Practice Test Geeks(CES) Certified Export Specialist Practice Test
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CES Export Pricing & Incoterms Flashcards

6 cards from real CES practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. What is 'gray market' pricing risk for US exporters selling through multiple international channels?

    Answer: Risk that authorized products are re-exported to other markets at lower prices, undercutting official distribution

    Gray market (parallel import) risk occurs when buyers in low-price markets re-export genuine products to high-price markets, disrupting the exporter's pricing strategy.

  2. What is an 'antidumping duty' and when might a US exporter face it in a foreign market?

    Answer: A duty imposed by a foreign government when US goods are sold below fair market value, injuring local industry

    Antidumping duties are imposed by a foreign country when it determines that imported US goods are priced below their normal value, causing material injury to domestic producers.

  3. Which pricing approach sets the export price based on what competitors charge in the target foreign market?

    Answer: Competitive (market-based) pricing

    Competitive or market-based pricing anchors the export price to prevailing competitor prices in the target market rather than to the exporter's own cost structure.

  4. What is 'CIP' (Carriage and Insurance Paid To) and how does its insurance requirement differ from CIF?

    Answer: CIP requires all-risk (Institute Cargo Clause A) insurance; CIF requires only minimum (Clause C) insurance

    Incoterms 2020 upgraded CIP to require Institute Cargo Clause A (all-risk) insurance, while CIF still only mandates minimum Clause C coverage.

  5. What does 'value-based pricing' mean in export sales?

    Answer: Setting price according to the perceived benefit and value the product delivers to the foreign buyer

    Value-based pricing sets the export price according to how much foreign buyers value the product's benefits, allowing premium pricing when differentiation is strong.

  6. Under Incoterms 2020 FAS (Free Alongside Ship), where does risk transfer from seller to buyer?

    Answer: When goods are placed alongside the named vessel at the port of shipment

    Under FAS, risk transfers to the buyer once the goods are placed alongside (e.g., on a quay or barge) the nominated vessel at the named port of shipment.