BUAD 331 Final Exam with Complete
Solutions
Why might a company consider expanding its supply chain internationally?
A. To obtain access to lower-cost suppliers
B. To take advantage of a skilled labor base in another country
C. To support international expansion of sales
D. To fend off competition from an international competitor
E. All of the above - ANS-E. All of the above
What dimension of the country assessment framework involves the strength of supply
chain support businesses in the region?A.Competency
B.Economy
C.Politics
D.Infrastructure - ANS-A.Competency
Supply chain solutions that work in one region can be repeated as long as you have the
technology systems to connect all supply chain partners.
A. True
B. False - ANS-B. False
What is the biggest cause of difficulties in working with another culture?
A. Language differences
B. Different ways of making decisions and approaching business
C. Physical distance to the market
D. Not showing up to meetings on time - ANS-B. Different ways of making decisions
and approaching business
Which supply chain strategy is most popular with companies today?
A. Purely global manufacturing with very few global production locations
B. Purely local manufacturing with production in every market
C. Regional strategy that groups countries into clusters
D. High-tech strategy that uses software to overcome the problems - ANS-C. Regional
strategy that groups countries into clusters
What is the most common way that countries agree to increase trade?
A. Through unilateral removal of tariffs on imports
B. Through the GATT treaty agreement
C. Through WTO negotiations
D. Through negotiating bilateral or multilateral FTAs - ANS-D. Through negotiating
bilateral or multilateral FTAs
,When was the World Trade Organization founded?
A. 1785
B. 1895
C. 1905
D. 1995 - ANS-D. 1995
The legal system used in the United States is based on:
A. Napoleonic law.
B. common law.
C. civil law.
D. code law. - ANS-B. common law.
Supply chain management has a widely accepted definition that does not vary
substantially between countries.
A. True
B. False - ANS-B. False
Which framework is most useful for companies wanting to build an initial assessment of
the general operating environment in a country?
A. EPIC
B. CAGE
C. SWOT
D. FARM - ANS-A. EPIC
What type of company will likely work with international supply chains?
A. Large multinational company
B. Regional company
C. Small business
D. All of the above - ANS-D. All of the above
Labor laws in the United States are generally seen to be more-friendly to the
international worker than those in most other countries.
A. True
B. False - ANS-B. False
When entering a new international market, the following question(s) should be asked to
understand cultural differences:
A. How are decisions made?
B. How are relationships approached
C. How is success measured?
D. A & B
E. All of the above - ANS-E. All of the above
,The _______ was created as an international agency to oversee the new exchange rate
system and to help bridge difficulties and financial crises in individual member
companies.
A. GATT
B. WTO
C. ITC
D. IMF - ANS-D. IMF
Two-thirds of the world's countries including France and Germany use what type of law
as the basis for their legal system?
A. Civil Law
B. Common Law
C. Trade Law
D. International Law - ANS-A. Civil Law
Products that are sold outside of normal distribution channels are referred to as
"____________".
A. White Markets
B. Black Markets
C. Gray Markets
D. Blue Markets - ANS-C. Gray Markets
The EPIC Framework is most useful when a company is trying to build
________________.
A. a new warehouse
B. an initial assessment of a countries operating environment
C. new insights into the US labor market
D. a detailed assessment of a specific foreign market - ANS-B. an initial assessment of
a countries operating environment
Which term refers to products that are sold outside of an official distribution channel,
often causing problems for the original manufacturer?
A. Green Market
B. Black Market
C. White Market
D. Gray Market - ANS-D. Gray Market
Which is not an example of a supply chain disruption for Toyota?
A. Toyota enacting a voluntary recall
B. The 2011 earthquake that forced Toyota and Honda to stop production
C. The truck carrying a small load of Corollas being stolen from a truck stop
D. A competitor's sales cause Toyota's forecasted demand to drop - ANS-D. A
competitor's sales cause Toyota's forecasted demand to drop
What is the best way to categorize risk?
A. Calculate exposure score using both strategic and financial dimensions
, B. Calculate exposure score using both mitigation and management responses
C. Calculate responsiveness score using both exposure and mitigation responses
D. Calculate mitigation score using both responsiveness and exposure dimensions -
ANS-A. Calculate exposure score using both strategic and financial dimensions
Which of the following is not an effective way to develop a risk management culture?
A .KPIs linked to risk management
B. Cross functional governance structure
C. Escalate issues of non-compliance
D. Connection to commercial leadership - ANS-C. Escalate issues of non-compliance
What events can result in a supply chain disruption?
A. Natural disasters like floods
B. Supplier bankruptcy
C. Plant fire at a supplier
D. All of the above - ANS-D. All of the above
Which of the following was NOT discussed as examples of disruption impacts?
A. Shortage of critical inputs
B. Delays in product completion
C. Management stress and turnover
D. Loss in shareholder value - ANS-C. Management stress and turnover
A strike has just occurred at a key supplier. Which phase is the firm most likely dealing
with?
A. Pre-disruption phase
B. Receipt phase
C. Domino phase
D. Pre-Due date phase - ANS-D. Pre-Due date phase
What are the four steps in quantifying risk exposure?
A. Create a plan, enable sourcing efforts, meet regulatory standards on quality and
improve flexibility
B. Determine the impact of the risk, likelihood of the risk, status of actions taken to
reduce the risk, and exposure based on impact, likelihood and preparedness
C. Determine resources for high risk mitigation, forecast mitigation effectiveness, create
a cross-functional governance structure and incorporate effective KPIs
D. Determine which areas are ripe for theft, enable theft tracking devices, involve
government agencies to solve problems, continue to do business in these areas - ANS-
B. Determine the impact of the risk, likelihood of the risk, status of actions taken to
reduce the risk, and exposure based on impact, likelihood and preparedness
Improving network visibility is a key element of risk management. Which of the following
provides an example of this?
A. Reducing process variability
B. Implementing a Six Sigma methodology
Solutions
Why might a company consider expanding its supply chain internationally?
A. To obtain access to lower-cost suppliers
B. To take advantage of a skilled labor base in another country
C. To support international expansion of sales
D. To fend off competition from an international competitor
E. All of the above - ANS-E. All of the above
What dimension of the country assessment framework involves the strength of supply
chain support businesses in the region?A.Competency
B.Economy
C.Politics
D.Infrastructure - ANS-A.Competency
Supply chain solutions that work in one region can be repeated as long as you have the
technology systems to connect all supply chain partners.
A. True
B. False - ANS-B. False
What is the biggest cause of difficulties in working with another culture?
A. Language differences
B. Different ways of making decisions and approaching business
C. Physical distance to the market
D. Not showing up to meetings on time - ANS-B. Different ways of making decisions
and approaching business
Which supply chain strategy is most popular with companies today?
A. Purely global manufacturing with very few global production locations
B. Purely local manufacturing with production in every market
C. Regional strategy that groups countries into clusters
D. High-tech strategy that uses software to overcome the problems - ANS-C. Regional
strategy that groups countries into clusters
What is the most common way that countries agree to increase trade?
A. Through unilateral removal of tariffs on imports
B. Through the GATT treaty agreement
C. Through WTO negotiations
D. Through negotiating bilateral or multilateral FTAs - ANS-D. Through negotiating
bilateral or multilateral FTAs
,When was the World Trade Organization founded?
A. 1785
B. 1895
C. 1905
D. 1995 - ANS-D. 1995
The legal system used in the United States is based on:
A. Napoleonic law.
B. common law.
C. civil law.
D. code law. - ANS-B. common law.
Supply chain management has a widely accepted definition that does not vary
substantially between countries.
A. True
B. False - ANS-B. False
Which framework is most useful for companies wanting to build an initial assessment of
the general operating environment in a country?
A. EPIC
B. CAGE
C. SWOT
D. FARM - ANS-A. EPIC
What type of company will likely work with international supply chains?
A. Large multinational company
B. Regional company
C. Small business
D. All of the above - ANS-D. All of the above
Labor laws in the United States are generally seen to be more-friendly to the
international worker than those in most other countries.
A. True
B. False - ANS-B. False
When entering a new international market, the following question(s) should be asked to
understand cultural differences:
A. How are decisions made?
B. How are relationships approached
C. How is success measured?
D. A & B
E. All of the above - ANS-E. All of the above
,The _______ was created as an international agency to oversee the new exchange rate
system and to help bridge difficulties and financial crises in individual member
companies.
A. GATT
B. WTO
C. ITC
D. IMF - ANS-D. IMF
Two-thirds of the world's countries including France and Germany use what type of law
as the basis for their legal system?
A. Civil Law
B. Common Law
C. Trade Law
D. International Law - ANS-A. Civil Law
Products that are sold outside of normal distribution channels are referred to as
"____________".
A. White Markets
B. Black Markets
C. Gray Markets
D. Blue Markets - ANS-C. Gray Markets
The EPIC Framework is most useful when a company is trying to build
________________.
A. a new warehouse
B. an initial assessment of a countries operating environment
C. new insights into the US labor market
D. a detailed assessment of a specific foreign market - ANS-B. an initial assessment of
a countries operating environment
Which term refers to products that are sold outside of an official distribution channel,
often causing problems for the original manufacturer?
A. Green Market
B. Black Market
C. White Market
D. Gray Market - ANS-D. Gray Market
Which is not an example of a supply chain disruption for Toyota?
A. Toyota enacting a voluntary recall
B. The 2011 earthquake that forced Toyota and Honda to stop production
C. The truck carrying a small load of Corollas being stolen from a truck stop
D. A competitor's sales cause Toyota's forecasted demand to drop - ANS-D. A
competitor's sales cause Toyota's forecasted demand to drop
What is the best way to categorize risk?
A. Calculate exposure score using both strategic and financial dimensions
, B. Calculate exposure score using both mitigation and management responses
C. Calculate responsiveness score using both exposure and mitigation responses
D. Calculate mitigation score using both responsiveness and exposure dimensions -
ANS-A. Calculate exposure score using both strategic and financial dimensions
Which of the following is not an effective way to develop a risk management culture?
A .KPIs linked to risk management
B. Cross functional governance structure
C. Escalate issues of non-compliance
D. Connection to commercial leadership - ANS-C. Escalate issues of non-compliance
What events can result in a supply chain disruption?
A. Natural disasters like floods
B. Supplier bankruptcy
C. Plant fire at a supplier
D. All of the above - ANS-D. All of the above
Which of the following was NOT discussed as examples of disruption impacts?
A. Shortage of critical inputs
B. Delays in product completion
C. Management stress and turnover
D. Loss in shareholder value - ANS-C. Management stress and turnover
A strike has just occurred at a key supplier. Which phase is the firm most likely dealing
with?
A. Pre-disruption phase
B. Receipt phase
C. Domino phase
D. Pre-Due date phase - ANS-D. Pre-Due date phase
What are the four steps in quantifying risk exposure?
A. Create a plan, enable sourcing efforts, meet regulatory standards on quality and
improve flexibility
B. Determine the impact of the risk, likelihood of the risk, status of actions taken to
reduce the risk, and exposure based on impact, likelihood and preparedness
C. Determine resources for high risk mitigation, forecast mitigation effectiveness, create
a cross-functional governance structure and incorporate effective KPIs
D. Determine which areas are ripe for theft, enable theft tracking devices, involve
government agencies to solve problems, continue to do business in these areas - ANS-
B. Determine the impact of the risk, likelihood of the risk, status of actions taken to
reduce the risk, and exposure based on impact, likelihood and preparedness
Improving network visibility is a key element of risk management. Which of the following
provides an example of this?
A. Reducing process variability
B. Implementing a Six Sigma methodology
