International Logistics Management

International Logistics is one of the key area of supply chain management. If you are preparing for a role in International Logistics, then you will find these interview question and answers helpful for your next job interview.


Q.1 What will be the result of Indian rupee appreciation against the US Dollar
Raise the cost to Americans for Indian imports
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Q.2 What can be inferred if British Pound's value see an change from $1.50 to $1.25
the pound has depreciated and the dollar has appreciated
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Q.3 What can be concluded if the US dollar changes from 0.5 to 0.75 against British Pound
the pound has appreciated and the dollar has depreciated
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Q.4 What will be the deduction of exchange rate for euro in the exchange market moves from 0.9 euros to 1.0 euros to the dollar
the euro has depreciated and the dollar has appreciated.
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Q.5 Which incoterm means the seller's responsibility is to make the goods available at the seller's premises
EXW
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Q.6 Which incoterm means that the seller’s responsibility is complete when the goods have arrived at the frontier but before the customs border of the country named in the sales contract
DAF
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Q.7 Which incoterm means the seller fulfills its obligation to deliver when it has handed over the goods, cleared for export, into the charge of the carrier named by the buyer at the named place
FCA
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Q.8 Which incoterm has the additional requirement that the seller purchases insurance against the risk of loss or damage to goods
CIF
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Q.9 Which incoterm means the seller shall make the goods available to the buyer on board the ship at the place named in the sales contract
DES
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Q.10 Which incoterm means the seller is responsible for the cost of transporting and delivering goods alongside a vessel in a port in his country
FAS
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Q.11 Which incoterm means the seller has agreed to make the goods available to the buyer on the quay at the place named in the sales contract
DEQ
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Q.12 Which incoterm means the goods are placed on board the ship by the seller at a port of shipment named in the sales agreement
FOB
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Q.13 Which incoterm has in addition the seller pays for the insurance against loss of damage
CIP
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Q.14 Which incoterm has seller has to bear the costs involved in shipping the goods as well as the costs and risks of carrying out customs formalities
DDU
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Q.15 Which method of goods distribution may result in Bullwhip Effect
pull method
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Q.16 State whether the following statement holds True or false - "Multi-Modal and Inter-Modal transport are same"
Yes, it is true
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Q.17 An AWB or BL is issued by the
carrier of the goods
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Q.18 What is the first step in processing export order
Ready the product
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Q.19 IEC Code is issued by
DGFT
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Q.20 Authorized Dealer Code (AD code) is a code
14 digit
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Q.21 Authorized Dealer Code (AD code) is provided by the
bank
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Q.22 eBRC has been introduced by
DGFT
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Q.23 eBRC uses which file format for data exchange
XML
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Q.24 Under which pricing strategy, you keep your product’s price flexible and responsive to market conditions like demand and supply, inflation
Market-driven pricing
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Q.25 Which GST type is applicable on exports or imports
Integrated GST
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Q.26 The Export Inspection Council (EIC) is
official export-certification authority, to certify the safety and quality of products that are exported from India
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Q.27 What is the first step while dispatching an export order
Checking and confirming the order
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Q.28 Freight shipments are broken down into
18 classes
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Q.29 In which bill of lading type, a clear instruction is provided to make the delivery of the goods to anyone having the possession of the original copy of the bill, which itself signifies the title and control of the freight.
Negotiable bill of lading
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Q.30 What is a document that provides the details of the sales transaction like name of seller and buyer, the value and quantity of the goods sold
A commercial invoice
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Q.31 When does the exporter must provide the information on shipped products container-wise
For FCL
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Q.32 Which type of shipping bill is printed on yellow paper and is meant for goods that are to be exported on payment of export duty
Dutiable Shipping Bill
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Q.33 Which type of Letter of Credit (LC) may be cancelled anytime without a prior notice to the beneficiary
Revocable LC
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Q.34 What is used when the exporter wishes to get the payment before the importer collects the goods from the port
A sight bill of exchange
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Q.35 Select the kind of invoice factor lending, in which if the buyer of the goods does not pay the invoice dues, then the seller is liable to buy the defaulted invoices from the factoring company
Recourse
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Q.36 Which group of Incoterms, the goods are placed at the disposal of the buyer at the seller’s premises / factory
“E” Terms
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Q.37 Select the INCOTERM where the delivery of goods happen at the place of business of the seller, and the shipment is the responsibility of the buyer.
Ex Works (EXW)
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Q.38 Select the INCOTERM where all costs up to the point of delivery to a nominated terminal have to be covered, and the unloading of the goods at the terminal is the responsibility of the seller.
Delivered At Terminal (DAT)
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Q.39 Which INCOTERM for sea and inland waterway involves the seller places the goods with other non-containerised cargo and the risk transfers to the buyer when the goods are delivered at the destination port and unloaded
Free Alongside Ship (FAS)
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Q.40 Commercial Invoice is prepared by the
exporter
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Q.41 Bill of exchange is generated by the
exporter
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Q.42 Select the pricing strategy in which involves you charging a higher price for your product to recover preliminary expenses and reap high profits but decreasing it to increase market share
skimming pricing
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Q.43 Which bill of lading type, fixes a specific consignee/name of the receiver to whom the freights will be shipped and delivered.
Non- Negotiable bill of lading
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Q.44 Which type of shipping bill is printed on white paper and is for goods exported without duty payment
Duty-Free Shipping Bill
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Q.45 What is the most secured payment mode under international trade
Letter of Credit (Import LC)
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Q.46 What is International Logistics Management?
International Logistics Management involves planning and controlling the movement of goods and information across international borders efficiently.
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Q.47 Why is international logistics important for businesses?
It ensures the timely and cost-effective flow of goods, contributing to competitiveness and customer satisfaction.
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Q.48 What are the key components of international logistics?
Components include transportation, warehousing, inventory management, customs compliance, and information technology.
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Q.49 Explain the concept of "supply chain management" in international logistics.
Supply chain management involves coordinating processes from raw material suppliers to end customers globally.
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Q.50 What is the role of transportation in international logistics?
Transportation moves goods between countries, including modes like sea, air, road, and rail.
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Q.51 Describe the term "freight forwarding."
Freight forwarders facilitate the movement of goods by arranging transportation and managing documentation.
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Q.52 What is the significance of customs clearance in international logistics?
Customs clearance ensures compliance with import and export regulations, facilitating the movement of goods.
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Q.53 Explain the concept of "Incoterms" in international logistics.
Incoterms are standardized trade terms that define buyer and seller responsibilities in international transactions.
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Q.54 What are the common challenges in international logistics?
Challenges include customs delays, regulatory compliance, currency fluctuations, and supply chain disruptions.
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Q.55 What is the role of inventory management in international logistics?
Inventory management optimizes stock levels to balance cost and service levels in global supply chains.
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Q.56 How do you handle international shipping documentation?
Accurate documentation is crucial; it includes bills of lading, invoices, packing lists, and certificates of origin.
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Q.57 Describe the concept of "cross-docking" in logistics.
Cross-docking involves transferring goods directly from inbound to outbound transportation without warehousing.
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Q.58 What is a logistics service provider (LSP) in international logistics?
LSPs offer specialized logistics services such as warehousing, distribution, and transportation.
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Q.59 How does international logistics impact sustainability?
Sustainable practices in international logistics reduce environmental impact through efficient transportation and reduced waste.
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Q.60 Explain the concept of "just-in-time" (JIT) in international logistics.
JIT minimizes inventory holding costs by delivering goods precisely when needed in the supply chain.
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Q.61 What is the significance of a global logistics network?
A global network ensures that goods can move seamlessly across borders and regions.
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Q.62 Describe the role of technology in international logistics.
Technology, like transportation management systems (TMS) and GPS tracking, enhances visibility and efficiency.
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Q.63 What is the impact of trade agreements on international logistics?
Trade agreements can reduce tariffs and simplify customs procedures, facilitating trade.
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Q.64 Explain the concept of "last-mile delivery" in international logistics.
Last-mile delivery involves the final leg of a product's journey to reach the end customer.
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Q.65 How do you manage risk in international logistics?
Risk management includes contingency planning, insurance, and diversifying suppliers and transportation modes.
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Q.66 What is a bill of lading (BOL), and why is it important?
A BOL is a legal document that details the shipment of goods, serving as a receipt and contract.
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Q.67 Describe the role of customs brokers in international logistics.
Customs brokers assist with customs clearance, ensuring compliance with regulations.
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Q.68 What are trade sanctions, and how do they affect international logistics?
Trade sanctions restrict trade with certain countries or entities, affecting logistics routes and compliance.
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Q.69 What is the significance of lead time in international logistics?
Lead time is the time required for goods to move from the supplier to the customer and impacts inventory management.
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Q.70 Explain the concept of "reverse logistics" in international logistics.
Reverse logistics deals with the return and recycling of products and materials in the supply chain.
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Q.71 What is the role of warehousing in international logistics?
Warehouses store and manage inventory, ensuring timely order fulfillment.
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Q.72 How do you optimize the routing of international shipments?
Optimization considers factors like cost, time, and mode of transport to determine the best routes.
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Q.73 What are the advantages of using a third-party logistics provider (3PL) in international logistics?
3PLs offer expertise, resources, and efficiency in managing logistics operations.
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Q.74 What is a supply chain disruption, and how can it be mitigated?
Disruptions can be caused by natural disasters, strikes, or political instability and are mitigated through risk analysis and contingency planning.
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Q.75 How do you choose the right transportation mode for international shipments?
Factors include cost, time, destination, and product characteristics.
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Q.76 Explain the concept of "containerization" in international logistics.
Containerization involves using standardized containers for efficient and secure cargo transport.
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Q.77 What is a freight rate, and how is it determined?
A freight rate is the cost of shipping goods, determined by factors like distance, weight, and shipping mode.
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Q.78 How do you ensure compliance with international trade regulations?
Compliance involves staying informed, accurate record-keeping, and customs documentation.
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Q.79 Describe the role of the World Trade Organization (WTO) in international trade.
The WTO promotes trade liberalization and resolves trade disputes among member countries.
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Q.80 What is the role of a logistics manager in international logistics?
A logistics manager plans, coordinates, and oversees logistics activities to ensure efficiency and cost-effectiveness.
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Q.81 How do you handle supply chain disruptions caused by geopolitical issues?
Diversification of suppliers and alternative logistics routes can mitigate disruptions.
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Q.82 What are the challenges of managing a global supply chain?
Challenges include cultural differences, currency fluctuations, and managing a network of suppliers and partners.
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Q.83 Explain the concept of "intermodal transportation" in international logistics.
Intermodal transportation combines different modes (e.g., ship, train, truck) to optimize the supply chain.
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Q.84 How can you measure the performance of an international logistics operation?
Key performance indicators (KPIs) such as on-time delivery, inventory turnover, and cost per unit can assess performance.
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Q.85 What is a logistics hub, and why are they important in international logistics?
Logistics hubs are strategic locations for efficient transshipment and distribution of goods.
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Q.86 Describe the role of a customs tariff in international trade.
Tariffs are taxes imposed on imports and exports, affecting the cost and competitiveness of products.
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Q.87 How do you handle international logistics in a just-in-case inventory strategy?
A just-in-case strategy involves holding extra inventory as a buffer against supply chain disruptions.
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Q.88 What is the role of a port in international logistics?
Ports serve as gateways for the entry and exit of goods in global trade.
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Q.89 Explain the concept of "logistics cost optimization" in international logistics.
Cost optimization aims to minimize expenses while maximizing service levels in logistics operations.
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Q.90 What is the impact of e-commerce on international logistics?
E-commerce has increased demand for efficient last-mile delivery and cross-border shipping.
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Q.91 What is bonded storage in a public warehouse?
The products being stored in a public warehouse and no duties or taxes paid until the products leave the facility
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Q.92 How do you ensure the security of international cargo shipments?
Security measures include screening, tracking, and implementing secure supply chain practices.
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Q.93 What are the functions of ICD/CFS ?
1. receipt and dispatch/delivery of cargo 2. stuffing and stripping of containers 3. transit operations by rail/road to and from serving ports
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Q.94 Describe the concept of "global trade compliance" in international logistics.
Compliance involves adhering to trade laws, export controls, and embargo regulations.
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Q.95 If the cargo is returned mid way due to natural calamity, then which type of sea freight rate is applied
Pro-rata is charged if circumstances make it impossible to continue the voyage further and the shipper accepts delivery at intermediate port
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Q.96 What is the role of a logistics coordinator in international logistics?
A logistics coordinator organizes and manages the movement of goods and information within the supply chain.
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Q.97 Which type of container is used to transport meat?
Reefer containers are big fridges that are used to transport temperature controlled cargoes such as fruits, meat, fish, seafood, vegetables, dairy
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Q.98 How do you manage international logistics relationships with suppliers and partners?
Effective communication, collaboration, and transparency are key to managing relationships.
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Q.99 What is Intermodalism?
Intermodalism refers to the movement of containerized freight through a coordinated transportation system that uses multiple delivery vehicles.
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Q.100 Explain the concept of "cross-border trade agreements" in international logistics.
Trade agreements can reduce trade barriers, such as tariffs and quotas, between countries.
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Q.101 What is the role of reverse logistics in sustainable international logistics practices?
Reverse logistics involves product returns and recycling, contributing to sustainability goals.
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Q.102 How do you assess the environmental impact of international logistics operations?
Assessment involves measuring carbon emissions, energy usage, and waste generation.
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Q.103 What is the significance of trade corridors in international logistics?
Trade corridors are well-defined routes that facilitate the movement of goods between regions.
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Q.104 How do you handle international logistics for perishable goods?
Perishable goods require fast transit times and temperature-controlled shipping to maintain quality.
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Q.105 Describe the concept of "freight consolidation" in international logistics.
Freight consolidation combines multiple smaller shipments into a single, more cost-effective shipment.
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Q.106 What is the role of a logistics consultant in international logistics?
A logistics consultant provides expertise in optimizing supply chain and logistics operations.
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Q.107 How do you select and manage international logistics partners and service providers?
Selection involves evaluating capabilities, reputation, and cost, while management requires clear contracts and communication.
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Q.108 Explain the concept of "logistics automation" in international logistics.
Automation uses technology to streamline logistics processes, enhancing efficiency and accuracy.
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Q.109 How do you address labor and workforce issues in international logistics?
Training, safety measures, and workforce management strategies are essential.
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Q.110 What motivates you to excel in the field of international logistics management?
Personal motivation may include a passion for optimizing supply chains and facilitating global trade.
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