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NASBITE CGBP Self Study & Review Guide

Congratulations on your preparations for the NASBITE CGBP Exam. Achieving the NASBITE Certified Global Business Professional designation certifies your knowledge in the highly varied practice of global business. Companies rely on the expertise of individuals handling their international activities and are seeking proof of competency. Receiving the NASBITE CGBP designation is an important step to proving that competency. This guide is intended to help candidates better understand how they can prepare for the NASBITE CGBP exam. 1) NASBITE Practice Delineation The practice delineation (published on the credential website www.nasbite.org), is the most accurate way to ensure you are prepared for the NASBITE CGBP exam. All questions accepted for use on an exam were carefully checked against the practice delineation. If the knowledge tested by a proposed question could not be directly linked to a task/knowledge statement in the practice delineation, it was not accepted. The most thorough way to prepare for the exam is to carefully review the practice delineation to determine your strengths or weaknesses in particular areas. You may find particular sections fit with your prior experience in international trade, and requires little further study. However, you may also find that there are other areas that have been outside of job responsibilities and will require more preparation. Only by doing a self-audit against the practice delineation can you make this determination. If you have taken a study course, reviewing the practice delineation will also help to make sure you have retained the knowledge from the course, and that the studies were complete. 2) NASBITE Terminologies The practice delineation makes references to a number of terms, theories, and concepts commonly used in global business. The following list comes directly from the practice delineation. It must be stressed that these are only examples and do not represent the complete set tested by the exam. By reviewing the following list you can identify gaps in your training or studies.

NASBITE CGBP Self Study and Review Guide 2007-2012

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NASBITE Terms / Theories / Concepts


Accounting: Basic theories such as format of key statement and key terminology AES Agency/distributor (as market entry method) Air waybill Anti-boycott regulations Anti-dumping Arbitration CE Mark Certificate of origin Copyrights Cultural Theories and frameworks: 1. cultural relativism 2. high context, low context 3. group vs. individual 4. ethnocentric vs. monocentric Container Security Initiative [CSI] Country of Origin determination and use of Regional Value Content Customs Trade Partnership Against Terrorism [C-TPAT] Currency option contracts Duty drawback programs Economic Integration levels Export credit insurance Export control regulations Export declaration (as in Shippers Export Declaration now replaced by the AES Direct electronic filing of the Electronic Export Information record) Export/import control regulations Fair trade laws Force Majeure Foreign Corrupt Practices Act The Four Ps: product, price, place, promotion Freight concepts such as demurrage, general average, Freight forwarders Hedging tools HTS Incoterms including EXW, FAS, FOB, CFR, CIF, DDP (Please review Incoterms 2010 comment toward the end of this document.)

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International joint venture (as market entry method) ISO 9000 Letters of credit, documentary collections, cash in advance Licensing (as market entry method) Madrid System NAFTA Trade Agreement Ocean bill of lading Packing materials Paris Convention Patents Pricing constraints and controls Preservation of cargo Risks: 1. Country risk including political and economic 2. Commercial risk

Sanitary certificate Schedule B SNAP 3 PLs (Third Party Logistics) Tariff engineering Trade Fairs how to use them, types of Trademarks Transfer pricing Types of containers UCP URC Warehouse security issues Warsaw Convention and the United Nations Convention on Contracts for the International Sales of Goods CISG

Resources in Support of International Trade The practice delineation makes references to companies, agencies, and resources in support of trade. The following list summarized those references from the practice delineation. This list is only illustrative of the types of resources tested and is not intended to be the complete list of resources.
Bureau of Industry and Security Credit bureaus

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Centers for Disease Control and Prevention as source for travel risks Coface Veritas D&B EUCP Euromoney Ex-Im Bank Export Working Capital Program (SBA & ExIm Bank) Graydon America Hoovers IMF International Trade Administration Kompass Local trade associations Moodys OPIC PIERS Private banks and non-bank private sector lenders SBA Standard and Poors STAT-USA State and federal government (as resource in support of trade) SWIFT UCP UN agencies UN COMTRADE U.S. Dept. of Commerce and the U.S. Commercial Service: Country Desks, Country Commercial Guides, International Company Profile U.S. State Department USA TradeOnline URC Websites (in support of international trade) World Bank WTCs

3. Sample Test Questions A set of 20 sample tests questions is available on www.nasbite.org. Answer these questions and then compare your answers with the correct responses

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listed on the final page. This will help you understand the typical style and format used on the NASBITE CGBP exam and perhaps identify a particular domain that needs further study. 4. CGBP Practice Exam Nasbite offers a 75 question practice exam available online at anytime. The exam was developed directly from the CGBP exam test bank. The cost is $50. For more information, please visit www.nasbite.org. 5. What is not on the Exam? Though it is difficult to precisely indicate what is not on the exam, a couple of points should be made. As mentioned earlier, nothing is included on the exam that is not in the practice delineation. But also not included on the exam are questions that test specific knowledge associated with a particular country or culture. For example, the exam does not test knowledge on differences between world religions, political systems, or cultural norms. Instead a candidate is expected to understand how such difference can impact the practice of international trade, such cultural issues related to marketability of product. This is not to say a Certified Global Business Professional should not understand specific country or cultural knowledge. Clearly such knowledge would enhance a persons effectiveness in global business. However, for the purpose of certifying trade skills within this credential, this knowledge is not tested. (Please note cultural theories in the section Terms, Theories, Concepts.) 6. Incoterms 2010 Update Current versions of the exam were last updated before the Incoterms 2010 changes and therefore reflect Incoterms 2000. However, existing Incoterm questions on the CGBP exam do not contradict Incoterms 2010 meaning the Incoterms eliminated in 2010 were not on the exam. Candidates can train using Incoterms 2010 or 2000 and still be qualified to answer related CGBP exam questions.

Version 2: July 2007: Updated to reflect the Practice Delineation ver 9.06. Version 3: May 2012: Updated with comments in Incoterms 2010 and to include practice exam information.

2007-2012 by NASBITE International. All rights reserved. Duplication permitted for personal use related to the Certified Global Business Professional program. Any such reprints must retain reference to 2005-2012 by NASBITE.

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