Which of the following is a characteristic of domestic operations? High financial risk. High cargo risk....

Which of the following is a characteristic of domestic operations?

High financial risk.

High cargo risk.

Transport mainly by truck and rail.

Significant paperwork involved.

Solutions

Expert Solution

In this context , operations can be of two types i.e. domestic operation vs international operation. We know that international operation requires additional amount of documentation for transportation of goods in terms of bill of lading, certificate of origin, GSP certificates etc all of which are non existent in domestic operation. Financial risks in international operation could be higher as there is always “country risk” and “currency risk “ associated with exporting goods to a particular country which will not be there in domestic operation. Due to long voyages associated with ocean shipments and corresponding perils of the sea , cargo risk is also higher in international operation.

Unlike international operation where normally it is ocean shipment followed by air shipment which is the norm, in domestic transportation it is always trucks or rail which play the role of transporter.

Therefore , appropriate answer in this case would be “Transport mainly by truck or rail”

Answer : Transport mainly by truck or rail

keosha answered 1 week ago

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