CBSE Class 11th Business Studies Worksheets - w10

Free Business Studies - Class 11th (CBSE) - Worksheet - w10 - International Trade

Before proceeding to the main content, below are the main details:

• Subject: Business Studies
• Class: 11th (CBSE)
• Chapter Name: International Trade
• Marking Scheme: 1 Marks each

Worksheet for CBSE Class 11th

Q1. If the importer is unable to pay the import duty on goods, then the goods are kept: (1 Mark)

1. in the clock room
2. in the bonded warehouse
3. in the possession of the ship owner
4. None of these

Q2. Which of the following provides subsidies and benefits to exporters? (1 Mark)

1. IEC Number
2. RCMC
3. Certificate of Origin
4. None of the above

Q3. The exporter has to open a bank account in any bank authorised by __________ to deal in foreign exchange. (1 Mark)

1. State Bank of India
2. Reserve Bank of India
3. Central Government
4. State Government

Q4. Out of the following documents, which one is used for payment in case of export trade? (1 Mark)

1. Letter of Credit
2. Bill of Lading
3. Both (a) and (b)
4. All of these

Q5. Letter of Credit is a guarantee issued by: (1 Mark)

1. Exporter’s Bank
2. Importer
3. Importer’s Bank
4. Exporter

Q6. A proforma invoice is issued by the: (1 Mark)

1. importer to the exporter
2. exporter to the importer
3. exporter to the shipping company
4. shipping company to the importer.

Q7. WTO was established on: (1 Mark)

1. 1st July, 1995
2. 1st January, 1995
3. 1st April, 1995
4. None of the above.

Q8. Which of the following is not an objective of import trade? (1 Mark)

1. To overcome famine
2. To improve the standard of living
3. To earn foreign exchange
4. To speed up industrialisation

Q9. Who issues a mate's receipt on receiving the goods in export trade? (1 Mark)

1. Captain of the Ship
2. Dock Officer
3. Importer
4. Exporter

Q10. A shipping bill is prepared by the exporter to: (1 Mark)

1. reserve space on the ship
2. to get the cargo physically moved into the port area
3. obtain the customs clearance
4. to get the port dues cleared.

Q11. Pre-shipment Inspection is not compulsory for: (1 Mark)

1. Export houses
2. 100% Export Oriented Units
3. Star Trading Houses
4. All of these

Q12. A Bill of Entry is prepared by the: (1 Mark)

1. Exporter for getting the custom clearance
2. Superintendent at the port
3. Importer for getting the custom clearance
4. None of the above

Q13. If a bill of exchange of a further date is to be accepted, the exporter writes __________ on the bill. (1 Mark)

1. D/P
2. D/A
3. LoC
4. Any of the above

Q14. In India, all foreign exchange transactions are regulated by: (1 Mark)

1. Directorate General of Foreign Trade
2. Reserve Bank of India
3. Export Council of India
4. None of the above

Q15. Under which regulations does the foreign exchange earned from foreign trade have to be submitted to the RBI? (1 Mark)

1. Export and Import Control Act
2. MRTP Act
3. Foreign Exchange Control Act
4. None of these

Q16. Arun, a clearing agent is not in a position to supply correct information about the goods imported in the bill of entry, he has to prepare a statement called: (1 Mark)

1. Bill of Sight
2. Shipping Order
3. Mate's Receipt
4. Bill of Lading

Q17. Paras Manek Ltd. has received an enquiry regarding the goods and trade. Paras Manek Ltd. has replied to it in the form of a quotation. Finding it favourable, Trudy Ltd. has placed an order containing description of goods, price and other instructions, etc. But before exporting the goods it has to fulfil certain legal formalities like procuring export license and preparing the documents related to goods, shipment, and payment. Paras Manek is a successful businessman who is engaged in manufacturing auto spare parts. The products manufactured by his business enterprise Paras Manek Ltd. are sold not only in India, but also exported to various countries such as Singapore, Switzerland, China, North Korea, etc. Trudy Ltd., a Russian company wants to "Paras Manek Ltd. has replied to it in the form of a quotation." Identify the document stated here. (1 Mark)

1. Proforma Invoice
2. Indent
3. Letter of Credit
4. Enquiry

Q18. Jaipur Handicraft House has received a grand order for handmade products from a German company. The exporter has obtained the pre-shipment inspection report under the Export Quality Control & Inspection Act, 1963 & also got the Excise clearance certificate from the authorities. Identify the first step of the given procedure. (1 Mark)

1. Reservation of shipping space
2. Packing & Forwarding
3. Obtaining certificate of origin
4. Insurance of goods

Q19. It was decided in the 'Bretton Woods Conference' to set up International Trade Organization (ITO) to promote and facilitate international trade among the member countries. The idea could not succeed. The participants of the conference made some arrangements known as GATT and at last they were able to form an organization on the same proposal of ITO. Name the organization so formed. (1 Mark)

1. ILO
2. WORLD BANK
3. WTO
4. None of these

Q20. Krish wants to export garments to Mr. David has asked for an enquiry to seek information about availability of goods, price, quality and terms and conditions for export of goods. In response to the enquiry, Krish sends a reply in the form of Proforma Invoice. Mr. David found the price and terms and conditions acceptable. So, he placed the order for goods. After verifying the creditworthiness of Mr. David, Krish obtains an export license and arranges the pre-shipment finance. On the basis of given information, state the next four steps to be followed by Krish related to the procedure of export trade. The next steps to be followed by Krish in the export trade are: (1 Mark)

1. Obtaining Certificate of Origin
2. Production or procurement of goods
3. Excise Clearance
4. Pre-shipment inspection

The End

See also:

• Worksheet for Social Responsibilities of Business and Business Ethics
• Worksheet for Business Ethics
• Worksheet for International Trade
• Business Studies Questions paper 1 for class 11th
• Worksheet for Sources of Business Finance