SCM 413 Final Exam 2024/2025 Exam
Questions and Corresponding Answers
with Surety of 100% Pass Mark
Which of the following is not a reason for globalization?
A. Increase revenue
B. advance technology
C. enhance sustainability
D. increase market access uncertainty - 🧠ANSWER ✔✔D. increase market
access uncertainty
Which of the following is not a means of reducing direct cost through
globalization?
A. take advantage of lower labor costs
B. take advantage of lower real estate expenses
C. take advantage of differences in production requirements
D. reduce energy requirements
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
1
STATEMENT. ALL RIGHTS RESERVED
,E. all of the above reduce direct costs - 🧠ANSWER ✔✔E. all of the above
reduce direct costs
Which strategy is not focused on local markets?
A. no international
B. multi-domestic
C. transnational
D. global - 🧠ANSWER ✔✔C. transnational
Firms are globalizing their operations today for all of the following reasons
except which of the following?
A. take advantage of lower labor rates
B. obtain reductions in value-added taxes
C. source product from locations that involve less transportation uncertainty
D. simplify product variations - 🧠ANSWER ✔✔D. simplify product
variations
Jones Company has more manufacturing capacity than is needed for their
domestic customers. By entering into a joint venture in another country,
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
2
STATEMENT. ALL RIGHTS RESERVED
,Jones Company hopes to increase overall sales. Jones Company is
globalizing for which of the following reasons?
A. take advantage of lower labor rates
B. achieve economies of scale
C. reduce global tax liability
D. enhance sustainability - 🧠ANSWER ✔✔B. achieve economies of scale
Jones Company has located a supplier in another country who offers to
produce their products at a lower cost than the current, domestic
supplier.By moving production overseas, Jones Company is globalizing for
which of the following reasons?
A. take advantage of lower labor rates
B. achieve economies of scale
C. reduce global tax liability
D. enhance sustainability - 🧠ANSWER ✔✔A. take advantage of lower labor
rates
Trade agreements between adjacent countries can reduce operating costs
in which of the following ways?
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
, A. increased economies of scale
B. reduced border inefficiencies
C. lowering or eliminating tariffs
D. all of these - 🧠ANSWER ✔✔D. all of these
Globalized supply chains often experience extended performance cycle
times for all of the following reasons EXCEPT:
A. longer production run times
B. longer transit times
C. delays for customers inspections
D. financing requirements - 🧠ANSWER ✔✔C. delays for customers
inspections
Existence of Cabotage laws are often enacted and maintained for which of
the following reasons?
A. reduce transportation uncertainty
B. reduce transportation cost
C. protect domestic shipping capacity
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
4
STATEMENT. ALL RIGHTS RESERVED
Questions and Corresponding Answers
with Surety of 100% Pass Mark
Which of the following is not a reason for globalization?
A. Increase revenue
B. advance technology
C. enhance sustainability
D. increase market access uncertainty - 🧠ANSWER ✔✔D. increase market
access uncertainty
Which of the following is not a means of reducing direct cost through
globalization?
A. take advantage of lower labor costs
B. take advantage of lower real estate expenses
C. take advantage of differences in production requirements
D. reduce energy requirements
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
1
STATEMENT. ALL RIGHTS RESERVED
,E. all of the above reduce direct costs - 🧠ANSWER ✔✔E. all of the above
reduce direct costs
Which strategy is not focused on local markets?
A. no international
B. multi-domestic
C. transnational
D. global - 🧠ANSWER ✔✔C. transnational
Firms are globalizing their operations today for all of the following reasons
except which of the following?
A. take advantage of lower labor rates
B. obtain reductions in value-added taxes
C. source product from locations that involve less transportation uncertainty
D. simplify product variations - 🧠ANSWER ✔✔D. simplify product
variations
Jones Company has more manufacturing capacity than is needed for their
domestic customers. By entering into a joint venture in another country,
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
2
STATEMENT. ALL RIGHTS RESERVED
,Jones Company hopes to increase overall sales. Jones Company is
globalizing for which of the following reasons?
A. take advantage of lower labor rates
B. achieve economies of scale
C. reduce global tax liability
D. enhance sustainability - 🧠ANSWER ✔✔B. achieve economies of scale
Jones Company has located a supplier in another country who offers to
produce their products at a lower cost than the current, domestic
supplier.By moving production overseas, Jones Company is globalizing for
which of the following reasons?
A. take advantage of lower labor rates
B. achieve economies of scale
C. reduce global tax liability
D. enhance sustainability - 🧠ANSWER ✔✔A. take advantage of lower labor
rates
Trade agreements between adjacent countries can reduce operating costs
in which of the following ways?
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
, A. increased economies of scale
B. reduced border inefficiencies
C. lowering or eliminating tariffs
D. all of these - 🧠ANSWER ✔✔D. all of these
Globalized supply chains often experience extended performance cycle
times for all of the following reasons EXCEPT:
A. longer production run times
B. longer transit times
C. delays for customers inspections
D. financing requirements - 🧠ANSWER ✔✔C. delays for customers
inspections
Existence of Cabotage laws are often enacted and maintained for which of
the following reasons?
A. reduce transportation uncertainty
B. reduce transportation cost
C. protect domestic shipping capacity
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
4
STATEMENT. ALL RIGHTS RESERVED
