C. Confirming bank
D. Advising bank
23. Aims of a strategic approach made by multinational companies are …………
A. to access raw materials and markets
B. to get product efficiency and knowhow
C. to access premises and natural resources
D. A & B
24. If the price is quoted CIP Marseille, who pays for the insurance and freight?
A. The buyer.
B. The exporter.
C. The issuing bank.
D. The forwarding agent.
25. Transfer of risk from the seller to the buyer (Incoterm 2000): DAF
A. When the goods are at frontier
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
26. A basis for mutually beneficial trade is the fact that one country has a
comparative advantage
A. Both the importing country and the exporting country benefit from trade
B. One’s country comparative advantage can benefit another country
C. The comparative advantage of one country can result in trade between countries
D. All of these above
27. Among other things, a ………… contains details of the goods, their destination
and the name of the ship carrying them.
A. bill of lading
B. way-bill
C. bill of exchange
D. receipt
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English for Special Purposes - International Business Compiled by Khang Béo
28. The Japanese yen is trading for less than its usual value. You can talk about
…………
A. a small yen
B. a bad yen
C. a weak yen
29. The main difference between arbitration and litigation is that …………
A. Arbitration takes place in private
B. Litigation takes place in court
C. Arbitration takes place abroad
D. A and B
30. The person who goes between the person who wants the insurance and the
person who underwrites it is …………
A. a shipper
B. a client
C. a broker
D. an insurer
31. What do we call a small but very profitable market?
A. mass market
B. up market
C. niche market
D. supermarket
32. What do we call goods that go from one country to another?
A. exports
B. imports
C. visible exports and imports
D. invisible exports and imports
33. In CIF and CIP contracts, ………… must pay for insurance from the point of
delivery to the named point of arrival.
A. The exporter
B. The importer
C. The carrier
34. In these inflationary times it is important to keep the value of your policy closely
………… to the value of your property.
A. adapted
B. linked
C. indicated
D. dependent
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English for Special Purposes - International Business Compiled by Khang Béo
43. Factors that can give a country an absolute or comparative advantage in goods
and services over other countries are …………
A. factors of production, most importantly raw materials, but also labor pool
B. climate, economies of scale.
C. natural resources and location
D. All of these above
44. A force majeure is an ………… event such as strike, riot or natural disaster
which prevents a contract from being …………
A. unforeseen / fulfilled
B. unseen / fulfilled
C. unforeseen / filled
45. When the Bill of lading marked "freight prepaid”. Who pays for the freight?
A. The Buyer
B. The Seller
C. The agent
D. It depends on the agreement
46. Weight is important for air transport because if its …………
A. size
B. high freight rates
C. measurement
D. high quality
47. Transfer of risk from the seller to the buyer (Incoterm 2000): FAS
A. When the goods are ex-quay
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
48. The term used to describe attempts to restrict imports into the country
A. tax
B. quota
C. protectionism
D. tariff
49. ………… is the situation when a ship in a storm might have to jettison certain
cargo to protect the ship and the remaining cargo
A. Average clause
B. Particular average
C. General average
D. Average clause general
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English for Special Purposes - International Business Compiled by Khang Béo
TEST 5
7. Transfer of risk from the seller to the buyer (Incoterm 2000): EXW
A. When the goods are At the seller’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
8. A merger with or the acquisition of one‟s suppliers
A. horizontal integration
B. vertical integration
C. backward integration
D. forward integration
9. The court of arbitration applies whatever ………… the parties stipulate in the
contract.
A. International law
B. Corporate law
C. National law
D. Business law
10. The risk of rough handling is covered under the cargo clause …………
A. A
B. B
C. C
D. A and B
11. Go to an insurance ………… and see if you can get a better deal.
A. breaker
B. broker
C. speculator
D. merchant
12. Cultural differences are one of the potential ………… of international mergers.
A. threats
B. pitfalls
C. attraction
D. benefits
13. A document that shows details of goods being transported; it entitles the
receiver to collect the goods on arrival
A. An invoice
B. A bill of exchange
C. A bill of lading
D. A draft
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29. A life insurance policy pays out ………… your death or after a set period,
whichever is first.
A. in case of
B. if
C. in the event of
30. Selling products abroad at prices lower than the cost of production is known as
dumping.
A. Dumping is always against government policy.
B. Dumping is always beneficial to the importing country because buyers pay lower
prices.
C. Exporters dump products on foreign markets to lower domestic employment.
D. Some reasons for dumping could be inventory reduction, maintenance of domestic
employment, and continuation of high production levels.
31. ………… is an approach to business that emphasizes persuading customers to
buy products that you already have, rather than producing new ones that
customers may want.
A. Marketing concept
B. Product concept
C. Promotion concept
D. Selling concept
32. If the price is quoted CIP Marseille, who pays for the insurance and freight?
A. The buyer.
B. The exporter.
C. The issuing bank.
D. The forwarding agent.
33. Among other things, a ………… contains details of the goods, their destination
and the name of the ship carrying them.
A. bill of lading
B. way-bill
C. bill of exchange
D. receipt
34. Earthquake, volcanic eruption and lighting are not covered under the cargo
clause …………
A. A
B. B
C. C
D. B and C
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English for Special Purposes - International Business Compiled by Khang Béo
35. Currency bought or sold today with delivery two business days later
A. Spot transaction
B. Forward transaction
C. business transaction
D. Futures transaction
36. What do we call a small but very profitable market?
A. mass market
B. up market
C. niche market
D. supermarket
37. In the past, a lot of small banks were ………… by larger ones.
A. bought up
B. eaten up
C. chewed up
38. A company which makes a loss can be described as …………
A. loss-getting
B. loss-making
C. loss-having
39. A country with very low taxes is known as a …………
A. tax heaven
B. tax haven
C. tax paradise
40. Transfer of risk from the seller to the buyer (Incoterm 2000): FOB
A. When the goods are At the seller’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
41. An insolvent company often goes into liquidation. A private individual who
cannot pay his/her debts may be declared ………… by a court.
A. bankrupt
B. indebted
C. penniless
42. What do we call the difference between a country‟s imports and exports?
A. the balance of trade
B. the balance of payments
C. the surplus
D. the deficit
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English for Special Purposes - International Business Compiled by Khang Béo
43. Transfer of risk from the seller to the buyer (Incoterm 2000): CPT
A. When the goods are At the seller’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
44. If shipment is under Incoterms other than CIF or CIP, …………
A. The buyer has to arrange the insurance cover by himself.
B. The buyer may still ask the exporter to arrange some aspects of the insurance for him.
C. The exporter has to arrange the insurance cover for the goods.
D. The exporter pays for insurance till the port of discharge.
45. A bank that issues a letter of credit (i.e. the importer‟s bank).
A. Collecting bank
B. Issuing bank
C. Confirming bank
D. Advising bank
46. Some countries try to be ………… in certain commodities so that they are not
dependent on imports.
A. economic
B. sufficient
C. self-sufficient
D. self-financing
47. Many countries, such as the United Kingdom and New Zealand, are …………
dependent on international trade
A. favorable
B. heavily
C. perfectly
D. grossly
48. If a letter of credit is confirmed, ………… takes responsibility for payment.
A. the importer’s bank
B. the importer
C. the exporter
D. the exporter’s bank
49. My endowment policy will ………… when I‟m sixty-five
A. ripen
B. mature
C. flourish
D. break
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TEST 6
1. Buying a company for less than the value of its assets, the selling these assets to
make a profit is called …………
A. asset stripping
B. An acquisition
C. A takeover bid
D. A raid
2. The bill of lading issued by the carrier for sea transport is called …………
A. Seaway bill.
B. Ocean bill.
C. Sea waybill.
3. A bill of lading with the note is …………
A. Clean bill of lading
B. Claused bill of lading
C. Clear bill of lading
4. A basis for mutually beneficial trade is the fact that one country has a
comparative advantage.
A. Both the importing country and the exporting country benefit from trade.
B. One’s country comparative advantage can benefit another country.
C. The comparative advantage of one country can result in trade between countries.
D. All of these above.
5. The term used to describe attempts to restrict imports into the country
A. tax
B. quota
C. protectionism
D. tariff
6. Transfer of risk from the seller to the buyer (Incoterm 2000): DEQ
A. When the goods are ex-quay
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
7. My endowment policy will ………… when I‟m sixty-five
A. ripen
B. mature
C. flourish
D. break
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8. Unless the letter of credit states otherwise, insurance coverage on a CIF or CIP
shipment must be for ………… of the CIF (or CIP) value of the goods.
A. 100%.
B. 90%.
C. 50%.
D. 110%.
9. A life insurance policy pays out ………… your death or after a set period,
whichever is first.
A. in case of
B. if
C. in the event of
10. The Incoterm ………… contains 11 terms.
A. 1990
B. 2000
C. 2010
11. A sovereign is a coin made of 7.3 grams of gold, and is worth a lot of money.
However, its ………… is just one pound.
A. front value
B. face value
C. written value
12. ………… from a source country into a destination country for the purpose of
exporting to a third country.
A. Horizontal FDI
B. Platform FDI
C. Vertical FDI
13. The ………… form you fill in is the basis of your contract with the insurance
company
A. proposition
B. application
C. enrolment
D. proposal
14. A document that shows details of goods being transported; it entitles the
receiver to collect the goods on arrival.
A. An invoice
B. A bill of exchange
C. A bill of lading
D. A draft
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15. The exporter‟s bank then ………… the documents to the importer‟s bank.
A. signs
B. forwards
C. remits
D. defers
16. The arbitrators‟ awards are …………
A. Consultative and examinatorial
B. Final and enforceable
C. Referrable and reverable
D. All of the above
17. Governments try to control imports of products to protect domestic industries
A. Protectionist measures take the form of import duties and quotas
B. Protectionist measures insure free trade
C. Workers are always opposed to protectionism
D. All protectionist policies have the same effect on the market
18. One problem in international mergers is the difference in ………… and benefits
for managers with similar positions.
A. duties
B. output
C. activity
D. compensation
19. When the Bill of lading marked "freight collected”. Who pays for the freight?
A. The Buyer
B. The Seller
C. The agent
D. It depends on the agreement
20. Transfer of risk from the seller to the buyer (Incoterm 2000): FOB
A. When the goods are At the seller’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
21. The government has imposed protective tariffs to stop the ………… of cheap
imports which threatened to destroy domestic industries
A. rain
B. famine
C. flood
D. storm
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English for Special Purposes - International Business Compiled by Khang Béo
50. Selling products abroad at prices lower than the cost of production is known as
dumping
A. Dumping is always against government policy
B. Dumping is always beneficial to the importing country because buyers pay lower
prices
C. Exporters dump products on foreign markets to lower domestic employment
D. Some reasons for dumping could be inventory reduction, maintenance of domestic
employment, and continuation of high production levels
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TEST 7
1. If the price is quoted CIF San Francisco, who pays for the insurance and
freight?
A. The exporter
B. The buyer.
C. The forwarding agent.
D. The confirming bank.
2. What does marketing involve?
A. deciding what the customer wants
B. finding out what kinds of product customers want
C. designing and producing a product that satisfies these wants at a profit for the
company
D. A and C
3. What do we call goods that go from one country to another?
A. exports
B. imports
C. visible exports and imports
D. invisible exports and imports
4. In these inflationary times it is important to keep the value of your policy closely
………… to the value of your property.
A. adapted
B. linked
C. indicated
D. dependent
5. Beside the commercial invoice, the transport document and insurance
document, what do „Other documents‟ include?
A. A Certificate of Origin.
B. A Certificate of Inspection.
C. A health Inspection.
D. Any of the above.
6. In oriental cultures, to ………… is one of the most embarrassing things that can
happen.
A. lose a job
B. make a mistake
C. lose face
D. receive a favor
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36. The bill of lading issued by the carrier for sea transport is called …………
A. Seaway bill.
B. Ocean bill.
C. Sea waybill.
37. Unless otherwise agreed, the insurance is "minimum cover” – cargo clause
…………
A. A
B. B
C. C
38. A bill of exchange become payable upon …………
A. remittance
B. acceptance
C. dispatch
D. maturity
39. You can ………… a house and ………… a car.
A. hire/rent
B. hire/hire
C. rent/rent or hire
40. The Incoterm ………… contains 11 terms.
A. 1990
B. 2000
C. 2010
41. When two companies merge they always look at ways to ………… in order to be
more efficient and profitable.
A. recruit staff
B. cut costs
C. increase advertising
D. reduce salaries
42. ………… insurance originated in the fifteenth century.
A. Boat
B. Sea
C. Navy
D. Marine
43. A company which makes a loss can be described as …………
A. loss-getting
B. loss-making
C. loss-having
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44. Transfer of risk from the seller to the buyer (Incoterm 2000): EXW
A. When the goods are At the seller’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
45. Some manufacturers were accused of …………, in other words selling goods
abroad at a lower price than they were sold domestically.
A. dumping
B. revaluing
C. flooding
D. devaluation
46. The three main business areas which have traditionally been resolved by
arbitration are …………
A. shipping, commodity and construction
B. shipping, commerce and wine
C. commodity, construction and share
D. construction, shipping and convenience
47. The point of delivery is much the same for all ………… terms and …………
terms – when the exporter hands the goods over to the carrier.
A. C and F
B. D and F
C. C and D
48. Between which 2 parties is an insurance contract made?
A. Between the insurer and the shipping company
B. Between an insurance company and the shipping company
C. Between the insurer and the party taking out insurance cover
D. Between the assured party and the party taking out insurance cover.
49. In CIF and CIP contracts, ………… must pay for insurance from the point of
delivery to the named point of arrival.
A. The exporter
B. The importer
C. The carrier
50. Joining with firms in other stages of the production or sale of a product.
A. horizontal integration
B. vertical integration
C. backward integration
D. forward integration
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TEST 8
22. When you change money, you usually have to pay a …………
A. commission
B. percentage
C. fee
23. Insurance companies can be considered as professional ………… Takers
A. life
B. risk
C. chance
D. misfortune
24. His insurance company had told him not to admit ………… even though it was
clearly his fault
A. legality
B. likelihood
C. liability
D. crime
25. By issuing a letter of credit, the bank made ………… to pay the exporter for the
goods, provided that the correct documentation was presented.
A. a willingness
B. a readiness
C. a debit advice
D. an undertaking
26. The cost of borrowing money, usually expressed as a percentage of the amount
borrowed
A. Interest rate
B. A collateral
C. mortgage
D. Inflation rate
27. The situation in which a country has no foreign trade
A. Surplus
B. deficit
C. autarky
D. deficits
28. What do we call the difference between a country‟s imports and exports?
A. the balance of trade
B. the balance of payments
C. the surplus
D. the deficit
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29. Buying a company for less than the value of its assets, the selling these assets to
make a profit is called …………
A. asset stripping
B. An acquisition
C. A takeover bid
D. A raid
30. You‟re allowed 30 days‟ ………… for the payment of the renewal premium.
A. grace
B. favour
C. way
D. permission
31. Among other things, a ………… contains details of the goods, their destination
and the name of the ship carrying them.
A. bill of lading
B. way-bill
C. bill of exchange
D. receipt
32. In order to improve their services to customers, banks need to become more
…………
A. Customer oriented
B. profitable
C. competitive
D. efficient
33. Simultaneous purchase and sale of the same foreign exchange in different
markets to profit from rate differentials.
A. speculating
B. arbitrating
C. hedging
D. trading
34. " Minimum Coverage” is the so-called Cargo Clause …………
A. A
B. B
C. C
35. An insurance broker usually ………… several different insurance companies.
A. deals with
B. contacts
C. works for
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36. With this method of payment, banks play a passive role. All banks have to do is
to follow the instructions of the buyer and the seller and get a collection fees in
return
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
37. Multinational companies set up production facilities in countries where
production is most efficient
A. All countries allow foreign ownership of production facilities
B. The larger company is called the parent company; the production facilities are referred
to as a subsidiary.
C. Subsidiary companies eliminate the problem of worldwide competition
D. Each subsidiary needs to consider only local market condition
38. Selling products abroad at prices lower than the cost of production is known as
dumping.
A. Dumping is always against government policy.
B. Dumping is always beneficial to the importing country because buyers pay lower
prices.
C. Exporters dump products on foreign markets to lower domestic employment.
D. Some reasons for dumping could be inventory reduction, maintenance of domestic
employment, and continuation of high production levels.
39. The Japanese yen is trading for less than its usual value. You can talk about
…………
A. a small yen
B. a bad yen
C. a weak yen
40. Who can change the marketing mix?
A. Marketing manager
B. Sales manager
C. Product manager
D. Managing Director
41. Investors are looking for a high ………… on their investment.
A. earning
B. return
C. growth
D. performance
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42. When two companies merge they always look at ways to ………… in order to be
more efficient and profitable.
A. recruit staff
B. cut costs
C. increase advertising
D. reduce salaries
43. Modern marketing aims to satisfy the wants of the consumer. Marketing
personnel should consider first of all
A. how to advertise the product
B. what products the customer desires
C. how to distribute the product
D. engineering problems
44. Unlike quotas, tariffs produce ………… for the government
A. profit
B. surplus
C. revenue
D. earnings
45. What is the main difference between arbitration and litigation?
A. Arbitration takes place in private, litigation takes place in court
B. Bias
C. Low costs
D. The process of making decision in court
46. The World Bank refused to grant the loan until an environmental ………… was
carried out.
A. estimate
B. test
C. assessment
D. report
47. What is the best kind of advertising?
A. TV advertising
B. Word of mouth
C. Printing advertising
D. Radio advertising
48. A bankrupt person's ………… can be taken and used to repay his/her debts.
A. things
B. items
C. property
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TEST 9
14. Combined production or productivity that is greater than the sum of the
separate parts
A. diversifying
B. merging
C. specialization
D. synergy
15. Transfer of risk from the seller to the buyer (Incoterm 2000): DDP
A. When the goods are At the buyer’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
16. The technical ………… for electrical equipment can vary from country to
country
A. justification
B. rules
C. specifications
D. uniforms
17. One problem in international mergers is the difference in ………… and benefits
for managers with similar positions.
A. duties
B. output
C. activity
D. compensation
18. "door to door service” is offered. Which term should be used?
A. DDP
B. CIP
C. CIF
19. If the price is quoted CIP Marseille, who pays for the insurance and freight?
A. The buyer.
B. The exporter.
C. The issuing bank.
D. The forwarding agent.
20. If the price is quoted FOB Singapore, who pays for the insurance and freight?
A. The exporter.
B. The buyer
C. The forwarding agent.
D. The confirming bank.
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21. The bill of lading issued by the carrier for combined transport is called ………
A. Combined bill of lading.
B. Combined bill.
C. Combined transportation bill of lading.
D. Combined transport bill of lading.
22. Insurance companies like you to ………… your claim as soon as possible
A. process
B. submit
C. assure
D. proceed
23. Which of the following is NOT considered to be special requirement in a
sale/purchase contract?
A. Containers are required to be fumigated before shipment.
B. Upgraded packaging materials.
C. Goods must be packed according to export standards.
D. Health inspection for foodstuffs.
24. Governments try to control imports of products to protect domestic industries.
A. Protectionist measures take the form of import duties and quotas.
B. Protectionist measures insure free trade.
C. Workers are always opposed to protectionism.
D. All protectionist policies have the same effect on the market.
25. Among a number of international bodies offer arbitration services, the …………
in Paris is the most prestigious.
A. UCP
B. ADR
C. ICC
D. FAO
26. Anything that acts as a security or guarantee for a loan
A. Collateral
B. Mortgage
C. Warranty
D. Guarantee
27. What do we call the difference between a country‟s imports and exports?
A. the balance of trade
B. the balance of payments
C. the surplus
D. the deficit
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28. Transfer of risk from the seller to the buyer (Incoterm 2000): FAS
A. When the goods are ex-quay
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
29. What do we call goods that go from one country to another?
A. exports
B. imports
C. visible exports and imports
D. invisible exports and imports
30. If the price is quoted FCA, who pays for the freight?
A. The exporter.
B. The carrier.
C. The buyer.
D. The forwarding agent.
31. The ………… form you fill in is the basis of your contract with the insurance
company
A. proposition
B. application
C. enrolment
D. proposal
32. With the open account method of payment, payment is made
A. before the goods are shipped
B. when there is no contract involved
C. after the goods have arrived
D. when the exporter doesn’t trust the buyer
33. The three main business areas which have traditionally been resolved by
arbitration are …………
A. shipping, commodity and construction
B. shipping, commerce and wine
C. commodity, construction and share
D. construction, shipping and convenience
34. Employing more staff has reduced our ………… time in the port
A. turning
B. turn-round
C. turn back
D. turnover
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TEST 10
7. The Japanese yen is trading for less than its usual value. You can talk about
…………
A. a small yen
B. a bad yen
C. a weak yen
8. With this method of payment, banks play a passive role. All banks have to do is
to follow the instructions of the buyer and the seller and get a collection fees in
return.
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
9. The government has imposed protective tariffs to stop the ………… of cheap
imports which threatened to destroy domestic industries
A. rain
B. famine
C. flood
D. storm
10. A merger with or the acquisition of one‟s marketing outlets is known as
…………
A. horizontal merger
B. forward merger
C. vertical merger
D. backward merger
11. The payment method needs complete trust between the exporter and the
importer.
A. Bill for collection
B. Letter of credit
C. Advance payment
D. Open account
12. ………… is an approach to business that emphasizes persuading customers to
buy products that you already have, rather than producing new ones that
customers may want.
A. Marketing concept
B. Product concept
C. Promotion concept
D. Selling concept
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13. Transfer of risk from the seller to the buyer (Incoterm 2000): CIF
A. When the goods are At the seller’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
14. One problem in international mergers is the difference in ………… and benefits
for managers with similar positions.
A. duties
B. output
C. activity
D. compensation
15. A takeover of a foreign company is known as a ………… deal.
A. cross-boundary
B. cross-border
C. cross-state
16. The risk of rough handling is covered under the cargo clause …………
A. A
B. B
C. C
D. A and B
17. ………… from a source country into a destination country for the purpose of
exporting to a third country.
A. Horizontal FDI
B. Platform FDI
C. Vertical FDI
18. Factors that can give a country an absolute or comparative advantage in goods
and services over other countries are …………
A. factors of production, most importantly raw materials, but also labor pool.
B. climate, economies of scale.
C. natural resources and location.
D. All of these above.
19. Some countries try to be ………… in certain commodities so that they are not
dependent on imports.
A. economic
B. sufficient
C. self-sufficient
D. self-financing
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20. Make sure all this equipment is insured ………… accidental damage
A. over
B. against
C. with
D. from
21. “free of particular average” means …………
A. No partial loss is payable
B. Partial loss is payable
C. It only covers total loss
D. A & C
22. Governments try to control imports of products to protect domestic industries.
A. Protectionist measures take the form of import duties and quotas.
B. Protectionist measures insure free trade.
C. Workers are always opposed to protectionism.
D. All protectionist policies have the same effect on the market.
23. A sovereign is a coin made of 7.3 grams of gold, and is worth a lot of money.
However, its ………… is just one pound.
A. front value
B. face value
C. written value
24. The company will ………… the police-holder against loss of or damage to the
insured vehicle
A. identify
B. respect
C. indemnify
D. engage
25. With this method of payment, banks play an active role. Banks are responsible
for paying for the exporter in case the importer fails to do so
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
26. A country can accrue wealth if it exports more than it imports
A. This country has a balance of trade deficit
B. Demand for this country’s currency will fall
C. This country receives money from countries which import its products
D. All of these above
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34. The three main business areas which have traditionally been resolved by
arbitration: …………
A. shipping, insurance and commodities
B. shipping, commodities and construction
C. shipping, commodities and raw materials
D. construction, commodities and goods
35. Who can change the marketing mix?
A. Marketing manager
B. Sales manager
C. Product manager
D. Managing Director
36. Reduction in costs resulting from increased production is …………
A. diversifying
B. merging
C. specialization
D. economies of scale
37. Between which 2 parties is an insurance contract made?
A. Between the insurer and the shipping company
B. Between an insurance company and the shipping company
C. Between the insurer and the party taking out insurance cover
D. Between the assured party and the party taking out insurance cover.
38. Among other things, a ………… contains details of the goods, their destination
and the name of the ship carrying them.
A. bill of lading
B. way-bill
C. bill of exchange
D. receipt
39. When the Bill of lading marked "freight collected”. Who pays for the freight?
A. The Buyer
B. The Seller
C. The agent
D. It depends on the agreement
40. Weight is important for air transport because if its …………
A. size
B. high freight rates
C. measurement
D. high quality
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41. She looked at the ………… to check where the goods were produced
A. certificate of origin
B. test certificate
C. postmark
D. trade mark
42. Man-made waterway is called …………
A. canal
B. water-road
C. river road
D. road
43. Multinational companies set up production facilities in countries where
production is most efficient
A. All countries allow foreign ownership of production facilities
B. The larger company is called the parent company; the production facilities are referred
to as a subsidiary.
C. Subsidiary companies eliminate the problem of worldwide competition
D. Each subsidiary needs to consider only local market condition
44. What are specific activities of the middleman?
A. collect products
B. divide the products into amount needed by customers
C. transport
D. all of the above
45. Among a number of international bodies offer arbitration services, the …………
in Paris is the most prestigious.
A. UCP
B. ADR
C. ICC
D. FAO
46. What do we call the difference between a country‟s imports and exports?
A. the balance of trade
B. the balance of payments
C. the surplus
D. the deficit
47. Another term for "main business" is ………… business.
A. central
B. first
C. core
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TEST 11
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14. Transfer of risk from the seller to the buyer (Incoterm 2000): DAF
A. When the goods are at frontier
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
15. A bill of lading with the note is …………
A. Clean bill of lading
B. Claused bill of lading
C. Clear bill of lading
16. It‟s better to start exporting on a small ………… and then expand if things go
well.
A. measure
B. measurement
C. scale
D. rate
17. Investors are looking for a high ………… on their investment.
A. earning
B. return
C. growth
D. performance
18. Transferring money from Britain to another country is called sending money
…………
A. overseas
B. over-water
C. over-waves
19. Multinational companies can adapt their management method to the …………
in each country or continent.
A. their culture
B. local conditions
C. local culture
D. local people
20. When two companies merge they always look at ways to ………… in order to be
more efficient and profitable.
A. recruit staff
B. cut costs
C. increase advertising
D. reduce salaries
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21. The risk of rough handling is covered under the cargo clause …………
A. A
B. B
C. C
D. A and B
22. The bill of lading issued by the carrier for air transport is called …………
A. Air waybill.
B. Air bill of lading.
C. Airway bill of lading.
D. Airway bill.
23. With this method of payment, banks play a passive role. All banks have to do is
to follow the instructions of the buyer and the seller and get a collection fees in
return.
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
24. The decision of arbitrators is …………
A. Law-oriented
B. Business-oriented
C. Action-oriented
D. Reaction-oriented
25. A takeover of a foreign company is known as a ………… deal
A. cross-boundary
B. cross-border
C. cross-state
D. cross-culture
26. Transfer of risk from the seller to the buyer (Incoterm 2000): CPT
A. When the goods are At the seller’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
27. In drafting an arbitration clause, the following questions must be resolved:
A. How many arbitrators sit in the court
B. What is the language of the court
C. Where is the place of the court
D. All of the above
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35. Unless otherwise agreed, the insurance is "minimum cover” – cargo clause
…………
A. A
B. B
C. C
36. Aims of a strategic approach made by multinational companies are …………
A. to access raw materials and markets
B. to get product efficiency and knowhow
C. to access premises and natural resources
D. A & B
37. If the price is quoted FOB Singapore, who pays for the insurance and freight?
A. The exporter.
B. The buyer
C. The forwarding agent.
D. The confirming bank.
38. In joint venture, two or more companies ………… on specific projects
A. collaborate
B. compete
C. practice
D. deal
39. The World Bank refused to grant the loan until an environmental ………… was
carried out.
A. estimate
B. test
C. assessment
D. report
40. The term used to describe attempts to restrict imports into the country:
A. tax
B. quota
C. protectionism
D. tariff
41. A certain climate in a particular country may allow that country to grow
agricultural products in abundance.
A. This country probably has a comparative advantage in agriculture.
B. This country most likely exports farm products.
C. This country can grow food efficiently.
D. All of the above.
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42. Money invested in helping other people start new businesses is called …………
A. venture capital
B. adventure capital
C. start capital
43. Many contracts contain a force majeure ………… to cover this situation.
A. sentence
B. phrase
C. clause
44. When you change money, you usually have to pay a …………
A. commission
B. percentage
C. fee
45. ………… insurance originated in the fifteenth century.
A. Boat
B. Sea
C. Navy
D. Marine
46. By issuing a letter of credit, the bank made ………… to pay the exporter for the
goods, provided that the correct documentation was presented.
A. a willingness
B. a readiness
C. a debit advice
D. an undertaking
47. In Britain, it's not usual to discuss your personal …………
A. money
B. finances
C. money arrangements
48. We can get a government ………… to help build a new factory in an area with
high unemployment.
A. grant
B. money
C. payment
49. The money paid if you die is …………
A. Premium
B. life insurance
C. marine insurance
D. compensation
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TEST 12
8. International trade develops because certain countries are able to produce some
goods more efficiently than other countries. They exchange these goods in order
to satisfied their needs and wants.
A. Countries import the goods which they produce efficiently.
B. Countries probably export the goods which are not efficiently produced.
C. Countries probably exchange goods which they produce efficiently for goods which
other countries produce efficiently.
D. Efficient exchange results from international trade.
9. With this method of payment, banks play a passive role. All banks have to do is
to follow the instructions of the buyer and the seller and get a collection fees in
return
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
10. The bill of lading issued by the carrier for sea transport is called …………
A. Seaway bill.
B. Ocean bill.
C. Sea waybill.
11. "door to door service” is offered. Which term should be used?
A. DDP
B. CIP
C. CIF
12. Steve works for BurgerPlanet. He only earns about £6 …………
A. for an hour
B. an hour
C. the hour
13. A bank that issues a letter of credit (i.e. the importer‟s bank)
A. Collecting bank
B. Issuing bank
C. Confirming bank
D. Advising bank
14. A sovereign is a coin made of 7.3 grams of gold, and is worth a lot of money.
However, its ………… is just one pound.
A. front value
B. face value
C. written value
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22. Collecting, analyzing and reporting data relevant to a specific market situation
(such as a proposed new product) is …………
A. market analysis
B. market segmentation
C. marketing
D. market research
23. What do we call the difference between all the money paid out and received by a
country?
A. the balance of trade
B. the balance of payments
C. deficit
D. surplus
24. Companies with very different products often have a structure based on
…………
A. functional areas
B. geographical spread
C. product lines
D. matrix management
25. Factors that can give a country an absolute or comparative advantage in goods
and services over other countries are …………
A. factors of production, most importantly raw materials, but also labor pool.
B. climate, economies of scale.
C. natural resources and location.
D. All of these above.
26. If the buyer comes from a country which has a poor reputation for enforcing
awards, the best method of payment under the contract is a/ an …………
A. Revolving L/C
B. At sight, confirmed L/C
C. Deferred, irrevocable L/C
D. Transferrable L/C
27. ………… is an approach to business that emphasizes persuading customers to
buy products that you already have, rather than producing new ones that
customers may want.
A. Marketing concept
B. Product concept
C. Promotion concept
D. Selling concept
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28. What are the three main business areas which have traditionally been resolved
by arbitration?
A. Shipping, commodities and construction
B. Shipping, transportation and education
C. Tourism, construction and shipping
D. Education, tourism and commodities
29. In which city would you choose to arbitrate an east-west trading dispute?
A. Hong Kong
B. London
C. Paris
D. Stockholm
30. A marine Bill of Lading becomes negotiable document and no restriction on
ownership when it is …………
A. to order, blank endorsed
B. surrendered, blank endorsement
C. to order, endorsed
31. Transfer of risk from the seller to the buyer (Incoterm 2000): EXW
A. When the goods are At the seller’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
32. Factors that can give a country an absolute or comparative advantage in goods
and services over other countries are …………
A. factors of production, most importantly raw materials, but also labor pool
B. climate, economies of scale.
C. natural resources and location
D. All of these above
33. A contract requiring an exporter in Mozambique to deliver the contract goods
in Beira, Mozambique, for the shipment by sea to Dar es Salaam, Tanzania.
A. FAS Beira
B. CIF Beira
C. FOB Dar es Salaam
34. Who signs "shipped on board” notation?
A. Captain
B. Exporter
C. Shipping company
D. Agent
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35. This method of payment creates cash flow problems and increases risk for the
buyer.
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
36. The cost of borrowing money, usually expressed as a percentage of the amount
borrowed
A. Interest rate
B. A collateral
C. mortgage
D. Inflation rate
37. Does the buyer or seller insure the cargo?
A. The seller
B. The buyer
C. Both the buyer and the seller
D. It depends on the terms of the purchase contract
38. If the price is quoted CIF San Francisco, who pays for the insurance and
freight?
A. The exporter
B. The buyer.
C. The forwarding agent.
D. The confirming bank.
39. The financial risk is taken by ………… such as Lloyds of London.
A. underwriters
B. undertakers
C. underpasses
40. A country can accrue wealth if it exports more than it imports
A. This country has a balance of trade deficit
B. Demand for this country’s currency will fall
C. This country receives money from countries which import its products
D. All of these above
41. A bank that issues a letter of credit (i.e. the importer‟s bank).
A. Collecting bank
B. Issuing bank
C. Confirming bank
D. Advising bank
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49. Buying a company for less than the value of its assets, the selling these assets to
make a profit is called …………
A. asset stripping
B. An acquisition
C. A takeover bid
D. A raid
50. Beside the commercial invoice, the transport document and insurance
document, what do „Other documents‟ include?
A. A Certificate of Origin.
B. A Certificate of Inspection.
C. A health Inspection.
D. Any of the above.
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TEST 13
1. Loose, unpackaged cargo is called …………
A. Goods
B. commodity
C. bulk
D. items
2. The payment method needs complete trust between the exporter and the
importer.
A. Bill for collection
B. Letter of credit
C. Advance payment
D. Open account
3. A basis for mutually beneficial trade is the fact that one country has a
comparative advantage
A. Both the importing country and the exporting country benefit from trade
B. One’s country comparative advantage can benefit another country
C. The comparative advantage of one country can result in trade between countries
D. All of these above
4. With this method of payment, banks play an active role. Banks are responsible
for paying for the exporter in case the importer fails to do so
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
5. Merging with or taking over other firms producing the same type of goods or
services is known as …………
A. horizontal merger
B. diversification
C. vertical merger
D. backward merger
6. If the price is quoted EXW, who pays for the freight?
A. The exporter.
B. The buyer.
C. The forwarding agent.
D. The advising bank.
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14. ………… is the situation when a ship in a storm might have to jettison certain
cargo to protect the ship and the remaining cargo
A. Average clause
B. Particular average
C. General average
D. Average clause general
15. Employing more staff has reduced our ………… time in the port
A. turning
B. turn-round
C. turn back
D. turnover
16. Companies that handle all aspects of their business internally, such as the big oil
companies, are known as ………… companies.
A. multinational
B. venture capital
C. conglomerate
D. vertically-integrated
17. In the UK, mergers and acquisitions are not ………… by the government.
A. controlled
B. checked
C. regulated
18. What is the main difference between arbitration and litigation?
A. Arbitration takes place in private, litigation takes place in court
B. Bias
C. Low costs
D. The process of making decision in court
19. If a letter of credit is confirmed, ………… takes responsibility for payment.
A. the importer’s bank
B. the importer
C. the exporter
D. the exporter’s bank
20. Collecting, analyzing and reporting data relevant to a specific market situation
(such as a proposed new product) is …………
A. market analysis
B. market segmentation
C. marketing
D. market research
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35. ………… from a source country into a destination country for the purpose of
exporting to a third country.
A. Horizontal FDI
B. Platform FDI
C. Vertical FDI
36. Because of the recession, several ships have been laid …………
A. off
B. out
C. down
D. up
37. Getting control of a company by buying over 50% of its shares is …………
A. a raid
B. a takeover bid
C. a merger
D. an acquisition
38. The risk of rough handling is not covered under the cargo clause …………
A. A
B. B
C. C
D. C and B
39. If the price is quoted FOB Singapore, then the seller is not obliged to pay
insurance and freight. Right or wrong?
A. Completely right.
B. Wrong.
C. Partly right, as the seller is obliged to pay only the freight and insurance necessary to
put the goods on board of the designated vessel by the buyer.
D. Completely wrong, because the buyer is obliged to pay for insurance and freight on
his own account if term of trade is FOB
40. What is a transferable credit?
A. It is the kind of credit which allows the exporter to transfer his right as the credit’s
beneficiary to any third party.
B. It is the kind of credit which allows the first beneficiary to request the confirming bank
to pay a third party.
C. It is the kind of negotiable document with which the exporter can endorse for any third
party.
D. It is the kind of credit with which the buyer will not necessarily know who is the
actual supplier of the goods.
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TEST 14
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14. Selling products abroad at prices lower than the cost of production is known as
dumping
A. Dumping is always against government policy
B. Dumping is always beneficial to the importing country because buyers pay lower
prices
C. Exporters dump products on foreign markets to lower domestic employment
D. Some reasons for dumping could be inventory reduction, maintenance of domestic
employment, and continuation of high production levels
15. The court of arbitration applies whatever ………… the parties stipulate in the
contract.
A. International law
B. Corporate law
C. National law
D. Business law
16. Fixed exchange rates are achieved by the intervention of the …………
A. investment bank
B. commercial bank
C. central bank
D. merchant bank
17. Undertaking to indemnify means …………
A. Disagree to pay compensation for loss or damage
B. Agree to pay compensation for loss or damage
C. Agree to pay for loss or damage without compensation
D. Agree to pay compensation for the broker
18. In order to improve their services to customers, banks need to become more
…………
A. Customer oriented
B. profitable
C. competitive
D. efficient
19. With this method of payment, banks play a passive role. All banks have to do is
to follow the instructions of the buyer and the seller and get a collection fees in
return
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
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20. A bank that issues a letter of credit (i.e. the importer‟s bank).
A. Collecting bank
B. Issuing bank
C. Confirming bank
D. Advising bank
21. In the UK, mergers and acquisitions are not ………… by the government.
A. controlled
B. checked
C. regulated
22. A bankrupt person's ………… can be taken and used to repay his/her debts.
A. things
B. items
C. property
23. A bill of exchange become payable upon …………
A. remittance
B. acceptance
C. dispatch
D. maturity
24. Changes in the values of currencies are called …………
A. currency fluctuations
B. currency alterations
C. currency changes
25. Why do sellers or buyers insure their cargoes?
A. To protect themselves from loss or damage to their goods
B. To protect themselves from loss only
C. To protect themselves from damage only
D. To protect the third party from loss or damage to their goods
26. In joint venture, two or more companies ………… on specific projects
A. collaborate
B. compete
C. practice
D. deal
27. In the past, a lot of small banks were ………… by larger ones.
A. bought up
B. eaten up
C. chewed up
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35. Money invested in helping other people start new businesses is called …………
A. venture capital
B. adventure capital
C. start capital
36. The three main business areas which have traditionally been resolved by
arbitration are …………
A. shipping, commodity and construction
B. shipping, commerce and wine
C. commodity, construction and share
D. construction, shipping and convenience
37. Beside the commercial invoice, the transport document and insurance
document, what do „Other documents‟ include?
A. A Certificate of Origin.
B. A Certificate of Inspection.
C. A health Inspection.
D. Any of the above.
38. Employing more staff has reduced our ………… time in the port
A. turning
B. turn-round
C. turn back
D. turnover
39. What do we call a small but very profitable market?
A. mass market
B. up market
C. niche market
D. supermarket
40. A country can accrue wealth if it exports more than it imports.
A. This country has a balance of trade deficit.
B. Demand for this country’s currency will fall.
C. This country receives money from countries which import its products.
D. All of these above.
41. Which of the following is NOT considered to be special requirement in a
sale/purchase contract?
A. Containers are required to be fumigated before shipment.
B. Upgraded packaging materials.
C. Goods must be packed according to export standards.
D. Health inspection for foodstuffs.
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42. ………… allows local companies to use the original manufacturer‟s brand name
A. Franchise
B. Contract
C. License
D. Agreement
43. Prices go up every year. This is because of …………
A. inflation
B. expansion
C. evolution
44. A person who has taken out insurance cover is known as the …………
A. insurer
B. insured
C. insurance
45. With the open account method of payment, payment is made
A. before the goods are shipped.
B. when there is no contract involved.
C. after the goods have arrived.
D. when the exporter doesn’t trust the buyer.
46. A takeover of a foreign company is known as a ………… deal.
A. cross-boundary
B. cross-border
C. cross-state
47. ………… arises when a firm duplicates its home country-based activities at the
same value chain stage in a host country through FDI.
A. Horizontal FDI
B. Platform FDI
C. Vertical FDI
48. Who signs "shipped on board” notation?
A. Captain
B. Exporter
C. Shipping company
D. Agent
49. If a letter of credit is confirmed, ………… takes responsibility for payment.
A. the importer’s bank
B. the importer
C. the exporter
D. the exporter’s bank
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TEST 15
1. She looked at the ………… to check where the goods were produced
A. certificate of origin
B. test certificate
C. postmark
D. trade mark
2. What do we call the difference between all the money paid out and received by a
country?
A. the balance of trade
B. the balance of payments
C. deficit
D. surplus
3. By issuing a letter of credit, the bank made ………… to pay the exporter for the
goods, provided that the correct documentation was presented.
A. a willingness
B. a readiness
C. a debit advice
D. an undertaking
4. Buying another company‟s shares on the stock exchange, hoping to persuade
enough other shareholders to sell to take control of the company.
A. A merger
B. An acquisition
C. An integration
D. A raid
5. ………… means operating all over the world while taking account of local
cultural habits, beliefs and principles in each country or market.
A. Globalization
B. Glocalization
C. Privatization
D. Nationalization
6. Collecting, analyzing and reporting data relevant to a specific market situation
(such as a proposed new product) is …………
A. market analysis
B. market segmentation
C. marketing
D. market research
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14. A life insurance policy pays out ………… your death or after a set period,
whichever is first.
A. in case of
B. if
C. in the event of
15. Three firms have ………… for the contract.
A. tendered
B. offered
C. given prices
16. The movement of money into and out of a company is known as …………
A. annual turnover
B. profit margin
C. cash flow
D. bank charges
17. ………… is open-ended.
A. tailor-made
B. floating
C. open cover
18. Transfer of risk from the seller to the buyer (Incoterm 2000): CFR
A. When the goods are At the seller’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
19. Unless otherwise agreed, the insurance is "minimum cover” – cargo clause
…………
A. A
B. B
C. C
20. The situation in which a country has no foreign trade
A. surplus
B. deficit
C. autarky
D. deficits
21. A bill of lading with the note is …………
A. Clean bill of lading
B. Claused bill of lading
C. Clear bill of lading
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22. Transfer of risk from the seller to the buyer (Incoterm 2000): DDP
A. When the goods are At the buyer’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
23. The agreed amount of money to give insurance cover is …………
A. Premium
B. life insurance
C. marine insurance
D. compensation
24. Cultural differences are one of the potential ………… of international mergers.
A. threats
B. pitfalls
C. attraction
D. benefits
25. Who signs "shipped on board” notation?
A. Captain
B. Exporter
C. Shipping company
D. Agent
26. A merger with or the acquisition of one‟s suppliers
A. horizontal integration
B. vertical integration
C. backward integration
D. forward integration
27. The process of making and defending a claim in court is …………
A. arbitration
B. litigation
C. prevention
D. protection
28. Factors that can give a country an absolute or comparative advantage in goods
and services over other countries are …………
A. factors of production, most importantly raw materials, but also labor pool.
B. climate, economies of scale.
C. natural resources and location.
D. All of these above.
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29. A certain climate in a particular country may allow that country to grow
agricultural products in abundance
A. This country probably has a comparative advantage in agriculture
B. This country most likely exports farm products
C. This country can grow food efficiently
D. All of the above.
30. A company which makes a loss can be described as …………
A. loss-getting
B. loss-making
C. loss-having
31. The financial risk is taken by ………… such as Lloyds of London.
A. underwriters
B. undertakers
C. underpasses
32. Factors that can give a country an absolute or comparative advantage in goods
and services over other countries are …………
A. factors of production, most importantly raw materials, but also labor pool
B. climate, economies of scale.
C. natural resources and location
D. All of these above
33. Multinational companies usually have ………… in different countries.
A. daughter companies
B. subsidiaries
C. factories
D. colleagues
34. Some countries try to be ………… in certain commodities so that they are not
dependent on imports.
A. economic
B. sufficient
C. self-sufficient
D. self-financing
35. Why is the Certificate of Origin required?
A. Because the goods imported are under a preferential tariff or other agreement.
B. Because the exporter has to prove that his exported goods are legal.
C. Because the exporter has to show his proof of paying tax to the customs in the buyer’s
country.
D. Because it is one of the key requirements under the letter of credit’s terms.
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50. Natural disasters usually mean that insurance underwriters suffer …………
A. heavy losses
B. high expenses
C. big debts
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TEST 16
16. If the price is quoted EXW, who pays for the freight?
A. The exporter.
B. The buyer.
C. The forwarding agent.
D. The advising bank.
17. In oriental cultures, to ………… is one of the most embarrassing things that can
happen.
A. lose a job
B. make a mistake
C. lose face
D. receive a favor
18. The government has imposed protective tariffs to stop the ………… of cheap
imports which threatened to destroy domestic industries
A. rain
B. famine
C. flood
D. storm
19. Buying another company‟s shares on the stock exchange, hoping to persuade
enough other shareholders to sell to take control of the company.
A. A merger
B. An acquisition
C. An integration
D. A raid
20. Unless otherwise agreed, the insurance is "minimum cover” – cargo clause
…………
A. A
B. B
C. C
21. In an auction, the item is sold to the person who makes the highest …………
A. bid
B. price
C. offer
22. What do we call the difference between a country‟s imports and exports?
A. the balance of trade
B. the balance of payments
C. the surplus
D. the deficit
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23. In CIF and CIP contracts, the exporter normally assigns the insurance
agreement to …………
A. The buyer
B. The carrier
C. The issuing bank
24. Some manufacturers were accused of …………, in other words selling goods
abroad at a lower price than they were sold domestically.
A. dumping
B. revaluing
C. flooding
D. devaluation
25. The point of delivery is much the same for all ………… terms and …………
terms – when the exporter hands the goods over to the carrier.
A. C and F
B. D and F
C. C and D
26. Banks and insurance companies are types of …………
A. financial institution
B. finance company
C. financier
27. Factors that can give a country an absolute or comparative advantage in goods
and services over other countries are …………
A. factors of production, most importantly raw materials, but also labor pool.
B. climate, economies of scale.
C. natural resources and location.
D. All of these above.
28. The term used to describe attempts to restrict imports into the country
A. tax
B. quota
C. protectionism
D. tariff
29. A basis for mutually beneficial trade is the fact that one country has a
comparative advantage.
A. Both the importing country and the exporting country benefit from trade.
B. One’s country comparative advantage can benefit another country.
C. The comparative advantage of one country can result in trade between countries.
D. All of these above.
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30. Among a number of international bodies offer arbitration services, the …………
in Paris is the most prestigious.
A. UCP
B. ADR
C. ICC
D. FAO
31. The disadvantage of ………… policy is that it is set up for particular time and
automatically expires.
A. tailor-made
B. floating
C. open cover
32. In order to improve their services to customers, banks need to become more
…………
A. Customer oriented
B. profitable
C. competitive
D. efficient
33. The bank notifying the exporter that the letter of credit has been opened is
called …………
A. The issuing bank.
B. The advising bank.
C. The confirming bank.
D. The opening bank.
34. Factors that can give a country an absolute or comparative advantage in goods
and services over other countries are …………
A. factors of production, most importantly raw materials, but also labor pool
B. climate, economies of scale.
C. natural resources and location
D. All of these above
35. Selling products abroad at prices lower than the cost of production is known as
dumping
A. Dumping is always against government policy
B. Dumping is always beneficial to the importing country because buyers pay lower
prices
C. Exporters dump products on foreign markets to lower domestic employment
D. Some reasons for dumping could be inventory reduction, maintenance of domestic
employment, and continuation of high production levels
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43. Buying a company for less than the value of its assets, the selling these assets to
make a profit is called …………
A. asset stripping
B. An acquisition
C. A takeover bid
D. A raid
44. Transfer of risk from the seller to the buyer (Incoterm 2000): DDP
A. When the goods are At the buyer’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
45. The exporter‟s bank then ………… the documents to the importer‟s bank.
A. signs
B. forwards
C. remits
D. defers
46. The bill of lading issued by the carrier for air transport is called …………
A. Air waybill.
B. Air bill of lading.
C. Airway bill of lading.
D. Airway bill.
47. ………… insurance originated in the fifteenth century.
A. Boat
B. Sea
C. Navy
D. Marine
48. In which city would you choose to arbitrate an east-west trading dispute?
A. Hong Kong
B. London
C. Paris
D. Stockholm
49. Joining with firms in other stages of the production or sale of a product is
known as …………
A. horizontal merger
B. diversification
C. vertical merger
D. backward merger
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TEST 17
36. This method of payment creates cash flow problems and increases risk for the
buyer
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
37. The bill of lading issued by the carrier for sea transport is called …………
A. Seaway bill.
B. Ocean bill.
C. Sea waybill.
38. The advantages of arbitration are …………
A. Private and foreseeable costs
B. Lengthy and open
C. Binding and rigid
D. Time - consuming
39. Natural disasters usually mean that insurance underwriters suffer …………
A. heavy losses
B. high expenses
C. big debts
40. What are specific activities of the middleman?
A. collect products
B. divide the products into amount needed by customers
C. transport
D. all of the above
41. A bank that issues a letter of credit (i.e. the importer‟s bank)
A. Collecting bank
B. Issuing bank
C. Confirming bank
D. Advising bank
42. The clause covers General Average.
A. A
B. B
C. A,B,C
43. In Britain, it's not usual to discuss your personal …………
A. money
B. finances
C. money arrangements
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44. Transfer of risk from the seller to the buyer (Incoterm 2000): CPT
A. When the goods are At the seller’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
45. Because of high shipping costs, it made more sense to ………… a manufacturer
to produce our range of furniture
A. license
B. lease
C. control
D. handle
46. Merging with or taking over other firms producing the same type of goods or
services is known as …………
A. horizontal merger
B. diversification
C. vertical merger
D. backward merger
47. A country can accrue wealth if it exports more than it imports
A. This country has a balance of trade deficit
B. Demand for this country’s currency will fall
C. This country receives money from countries which import its products
D. All of these above
48. What do we call a small but very profitable market?
A. mass market
B. up market
C. niche market
D. supermarket
49. The bill of lading issued by the carrier for rail transport is called …………
A. Railway bill.
B. Rail waybill.
C. Railway consignment note.
D. Railway bill of lading.
50. In an auction, the item is sold to the person who makes the highest …………
A. bid
B. price
C. offer
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TEST 18
1. A person who has taken out insurance cover is known as the …………
A. insurer
B. insured
C. insurance
2. Does the buyer or seller insure the cargo?
A. The seller
B. The buyer
C. Both the buyer and the seller
D. It depends on the terms of the purchase contract
3. Buying another company‟s shares on the stock exchange, hoping to persuade
enough other shareholders to sell to take control of the company.
A. A merger
B. An acquisition
C. An integration
D. A raid
4. She looked at the ………… to check where the goods were produced
A. certificate of origin
B. test certificate
C. postmark
D. trade mark
5. In which city would you choose to arbitrate an east-west trading dispute?
A. Hong Kong
B. London
C. Paris
D. Stockholm
6. Transfer of risk from the seller to the buyer (Incoterm 2000): CIP
A. When the goods are At the seller’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
7. A country can accrue wealth if it exports more than it imports.
A. This country has a balance of trade deficit.
B. Demand for this country’s currency will fall.
C. This country receives money from countries which import its products.
D. All of these above.
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8. International trade develops because certain countries are able to produce some
goods more efficiently than other countries. They exchange these goods in order
to satisfied their needs and wants.
A. Countries import the goods which they produce efficiently.
B. Countries probably export the goods which are not efficiently produced.
C. Countries probably exchange goods which they produce efficiently for goods which
other countries produce efficiently.
D. Efficient exchange results from international trade.
9. What do we call the difference between a country‟s imports and exports?
A. the balance of trade
B. the balance of payments
C. the surplus
D. the deficit
10. A merger with or the acquisition of one‟s suppliers is known as …………
A. horizontal merger
B. forward merger
C. vertical merger
D. backward merger
11. A company which makes a profit can be described as profitable or …………
A. profit-getting
B. profit-making
C. profit-having
12. Many countries, such as the United Kingdom and New Zealand, are …………
dependent on international trade
A. favorable
B. heavily
C. perfectly
D. grossly
13. Loose, unpackaged cargo is called …………
A. Goods
B. commodity
C. bulk
D. items
14. A company which makes a loss can be described as …………
A. loss-getting
B. loss-making
C. loss-having
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15. Buying a company for less than the value of its assets, the selling these assets to
make a profit is called …………
A. asset stripping
B. An acquisition
C. A takeover bid
D. A raid
16. A document used for transporting goods in containers by road, rail and ship
without being open is a …………
A. Bill of exchange
B. invoice
C. contract of carriage
D. container bill of lading
17. If the price is quoted FAS Osaka., who pays for the freight?
A. The shipper.
B. The exporter.
C. The forwarding agent.
D. The buyer.
18. The arbitrators‟ awards are …………
A. Consultative and examinatorial
B. Final and enforceable
C. Referrable and reverable
D. All of the above
19. What do we call goods that go from one country to another?
A. exports
B. imports
C. visible exports and imports
D. invisible exports and imports
20. The Japanese yen is trading for less than its usual value. You can talk about
…………
A. a small yen
B. a bad yen
C. a weak yen
21. Marketing is an important consideration for
A. the consumer
B. the distributer
C. all aspects of production
D. the salesman
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22. The fact that labour cots are lower in other countries ………… us at a
tremendous disadvantage
A. makes
B. does
C. puts
D. sells
23. In order to improve their services to customers, banks need to become more
…………
A. Customer oriented
B. profitable
C. competitive
D. efficient
24. All risks covered is under ………… clause
A. A
B. B
C. C
25. If a letter of credit is confirmed, ………… takes responsibility for payment.
A. the importer’s bank
B. the importer
C. the exporter
D. the exporter’s bank
26. Some countries try to be ………… in certain commodities so that they are not
dependent on imports.
A. economic
B. sufficient
C. self-sufficient
D. self-financing
27. A merger with or the acquisition of one‟s marketing outlets
A. horizontal integration
B. vertical integration
C. backward integration
D. forward integration
28. You‟re allowed 30 days‟ ………… for the payment of the renewal premium.
A. grace
B. favour
C. way
D. permission
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29. The term used to describe attempts to restrict imports into the country
A. tax
B. quota
C. protectionism
D. tariff
30. What do we call the difference between a country‟s imports and exports?
A. the balance of trade
B. the balance of payments
C. the surplus
D. the deficit
31. General average has the conditions: …………
A. The ship was in danger
B. The captain decided to lighten the ship and the ship arrived the destination safely
C. The captain decided to lighten the ship and the ship arrived the destination safely with
the remaining cargo
D. A and C
32. In the UK, mergers and acquisitions are not ………… by the government.
A. controlled
B. checked
C. regulated
33. The money paid if you die is …………
A. Premium
B. life insurance
C. marine insurance
D. compensation
34. Collecting, analyzing and reporting data relevant to a specific market situation
(such as a proposed new product) is …………
A. market analysis
B. market segmentation
C. marketing
D. market research
35. This method of payment creates cash flow problems and increases risk for the
buyer.
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
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36. One problem in international mergers is the difference in ………… and benefits
for managers with similar positions.
A. duties
B. output
C. activity
D. compensation
37. Multinational companies can adapt their management method to the …………
in each country or continent.
A. their culture
B. local conditions
C. local culture
D. local people
38. ………… means operating all over the world while taking account of local
cultural habits, beliefs and principles in each country or market.
A. Globalization
B. Glocalization
C. Privatization
D. Nationalization
39. This method of payment creates cash flow problems and increases risk for the
buyer
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
40. Two forms of protectionism are …………
A. quotas and tariffs
B. surplus and deficit
C. duties and taxes
D. barriers and non-barriers
41. Changes in the values of currencies are called …………
A. currency fluctuations
B. currency alterations
C. currency changes
42. A country with very low taxes is known as a …………
A. tax heaven
B. tax haven
C. tax paradise
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50. The bank notifying the exporter that the letter of credit has been opened is
called …………
A. The issuing bank.
B. The advising bank.
C. The confirming bank.
D. The opening bank.
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TEST 19
22. Getting control of a company by buying over 50% of its shares is …………
A. a raid
B. a takeover bid
C. a merger
D. an acquisition
23. Open cover is not a policy: the ………… will write a policy if required.
A. Insurer
B. Importer
C. Exporter
24. You can ………… a house and ………… a car.
A. hire/rent
B. hire/hire
C. rent/rent or hire
25. The situation in which a country has no foreign trade
A. Surplus
B. deficit
C. autarky
D. deficits
26. Sometimes a controlling interest in a company is bought by its managers. This
called a management …………
A. buy-out
B. buy-up
C. buy-in
27. "door to door service” is offered. Which term should be used?
A. DDP
B. CIP
C. CIF
28. A country with very low taxes is known as a …………
A. tax heaven
B. tax haven
C. tax paradise
29. The cost of borrowing money, usually expressed as a percentage of the amount
borrowed
A. Interest rate
B. A collateral
C. mortgage
D. Inflation rate
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30. In oriental cultures, to ………… is one of the most embarrassing things that can
happen.
A. lose a job
B. make a mistake
C. lose face
D. receive a favor
31. ………… means operating all over the world while taking account of local
cultural habits, beliefs and principles in each country or market.
A. Globalization
B. Glocalization
C. Privatization
D. Nationalization
32. A country can accrue wealth if it exports more than it imports.
A. This country has a balance of trade deficit.
B. Demand for this country’s currency will fall.
C. This country receives money from countries which import its products.
D. All of these above.
33. What do we call a small but very profitable market?
A. mass market
B. up market
C. niche market
D. supermarket
34. The ………… form you fill in is the basis of your contract with the insurance
company
A. proposition
B. application
C. enrolment
D. proposal
35. We can get a government ………… to help build a new factory in an area with
high unemployment.
A. grant
B. money
C. payment
36. A person who receives an international payment is called the …………
A. getter
B. beneficiary
C. receiver
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37. When a company‟s top executives buy the company they work for is known as
…………
A. a raid
B. a takeover bid
C. a merger
D. an acquisition
38. Two forms of protectionism are …………
A. quotas and tariffs
B. surplus and deficit
C. duties and taxes
D. barriers and non-barriers
39. If the price is quoted FCA, who pays for the freight?
A. The exporter.
B. The carrier.
C. The buyer.
D. The forwarding agent.
40. Transfer of risk from the seller to the buyer (Incoterm 2000): DDU
A. When the goods are At the buyer’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
41. If the price is quoted CIF San Francisco, who pays for the insurance and
freight?
A. The exporter
B. The buyer.
C. The forwarding agent.
D. The confirming bank.
42. With this method of payment, banks play an active role. Banks are responsible
for paying for the exporter in case the importer fails to do so.
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
43. Banks and insurance companies are types of …………
A. financial institution
B. finance company
C. financier
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TEST 20
1. The risk of rough handling is not covered under the cargo clause …………
A. A
B. B
C. C
D. C and B
2. ………… means operating all over the world while taking account of local
cultural habits, beliefs and principles in each country or market.
A. Globalization
B. Glocalization
C. Privatization
D. Nationalization
3. The situation in which a country has no foreign trade
A. surplus
B. deficit
C. autarky
D. deficits
4. International trade develops because certain countries are able to produce some
goods more efficiently than other countries. They exchange these goods in order
to satisfy their needs and wants.
A. Countries import the goods which they produce efficiently.
B. Counties probably export the goods which are not efficiently produced.
C. Countries probably exchange goods which they produce efficiently for goods which
other countries produce efficiently.
D. Efficient exchange results from international trade.
5. The court of arbitration applies whatever ………… the parties stipulate in the
contract.
A. International law
B. Corporate law
C. National law
D. Business law
6. The point of delivery is much the same for all ………… terms and …………
terms – when the exporter hands the goods over to the carrier.
A. C and F
B. D and F
C. C and D
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36. In these inflationary times it is important to keep the value of your policy closely
………… to the value of your property.
A. adapted
B. linked
C. indicated
D. dependent
37. My endowment policy will ………… when I‟m sixty-five
A. ripen
B. mature
C. flourish
D. break
38. If a letter of credit is confirmed, ………… takes responsibility for payment
A. the importer’s bank
B. the importer
C. the exporter
D. the exporter’s bank
39. A contract requiring an exporter in Ethiopia to send the contract goods by air
for delivery in Windhoek, Namibia.
A. CIF Windhoek
B. CIP Windhoek
C. DEQ Windhoek
40. His insurance company had told him not to admit ………… even though it was
clearly his fault
A. legality
B. likelihood
C. liability
D. crime
41. The advantages of arbitration are …………
A. Private and foreseeable costs
B. Lengthy and open
C. Binding and rigid
D. Time - consuming
42. We can get a government ………… to help build a new factory in an area with
high unemployment.
A. grant
B. money
C. payment
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TEST 21
1. What do we call the difference between all the money paid out and received by a
country?
A. the balance of trade
B. the balance of payments
C. deficit
D. surplus
2. One problem in international mergers is the difference in ………… and benefits
for managers with similar positions.
A. duties
B. output
C. activity
D. compensation
3. Some manufacturers were accused of …………, in other words selling goods
abroad at a lower price than they were sold domestically.
A. dumping
B. revaluing
C. flooding
D. devaluation
4. The amount payable under an insurance policy is called …………
A. indemnity
B. revenue
C. fee
D. charges
5. What does marketing involve?
A. deciding what the customer wants
B. finding out what kinds of product customers want
C. designing and producing a product that satisfies these wants at a profit for the
company
D. A and C
6. A basis for mutually beneficial trade is the fact that one country has a
comparative advantage
A. Both the importing country and the exporting country benefit from trade
B. One’s country comparative advantage can benefit another country
C. The comparative advantage of one country can result in trade between countries
D. All of these above
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7. International trade develops because certain countries are able to produce some
goods more efficiently than other countries. They exchange these goods in order
to satisfy their needs and wants.
A. Countries import the goods which they produce efficiently.
B. Counties probably export the goods which are not efficiently produced.
C. Countries probably exchange goods which they produce efficiently for goods which
other countries produce efficiently.
D. Efficient exchange results from international trade.
8. The term used to describe attempts to restrict imports into the country
A. tax
B. quota
C. protectionism
D. tariff
9. Modern marketing aims to satisfy the wants of the consumer. Marketing
personnel should consider first of all
A. how to advertise the product
B. what products the customer desires
C. how to distribute the product
D. engineering problems
10. A country with very low taxes is known as a …………
A. tax heaven
B. tax haven
C. tax paradise
11. In Japan, the US dollar is …………
A. foreign money
B. strange money
C. a foreign currency
12. The exporter didn‟t receive payment for his goods because the buyer …………
A. defaulted
B. deferred
C. declines
D. denied
13. ………… allows local companies to use the original manufacturer‟s brand name
A. Franchise
B. Contract
C. License
D. Agreement
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14. This method of payment creates cash flow problems and increases risk for the
buyer.
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
15. Some countries try to be ………… in certain commodities so that they are not
dependent on imports.
A. economic
B. sufficient
C. self-sufficient
D. self-financing
16. Three firms have ………… for the contract.
A. tendered
B. offered
C. given prices
17. The technical ………… for electrical equipment can vary from country to
country
A. justification
B. rules
C. specifications
D. uniforms
18. A takeover of a foreign company is known as a ………… deal
A. cross-boundary
B. cross-border
C. cross-state
D. cross-culture
19. Transferring money from Britain to another country is called sending money
…………
A. overseas
B. over-water
C. over-waves
20. Transfer of risk from the seller to the buyer (Incoterm 2000): CIP
A. When the goods are At the seller’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
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28. The risk of rough handling is covered under the cargo clause …………
A. A
B. B
C. C
D. A and B
29. A person who has taken out insurance cover is known as the …………
A. insurer
B. insured
C. insurance
30. Undertaking to indemnify means …………
A. Disagree to pay compensation for loss or damage
B. Agree to pay compensation for loss or damage
C. Agree to pay for loss or damage without compensation
D. Agree to pay compensation for the broker
31. Governments try to control imports of products to protect domestic industries
A. Protectionist measures take the form of import duties and quotas
B. Protectionist measures insure free trade
C. Workers are always opposed to protectionism
D. All protectionist policies have the same effect on the market
32. What are specific activities of the middleman?
A. collect products
B. divide the products into amount needed by customers
C. transport
D. all of the above
33. Sometimes it seems that large companies change their organization and carry
out a ………… process every few years.
A. restructuring
B. decentralization
C. merger
D. takeover
34. Beside the commercial invoice, the transport document and insurance
document, what do „Other documents‟ include?
A. A Certificate of Origin.
B. A Certificate of Inspection.
C. A health Inspection.
D. Any of the above.
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35. Selling products abroad at prices lower than the cost of production is known as
dumping
A. Dumping is always against government policy
B. Dumping is always beneficial to the importing country because buyers pay lower
prices
C. Exporters dump products on foreign markets to lower domestic employment
D. Some reasons for dumping could be inventory reduction, maintenance of domestic
employment, and continuation of high production levels
36. What is the most complete cover of insurance?
A. No partial loss is payable
B. Partial loss is payable
C. It only covers total loss
D. Against all risks
37. ………… insurance originated in the fifteenth century.
A. Boat
B. Sea
C. Navy
D. Marine
38. The Japanese yen is trading for less than its usual value. You can talk about
…………
A. a small yen
B. a bad yen
C. a weak yen
39. Many goods coming here are subject ………… customs duty.
A. for
B. to
C. of
D. with
40. The insurance will be ………… if you omit any relevant information.
A. void
B. valid
C. invaluable
D. priceless
41. A company which makes a profit can be described as profitable or …………
A. profit-getting
B. profit-making
C. profit-having
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42. Joining with firms in other stages of the production or sale of a product.
A. horizontal integration
B. vertical integration
C. backward integration
D. forward integration
43. Which of the following is NOT considered to be special requirement in a
sale/purchase contract?
A. Containers are required to be fumigated before shipment.
B. Upgraded packaging materials.
C. Goods must be packed according to export standards.
D. Health inspection for foodstuffs.
44. Buying a company for less than the value of its assets, the selling these assets to
make a profit is called …………
A. asset stripping
B. An acquisition
C. A takeover bid
D. A raid
45. The exporter‟s bank then ………… the documents to the importer‟s bank.
A. signs
B. forwards
C. remits
D. defers
46. What do we call the difference between all the money paid out and received by a
country?
A. the balance of trade
B. the balance of payments
C. deficit
D. surplus
47. War risk is not included in …………
A. A clause
B. B clause
C. A,B,C clause
48. The agreed amount of money to give insurance cover is …………
A. Premium
B. life insurance
C. marine insurance
D. compensation
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TEST 22
7. The risk of rough handling is not covered under the cargo clause …………
A. A
B. B
C. C
D. C and B
8. Transfer of risk from the seller to the buyer (Incoterm 2000): CIP
A. When the goods are At the seller’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
9. Unlike quotas, tariffs produce ………… for the government.
A. profit
B. surplus
C. revenue
D. earnings
10. Cultural differences are one of the potential ………… of international mergers.
A. threats
B. pitfalls
C. attraction
D. benefits
11. With the open account method of payment, payment is made
A. before the goods are shipped.
B. when there is no contract involved.
C. after the goods have arrived.
D. when the exporter doesn’t trust the buyer.
12. "Full set on board ocean bills of lading to order shipper, blank endorsed”. In
this clause shipper means …………
A. Exporter
B. Importer
C. Bank
D. A or B or C. It depends on the situation.
13. Some of the language in insurance ………… is incomprehensible to most
ordinary people.
A. premiums
B. policies
C. rates
D. invoices
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14. Joining with firms in other stages of the production or sale of a product.
A. horizontal integration
B. vertical integration
C. backward integration
D. forward integration
15. Because of the recession, several ships have been laid …………
A. off
B. out
C. down
D. up
16. A bank that issues a letter of credit (i.e. the importer‟s bank).
A. Collecting bank
B. Issuing bank
C. Confirming bank
D. Advising bank
17. If a country has a ………… currency, importers and exporters may have to
keep changing the prices of their goods.
A. swimming
B. flying
C. flowing
D. floating
18. Insurance companies can be considered as professional ………… Takers
A. life
B. risk
C. chance
D. misfortune
19. ………… is the situation when a ship in a storm might have to jettison certain
cargo to protect the ship and the remaining cargo
A. Average clause
B. Particular average
C. General average
D. Average clause general
20. Does the buyer or seller insure the cargo?
A. The seller
B. The buyer
C. Both the buyer and the seller
D. It depends on the terms of the purchase contract
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28. A force majeure is an ………… event such as strike, riot or natural disaster
which prevents a contract from being …………
A. unforeseen / fulfilled
B. unseen / fulfilled
C. unforeseen / filled
29. Normally, Risks are transferred at the point of …………
A. Delivery
B. Payment
C. Arrival
30. Transfer of risk from the seller to the buyer (Incoterm 2000): CFR
A. When the goods are At the seller’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
31. Bill of Lading is the most important document because it is a …………
A. document of title
B. document of negotiation
C. document of freight
32. Money invested in helping other people start new businesses is called …………
A. venture capital
B. adventure capital
C. start capital
33. His insurance company had told him not to admit ………… even though it was
clearly his fault
A. legality
B. likelihood
C. liability
D. crime
34. Transfer of risk from the seller to the buyer (Incoterm 2000): DES
A. When the goods are ex-ship
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
35. In the UK, mergers and acquisitions are not ………… by the government.
A. controlled
B. checked
C. regulated
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36. With this method of payment, banks play an active role. Banks are responsible
for paying for the exporter in case the importer fails to do so.
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
37. What do we call the difference between all the money paid out and received by a
country?
A. the balance of trade
B. the balance of payments
C. deficit
D. surplus
38. If the price is quoted CFR Hai Phong, who pays for the freight?
A. The buyer.
B. The exporter.
C. The carrier.
D. The forwarding agent.
39. If a letter of credit is confirmed, ………… takes responsibility for payment.
A. the importer’s bank
B. the importer
C. the exporter
D. the exporter’s bank
40. ………… allows local companies to use the original manufacturer‟s brand name
A. Franchise
B. Contract
C. License
D. Agreement
41. If shipment is under Incoterms other than CIF or CIP, …………
A. The buyer has to arrange the insurance cover by himself.
B. The buyer may still ask the exporter to arrange some aspects of the insurance for him.
C. The exporter has to arrange the insurance cover for the goods.
D. The exporter pays for insurance till the port of discharge.
42. The process of making and defending a claim in court is …………
A. arbitration
B. litigation
C. prevention
D. protection
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43. Many countries, such as the United Kingdom and New Zealand, are …………
dependent on international trade
A. favorable
B. heavily
C. perfectly
D. grossly
44. A sovereign is a coin made of 7.3 grams of gold, and is worth a lot of money.
However, its ………… is just one pound.
A. front value
B. face value
C. written value
45. International trade develops because certain countries are able to produce some
goods more efficiently than other countries. They exchange these goods in order
to satisfy their needs and wants.
A. Countries import the goods which they produce efficiently.
B. Counties probably export the goods which are not efficiently produced.
C. Countries probably exchange goods which they produce efficiently for goods which
other countries produce efficiently.
D. Efficient exchange results from international trade.
46. ………… takes place when a firm through FDI moves upstream or downstream
in different value chains i.e., when firms perform value-adding activities stage
by stage in a vertical fashion in a host country.
A. Horizontal FDI
B. Platform FDI
C. Vertical FDI
47. Companies with very different products often have a structure based on
…………
A. functional areas
B. geographical spread
C. product lines
D. matrix management
48. Simultaneous purchase and sale of the same foreign exchange in different
markets to profit from rate differentials.
A. speculating
B. arbitrating
C. hedging
D. trading
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TEST 23
1. This method of payment creates cash flow problems and increases risk for the
buyer.
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
2. The movement of money into and out of a company is known as …………
A. annual turnover
B. profit margin
C. cash flow
D. bank charges
3. If the price is quoted CPT Vancouver, who pays for the freight?
A. The exporter.
B. The forwarding agent.
C. The buyer.
D. The confirming bank.
4. Loose, unpackaged cargo is called …………
A. Goods
B. commodity
C. bulk
D. items
5. International trade develops because certain countries are able to produce some
goods more efficiently than other countries. They exchange these goods in order
to satisfied their needs and wants
A. Countries import the goods which they produce efficiently.
B. Countries probably export the goods which are not efficiently produced
C. Countries probably exchange goods which they produce efficiently for goods which
other countries produce efficiently
D. Efficient exchange results from international trade
6. When two companies merge they always look at ways to ………… in order to be
more efficient and profitable.
A. recruit staff
B. cut costs
C. increase advertising
D. reduce salaries
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7. When the Bill of lading marked "freight collected”. Who pays for the freight?
A. The Buyer
B. The Seller
C. The agent
D. It depends on the agreement
8. The insurance will be ………… if you omit any relevant information.
A. void
B. valid
C. invaluable
D. priceless
9. Bill of Lading is the most important document because it is a …………
A. document of title
B. document of negotiation
C. document of freight
10. Transfer of risk from the seller to the buyer (Incoterm 2000): DDP
A. When the goods are At the buyer’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
11. Multinational companies usually have ………… in different countries.
A. daughter companies
B. subsidiaries
C. factories
D. colleagues
12. With this method of payment, banks play a passive role. All banks have to do is
to follow the instructions of the buyer and the seller and get a collection fees in
return
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
13. The government has imposed protective tariffs to stop the ………… of cheap
imports which threatened to destroy domestic industries
A. rain
B. famine
C. flood
D. storm
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14. Because of the recession, several ships have been laid …………
A. off
B. out
C. down
D. up
15. The bill of lading issued by the carrier for air transport is called …………
A. Air waybill.
B. Air bill of lading.
C. Airway bill of lading.
D. Airway bill.
16. Simultaneous purchase and sale of the same foreign exchange in different
markets to profit from rate differentials.
A. speculating
B. arbitrating
C. hedging
D. trading
17. Modern marketing aims to satisfy the wants of the consumer. Marketing
personnel should consider first of all
A. how to advertise the product
B. what products the customer desires
C. how to distribute the product
D. engineering problems
18. Among other things, a ………… contains details of the goods, their destination
and the name of the ship carrying them.
A. bill of lading
B. way-bill
C. bill of exchange
D. receipt
19. Go to an insurance ………… and see if you can get a better deal.
A. breaker
B. broker
C. speculator
D. merchant
20. An insurance broker usually ………… several different insurance companies.
A. deals with
B. contacts
C. works for
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21. The fact that labour cots are lower in other countries ………… us at a
tremendous disadvantage
A. makes
B. does
C. puts
D. sells
22. A monetary system whereby the value of currencies could be converted into gold
at a country‟s central bank
A. gold system
B. gold standard
C. gold value
D. gold convertible
23. “free of particular average” means …………
A. No partial loss is payable
B. Partial loss is payable
C. It only covers total loss
D. A & C
24. A life insurance policy pays out ………… your death or after a set period,
whichever is first.
A. in case of
B. if
C. in the event of
25. Make sure all this equipment is insured ………… accidental damage
A. over
B. against
C. with
D. from
26. What do we call goods that go from one country to another?
A. exports
B. imports
C. visible exports and imports
D. invisible exports and imports
27. The person the goods are sent to is called a …………
A. consignor
B. consignee
C. commissioner
D. master
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35. Transfer of risk from the seller to the buyer (Incoterm 2000): CFR
A. When the goods are At the seller’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
36. Banks and insurance companies are types of …………
A. financial institution
B. finance company
C. financier
37. ………… original(s) Bill of lading constitute(s) a full set.
A. 1
B. 2
C. 3
38. When a company‟s top executives buy the company they work for is known as
…………
A. a raid
B. a takeover bid
C. a merger
D. an acquisition
39. In oriental cultures, to ………… is one of the most embarrassing things that can
happen.
A. lose a job
B. make a mistake
C. lose face
D. receive a favor
40. When the total value of a country‟s imports is greater than its exports, it is a
trade …………
A. balance
B. loss
C. debit
D. deficit
41. A certain climate in a particular country may allow that country to grow
agricultural products in abundance.
A. This country probably has a comparative advantage in agriculture.
B. This country most likely exports farm products.
C. This country can grow food efficiently.
D. All of the above.
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42. She looked at the ………… to check where the goods were produced
A. certificate of origin
B. test certificate
C. postmark
D. trade mark
43. The process of making and defending a claim in court is …………
A. arbitration
B. litigation
C. prevention
D. protection
44. If the price is quoted CFR Hai Phong, who pays for the freight?
A. The buyer.
B. The exporter.
C. The carrier.
D. The forwarding agent.
45. Trying to insure against unfavorable price movements by way of futures
contract
A. speculating
B. arbitrating
C. hedging
D. trading
46. A contract requiring an exporter in Ethiopia to send the contract goods by air
for delivery in Windhoek, Namibia.
A. CIF Windhoek
B. CIP Windhoek
C. DEQ Windhoek
47. Transfer of risk from the seller to the buyer (Incoterm 2000): FCA
A. When the goods are At the seller’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
48. Some manufacturers were accused of …………, in other words selling goods
abroad at a lower price than they were sold domestically.
A. dumping
B. revaluing
C. flooding
D. devaluation
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49. You‟re allowed 30 days‟ ………… for the payment of the renewal premium.
A. grace
B. favour
C. way
D. permission
50. A company which makes a loss can be described as …………
A. loss-getting
B. loss-making
C. loss-having
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TEST 24
7. International trade develops because certain countries are able to produce some
goods more efficiently than other countries. They exchange these goods in order
to satisfy their needs and wants.
A. Countries import the goods which they produce efficiently.
B. Counties probably export the goods which are not efficiently produced.
C. Countries probably exchange goods which they produce efficiently for goods which
other countries produce efficiently.
D. Efficient exchange results from international trade.
8. Cultural differences are one of the potential ………… of international mergers.
A. threats
B. pitfalls
C. attraction
D. benefits
9. If the price is quoted EXW, who pays for the freight?
A. The exporter.
B. The buyer.
C. The forwarding agent.
D. The advising bank.
10. What is the best kind of advertising?
A. TV advertising
B. Word of mouth
C. Printing advertising
D. Radio advertising
11. An evidence that an insurance contract has been made is …………
A. An insurance certificate
B. A certificate of origin
C. A health certificate
D. A compensation certificate
12. You can ………… a house and ………… a car.
A. hire/rent
B. hire/hire
C. rent/rent or hire
13. Transfer of risk from the seller to the buyer (Incoterm 2000): CPT
A. When the goods are At the seller’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
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14. Go to an insurance ………… and see if you can get a better deal.
A. breaker
B. broker
C. speculator
D. merchant
15. The situation in which a country has no foreign trade
A. Surplus
B. deficit
C. autarky
D. deficits
16. The term used to describe attempts to restrict imports into the country:
A. tax
B. quota
C. protectionism
D. tariff
17. An insurance broker usually ………… several different insurance companies.
A. deals with
B. contacts
C. works for
18. ………… Bill of lading – found something wrong with the consignment
A. clean
B. clear
C. claused
19. ………… is the money paid for the right to use the property of another person.
A. Compensation payment
B. Royalty payment
C. Property charges
D. Royalty fees
20. Because of the recession, several ships have been laid …………
A. off
B. out
C. down
D. up
21. In the UK, mergers and acquisitions are not ………… by the government.
A. controlled
B. checked
C. regulated
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22. Factors that can give a country an absolute or comparative advantage in goods
and services over other countries are …………
A. factors of production, most importantly raw materials, but also labor pool.
B. climate, economies of scale.
C. natural resources and location.
D. All of these above.
23. ………… are cash grants, lower taxes, accelerated depreciation, training
allowance, research subsidies and interest rebates on loans
A. Investment incentives
B. Labour incentives
C. Bonus
D. Returns on investment
24. Companies with very different products often have a structure based on
…………
A. functional areas
B. geographical spread
C. product lines
D. matrix management
25. Why is the Certificate of Origin required?
A. Because the goods imported are under a preferential tariff or other agreement.
B. Because the exporter has to prove that his exported goods are legal.
C. Because the exporter has to show his proof of paying tax to the customs in the buyer’s
country.
D. Because it is one of the key requirements under the letter of credit’s terms.
26. With this method of payment, banks play a passive role. All banks have to do is
to follow the instructions of the buyer and the seller and get a collection fees in
return
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
27. Does the buyer or seller insure the cargo?
A. The seller
B. The buyer
C. Both the buyer and the seller
D. It depends on the terms of the purchase contract
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28. Simultaneous purchase and sale of the same foreign exchange in different
markets to profit from rate differentials.
A. speculating
B. arbitrating
C. hedging
D. trading
29. After dispatching the goods, the exporter ………… the documents to his bank.
A. demands
B. collects
C. issues
D. presents
30. Governments try to control imports of products to protect domestic industries.
A. Protectionist measures take the form of import duties and quotas.
B. Protectionist measures insure free trade.
C. Workers are always opposed to protectionism.
D. All protectionist policies have the same effect on the market.
31. Here's the fifty dollars I …………
A. owe you
B. pay you back
C. must return
32. The agreed amount of money to give insurance cover is …………
A. Premium
B. life insurance
C. marine insurance
D. compensation
33. A bill of lading with the note is …………
A. Clean bill of lading
B. Claused bill of lading
C. Clear bill of lading
34. Banks and insurance companies are types of …………
A. financial institution
B. finance company
C. financier
35. Another term for "main business" is ………… business.
A. central
B. first
C. core
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36. What do we call the difference between a country‟s imports and exports?
A. the balance of trade
B. the balance of payments
C. the surplus
D. the deficit
37. Weight is important for air transport because if its …………
A. size
B. high freight rates
C. measurement
D. high quality
38. Getting control of a company by buying over 50% of its shares is …………
A. a raid
B. a takeover bid
C. a merger
D. an acquisition
39. All risks covered is under ………… clause
A. A
B. B
C. C
40. Selling products abroad at prices lower than the cost of production is known as
dumping
A. Dumping is always against government policy
B. Dumping is always beneficial to the importing country because buyers pay lower
prices
C. Exporters dump products on foreign markets to lower domestic employment
D. Some reasons for dumping could be inventory reduction, maintenance of domestic
employment, and continuation of high production levels
41. A person who has taken out insurance cover is known as the …………
A. insurer
B. insured
C. insurance
42. My endowment policy will ………… when I‟m sixty-five
A. ripen
B. mature
C. flourish
D. break
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43. Buying another company‟s shares on the stock exchange, hoping to persuade
enough other shareholders to sell to take control of the company.
A. A merger
B. An acquisition
C. An integration
D. A raid
44. A bank that issues a letter of credit (i.e. the importer‟s bank)
A. Collecting bank
B. Issuing bank
C. Confirming bank
D. Advising bank
45. In CIF and CIP contracts, the exporter normally assigns the insurance
agreement to …………
A. The buyer
B. The carrier
C. The issuing bank
46. Many goods coming here are subject ………… customs duty.
A. for
B. to
C. of
D. with
47. ………… means operating all over the world while taking account of local
cultural habits, beliefs and principles in each country or market.
A. Globalization
B. Glocalization
C. Privatization
D. Nationalization
48. A country can accrue wealth if it exports more than it imports.
A. This country has a balance of trade deficit.
B. Demand for this country’s currency will fall.
C. This country receives money from countries which import its products.
D. All of these above.
49. The Mexican peso is trading for more than its usual value. You can talk about
…………
A. a big peso
B. a good peso
C. a strong peso
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TEST 25
1. ………… means operating all over the world while taking account of local
cultural habits, beliefs and principles in each country or market.
A. Globalization
B. Glocalization
C. Privatization
D. Nationalization
2. In CIF and CIP contracts, the exporter normally assigns the insurance
agreement to …………
A. The buyer
B. The carrier
C. The issuing bank
3. In an auction, the item is sold to the person who makes the highest …………
A. bid
B. price
C. offer
4. Anything that acts as a security or guarantee for a loan
A. Collateral
B. Mortgage
C. Warranty
D. Guarantee
5. If the price is quoted CFR Hai Phong, who pays for the freight?
A. The buyer.
B. The exporter.
C. The carrier.
D. The forwarding agent.
6. A force majeure is an ………… event such as strike, riot or natural disaster
which prevents a contract from being …………
A. unforeseen / fulfilled
B. unseen / fulfilled
C. unforeseen / filled
7. She looked at the ………… to check where the goods were produced
A. certificate of origin
B. test certificate
C. postmark
D. trade mark
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15. A life insurance policy pays out ………… your death or after a set period,
whichever is first.
A. in case of
B. if
C. in the event of
16. Because of the recession, several ships have been laid …………
A. off
B. out
C. down
D. up
17. With this method of payment, banks play a passive role. All banks have to do is
to follow the instructions of the buyer and the seller and get a collection fees in
return.
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
18. Clients look for ………… from an arbitration service.
A. speed and cost effectiveness
B. reliability of the arbitrators and their decisions
C. confidentiality
D. all of the above (A, B and C)
19. A public offer to buy a company‟s shareholders to buy their shares, at a
particular price during a particular period, so as to acquire a company
A. A merger
B. An acquisition
C. A takeover bid
D. A raid
20. ………… Bill of lading – found something wrong with the consignment
A. clean
B. clear
C. claused
21. ………… from a source country into a destination country for the purpose of
exporting to a third country.
A. Horizontal FDI
B. Platform FDI
C. Vertical FDI
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29. Multinational companies can adapt their management method to the …………
in each country or continent.
A. their culture
B. local conditions
C. local culture
D. local people
30. Sometimes it seems that large companies change their organization and carry
out a ………… process every few years.
A. restructuring
B. decentralization
C. merger
D. takeover
31. Between which 2 parties is an insurance contract made?
A. Between the insurer and the shipping company
B. Between an insurance company and the shipping company
C. Between the insurer and the party taking out insurance cover
D. Between the assured party and the party taking out insurance cover.
32. In drafting an arbitration clause, the following questions must be resolved:
A. How many arbitrators sit in the court
B. What is the language of the court
C. Where is the place of the court
D. All of the above
33. The contract should regulate what happens if Incoterm 2000 and the terms of
the contract conflict: normally the ………… prevails.
A. Incoterm
B. Contract
C. Incoterm and contract
34. What is the main difference between arbitration and litigation?
A. Arbitration takes place in private, litigation takes place in court
B. Bias
C. Low costs
D. The process of making decision in court
35. Transfer of risk from the seller to the buyer (Incoterm 2000): DES
A. When the goods are ex-ship
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
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TEST 26
7. If the price is quoted FAS Osaka., who pays for the freight?
A. The shipper.
B. The exporter.
C. The forwarding agent.
D. The buyer.
8. The Mexican peso is trading for more than its usual value. You can talk about
…………
A. a big peso
B. a good peso
C. a strong peso
9. The person who goes between the person who wants the insurance and the
person who underwrites it is …………
A. a shipper
B. a client
C. a broker
D. an insurer
10. A contract requiring the exporter to send the contract goods by road from
Kenya to Zambia with freight paid by the exporter.
A. CFR Lusaka
B. CPT Lusaka
C. CFR Nairobi
11. ………… prohibits corporations from cornering a market.
A. Anti dumping
B. Anti-trust legislation
C. Monopoly
D. Exclusion
12. If the price is quoted EXW, who pays for the freight?
A. The exporter.
B. The buyer.
C. The forwarding agent.
D. The advising bank.
13. Earthquake, volcanic eruption and lighting are not covered under the cargo
clause …………
A. A
B. B
C. C
D. B and C
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14. A contract requiring an exporter in Ethiopia to send the contract goods by air
for delivery in Windhoek, Namibia.
A. CIF Windhoek
B. CIP Windhoek
C. DEQ Windhoek
15. Currency bought or sold today with delivery two business days later
A. Spot transaction
B. Forward transaction
C. business transaction
D. Futures transaction
16. Which market is bigger?
A. Super market is bigger than traditional market
B. Street market is bigger than home market
C. An open air market is bigger than a home market
D. Product market is bigger than consumer market
17. The situation in which a country has no foreign trade
A. surplus
B. deficit
C. autarky
D. deficits
18. In drafting an arbitration clause, the following questions must be resolved:
A. How many arbitrators sit in the court?
B. What is the language of the court?
C. Where is the place of the court?
D. All of the above
19. Selling products abroad at prices lower than the cost of production is known as
dumping
A. Dumping is always against government policy
B. Dumping is always beneficial to the importing country because buyers pay lower
prices
C. Exporters dump products on foreign markets to lower domestic employment
D. Some reasons for dumping could be inventory reduction, maintenance of domestic
employment, and continuation of high production levels
20. Here's the fifty dollars I …………
A. owe you
B. pay you back
C. must return
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21. Transfer of risk from the seller to the buyer (Incoterm 2000): FCA
A. When the goods are At the seller’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
22. Multinational companies can adapt their management method to the …………
in each country or continent.
A. their culture
B. local conditions
C. local culture
D. local people
23. If a country has a ………… currency, importers and exporters may have to
keep changing the prices of their goods.
A. swimming
B. flying
C. flowing
D. floating
24. Multinational companies usually have ………… in different countries.
A. daughter companies
B. subsidiaries
C. factories
D. colleagues
25. If a letter of credit is confirmed, ………… takes responsibility for payment
A. the importer’s bank
B. the importer
C. the exporter
D. the exporter’s bank
26. Transfer of risk from the seller to the buyer (Incoterm 2000): DDP
A. When the goods are At the buyer’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
27. Transfer of risk from the seller to the buyer (Incoterm 2000): DAF
A. When the goods are at frontier
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
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28. Among other things, a ………… contains details of the goods, their destination
and the name of the ship carrying them.
A. bill of lading
B. way-bill
C. bill of exchange
D. receipt
29. A takeover of a foreign company is known as a ………… deal.
A. cross-boundary
B. cross-border
C. cross-state
30. If alternative means of transport or partial shipments are allowed perhaps by
different modes of transport, the letter of credit should have the words …………
between the names of transport documents.
A. and.
B. or.
C. and/or.
D. Either B or C.
31. A basis for mutually beneficial trade is the fact that one country has a
comparative advantage.
A. Both the importing country and the exporting country benefit from trade.
B. One’s country comparative advantage can benefit another country.
C. The comparative advantage of one country can result in trade between countries.
D. All of these above.
32. The disadvantage of ………… policy is that it is set up for particular time and
automatically expires.
A. tailor-made
B. floating
C. open cover
33. My insurance company offers a wide ………… of cover
A. range
B. branch
C. rank
D. standard
34. Steve works for BurgerPlanet. He only earns about £6 …………
A. for an hour
B. an hour
C. the hour
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35. Factors that can give a country an absolute or comparative advantage in goods
and services over other countries are …………
A. factors of production, most importantly raw materials, but also labor pool.
B. climate, economies of scale.
C. natural resources and location.
D. All of these above.
36. A marine Bill of Lading becomes negotiable document and no restriction on
ownership when it is …………
A. to order, blank endorsed
B. surrendered, blank endorsement
C. to order, endorsed
37. If the contract does not specify applicable law, the ………… will be applied.
A. Anglo - American law
B. Continental law
C. International private law
D. National law
38. One problem in international mergers is the difference in ………… and benefits
for managers with similar positions.
A. duties
B. output
C. activity
D. compensation
39. What do we call goods that go from one country to another?
A. exports
B. imports
C. visible exports and imports
D. invisible exports and imports
40. In an auction, the item is sold to the person who makes the highest …………
A. bid
B. price
C. offer
41. The government has imposed protective tariffs to stop the ………… of cheap
imports which threatened to destroy domestic industries
A. rain
B. famine
C. flood
D. storm
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42. Open cover is not a policy: the ………… will write a policy if required.
A. Insurer
B. Importer
C. Exporter
43. Some countries try to be ………… in certain commodities so that they are not
dependent on imports.
A. economic
B. sufficient
C. self-sufficient
D. self-financing
44. In order to improve their services to customers, banks need to become more
…………
A. Customer oriented
B. profitable
C. competitive
D. efficient
45. A merger with or the acquisition of one‟s marketing outlets is known as
…………
A. horizontal merger
B. forward merger
C. vertical merger
D. backward merger
46. ………… original(s) Bill of lading constitute(s) a full set.
A. 1
B. 2
C. 3
47. Sometimes it seems that large companies change their organization and carry
out a ………… process every few years.
A. restructuring
B. decentralization
C. merger
D. takeover
48. We can get a government ………… to help build a new factory in an area with
high unemployment.
A. grant
B. money
C. payment
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49. ………… takes place when a firm through FDI moves upstream or downstream
in different value chains i.e., when firms perform value-adding activities stage
by stage in a vertical fashion in a host country.
A. Horizontal FDI
B. Platform FDI
C. Vertical FDI
50. Transfer of risk from the seller to the buyer (Incoterm 2000): CIP
A. When the goods are At the seller’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
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TEST 27
16. Multinational companies can adapt their management method to the …………
in each country or continent.
A. their culture
B. local conditions
C. local culture
D. local people
17. The bank notifying the exporter that the letter of credit has been opened is
called …………
A. The issuing bank.
B. The advising bank.
C. The confirming bank.
D. The opening bank.
18. Factors considered when choosing the modes of transportation are …………
A. freight, size and premium
B. time, length and weight
C. nature of the goods, size and rates
D. nature of the goods, time and freight rates
19. The three main business areas which have traditionally been resolved by
arbitration are …………
A. shipping, commodity and construction
B. shipping, commerce and wine
C. commodity, construction and share
D. construction, shipping and convenience
20. What is a transferable credit?
A. It is the kind of credit which allows the exporter to transfer his right as the credit’s
beneficiary to any third party.
B. It is the kind of credit which allows the first beneficiary to request the confirming bank
to pay a third party.
C. It is the kind of negotiable document with which the exporter can endorse for any third
party.
D. It is the kind of credit with which the buyer will not necessarily know who is the
actual supplier of the goods.
21. Transfer of risk from the seller to the buyer (Incoterm 2000): FCA
A. When the goods are At the seller’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
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22. The bill of lading issued by the carrier for sea transport is called …………
A. Seaway bill.
B. Ocean bill.
C. Sea waybill.
23. Combined production or productivity that is greater than the sum of the
separate parts
A. diversifying
B. merging
C. specialization
D. synergy
24. A public offer to buy a company‟s shareholders to buy their shares, at a
particular price during a particular period, so as to acquire a company
A. A merger
B. An acquisition
C. A takeover bid
D. A raid
25. Joining with firms in other stages of the production or sale of a product.
A. horizontal integration
B. vertical integration
C. backward integration
D. forward integration
26. The process of making and defending a claim in court is …………
A. arbitration
B. litigation
C. prevention
D. protection
27. Many countries, such as the United Kingdom and New Zealand, are …………
dependent on international trade
A. favorable
B. heavily
C. perfectly
D. grossly
28. Man-made waterway is called …………
A. canal
B. water-road
C. river road
D. road
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29. Merging with or taking over other firms producing the same type of goods or
services is known as …………
A. horizontal merger
B. diversification
C. vertical merger
D. backward merger
30. If the price is quoted CIF San Francisco, who pays for the insurance and
freight?
A. The exporter
B. The buyer.
C. The forwarding agent.
D. The confirming bank.
31. Trying to insure against unfavorable price movements by way of futures
contract
A. speculating
B. arbitrating
C. hedging
D. trading
32. A certain climate in a particular country may allow that country to grow
agricultural products in abundance.
A. This country probably has a comparative advantage in agriculture.
B. This country most likely exports farm products.
C. This country can grow food efficiently.
D. All of the above.
33. Transfer of risk from the seller to the buyer (Incoterm 2000): CIP
A. When the goods are At the seller’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
34. Natural disasters usually mean that insurance underwriters suffer …………
A. heavy losses
B. high expenses
C. big debts
35. Many contracts contain a force majeure ………… to cover this situation.
A. sentence
B. phrase
C. clause
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36. The term used to describe attempts to restrict imports into the country:
A. tax
B. quota
C. protectionism
D. tariff
37. Is there any requirement that the air waybill shows the date of the flight?
A. No, there isn’t.
B. Yes, there is.
C. Never is there such a requirement.
D. No, it is an incorrect requirement because a correctly completed waybill cannot show
this information.
38. An insolvent company often goes into liquidation. A private individual who
cannot pay his/her debts may be declared ………… by a court.
A. bankrupt
B. indebted
C. penniless
39. Unless otherwise agreed, the insurance is "minimum cover” – cargo clause
…………
A. A
B. B
C. C
40. In which city would you choose to arbitrate an east-west trading dispute?
A. Hong Kong
B. London
C. Paris
D. Stockholm
41. In oriental cultures, to ………… is one of the most embarrassing things that can
happen.
A. lose a job
B. make a mistake
C. lose face
D. receive a favor
42. Aims of a strategic approach made by multinational companies are …………
A. to access raw materials and markets
B. to get product efficiency and knowhow
C. to access premises and natural resources
D. A & B
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50. With this method of payment, banks play a passive role. All banks have to do is
to follow the instructions of the buyer and the seller and get a collection fees in
return
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
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TEST 28
8. When two companies merge they always look at ways to ………… in order to be
more efficient and profitable.
A. recruit staff
B. cut costs
C. increasing advertising
D. reduce salaries
9. The company will ………… the police-holder against loss of or damage to the
insured vehicle
A. identify
B. respect
C. indemnify
D. engage
10. Unless the letter of credit states otherwise, insurance coverage on a CIF or CIP
shipment must be for ………… of the CIF (or CIP) value of the goods.
A. 100%.
B. 90%.
C. 50%.
D. 110%.
11. An insurance broker usually ………… several different insurance companies.
A. deals with
B. contacts
C. works for
12. Transfer of risk from the seller to the buyer (Incoterm 2000): EXW
A. When the goods are At the seller’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
13. If shipment is under Incoterms other than CIF or CIP, …………
A. The buyer has to arrange the insurance cover by himself.
B. The buyer may still ask the exporter to arrange some aspects of the insurance for him.
C. The exporter has to arrange the insurance cover for the goods.
D. The exporter pays for insurance till the port of discharge.
14. When the Bill of lading marked "freight collected”. Who pays for the freight?
A. The Buyer
B. The Seller
C. The agent
D. It depends on the agreement
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15. If the price is quoted CIP Marseille, who pays for the insurance and freight?
A. The buyer.
B. The exporter.
C. The issuing bank.
D. The forwarding agent.
16. The exporter didn‟t receive payment for his goods because the buyer …………
A. defaulted
B. deferred
C. declines
D. denied
17. Why do sellers or buyers insure their cargoes?
A. To protect themselves from loss or damage to their goods
B. To protect themselves from loss only
C. To protect themselves from damage only
D. To protect the third party from loss or damage to their goods
18. If the price is quoted CPT Vancouver, who pays for the freight?
A. The exporter.
B. The forwarding agent.
C. The buyer.
D. The confirming bank.
19. Open cover is not a policy: the ………… will write a policy if required.
A. Insurer
B. Importer
C. Exporter
20. In CIF and CIP contracts, ………… must pay for insurance from the point of
delivery to the named point of arrival.
A. The exporter
B. The importer
C. The carrier
21. ………… Bill of lading – found something wrong with the consignment
A. clean
B. clear
C. claused
22. In the UK, mergers and acquisitions are not ………… by the government.
A. controlled
B. checked
C. regulated
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30. Getting control of a company by buying over 50% of its shares is …………
A. a raid
B. a takeover bid
C. a merger
D. an acquisition
31. ………… takes place when a firm through FDI moves upstream or downstream
in different value chains i.e., when firms perform value-adding activities stage
by stage in a vertical fashion in a host country.
A. Horizontal FDI
B. Platform FDI
C. Vertical FDI
32. In joint venture, two or more companies ………… on specific projects
A. collaborate
B. compete
C. practice
D. deal
33. A document that shows details of goods being transported; it entitles the
receiver to collect the goods on arrival
A. An invoice
B. A bill of exchange
C. A bill of lading
D. A draft
34. With this method of payment, banks play an active role. Banks are responsible
for paying for the exporter in case the importer fails to do so
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
35. Transfer of risk from the seller to the buyer (Incoterm 2000): CIP
A. When the goods are At the seller’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
36. In Britain, it's not usual to discuss your personal …………
A. money
B. finances
C. money arrangements
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37. Some countries try to be ………… in certain commodities so that they are not
dependent on imports.
A. economic
B. sufficient
C. self-sufficient
D. self-financing
38. Some of the language in insurance ………… is incomprehensible to most
ordinary people.
A. premiums
B. policies
C. rates
D. invoices
39. The Japanese yen is trading for less than its usual value. You can talk about …
A. a small yen
B. a bad yen
C. a weak yen
40. When the total value of a country‟s imports is greater than its exports, it is a
trade …………
A. balance
B. loss
C. debit
D. deficit
41. This method of payment creates cash flow problems and increases risk for the
buyer.
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
42. All risks covered is under ………… clause
A. A
B. B
C. C
43. The risk of rough handling is covered under the cargo clause …………
A. A
B. B
C. C
D. A and B
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44. Currency bought or sold today with delivery two business days later
A. Spot transaction
B. Forward transaction
C. business transaction
D. Futures transaction
45. Investors are looking for a high ………… on their investment.
A. earning
B. return
C. growth
D. performance
46. Joining with firms in other stages of the production or sale of a product.
A. horizontal integration
B. vertical integration
C. backward integration
D. forward integration
47. With this method of payment, banks play a passive role. All banks have to do is
to follow the instructions of the buyer and the seller and get a collection fees in
return.
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
48. The advantages of arbitration are …………
A. Private and foreseeable costs
B. Lengthy and open
C. Binding and rigid
D. Time - consuming
49. All mergers aim to create ………… for the two companies‟ shareholders.
A. added value
B. lower costs
C. economies of scale
D. tax benefits
50. Make sure all this equipment is insured ………… accidental damage
A. over
B. against
C. with
D. from
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TEST 29
1. With this method of payment, banks play an active role. Banks are responsible
for paying for the exporter in case the importer fails to do so
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
2. A bank that issues a letter of credit (i.e. the importer‟s bank)
A. Collecting bank
B. Issuing bank
C. Confirming bank
D. Advising bank
3. A public offer to buy a company‟s shareholders to buy their shares, at a
particular price during a particular period, so as to acquire a company
A. A merger
B. An acquisition
C. A takeover bid
D. A raid
4. ………… is an approach to business that emphasizes persuading customers to
buy products that you already have, rather than producing new ones that
customers may want.
A. Marketing concept
B. Product concept
C. Promotion concept
D. Selling concept
5. The exporter didn‟t receive payment for his goods because the buyer …………
A. defaulted
B. deferred
C. declines
D. denied
6. The bank notifying the exporter that the letter of credit has been opened is
called …………
A. The issuing bank.
B. The advising bank.
C. The confirming bank.
D. The opening bank.
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7. Transfer of risk from the seller to the buyer (Incoterm 2000): FOB
A. When the goods are At the seller’s premises
B. When the goods are handed to the first carrier
C. When the goods across the ship’s rail
D. When the goods are on board
8. What agreement is usually made in an insurance contract?
A. An agreement to make payment in the event of loss or damage
B. An agreement to make decisions in the event of loss or damage
C. An agreement to make contribution in the event of loss or damage
D. An agreement to pay compensation in the event of loss or damage
9. A contract requiring an exporter in Mozambique to deliver the contract goods
in Beira, Mozambique, for the shipment by sea to Dar es Salaam, Tanzania.
A. FAS Beira
B. CIF Beira
C. FOB Dar es Salaam
10. When the government doesn't control the exchange rate in any way, the
currency is …………
A. freely convertible
B. totally convertible
C. absolutely convertible
11. If alternative means of transport or partial shipments are allowed perhaps by
different modes of transport, the letter of credit should have the words …………
between the names of transport documents.
A. and.
B. or.
C. and/or.
D. Either B or C.
12. The Mexican peso is trading for more than its usual value. You can talk about
…………
A. a big peso
B. a good peso
C. a strong peso
13. Factors considered when choosing the modes of transportation are …………
A. freight, size and premium
B. time, length and weight
C. nature of the goods, size and rates
D. nature of the goods, time and freight rates
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22. A life insurance policy pays out ………… your death or after a set period,
whichever is first.
A. in case of
B. if
C. in the event of
23. A marine Bill of Lading becomes negotiable document and no restriction on
ownership when it is …………
A. to order, blank endorsed
B. surrendered, blank endorsement
C. to order, endorsed
24. My endowment policy will ………… when I‟m sixty-five
A. ripen
B. mature
C. flourish
D. break
25. A contract requiring the exporter to send the contract goods by road from
Kenya to Zambia with freight paid by the exporter.
A. CFR Lusaka
B. CPT Lusaka
C. CFR Nairobi
26. With this method of payment, banks play a passive role. All banks have to do is
to follow the instructions of the buyer and the seller and get a collection fees in
return
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
27. Because of the recession, several ships have been laid …………
A. off
B. out
C. down
D. up
28. Unlike quotas, tariffs produce ………… for the government.
A. profit
B. surplus
C. revenue
D. earnings
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TEST 30
16. A basis for mutually beneficial trade is the fact that one country has a
comparative advantage.
A. Both the importing country and the exporting country benefit from trade.
B. One’s country comparative advantage can benefit another country.
C. The comparative advantage of one country can result in trade between countries.
D. All of these above.
17. The movement of money into and out of a company is known as …………
A. annual turnover
B. profit margin
C. cash flow
D. bank charges
18. The process of making and defending a claim in court is …………
A. arbitration
B. litigation
C. prevention
D. protection
19. With the open account method of payment, payment is made
A. before the goods are shipped
B. when there is no contract involved
C. after the goods have arrived
D. when the exporter doesn’t trust the buyer
20. What agreement is usually made in an insurance contract?
A. An agreement to make payment in the event of loss or damage
B. An agreement to make decisions in the event of loss or damage
C. An agreement to make contribution in the event of loss or damage
D. An agreement to pay compensation in the event of loss or damage
21. A monetary system whereby the value of currencies could be converted into gold
at a country‟s central bank
A. gold system
B. gold standard
C. gold value
D. gold convertible
22. Cultural differences are one of the potential ………… of international mergers.
A. threats
B. pitfalls
C. attraction
D. benefits
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23. If the buyer comes from a country which has a poor reputation for enforcing
awards, the best method of payment under the contract is a/ an …………
A. Revolving L/C
B. At sight, confirmed L/C
C. Deferred, irrevocable L/C
D. Transferrable L/C
24. Prices go up every year. This is because of …………
A. inflation
B. expansion
C. evolution
25. What do we call the difference between all the money paid out and received by a
country?
A. the balance of trade
B. the balance of payments
C. deficit
D. surplus
26. Joining with firms in other stages of the production or sale of a product is
known as …………
A. horizontal merger
B. diversification
C. vertical merger
D. backward merger
27. A contract requiring an exporter in Mozambique to deliver the contract goods
in Beira, Mozambique, for the shipment by sea to Dar es Salaam, Tanzania.
A. FAS Beira
B. CIF Beira
C. FOB Dar es Salaam
28. An insolvent company often goes into liquidation. A private individual who
cannot pay his/her debts may be declared ………… by a court.
A. bankrupt
B. indebted
C. penniless
29. If the price is quoted CFR Hai Phong, who pays for the freight?
A. The buyer.
B. The exporter.
C. The carrier.
D. The forwarding agent.
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30. Many contracts contain a force majeure ………… to cover this situation.
A. sentence
B. phrase
C. clause
31. The clause covers General Average.
A. A
B. B
C. A, B, C
32. Factors considered when choosing the modes of transportation are …………
A. freight, size and premium
B. time, length and weight
C. nature of the goods, size and rates
D. nature of the goods, time and freight rates
33. Natural disasters usually mean that insurance underwriters suffer …………
A. heavy losses
B. high expenses
C. big debts
34. The situation in which a country has no foreign trade
A. Surplus
B. deficit
C. autarky
D. deficits
35. Insurance companies can be considered as professional ………… Takers
A. life
B. risk
C. chance
D. misfortune
36. The risk of rough handling is not covered under the cargo clause …………
A. A
B. B
C. C
D. C and B
37. In drafting an arbitration clause, the following questions must be resolved:
A. How many arbitrators sit in the court?
B. What is the language of the court?
C. Where is the place of the court?
D. All of the above
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38. The bill of lading issued by the carrier for combined transport is called
…………
A. Combined bill of lading.
B. Combined bill.
C. Combined transportation bill of lading.
D. Combined transport bill of lading.
39. The person who goes between the person who wants the insurance and the
person who underwrites it is …………
A. a shipper
B. a client
C. a broker
D. an insurer
40. Companies that handle all aspects of their business internally, such as the big oil
companies, are known as ………… companies.
A. multinational
B. venture capital
C. conglomerate
D. vertically-integrated
41. This method of payment creates cash flow problems and increases risk for the
buyer
A. Documentary credit
B. Open account
C. Bill for collection
D. Advance payment
42. If the price is quoted CIF San Francisco, who pays for the insurance and
freight?
A. The exporter
B. The buyer.
C. The forwarding agent.
D. The confirming bank.
43. If alternative means of transport or partial shipments are allowed perhaps by
different modes of transport, the letter of credit should have the words …………
between the names of transport documents.
A. and.
B. or.
C. and/or.
D. Either B or C.
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44. Is there any requirement that the air waybill shows the date of the flight?
A. No, there isn’t.
B. Yes, there is.
C. Never is there such a requirement.
D. No, it is an incorrect requirement because a correctly completed waybill cannot show
this information.
45. Currency bought or sold today with delivery two business days later
A. Spot transaction
B. Forward transaction
C. business transaction
D. Futures transaction
46. Reduction in costs resulting from increased production is …………
A. diversifying
B. merging
C. specialization
D. economies of scale
47. The term used to describe attempts to restrict imports into the country:
A. tax
B. quota
C. protectionism
D. tariff
48. Steve works for BurgerPlanet. He only earns about £6 …………
A. for an hour
B. an hour
C. the hour
49. A country with very low taxes is known as a …………
A. tax heaven
B. tax haven
C. tax paradise
50. The three main business areas which have traditionally been resolved by
arbitration: …………
A. shipping, insurance and commodities
B. shipping, commodities and construction
C. shipping, commodities and raw materials
D. construction, commodities and goods
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