A buyer is only interested in working with suppliers who have strong Environmental and Social Governance practices. It is therefore using ethical criteria as supplier selection stage to determine which suppliers to work with. Which of the following statements is true?
Answer(s): C
A supplier who follows the CIPS Code of Conduct is more likely to meet the buyer's needs is the correct answer.The other options are wrong:1) Compliance with Codes of Conduct from professional bodies is optional. E.g. CIPS - no organi- sation is forced to comply with CIPS.2) Unethical behaviour is not impossible to detect, it may be difficult but with correct due diligence and things like audits it's completely possible3) ISO 14001 is quality management so is irelevent.
Henry is importing cheese from South East Asia into the UK. He is doing some research on the costs and risks of this and has discovered that the product may be considered of 'non-preferential origin'.What implications would this mean for Henry?
Answer(s): B
Items of 'Non-Preferential Origin' are subject to tariff quotas and other customs commercial regulations. 'Preferential Origin' goods have no duties or tariffs.The good news is CIPS have significantly simplified section 3.2 of the syllabus. The new study-guide is much lighter on names of documents and protocols for importing and quotas etc. The focus of this Learning Outcome has shifted more to Inco Terms so I would focus on that for revision, but do make sure you have a basic understanding of documents, law and jurisdiction.
The International Chamber of Commerce (ICC) publish a list of commercial rules known as Inco- terms. What is the purpose of these rules?
Incoterms describe the point at which an item is considered 'delivered' and explains who has the risk of what during the transport of the goods.
Which of the incoterms listed are suitable for transporting goods via train?
Answer(s): D
EXW- exworks is a suitable incoterm for transporting goods both by rail and boat. It can be used regardless of the mode of transport. The other three are for transport over water. P. 143 Shipping Incoterms: the Complete Guide - Guided ImportsSome students report a lot of questions on Incoterms in the exam, some say they only had 1. Best bet is to learn them if you possibly can.
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