Answer Key- Solution manual for transportation a global supply chain perspective
Page 1 of 77
10th edition by robert a novackbrian gibsonyoshinori suzuki 2/1/2026
Solution and Answer Guide for: Novack, Transportation: A Global Supply Chain Perspective, 10e, 2024, 9780357908549; Chapter 1: Global
Supply Chains: The Role and Importance of Transportation
Solution and Answer Guide for
Transportation A Global Supply Chain Perspective, 10th Edition
Robert A. NovackBrian GibsonYoshinori Suzuki
Chapter 1-13
NOVACK, T RANSPORTATION : A GLOBAL SUPPLY CHAIN PERSPECTIVE , 10E, 2024, 9780357908549;
CHAPTER 1: GLOBAL SUPPLY CHAINS: T HE ROLE AND IMPORTANCE OF T RANSPORTATION
TABLE OF CONTENTS
Content Type ............................................................................................................................................... 1
[Study Questions]...................................................................................................................................... 1
END OF SECTION EXERCISE SOLUTIONS .................................................................................................... 4
[CASE QUESTIONS].................................................................................................................................... 4
CONTENT TYPE
[STUDY QUESTIONS]
1. Transportation has sometimes been described as the glue that holds global supply chains together. What is
the meaning of this statement and do you agree? Why or why not?
Solution:
Most students will probably agree that transportation is the ―glue‖ of the supply chain since it connects the
individual parts of the chain. Still, they should point out that information is also important to hold the
supply chain together. The essence of the statement is that supply chains are extended enterprises with
many parts, and the final outcome is a product delivered on time to a particular location without damage or
delay. Transportation and information flows are key to this outcome. They should also point out that
transportation and information can provide a strategic advantage, so they should be an important part of the
planning process. Overall, supply chains play an important role in helping organizations gain a strategic
advantage in the global economy of the 21st century.
2. During the last 20 to 30 years, there have been a number of countries whose economies have experienced
important economic expansion and development. One group of countries has been labeled the BRIC
countries and the other the VISTA countries. Identify each of the nine countries and provide some insights
about their economies and economic importance.
Solution:
BRIC countries are Brazil, Russia, India, and China. The VISTA countries are Viet Nam,
Indonesia, South Africa, Turkey, and Argentina. The BRIC group is generally considered to be the most
advanced economy. China is clearly the most important, as indicated by the grade flow data in the chapter.
They are important for manufactured production well as resources. India has advanced rapidly through their
© 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.
Page 1 Solution manual
Solution
for transportation
manual for transportation
a global supply
a global
chainsupply
perspective
chain perspective
10th edition 10th
by robert
edition
a novackbrian
by robert a novackbrian
gibsonyoshinori
gibsonyoshinori
suzuki.pdf suzuki.pdf
,Answer Key- Solution manual for transportation a global supply chain perspective
Page 2 of 77
10th edition by robert a novackbrian gibsonyoshinori suzuki 2/1/2026
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
educated and industrious citizens and technology, and organizations in India have become an important part
of many supply chains. Russia and Brazil both have vast resources that can be the basis for funds, but they
are also developing more advanced manufacturing sectors. They are challenged by their geography, size,
and political factors. The VISTA countries have established themselves as countries for sourcing some
basic manufacturing because of low labor costs. They also provide agricultural products and other
resources for exporting. The key dimension for both the BRIC and VISTA countries is that establishing
global supply chains has allowed them to be a part the global economies.
There is abundant information about the BRIC and VISTA countries on the internet if you want to make
this question a special assignment or extra credit.
3. The theories of absolute and comparative advantage have been offered as an economic rationale for trade
between and among regions and countries. Compare and contrast the two concepts. Which of the two do
you think is more important for explaining the growth in global trade during the last 25 years? Why?
Solution:
Both theories are offered as a rationale for expanded trade between and among regions and countries to
promote growth and development. Absolute advantage is the oldest concept and easiest to explain, since
each country has an advantage in the production of one or more products in the two-country scenario.
Comparative advantage postulates that even if one country has an advantage in both products, trade can still
be advantageous. Comparative advantage has probably been the most important for overall development in
our complex global economy since countries can produce so many products that are competitive with other
countries, to some degree. However, complete advantage is still important to rationalize some major work
flows, especially for basic materials and agricultural products. There are also seasonal and weather-related
factors that provide advantages at particular times of the year for different regions.
4. The overall growth of global trade has more than doubled since 2000. Why? What has been the most
important factor prompting this growth? Is this rate of growth likely to continue in the future? Why or why
not?
Solution:
There are several reasons for this growth. Some of it can be explained by population growth and improved
education systems in developing countries. Capital for development has become more widely available
from private and public sources. There is also more acceptance of products manufactured in other
countries. But probably the most important reasons are trade agreements and lower tariffs on imported
products. These have been greatly expanded because of the recognition of how important global trade can
be to economic development and the health and welfare of the citizens of the country. One of the biggest
challenges to progress in promoting global trade is the political instability and terrorism that have
developed in some areas of the world, such as Africa and parts of the Middle East. These factors undermine
the benefits that can accrue from the growth in global trade. One can argue that the growth will continue
because of the economic and political forces at work in the global economy, but there will be ups and
downs or bumps along the road because of human error and greed.
5. The size of a country’s population and the associated age distribution can be causal factors for economic
growth. Why is the size of the population important to economic development? Can size be a disadvantage?
Why is age distribution important?
Solution:
The sheer size of the population can be very important because labor is one of the prime factors for
economic growth, and population numbers indicate the availability of labor. The size of the population can
also indicate the market size and potential for selling products. Size can be a disadvantage if the economy
cannot provide employment opportunities. Large size can also challenge the education system and may
require government resources to sustain the basic needs of the citizenry. Age distribution affects the size of
the labor pool of available employees. Also, older populations require more medical assistance and other
services, which can drain the resources of individuals or government agencies. The population data and
commentary in the chapter provide the basis for some interesting discussion. Again, this topic has abundant
© 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.
Page 2 Solution manual
Solution
for transportation
manual for transportation
a global supply
a global
chainsupply
perspective
chain perspective
10th edition 10th
by robert
edition
a novackbrian
by robert a novackbrian
gibsonyoshinori
gibsonyoshinori
suzuki.pdf suzuki.pdf
,Answer Key- Solution manual for transportation a global supply chain perspective
Page 3 of 77
10th edition by robert a novackbrian gibsonyoshinori suzuki 2/1/2026
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
information available on the internet and could be the basis of a special assignment. The differences in
population size, growth rates, age distribution, and education levels are all factors for economic
development.
6. Energy, food, and water are frequently cited resources that are critical for economic development. Explain
the importance of each one to economic development. What disparities exist among countries with respect
to these three resources? How can these challenges be resolved?
Solution:
Energy is a primary ingredient to support agriculture, manufacturing, and transportation. Consequently, if
much of the needed energy has to be imported, it will increase the cost of producing products and may put a
country at a disadvantage in producing and exporting products. Food is almost self-explanatory since it is
needed to sustain the citizenry of the country. When there is a food shortage, a country will be challenged
unless it can offset this shortage with advantages in other areas, such as mineral resources or labor
productivity. Water is a critical resource for individuals, agriculture, manufacturing, and other businesses
and organizations. The absence of an adequate water supply is one of the most debilitating conditions for
an economy. There are major differences around the globe regarding the availability and quantity of these
resources. Technology may be able to solve some degree of this problem, but not all of it.
7. Technology can impact economic development on both a macro and a micro level. What types of
technology do we need to have such impacts on a macro basis? On a micro basis?
Solution:
On a macro basis, technology is needed to increase the productivity of agriculture and manufacturing in
many parts of the world. Improvements can also be made in the supply chains, especially in transportation.
On a micro basis, technology can improve the quality of life for many people through medical treatment,
safety, and aids for seniors. We have made significant progress with technology, but some individuals feel
that we have only scratched the surface of the potential to improve economic development. The supply
chain has been the beneficiary of technology, especially information technology, to improve efficiency,
effectiveness, and execution. However, in the last decade, technology's ―hard side‖ has been receiving more
attention in transportation, warehousing, and manufacturing to improve efficiency and effectiveness.
8. Robotics has attracted more attention in recent years. Why? How are robots being used in supply chains?
Solution:
Robotics has indeed received more attention in many areas, especially health care, manufacturing, and
distribution. Some people see robotics as a replacement for labor, but now robots are being viewed as
complementary. It will improve manufacturing, distribution, health, and welfare of the population. Robots
are being used in warehouses for shelving, order picking, loading, and unloading. Robots have potential in
other areas of the supply chain, especially transportation.
9. The economic integration associated with globalization can provide an opportunity for more widely
dispersed development. Why is this possible? What are the major stumbling blocks to such integration?
Solution:
Economic integration can release the power of comparative advantage and provide more growth,
development, and prosperity. The major stumbling blocks are ―fear‖ and ―terror,‖ which are associated with
individuals and groups who will exercise their ability to thwart trade flows for selfish or self-serving
agendas. Collaboration among organizations in a global supply chain can be a driving force for more
efficiency and effectiveness.
10. Supply chain management has enabled some companies to operate more efficiently and compete more
effectively on a global basis. What inherent characteristics of supply chain management contribute to these
outcomes?
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.
Page 3 Solution manual
Solution
for transportation
manual for transportation
a global supply
a global
chainsupply
perspective
chain perspective
10th edition 10th
by robert
edition
a novackbrian
by robert a novackbrian
gibsonyoshinori
gibsonyoshinori
suzuki.pdf suzuki.pdf
, Answer Key- Solution manual for transportation a global supply chain perspective
Page 4 of 77
10th edition by robert a novackbrian gibsonyoshinori suzuki 2/1/2026
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
Supply chains that are efficient, effective, and well executed can make companies more competitive. The
basis of this outcome is related to systems analysis and trade-off analysis, which allow organizations to do
what they can do best and depend on other organizations to provide the rest. The coordination and
collaboration that should be inherent in supply chains are important ingredients for efficiency and
effectiveness.
END OF SECTION EXERCISE SOLUTIONS
[CASE QUESTIONS]
Case 1-1 Off-Shoring? Near-Shoring? On-Shoring?
1. Discuss the advantages and disadvantages of off-shoring, near-shoring, and on-shoring for these three
industries.
Solution:
From a supply chain perspective, the advantages/disadvantages will be the same for the three industries.
Off-shoring
The obvious advantage of off-shoring is the labor cost advantage many other countries have. Another
advantage is that the suppliers for these three industries have developed technical expertise and gained
economies of scale in their production processes.
The biggest disadvantage, as seen as a result of the pandemic, is the distance to U.S. markets. Couple this
with borders being shut down and U.S. tariffs on certain imports, and it is easy to see why off-shoring can
present challenges.
Near-Shoring
The advantage of bringing suppliers back to North America is the trade agreements the U.S. has with
Canada and Mexico. These agreements facilitate border crossings and eliminate/minimize tariffs and
duties. Another advantage is the relatively short distance among the three countries.
The disadvantage could be the lack of qualified suppliers and/or production processes in Canada and
Mexico that could fulfill the needs of these three industries.
On-Shoring
The obvious advantage to bringing production back to the U.S. is distance and the avoidance of border
closings and tariffs.
The disadvantage could be the lack of qualified suppliers/production processes available in the U.S.
2. What could the federal government do to convince firms in these industries to change their global trade
patterns?
Solution:
The biggest incentive the federal government could give firms in these industries would be tax breaks to
relocate. The government could also provide subsidies, or seed money, to incentivize firms to relocate
production to the U.S.
CASE 1-2 TEA Logistics Services, Inc.
1. What opportunities do you see for TEA to expand globally, specifically to South Africa?
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.
Page 4 Solution manual
Solution
for transportation
manual for transportation
a global supply
a global
chainsupply
perspective
chain perspective
10th edition 10th
by robert
edition
a novackbrian
by robert a novackbrian
gibsonyoshinori
gibsonyoshinori
suzuki.pdf suzuki.pdf
Page 1 of 77
10th edition by robert a novackbrian gibsonyoshinori suzuki 2/1/2026
Solution and Answer Guide for: Novack, Transportation: A Global Supply Chain Perspective, 10e, 2024, 9780357908549; Chapter 1: Global
Supply Chains: The Role and Importance of Transportation
Solution and Answer Guide for
Transportation A Global Supply Chain Perspective, 10th Edition
Robert A. NovackBrian GibsonYoshinori Suzuki
Chapter 1-13
NOVACK, T RANSPORTATION : A GLOBAL SUPPLY CHAIN PERSPECTIVE , 10E, 2024, 9780357908549;
CHAPTER 1: GLOBAL SUPPLY CHAINS: T HE ROLE AND IMPORTANCE OF T RANSPORTATION
TABLE OF CONTENTS
Content Type ............................................................................................................................................... 1
[Study Questions]...................................................................................................................................... 1
END OF SECTION EXERCISE SOLUTIONS .................................................................................................... 4
[CASE QUESTIONS].................................................................................................................................... 4
CONTENT TYPE
[STUDY QUESTIONS]
1. Transportation has sometimes been described as the glue that holds global supply chains together. What is
the meaning of this statement and do you agree? Why or why not?
Solution:
Most students will probably agree that transportation is the ―glue‖ of the supply chain since it connects the
individual parts of the chain. Still, they should point out that information is also important to hold the
supply chain together. The essence of the statement is that supply chains are extended enterprises with
many parts, and the final outcome is a product delivered on time to a particular location without damage or
delay. Transportation and information flows are key to this outcome. They should also point out that
transportation and information can provide a strategic advantage, so they should be an important part of the
planning process. Overall, supply chains play an important role in helping organizations gain a strategic
advantage in the global economy of the 21st century.
2. During the last 20 to 30 years, there have been a number of countries whose economies have experienced
important economic expansion and development. One group of countries has been labeled the BRIC
countries and the other the VISTA countries. Identify each of the nine countries and provide some insights
about their economies and economic importance.
Solution:
BRIC countries are Brazil, Russia, India, and China. The VISTA countries are Viet Nam,
Indonesia, South Africa, Turkey, and Argentina. The BRIC group is generally considered to be the most
advanced economy. China is clearly the most important, as indicated by the grade flow data in the chapter.
They are important for manufactured production well as resources. India has advanced rapidly through their
© 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.
Page 1 Solution manual
Solution
for transportation
manual for transportation
a global supply
a global
chainsupply
perspective
chain perspective
10th edition 10th
by robert
edition
a novackbrian
by robert a novackbrian
gibsonyoshinori
gibsonyoshinori
suzuki.pdf suzuki.pdf
,Answer Key- Solution manual for transportation a global supply chain perspective
Page 2 of 77
10th edition by robert a novackbrian gibsonyoshinori suzuki 2/1/2026
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
educated and industrious citizens and technology, and organizations in India have become an important part
of many supply chains. Russia and Brazil both have vast resources that can be the basis for funds, but they
are also developing more advanced manufacturing sectors. They are challenged by their geography, size,
and political factors. The VISTA countries have established themselves as countries for sourcing some
basic manufacturing because of low labor costs. They also provide agricultural products and other
resources for exporting. The key dimension for both the BRIC and VISTA countries is that establishing
global supply chains has allowed them to be a part the global economies.
There is abundant information about the BRIC and VISTA countries on the internet if you want to make
this question a special assignment or extra credit.
3. The theories of absolute and comparative advantage have been offered as an economic rationale for trade
between and among regions and countries. Compare and contrast the two concepts. Which of the two do
you think is more important for explaining the growth in global trade during the last 25 years? Why?
Solution:
Both theories are offered as a rationale for expanded trade between and among regions and countries to
promote growth and development. Absolute advantage is the oldest concept and easiest to explain, since
each country has an advantage in the production of one or more products in the two-country scenario.
Comparative advantage postulates that even if one country has an advantage in both products, trade can still
be advantageous. Comparative advantage has probably been the most important for overall development in
our complex global economy since countries can produce so many products that are competitive with other
countries, to some degree. However, complete advantage is still important to rationalize some major work
flows, especially for basic materials and agricultural products. There are also seasonal and weather-related
factors that provide advantages at particular times of the year for different regions.
4. The overall growth of global trade has more than doubled since 2000. Why? What has been the most
important factor prompting this growth? Is this rate of growth likely to continue in the future? Why or why
not?
Solution:
There are several reasons for this growth. Some of it can be explained by population growth and improved
education systems in developing countries. Capital for development has become more widely available
from private and public sources. There is also more acceptance of products manufactured in other
countries. But probably the most important reasons are trade agreements and lower tariffs on imported
products. These have been greatly expanded because of the recognition of how important global trade can
be to economic development and the health and welfare of the citizens of the country. One of the biggest
challenges to progress in promoting global trade is the political instability and terrorism that have
developed in some areas of the world, such as Africa and parts of the Middle East. These factors undermine
the benefits that can accrue from the growth in global trade. One can argue that the growth will continue
because of the economic and political forces at work in the global economy, but there will be ups and
downs or bumps along the road because of human error and greed.
5. The size of a country’s population and the associated age distribution can be causal factors for economic
growth. Why is the size of the population important to economic development? Can size be a disadvantage?
Why is age distribution important?
Solution:
The sheer size of the population can be very important because labor is one of the prime factors for
economic growth, and population numbers indicate the availability of labor. The size of the population can
also indicate the market size and potential for selling products. Size can be a disadvantage if the economy
cannot provide employment opportunities. Large size can also challenge the education system and may
require government resources to sustain the basic needs of the citizenry. Age distribution affects the size of
the labor pool of available employees. Also, older populations require more medical assistance and other
services, which can drain the resources of individuals or government agencies. The population data and
commentary in the chapter provide the basis for some interesting discussion. Again, this topic has abundant
© 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.
Page 2 Solution manual
Solution
for transportation
manual for transportation
a global supply
a global
chainsupply
perspective
chain perspective
10th edition 10th
by robert
edition
a novackbrian
by robert a novackbrian
gibsonyoshinori
gibsonyoshinori
suzuki.pdf suzuki.pdf
,Answer Key- Solution manual for transportation a global supply chain perspective
Page 3 of 77
10th edition by robert a novackbrian gibsonyoshinori suzuki 2/1/2026
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
information available on the internet and could be the basis of a special assignment. The differences in
population size, growth rates, age distribution, and education levels are all factors for economic
development.
6. Energy, food, and water are frequently cited resources that are critical for economic development. Explain
the importance of each one to economic development. What disparities exist among countries with respect
to these three resources? How can these challenges be resolved?
Solution:
Energy is a primary ingredient to support agriculture, manufacturing, and transportation. Consequently, if
much of the needed energy has to be imported, it will increase the cost of producing products and may put a
country at a disadvantage in producing and exporting products. Food is almost self-explanatory since it is
needed to sustain the citizenry of the country. When there is a food shortage, a country will be challenged
unless it can offset this shortage with advantages in other areas, such as mineral resources or labor
productivity. Water is a critical resource for individuals, agriculture, manufacturing, and other businesses
and organizations. The absence of an adequate water supply is one of the most debilitating conditions for
an economy. There are major differences around the globe regarding the availability and quantity of these
resources. Technology may be able to solve some degree of this problem, but not all of it.
7. Technology can impact economic development on both a macro and a micro level. What types of
technology do we need to have such impacts on a macro basis? On a micro basis?
Solution:
On a macro basis, technology is needed to increase the productivity of agriculture and manufacturing in
many parts of the world. Improvements can also be made in the supply chains, especially in transportation.
On a micro basis, technology can improve the quality of life for many people through medical treatment,
safety, and aids for seniors. We have made significant progress with technology, but some individuals feel
that we have only scratched the surface of the potential to improve economic development. The supply
chain has been the beneficiary of technology, especially information technology, to improve efficiency,
effectiveness, and execution. However, in the last decade, technology's ―hard side‖ has been receiving more
attention in transportation, warehousing, and manufacturing to improve efficiency and effectiveness.
8. Robotics has attracted more attention in recent years. Why? How are robots being used in supply chains?
Solution:
Robotics has indeed received more attention in many areas, especially health care, manufacturing, and
distribution. Some people see robotics as a replacement for labor, but now robots are being viewed as
complementary. It will improve manufacturing, distribution, health, and welfare of the population. Robots
are being used in warehouses for shelving, order picking, loading, and unloading. Robots have potential in
other areas of the supply chain, especially transportation.
9. The economic integration associated with globalization can provide an opportunity for more widely
dispersed development. Why is this possible? What are the major stumbling blocks to such integration?
Solution:
Economic integration can release the power of comparative advantage and provide more growth,
development, and prosperity. The major stumbling blocks are ―fear‖ and ―terror,‖ which are associated with
individuals and groups who will exercise their ability to thwart trade flows for selfish or self-serving
agendas. Collaboration among organizations in a global supply chain can be a driving force for more
efficiency and effectiveness.
10. Supply chain management has enabled some companies to operate more efficiently and compete more
effectively on a global basis. What inherent characteristics of supply chain management contribute to these
outcomes?
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.
Page 3 Solution manual
Solution
for transportation
manual for transportation
a global supply
a global
chainsupply
perspective
chain perspective
10th edition 10th
by robert
edition
a novackbrian
by robert a novackbrian
gibsonyoshinori
gibsonyoshinori
suzuki.pdf suzuki.pdf
, Answer Key- Solution manual for transportation a global supply chain perspective
Page 4 of 77
10th edition by robert a novackbrian gibsonyoshinori suzuki 2/1/2026
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
Supply chains that are efficient, effective, and well executed can make companies more competitive. The
basis of this outcome is related to systems analysis and trade-off analysis, which allow organizations to do
what they can do best and depend on other organizations to provide the rest. The coordination and
collaboration that should be inherent in supply chains are important ingredients for efficiency and
effectiveness.
END OF SECTION EXERCISE SOLUTIONS
[CASE QUESTIONS]
Case 1-1 Off-Shoring? Near-Shoring? On-Shoring?
1. Discuss the advantages and disadvantages of off-shoring, near-shoring, and on-shoring for these three
industries.
Solution:
From a supply chain perspective, the advantages/disadvantages will be the same for the three industries.
Off-shoring
The obvious advantage of off-shoring is the labor cost advantage many other countries have. Another
advantage is that the suppliers for these three industries have developed technical expertise and gained
economies of scale in their production processes.
The biggest disadvantage, as seen as a result of the pandemic, is the distance to U.S. markets. Couple this
with borders being shut down and U.S. tariffs on certain imports, and it is easy to see why off-shoring can
present challenges.
Near-Shoring
The advantage of bringing suppliers back to North America is the trade agreements the U.S. has with
Canada and Mexico. These agreements facilitate border crossings and eliminate/minimize tariffs and
duties. Another advantage is the relatively short distance among the three countries.
The disadvantage could be the lack of qualified suppliers and/or production processes in Canada and
Mexico that could fulfill the needs of these three industries.
On-Shoring
The obvious advantage to bringing production back to the U.S. is distance and the avoidance of border
closings and tariffs.
The disadvantage could be the lack of qualified suppliers/production processes available in the U.S.
2. What could the federal government do to convince firms in these industries to change their global trade
patterns?
Solution:
The biggest incentive the federal government could give firms in these industries would be tax breaks to
relocate. The government could also provide subsidies, or seed money, to incentivize firms to relocate
production to the U.S.
CASE 1-2 TEA Logistics Services, Inc.
1. What opportunities do you see for TEA to expand globally, specifically to South Africa?
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.
Page 4 Solution manual
Solution
for transportation
manual for transportation
a global supply
a global
chainsupply
perspective
chain perspective
10th edition 10th
by robert
edition
a novackbrian
by robert a novackbrian
gibsonyoshinori
gibsonyoshinori
suzuki.pdf suzuki.pdf
