TYBCom Export Marketing May 2019 University of Mumbai Paper Solution - True & False with explanation

1 B) State whether the following statements are True or False. (Any 10)

Marking on packages give handling instruction.
Answer: True
Explanation: Marking on packages includes information such as weight, handling instructions, and destination, among others. These markings help to ensure that the packages are handled correctly during transit.

Labelling aims at giving information about the products to the consumer.
Answer: True
Explanation: Labelling provides information about the product such as its name, brand, ingredients, nutritional value, and usage instructions, among others. It aims to provide the necessary information to the consumer about the product.

Personal selling offers scope for feedback and persuasion from consumer.
Answer: True
Explanation: Personal selling involves direct interaction between the seller and the consumer. This offers an opportunity for the seller to receive feedback from the consumer and persuade them to purchase the product.

Exporters need not consider competition and consumer preferences to fix export prices.
Answer: False
Explanation: Exporters need to consider competition and consumer preferences when fixing export prices to ensure that their prices are competitive in the international market.

Insurance prevent risks from taking place.
Answer: False
Explanation: Insurance does not prevent risks from taking place, but it provides compensation in case of loss or damage to the insured goods.

Letter of credit is issued by the exporter’s bank.
Answer: False
Explanation: The letter of credit is issued by the importer's bank and provides a guarantee of payment to the exporter.

Importer Exporter Code number is provided by DGFT.
Answer: True
Explanation: The Importer Exporter Code (IEC) number is provided by the Directorate General of Foreign Trade (DGFT) in India. It is a 10-digit code required for all importers and exporters in India.

C & F agent looks after the shipment formalities for a commission.
Answer: True
Explanation: A C&F agent, or a Clearing and Forwarding agent, is responsible for handling the shipment formalities such as customs clearance, transportation, and warehousing, among others, for a commission.

SIDBI provides finance to small scale sector.
Answer: True
Explanation: SIDBI, or the Small Industries Development Bank of India, provides finance and support to the small-scale sector in India.

Exporters prefer sea transport for perishable goods in export marketing.
Answer: False
Explanation: Exporters prefer air transport for perishable goods in export marketing as it is faster and helps to maintain the freshness of the goods.

Pre-shipment finance is provided only for capital goods.
Answer: False
Explanation: Pre-shipment finance can be provided for both capital and non-capital goods. It is a form of finance provided to exporters to fund their working capital requirements before shipment of goods.

Carting order is provided by custom authorities.
Answer: True
Explanation: The carting order is issued by the customs authorities and permits the exporter to transport the goods from the customs warehouse to the port of shipment.