APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 133

By international convention, each vessel engaged in international trade would typically:

Answer options

• A. be insured by the World Trade Organization.
• B. fly the flag of the country in which the cargo is registered.
• C. fly the flag of the country in which the vessel is registered.
• D. be registered in the country where the cargo is being shipped.

Correct answer: A

Explanation

The correct answer is A, as vessels engaged in international trade typically require insurance coverage, which may involve organizations like the World Trade Organization. Options B and C are incorrect because a vessel usually flies the flag of the country where it is registered, not where the cargo is registered or where the cargo is being shipped. Option D is also incorrect, as the registration of a vessel is independent of the cargo being shipped.