Solution and Answer Guide for c c c c
Transportation A Global Supply Chain Perspective, 10th Edition Rob
c c c c c c c c
ert A. NovackBrian GibsonYoshinori Suzuki
c c c c
Chapter 1-13 c
NOVACK, TRANSPORTATION: A GLOBAL SUPPLY CHAIN PERSPECTIVE, 10E, 2024, 9780357908549; CHAPT
C C C C C C C C C C
ER 1: GLOBAL SUPPLY CHAINS: THE ROLE AND IMPORTANCE OF TRANSPORTATION
C C C C C C C C C C
TABLE OF CONTENTS C C
ContentcType................................................................................................................................................ 1
[StudycQuestions] ...................................................................................................................................... 1
END OF SECTION EXERCISE SOLUTIONS ................................................................................................... 4
C C C C
[CASE QUESTIONS] .................................................................................................................................... 4
C
CONTENT TYPE C
[STUDY QUESTIONS] C
1. Transportationchascsometimescbeencdescribedcascthecgluecthatcholdscglobalcsupplycchainsctogether.cWhatcisct
hecmeaningcofcthiscstatementcandcdocyoucagree?cWhycorcwhycnot?
Solution:
Mostcstudentscwillcprobablycagreecthatctransportationciscthec—
glue‖cofcthecsupplycchaincsincecitcconnectscthecindividualcpartscofcthecchain.cStill,ctheycshouldcpointcoutcthatcin
formationciscalsocimportantctocholdcthecsupplycchainctogether.cThecessencecofcthecstatementciscthatcsupplyccha
inscarecextendedcenterprisescwithcmanycparts,candcthecfinalcoutcomeciscacproductcdeliveredconctimectocacpartic
ularclocationcwithoutcdamagecorcdelay.cTransportationcandcinformationcflowscareckeyctocthiscoutcome.cTheyc
shouldcalsocpointcoutcthatctransportationcandcinformationccancprovidecacstrategiccadvantage,csoctheycshouldcb
ecancimportantcpartcofcthecplanningcprocess.cOverall,csupplycchainscplaycancimportantcrolecinchelpingcorganiz
ationscgaincacstrategiccadvantagecincthecglobalceconomycofcthec21stccentury.
2. Duringctheclastc20ctoc30cyears,ctherechavecbeencacnumbercofccountriescwhosececonomieschavecexperiencedci
mportantceconomiccexpansioncandcdevelopment.cOnecgroupcofccountrieschascbeenclabeledcthecBRICccountri
escandcthecothercthecVISTAccountries.cIdentifyceachcofcthecnineccountriescandcprovidecsomecinsightscaboutcth
eirceconomiescandceconomiccimportance.
Solution:
BRICccountriescarecBrazil,cRussia,cIndia,candcChina.cThecVISTAccountriescarecVietcNam,
Indonesia,cSouthcAfrica,cTurkey,candcArgentina.cThecBRICcgroupciscgenerallycconsideredctocbecthecmostcadv
ancedceconomy.cChinaciscclearlycthecmostcimportant,cascindicatedcbycthecgradecflowcdatacincthecchapter.cThey
carecimportant cforcmanufactured cproductioncwellcascresources. cIndia chascadvancedcrapidlycthroughctheir
© 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 1
website, in whole or in part.
, Transportation A Global Supply Chain Perspective, 10th Edition Robert A. NovackBrian GibsonYoshinori Suzuki: Novack, Transportation: A
Global Supply Chain Perspective, 10e, 2024, 9780357908549; Chapter 1: Global Supply Chains: The Role and Importance of Transportation
educatedcandcindustriousccitizenscandctechnology,candcorganizationscincIndiachavecbecomecancimportantcpartc
ofcmanycsupplycchains.cRussiacandcBrazilcbothchavecvastcresourcescthatccancbecthecbasiscforcfunds,cbutctheycar
ecalsocdevelopingcmorecadvancedcmanufacturingcsectors.cTheycarecchallengedcbyctheircgeography,csize,candc
politicalcfactors.cThecVISTAccountrieschavecestablishedcthemselvescasccountriescforcsourcingcsomecbasiccma
nufacturingcbecausecofclowclaborccosts.cTheycalsocprovidecagriculturalcproductscandcotherc resourcescforcexp
orting.cTheckeycdimensioncforcbothcthecBRICcandcVISTAccountriesciscthatcestablishingcglobalcsupplycchainsc
hascallowedcthemctocbecacpartcthecglobalceconomies.
ThereciscabundantcinformationcaboutcthecBRICcandcVISTAccountriesconcthecinternetcifcyoucwantctocmakecthis
cquestioncacspecialcassignmentcorcextraccredit.
3. Thectheoriescofcabsolutecandccomparativecadvantagechavecbeencofferedcascanceconomiccrationalecforctradec
betweencandcamongcregionscandccountries.cComparecandccontrastcthectwocconcepts.cWhichcofcthectwocdocy
oucthinkciscmorecimportantcforcexplainingcthecgrowthcincglobalctradecduringctheclastc25cyears?cWhy?
Solution:
Bothctheoriescarecofferedcascacrationalecforcexpandedctradecbetweencandcamongcregionscandccountriesctocpro
motecgrowthcandcdevelopment.cAbsolutecadvantageciscthecoldestcconceptcandceasiestctocexplain,csinceceachcco
untrychascancadvantagecincthecproductioncofconecorcmorecproductscincthectwo-countrycscenario.
Comparativecadvantagecpostulatescthatcevencifconeccountrychascancadvantagecincbothcproducts,ctradeccancstillc
becadvantageous.cComparativecadvantagechascprobablycbeencthecmostcimportantcforcoverallcdevelopmentcinc
ourccomplexcglobalceconomycsinceccountriesccancproducecsocmanycproductscthatcareccompetitivecwithcothercc
ountries,ctocsomecdegree.cHowever,ccompletecadvantageciscstillcimportantctocrationalizecsomecmajorcworkcflo
ws,cespeciallycforcbasiccmaterialscandcagriculturalcproducts.cTherecarecalsocseasonalcandcweather-
relatedcfactorscthatcprovidecadvantagescatcparticularctimescofcthecyearcforcdifferentcregions.
4. Thecoverallcgrowthcofcglobalctradechascmorecthancdoubledcsincec2000.cWhy?cWhatchascbeencthecmostcimpor
tantcfactorcpromptingcthiscgrowth?cIscthiscratecofcgrowthclikelyctoccontinuecincthecfuture?cWhycorcwhycnot?
Solution:
Therecarecseveralcreasonscforcthiscgrowth.cSomecofcitccancbecexplainedcbycpopulationcgrowthcandcimprovedce
ducationcsystemscincdevelopingccountries.cCapitalcforcdevelopmentchascbecomecmorecwidelycavailablecfromc
privatecandcpubliccsources.cThereciscalsocmorec acceptancecofcproductscmanufacturedcincotherccountries.cButc
probablycthecmostcimportantcreasonscarectradecagreementscandclowerctariffsconcimportedcproducts.cThesechav
ecbeencgreatlycexpandedcbecausecofcthecrecognitioncofchowcimportantcglobalctradeccancbectoceconomiccdevel
opmentcandcthechealthcandcwelfarecofctheccitizenscofctheccountry.cOnecofcthecbiggestcchallengesctocprogresscin
cpromotingcglobalctradeciscthecpoliticalcinstabilitycandcterrorismcthatchavecdevelopedcincsomecareascofcthecwor
ld,csuchcascAfricacandcpartscofcthecMiddlecEast.cThesecfactorscunderminecthecbenefitscthatccancaccruecfromcthe
cgrowthcincglobalctrade.cOneccancarguecthatcthecgrowthcwillccontinue cbecausecofcthececonomiccandcpoliticalcf
orcescatcworkcincthecglobalceconomy,cbutctherecwillcbecupscandcdownscorcbumpscalongcthecroadcbecausecofchu
mancerrorcandcgreed.
5. Thecsizecofcaccountry’scpopulationcandcthecassociatedcagecdistributionccancbeccausalcfactorscforceconomiccgro
wth.cWhyciscthecsizecofcthecpopulationcimportantctoceconomiccdevelopment?cCancsizecbecacdisadvantage?cWh
yciscagecdistributioncimportant?
Solution:
Thecsheercsizecofcthecpopulationccancbecverycimportantcbecauseclaborcisconecofcthecprimecfactorscforceconomi
ccgrowth,candcpopulationcnumberscindicatecthecavailabilitycofclabor.cThecsizecofcthecpopulationccancalsocindic
atecthecmarketcsizecandcpotentialcforcsellingcproducts.cSizeccancbecacdisadvantagecifcthececonomyccannotcprov
idecemploymentcopportunities.cLargecsizeccancalsocchallengectheceducationcsystemcandcmaycrequirecgovernm
entcresourcesctocsustaincthecbasiccneedscofctheccitizenry.cAgecdistributioncaffectscthecsizecofctheclaborcpoolcofc
availablecemployees.cAlso,coldercpopulationscrequirecmorecmedicalcassistancecandcothercservices,cwhichccanc
draincthecresourcescofcindividualscorcgovernmentcagencies.cThecpopulationcdatacandccommentarycincthecchapt
ercprovidecthecbasiscforcsomecinterestingcdiscussion.cAgain,cthisctopicchascabundant
© 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 2
website, in whole or in part.
, Transportation A Global Supply Chain Perspective, 10th Edition Robert A. NovackBrian GibsonYoshinori Suzuki: Novack, Transportation: A
Global Supply Chain Perspective, 10e, 2024, 9780357908549; Chapter 1: Global Supply Chains: The Role and Importance of Transportation
informationcavailableconcthecinternetcandccouldcbecthecbasiscofcacspecialcassignment.cThecdifferencescincpopul
ationcsize,cgrowthcrates,cagecdistribution,candceducationclevelscarecallcfactorscforceconomiccdevelopment.
6. Energy,cfood,candcwatercarecfrequentlyccitedcresourcescthatcareccriticalcforceconomiccdevelopment.cExplainct
hecimportancecofceachconectoceconomiccdevelopment.cWhatcdisparitiescexistcamongccountriescwithcrespectct
octhesecthreecresources?cHowccancthesecchallengescbecresolved?
Solution:
Energyciscacprimarycingredientctocsupportcagriculture,cmanufacturing,candctransportation.cConsequently,cifcm
uchcofcthecneededcenergychasctocbecimported,citcwillcincreasectheccostcofcproducingcproductscandcmaycputcacco
untrycatcacdisadvantagecincproducingcandcexportingcproducts.cFoodciscalmostcself-
explanatorycsincecitciscneededctocsustainctheccitizenrycofctheccountry.cWhencthereciscacfoodcshortage,caccountr
ycwillcbecchallengedcunlesscitccancoffsetcthiscshortagecwithcadvantagescincothercareas,csuchcascmineralcresourc
escorclaborcproductivity.cWaterciscaccriticalcresourcecforcindividuals,cagriculture,cmanufacturing,candcothercbu
sinessescandcorganizations.cThecabsencecofcancadequatecwatercsupplycisconecofcthecmostcdebilitatingcconditio
nscforc anceconomy.cTherecarecmajorcdifferencescaroundcthecglobecregardingcthecavailabilitycandcquantitycofct
hesecresources.cTechnologycmaycbecablectocsolvecsomecdegreecofcthiscproblem,cbutcnotcallcofcit.
7. Technologyccancimpactceconomiccdevelopmentconcbothcacmacrocandcacmicroclevel.cWhatctypescofct
echnologycdocwecneedctochavecsuchcimpactsconcacmacrocbasis?cOncacmicrocbasis?
Solution:
Oncacmacrocbasis,ctechnologyciscneededctocincreasecthecproductivitycofcagriculturecandcmanufacturingcincman
ycpartscofcthecworld.cImprovementsccancalsocbecmadecincthecsupplycchains,cespeciallycinctransportation.cOncac
microcbasis,ctechnologyccancimprovecthecqualitycofclifecforcmanycpeoplecthroughcmedicalctreatment,csafety,ca
ndcaidscforcseniors.cWechavecmadecsignificantcprogresscwithctechnology,cbutcsomecindividualscfeelcthatcwecha
veconlycscratchedcthecsurfacecofcthecpotentialctocimprovececonomiccdevelopment.cThecsupplycchainchascbeenc
thecbeneficiarycofctechnology,cespeciallycinformationctechnology,ctocimprovecefficiency,ceffectiveness,candce
xecution.cHowever,cinctheclastcdecade,ctechnology'sc—
hardcside‖chascbeencreceivingcmorecattentioncinctransportation,cwarehousing,candcmanufacturingctocimprovece
fficiencycandceffectiveness.
8. Roboticschascattractedcmorecattentioncincrecentcyears.cWhy?cHowcarecrobotscbeingcusedcincsupplycchains?
Solution:
Roboticschascindeedcreceivedcmorecattentioncincmanycareas,cespeciallychealthccare,cmanufacturing,candcdistri
bution.cSomecpeoplecseecroboticscascacreplacementcforclabor,cbutcnowcrobotscarecbeingcviewedcasccomplemen
tary.cItcwillcimprovecmanufacturing,cdistribution,chealth,candcwelfarecofcthecpopulation.cRobotscarecbeingcuse
dcincwarehousescforcshelving,cordercpicking,cloading,candcunloading.cRobotschavecpotentialcincothercareascofct
hecsupplycchain,cespeciallyctransportation.
9. Thececonomiccintegrationcassociatedcwithcglobalizationccancprovidecancopportunitycforcmorecwidelycdis
persedcdevelopment.cWhyciscthiscpossible?cWhatcarecthecmajorcstumblingcblocksctocsuchcintegration?
Solution:
Economiccintegrationccancreleasecthecpowercofccomparativecadvantagecandcprovidecmorecgrowth,cdevelopme
nt,candcprosperity.cThecmajorcstumblingcblockscarec—fear‖candc—
terror,‖cwhichcarecassociatedcwithcindividualscandcgroupscwhocwillcexercisectheircabilityctocthwartctradecflowsc
forcselfishcorcself-
servingcagendas.cCollaborationcamongcorganizationscincacglobalcsupplycchainccancbecacdrivingcforcecforcmore
cefficiencycandceffectiveness.
10. Supplycchaincmanagementchascenabledcsomeccompaniesctocoperatecmorecefficientlycandccompetecmoreceffe
ctivelyconcacglobalcbasis.cWhatcinherentccharacteristicscofcsupplycchaincmanagementccontributectocthesecoutc
omes?
Solution:
© 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 3
website, in whole or in part.
, Transportation A Global Supply Chain Perspective, 10th Edition Robert A. NovackBrian GibsonYoshinori Suzuki: Novack, Transportation: A
Global Supply Chain Perspective, 10e, 2024, 9780357908549; Chapter 1: Global Supply Chains: The Role and Importance of Transportation
Supplycchainscthatcarecefficient,ceffective,candcwellcexecutedccancmakeccompaniescmoreccompetitive.cThecba
siscofcthiscoutcomeciscrelatedctocsystemscanalysiscandctrade-
offcanalysis,cwhichcallowcorganizationsctocdocwhatctheyccancdocbestcandcdependconcothercorganizationsctocpro
videcthecrest.cTheccoordinationcandccollaborationcthatcshouldcbecinherentcincsupplycchainscarecimportantcingr
edientscforcefficiencycandceffectiveness.
END OF SECTION EXERCISE SOLUTIONS
C C C C
[CASE QUESTIONS]
C
Casec1-1cOff-Shoring?cNear-Shoring?cOn-Shoring?
1. cDiscusscthecadvantagescandcdisadvantagescofcoff-shoring,cnear-shoring,candcon-
shoringcforcthesecthreecindustries.
Solution:
Fromcacsupplycchaincperspective,cthecadvantages/disadvantagescwillcbecthecsamecforcthecthreecindustries.
Off-shoring
Thecobviouscadvantagecofcoff-
shoringcisctheclaborccostcadvantagecmanycotherccountrieschave.cAnothercadvantageciscthatcthecsupplierscforcth
esecthreecindustrieschavecdevelopedctechnicalcexpertisecandcgainedceconomiescofcscalecinctheircproductioncpr
ocesses.
Thecbiggestcdisadvantage,cascseencascacresultcofcthecpandemic,ciscthecdistancectocU.S.cmarkets.cCouplecthisc
withcborderscbeingcshutcdowncandcU.S.ctariffsconccertaincimports,candcitcisceasyctocseecwhycoff-
shoringccancpresentcchallenges.
Near-Shoring
ThecadvantagecofcbringingcsupplierscbackctocNorthcAmericaciscthectradecagreementscthecU.S.chascwithc
CanadacandcMexico.cThesecagreementscfacilitatecborderccrossingscandceliminate/minimizectariffscandc
duties.cAnothercadvantageciscthecrelativelycshortcdistancecamongcthecthreeccountries.
Thecdisadvantageccouldcbectheclackcofcqualifiedcsupplierscand/orcproductioncprocessescincCanadacandc
Mexicocthatccouldcfulfillcthecneedscofcthesecthreecindustries.
On-Shoring
ThecobviouscadvantagectocbringingcproductioncbackctocthecU.S.ciscdistancecandcthecavoidancecofcbordercclosin
gscandctariffs.
Thecdisadvantageccouldcbectheclackcofcqualifiedcsuppliers/productioncprocessescavailablecincthecU.S.
2. Whatccouldcthecfederalcgovernmentcdoctocconvincecfirmscincthesecindustriesctocchangectheircglobalctradecp
atterns?
Solution:
Thecbiggestcincentivecthecfederalcgovernmentccouldcgivecfirmscincthesecindustriescwouldcbectaxcbreaksctocrelo
cate.cThecgovernmentccouldcalsocprovidecsubsidies,corcseedcmoney,ctocincentivizecfirmsctocrelocatecproductio
nctocthecU.S.
CASEc1-2cTEAcLogisticscServices,cInc.
1. WhatcopportunitiescdocyoucseecforcTEActocexpandcglobally,cspecificallyctocSouthcAfrica?
Solution:
© 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 4
website, in whole or in part.
Transportation A Global Supply Chain Perspective, 10th Edition Rob
c c c c c c c c
ert A. NovackBrian GibsonYoshinori Suzuki
c c c c
Chapter 1-13 c
NOVACK, TRANSPORTATION: A GLOBAL SUPPLY CHAIN PERSPECTIVE, 10E, 2024, 9780357908549; CHAPT
C C C C C C C C C C
ER 1: GLOBAL SUPPLY CHAINS: THE ROLE AND IMPORTANCE OF TRANSPORTATION
C C C C C C C C C C
TABLE OF CONTENTS C C
ContentcType................................................................................................................................................ 1
[StudycQuestions] ...................................................................................................................................... 1
END OF SECTION EXERCISE SOLUTIONS ................................................................................................... 4
C C C C
[CASE QUESTIONS] .................................................................................................................................... 4
C
CONTENT TYPE C
[STUDY QUESTIONS] C
1. Transportationchascsometimescbeencdescribedcascthecgluecthatcholdscglobalcsupplycchainsctogether.cWhatcisct
hecmeaningcofcthiscstatementcandcdocyoucagree?cWhycorcwhycnot?
Solution:
Mostcstudentscwillcprobablycagreecthatctransportationciscthec—
glue‖cofcthecsupplycchaincsincecitcconnectscthecindividualcpartscofcthecchain.cStill,ctheycshouldcpointcoutcthatcin
formationciscalsocimportantctocholdcthecsupplycchainctogether.cThecessencecofcthecstatementciscthatcsupplyccha
inscarecextendedcenterprisescwithcmanycparts,candcthecfinalcoutcomeciscacproductcdeliveredconctimectocacpartic
ularclocationcwithoutcdamagecorcdelay.cTransportationcandcinformationcflowscareckeyctocthiscoutcome.cTheyc
shouldcalsocpointcoutcthatctransportationcandcinformationccancprovidecacstrategiccadvantage,csoctheycshouldcb
ecancimportantcpartcofcthecplanningcprocess.cOverall,csupplycchainscplaycancimportantcrolecinchelpingcorganiz
ationscgaincacstrategiccadvantagecincthecglobalceconomycofcthec21stccentury.
2. Duringctheclastc20ctoc30cyears,ctherechavecbeencacnumbercofccountriescwhosececonomieschavecexperiencedci
mportantceconomiccexpansioncandcdevelopment.cOnecgroupcofccountrieschascbeenclabeledcthecBRICccountri
escandcthecothercthecVISTAccountries.cIdentifyceachcofcthecnineccountriescandcprovidecsomecinsightscaboutcth
eirceconomiescandceconomiccimportance.
Solution:
BRICccountriescarecBrazil,cRussia,cIndia,candcChina.cThecVISTAccountriescarecVietcNam,
Indonesia,cSouthcAfrica,cTurkey,candcArgentina.cThecBRICcgroupciscgenerallycconsideredctocbecthecmostcadv
ancedceconomy.cChinaciscclearlycthecmostcimportant,cascindicatedcbycthecgradecflowcdatacincthecchapter.cThey
carecimportant cforcmanufactured cproductioncwellcascresources. cIndia chascadvancedcrapidlycthroughctheir
© 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 1
website, in whole or in part.
, Transportation A Global Supply Chain Perspective, 10th Edition Robert A. NovackBrian GibsonYoshinori Suzuki: Novack, Transportation: A
Global Supply Chain Perspective, 10e, 2024, 9780357908549; Chapter 1: Global Supply Chains: The Role and Importance of Transportation
educatedcandcindustriousccitizenscandctechnology,candcorganizationscincIndiachavecbecomecancimportantcpartc
ofcmanycsupplycchains.cRussiacandcBrazilcbothchavecvastcresourcescthatccancbecthecbasiscforcfunds,cbutctheycar
ecalsocdevelopingcmorecadvancedcmanufacturingcsectors.cTheycarecchallengedcbyctheircgeography,csize,candc
politicalcfactors.cThecVISTAccountrieschavecestablishedcthemselvescasccountriescforcsourcingcsomecbasiccma
nufacturingcbecausecofclowclaborccosts.cTheycalsocprovidecagriculturalcproductscandcotherc resourcescforcexp
orting.cTheckeycdimensioncforcbothcthecBRICcandcVISTAccountriesciscthatcestablishingcglobalcsupplycchainsc
hascallowedcthemctocbecacpartcthecglobalceconomies.
ThereciscabundantcinformationcaboutcthecBRICcandcVISTAccountriesconcthecinternetcifcyoucwantctocmakecthis
cquestioncacspecialcassignmentcorcextraccredit.
3. Thectheoriescofcabsolutecandccomparativecadvantagechavecbeencofferedcascanceconomiccrationalecforctradec
betweencandcamongcregionscandccountries.cComparecandccontrastcthectwocconcepts.cWhichcofcthectwocdocy
oucthinkciscmorecimportantcforcexplainingcthecgrowthcincglobalctradecduringctheclastc25cyears?cWhy?
Solution:
Bothctheoriescarecofferedcascacrationalecforcexpandedctradecbetweencandcamongcregionscandccountriesctocpro
motecgrowthcandcdevelopment.cAbsolutecadvantageciscthecoldestcconceptcandceasiestctocexplain,csinceceachcco
untrychascancadvantagecincthecproductioncofconecorcmorecproductscincthectwo-countrycscenario.
Comparativecadvantagecpostulatescthatcevencifconeccountrychascancadvantagecincbothcproducts,ctradeccancstillc
becadvantageous.cComparativecadvantagechascprobablycbeencthecmostcimportantcforcoverallcdevelopmentcinc
ourccomplexcglobalceconomycsinceccountriesccancproducecsocmanycproductscthatcareccompetitivecwithcothercc
ountries,ctocsomecdegree.cHowever,ccompletecadvantageciscstillcimportantctocrationalizecsomecmajorcworkcflo
ws,cespeciallycforcbasiccmaterialscandcagriculturalcproducts.cTherecarecalsocseasonalcandcweather-
relatedcfactorscthatcprovidecadvantagescatcparticularctimescofcthecyearcforcdifferentcregions.
4. Thecoverallcgrowthcofcglobalctradechascmorecthancdoubledcsincec2000.cWhy?cWhatchascbeencthecmostcimpor
tantcfactorcpromptingcthiscgrowth?cIscthiscratecofcgrowthclikelyctoccontinuecincthecfuture?cWhycorcwhycnot?
Solution:
Therecarecseveralcreasonscforcthiscgrowth.cSomecofcitccancbecexplainedcbycpopulationcgrowthcandcimprovedce
ducationcsystemscincdevelopingccountries.cCapitalcforcdevelopmentchascbecomecmorecwidelycavailablecfromc
privatecandcpubliccsources.cThereciscalsocmorec acceptancecofcproductscmanufacturedcincotherccountries.cButc
probablycthecmostcimportantcreasonscarectradecagreementscandclowerctariffsconcimportedcproducts.cThesechav
ecbeencgreatlycexpandedcbecausecofcthecrecognitioncofchowcimportantcglobalctradeccancbectoceconomiccdevel
opmentcandcthechealthcandcwelfarecofctheccitizenscofctheccountry.cOnecofcthecbiggestcchallengesctocprogresscin
cpromotingcglobalctradeciscthecpoliticalcinstabilitycandcterrorismcthatchavecdevelopedcincsomecareascofcthecwor
ld,csuchcascAfricacandcpartscofcthecMiddlecEast.cThesecfactorscunderminecthecbenefitscthatccancaccruecfromcthe
cgrowthcincglobalctrade.cOneccancarguecthatcthecgrowthcwillccontinue cbecausecofcthececonomiccandcpoliticalcf
orcescatcworkcincthecglobalceconomy,cbutctherecwillcbecupscandcdownscorcbumpscalongcthecroadcbecausecofchu
mancerrorcandcgreed.
5. Thecsizecofcaccountry’scpopulationcandcthecassociatedcagecdistributionccancbeccausalcfactorscforceconomiccgro
wth.cWhyciscthecsizecofcthecpopulationcimportantctoceconomiccdevelopment?cCancsizecbecacdisadvantage?cWh
yciscagecdistributioncimportant?
Solution:
Thecsheercsizecofcthecpopulationccancbecverycimportantcbecauseclaborcisconecofcthecprimecfactorscforceconomi
ccgrowth,candcpopulationcnumberscindicatecthecavailabilitycofclabor.cThecsizecofcthecpopulationccancalsocindic
atecthecmarketcsizecandcpotentialcforcsellingcproducts.cSizeccancbecacdisadvantagecifcthececonomyccannotcprov
idecemploymentcopportunities.cLargecsizeccancalsocchallengectheceducationcsystemcandcmaycrequirecgovernm
entcresourcesctocsustaincthecbasiccneedscofctheccitizenry.cAgecdistributioncaffectscthecsizecofctheclaborcpoolcofc
availablecemployees.cAlso,coldercpopulationscrequirecmorecmedicalcassistancecandcothercservices,cwhichccanc
draincthecresourcescofcindividualscorcgovernmentcagencies.cThecpopulationcdatacandccommentarycincthecchapt
ercprovidecthecbasiscforcsomecinterestingcdiscussion.cAgain,cthisctopicchascabundant
© 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 2
website, in whole or in part.
, Transportation A Global Supply Chain Perspective, 10th Edition Robert A. NovackBrian GibsonYoshinori Suzuki: Novack, Transportation: A
Global Supply Chain Perspective, 10e, 2024, 9780357908549; Chapter 1: Global Supply Chains: The Role and Importance of Transportation
informationcavailableconcthecinternetcandccouldcbecthecbasiscofcacspecialcassignment.cThecdifferencescincpopul
ationcsize,cgrowthcrates,cagecdistribution,candceducationclevelscarecallcfactorscforceconomiccdevelopment.
6. Energy,cfood,candcwatercarecfrequentlyccitedcresourcescthatcareccriticalcforceconomiccdevelopment.cExplainct
hecimportancecofceachconectoceconomiccdevelopment.cWhatcdisparitiescexistcamongccountriescwithcrespectct
octhesecthreecresources?cHowccancthesecchallengescbecresolved?
Solution:
Energyciscacprimarycingredientctocsupportcagriculture,cmanufacturing,candctransportation.cConsequently,cifcm
uchcofcthecneededcenergychasctocbecimported,citcwillcincreasectheccostcofcproducingcproductscandcmaycputcacco
untrycatcacdisadvantagecincproducingcandcexportingcproducts.cFoodciscalmostcself-
explanatorycsincecitciscneededctocsustainctheccitizenrycofctheccountry.cWhencthereciscacfoodcshortage,caccountr
ycwillcbecchallengedcunlesscitccancoffsetcthiscshortagecwithcadvantagescincothercareas,csuchcascmineralcresourc
escorclaborcproductivity.cWaterciscaccriticalcresourcecforcindividuals,cagriculture,cmanufacturing,candcothercbu
sinessescandcorganizations.cThecabsencecofcancadequatecwatercsupplycisconecofcthecmostcdebilitatingcconditio
nscforc anceconomy.cTherecarecmajorcdifferencescaroundcthecglobecregardingcthecavailabilitycandcquantitycofct
hesecresources.cTechnologycmaycbecablectocsolvecsomecdegreecofcthiscproblem,cbutcnotcallcofcit.
7. Technologyccancimpactceconomiccdevelopmentconcbothcacmacrocandcacmicroclevel.cWhatctypescofct
echnologycdocwecneedctochavecsuchcimpactsconcacmacrocbasis?cOncacmicrocbasis?
Solution:
Oncacmacrocbasis,ctechnologyciscneededctocincreasecthecproductivitycofcagriculturecandcmanufacturingcincman
ycpartscofcthecworld.cImprovementsccancalsocbecmadecincthecsupplycchains,cespeciallycinctransportation.cOncac
microcbasis,ctechnologyccancimprovecthecqualitycofclifecforcmanycpeoplecthroughcmedicalctreatment,csafety,ca
ndcaidscforcseniors.cWechavecmadecsignificantcprogresscwithctechnology,cbutcsomecindividualscfeelcthatcwecha
veconlycscratchedcthecsurfacecofcthecpotentialctocimprovececonomiccdevelopment.cThecsupplycchainchascbeenc
thecbeneficiarycofctechnology,cespeciallycinformationctechnology,ctocimprovecefficiency,ceffectiveness,candce
xecution.cHowever,cinctheclastcdecade,ctechnology'sc—
hardcside‖chascbeencreceivingcmorecattentioncinctransportation,cwarehousing,candcmanufacturingctocimprovece
fficiencycandceffectiveness.
8. Roboticschascattractedcmorecattentioncincrecentcyears.cWhy?cHowcarecrobotscbeingcusedcincsupplycchains?
Solution:
Roboticschascindeedcreceivedcmorecattentioncincmanycareas,cespeciallychealthccare,cmanufacturing,candcdistri
bution.cSomecpeoplecseecroboticscascacreplacementcforclabor,cbutcnowcrobotscarecbeingcviewedcasccomplemen
tary.cItcwillcimprovecmanufacturing,cdistribution,chealth,candcwelfarecofcthecpopulation.cRobotscarecbeingcuse
dcincwarehousescforcshelving,cordercpicking,cloading,candcunloading.cRobotschavecpotentialcincothercareascofct
hecsupplycchain,cespeciallyctransportation.
9. Thececonomiccintegrationcassociatedcwithcglobalizationccancprovidecancopportunitycforcmorecwidelycdis
persedcdevelopment.cWhyciscthiscpossible?cWhatcarecthecmajorcstumblingcblocksctocsuchcintegration?
Solution:
Economiccintegrationccancreleasecthecpowercofccomparativecadvantagecandcprovidecmorecgrowth,cdevelopme
nt,candcprosperity.cThecmajorcstumblingcblockscarec—fear‖candc—
terror,‖cwhichcarecassociatedcwithcindividualscandcgroupscwhocwillcexercisectheircabilityctocthwartctradecflowsc
forcselfishcorcself-
servingcagendas.cCollaborationcamongcorganizationscincacglobalcsupplycchainccancbecacdrivingcforcecforcmore
cefficiencycandceffectiveness.
10. Supplycchaincmanagementchascenabledcsomeccompaniesctocoperatecmorecefficientlycandccompetecmoreceffe
ctivelyconcacglobalcbasis.cWhatcinherentccharacteristicscofcsupplycchaincmanagementccontributectocthesecoutc
omes?
Solution:
© 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 3
website, in whole or in part.
, Transportation A Global Supply Chain Perspective, 10th Edition Robert A. NovackBrian GibsonYoshinori Suzuki: Novack, Transportation: A
Global Supply Chain Perspective, 10e, 2024, 9780357908549; Chapter 1: Global Supply Chains: The Role and Importance of Transportation
Supplycchainscthatcarecefficient,ceffective,candcwellcexecutedccancmakeccompaniescmoreccompetitive.cThecba
siscofcthiscoutcomeciscrelatedctocsystemscanalysiscandctrade-
offcanalysis,cwhichcallowcorganizationsctocdocwhatctheyccancdocbestcandcdependconcothercorganizationsctocpro
videcthecrest.cTheccoordinationcandccollaborationcthatcshouldcbecinherentcincsupplycchainscarecimportantcingr
edientscforcefficiencycandceffectiveness.
END OF SECTION EXERCISE SOLUTIONS
C C C C
[CASE QUESTIONS]
C
Casec1-1cOff-Shoring?cNear-Shoring?cOn-Shoring?
1. cDiscusscthecadvantagescandcdisadvantagescofcoff-shoring,cnear-shoring,candcon-
shoringcforcthesecthreecindustries.
Solution:
Fromcacsupplycchaincperspective,cthecadvantages/disadvantagescwillcbecthecsamecforcthecthreecindustries.
Off-shoring
Thecobviouscadvantagecofcoff-
shoringcisctheclaborccostcadvantagecmanycotherccountrieschave.cAnothercadvantageciscthatcthecsupplierscforcth
esecthreecindustrieschavecdevelopedctechnicalcexpertisecandcgainedceconomiescofcscalecinctheircproductioncpr
ocesses.
Thecbiggestcdisadvantage,cascseencascacresultcofcthecpandemic,ciscthecdistancectocU.S.cmarkets.cCouplecthisc
withcborderscbeingcshutcdowncandcU.S.ctariffsconccertaincimports,candcitcisceasyctocseecwhycoff-
shoringccancpresentcchallenges.
Near-Shoring
ThecadvantagecofcbringingcsupplierscbackctocNorthcAmericaciscthectradecagreementscthecU.S.chascwithc
CanadacandcMexico.cThesecagreementscfacilitatecborderccrossingscandceliminate/minimizectariffscandc
duties.cAnothercadvantageciscthecrelativelycshortcdistancecamongcthecthreeccountries.
Thecdisadvantageccouldcbectheclackcofcqualifiedcsupplierscand/orcproductioncprocessescincCanadacandc
Mexicocthatccouldcfulfillcthecneedscofcthesecthreecindustries.
On-Shoring
ThecobviouscadvantagectocbringingcproductioncbackctocthecU.S.ciscdistancecandcthecavoidancecofcbordercclosin
gscandctariffs.
Thecdisadvantageccouldcbectheclackcofcqualifiedcsuppliers/productioncprocessescavailablecincthecU.S.
2. Whatccouldcthecfederalcgovernmentcdoctocconvincecfirmscincthesecindustriesctocchangectheircglobalctradecp
atterns?
Solution:
Thecbiggestcincentivecthecfederalcgovernmentccouldcgivecfirmscincthesecindustriescwouldcbectaxcbreaksctocrelo
cate.cThecgovernmentccouldcalsocprovidecsubsidies,corcseedcmoney,ctocincentivizecfirmsctocrelocatecproductio
nctocthecU.S.
CASEc1-2cTEAcLogisticscServices,cInc.
1. WhatcopportunitiescdocyoucseecforcTEActocexpandcglobally,cspecificallyctocSouthcAfrica?
Solution:
© 2024 Cengage. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible 4
website, in whole or in part.
