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Free CGBP Practice Questions

10 free, exam-style Certified Global Business Professional (CGBP) practice questions with answers and explanations. No signup required. Work through them below, then take the full free CGBP practice test to study every exam domain.

Question 1

Under which Incoterms 2020 rule does the seller bear the maximum obligation, including paying import duties and taxes to deliver the goods to the buyer's named destination?

  1. EXW (Ex Works)
  2. FOB (Free On Board)
  3. CIF (Cost, Insurance and Freight)
  4. DDP (Delivered Duty Paid)
Show answer & explanation

Correct answer: D - DDP (Delivered Duty Paid)

Question 2

Which set of Incoterms 2020 rules may be used ONLY for sea and inland waterway transport?

  1. EXW, FCA, CPT, CIP
  2. FAS, FOB, CFR, CIF
  3. DAP, DPU, DDP, CPT
  4. FCA, CIP, DAP, DDP
Show answer & explanation

Correct answer: B - FAS, FOB, CFR, CIF

Question 3

How many digits is a Schedule B number, and what is it used for?

  1. 6 digits; international HS classification
  2. 8 digits; U.S. import duty assessment
  3. 10 digits; U.S. export classification and AES/EEI filing
  4. 4 digits; industry sector classification
Show answer & explanation

Correct answer: C - 10 digits; U.S. export classification and AES/EEI filing

Question 4

Which method of payment provides the GREATEST protection to the exporter?

  1. Open account
  2. Documentary collection (D/A)
  3. Cash in advance
  4. Consignment
Show answer & explanation

Correct answer: C - Cash in advance

Question 5

Under UCP 600, a letter of credit is presumed to be which type unless it states otherwise?

  1. Revocable
  2. Irrevocable
  3. Confirmed
  4. Transferable
Show answer & explanation

Correct answer: B - Irrevocable

Question 6

The purchase of an exporter's medium- to long-term receivables, typically for capital goods and always without recourse to the exporter, is known as:

  1. Factoring
  2. Forfaiting
  3. Banker's acceptance
  4. Open account financing
Show answer & explanation

Correct answer: B - Forfaiting

Question 7

Which U.S. agency administers the Export Administration Regulations (EAR) governing the export of dual-use items?

  1. Directorate of Defense Trade Controls (DDTC)
  2. Office of Foreign Assets Control (OFAC)
  3. Bureau of Industry and Security (BIS)
  4. U.S. Customs and Border Protection (CBP)
Show answer & explanation

Correct answer: C - Bureau of Industry and Security (BIS)

Question 8

A manager who assumes that home-country business practices are superior and should be applied in every foreign market is demonstrating which orientation?

  1. Polycentric
  2. Geocentric
  3. Ethnocentric
  4. Regiocentric
Show answer & explanation

Correct answer: C - Ethnocentric

Question 9

Which foreign market entry mode generally offers the HIGHEST level of control but also requires the HIGHEST level of investment?

  1. Indirect exporting
  2. Licensing
  3. International joint venture
  4. Wholly-owned subsidiary
Show answer & explanation

Correct answer: D - Wholly-owned subsidiary

Question 10

What is the key distinction between a foreign distributor and a foreign sales agent?

  1. A distributor takes title to the goods; an agent earns commission and does not take title
  2. A distributor works without compensation; an agent charges a fee
  3. A distributor handles only services; an agent handles only physical products
  4. A distributor must be government-licensed; an agent does not require licensing
Show answer & explanation

Correct answer: A - A distributor takes title to the goods; an agent earns commission and does not take title

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