UARK SCMT 3643 EXAM 1 QUESTIONS & ANSWERS
Globalization periods - Answer -1st Century BC - Silk Routes
7th to 15th centuries - Spice Routes
15th to 18th centuries - Age of Discovery
19th Century - Industrial Revolution • World Wars - wave of globalization
Globalization is a: - Answer -reform process of elimiating trade
Barriers to Globalization - Answer --types of barriers: trade, investment, cultural, IT,
political
-traditional consequence: win or lose
Major exporting countries - Answer -China 13.2%
US 8.7%
Major importing countries - Answer -US 13.3%
China 10.8%
Holding inventory costs - Answer -cost of products
cost of warehousing
opportunity costs
Institutions that facilitate globalization - Answer -World Trade Organization (trade in
agriculture, services, inventions and intellectual property)
Sovereign Governments (institutional structure - rules, enforcement mechanisms and
orgs that support market transactions)
Domestic vs. International Risks - Answer --*Transportation*: coordinate more carriers,
multiple transfers, higher risk internationally
-*Lead Times*: lead times and lead time uncertainties are higher internationally
-*Cost*: international is more complex and expensive than domestic
-*Inventory*: holding inventory costs money (cost of products, cost of warehouse and
opportunity cost)
-*Product*: people internationally like different things, take them into account
-*Packaging/Labels*: international require different information and in different
languages
-*Complexity*: international is more expensive and complex than domestic logistics
Supply chains have become increasingly more complex because.... - Answer -supply
chains have elongated:
,-partnerships
-outsourcing and off-shoring (thus more sophisticated management and control)
Supply Chains are... - Answer -multi-layered, interconnected and interdependent
Off-Shoring - Answer -refers to moving business activities out of the company's home
country to another location in a different country (usually to take advantage of lower cost
environments)
Outsourcing - Answer -the act of one company contracting with another company to
provide services that might otherwise be performed by in- house employees
Supply chain management has become more strategic because... - Answer --they are
an enabler and differentiator
-time to market and distribution are key success factors
-they are a business (cash-to-cash cycle, managing an end-to-end process)
World trade has increased in complexity because of... - Answer --connectivity
-globalization
-competitiveness
-volatility
Collaborative supply chain management therefore can be difficult to achieve in practice,
due to... - Answer -the inherent reluctance of organizations to openly share their data
and information with other supply chain participants, many of whom are, or are
perceived to be, competitors.
Which is NOT true of logistics management? - Answer -It does not deal with reverse
flows of goods from the customer back to the manufacturer
What is the goal of logistics management? - Answer -it is to meet the customers'
requirements
Which activity is a part of logistics management?
a. promoting a product
b. advertising a service
c. sales planning
d. customer service
e. all of the above - Answer -d. customer service
Which is NOT true of international logistics? - Answer -internationally, it manages
different logistic activities then domestic
Which complexities are common for international shipping operations?
dealing with multiple transportation modes
,-shipment coordination with multiple carriers, including foreign countries
-higher risk of product damage or delay
-complexity of customs regulations - Answer -all of the above
What is NOT true of the time factor in international shipping? - Answer -transportation
lead times are very consistent
What is the impact of international sourcing on inventory management? - Answer -
higher transportation and inventory holding costs
The example of selling organic cosmetics abroad is used in the video to suggest that ...
- Answer -for successful sales around the world, tastes, preferences, and needs of a
much wider range of customers should be studied and understood
The video suggests that in order to comply with regulations of a foreign country to sell
food products there, it may be necessary to do all of the following, except to... - Answer
-remove gluten from the product
Outsourcing and off-shoring are making supply chains _________. - Answer -longer
Importance of supply chain management is reflected by - Answer -all of the above:
-the increasing importance of collaboration with supply chain partners
-SC is a critical part that needs to be adapted to changes in business environment
-SC capabilities are key to compete based on time-to-market
-SC executives sitting in the Board
Open borders, reduced barriers, cost effective long-distance transportation and low-cost
labor markets resulted in supply chains to be - Answer -more complex
Which of the following are true about carbon footprint across the supply chain? -
Answer -environmental issues add to the complexity of supply chains and legislation
about environmental issues is likely to increase complexity of supply chains
Inflation, increasing factory wages and longer ocean freight is... - Answer -increasing
near-shoring and re-shoring
The 18th century economist David Ricardo explained that international trade is essential
because... - Answer -every nation has something they do best and if they trade with
each other, both parties will live better
Free Trade Agreements (FTA) - Answer -an agreement between 2 or more countries
that were going to do a reduce cost; globalization
-EX: NAFTA
As a result of local and regional agreements among nations, the business environment
is becoming... - Answer -more complex and challenging
, Local and regional free trade agreements promote... - Answer -greater trade among the
parties to the agreement.
The most common trade barriers are... - Answer -tariffs, import quotas and non-tariff
barriers
What are some critical factors when considering location? - Answer --*Labor Costs*:
single largest cost element in supply chains
-*Fuel and Transport Costs*: companies need to assess how the decisions they make
will affect transport costs (road, rail, sea or air)
-*Suppliers and Stakeholders*: is it worth the risk moving from tried, tested and trusted
partners in the supply chain ecosystem if they are located outside a specific FTA zone?
-*Customers*: Losing a major customer would be a large price to pay for lower tariffs
The challenge for business people engaged in international trade is... - Answer -to be
aware of the multiple existing and proposed Free Trade Agreements because they will
affect tariffs, labor costs, and local and regional legislation
The role of the World Trade Organization is... - Answer -to provide a global forum for
governments to negotiate trade agreements and to settle trade disputes.
The WTO agreements provide the legal ground rules for international commerce. As
such,... - Answer -these contracts bind governments to keep their trade policies within
the agreed limits
In addition to the agreements organized and approved by the WTO,... - Answer -there
are nations that have bilateral agreements or participate in regional groups to foster
regional free trade zones
The key to unlocking the potential of future trade agreements lies in... - Answer -
reducing non-tariff barriers, frequently customs procedures
Only a small fraction of business took advantage of the applicable FTAs in force
because... - Answer -management finds the requirements of the FTA so complex that
the cost of adhering outweighed the advantages
Miller argues that a new supply chain discipline is nascent; he calls it Tariff Engineering.
What is tariff engineering as Miller describes it? Tariff engineering is... - Answer -the
configuration of the global supply chain to take advantage of the lower tariffs and
preferential treatments
The structure of the supply chain, where each supplier, manufacturing facility and
distribution center, will be located is the result of the most productive configuration of a
number of critical factors. The factors Miller identifies as critical include:
i. Labor
Globalization periods - Answer -1st Century BC - Silk Routes
7th to 15th centuries - Spice Routes
15th to 18th centuries - Age of Discovery
19th Century - Industrial Revolution • World Wars - wave of globalization
Globalization is a: - Answer -reform process of elimiating trade
Barriers to Globalization - Answer --types of barriers: trade, investment, cultural, IT,
political
-traditional consequence: win or lose
Major exporting countries - Answer -China 13.2%
US 8.7%
Major importing countries - Answer -US 13.3%
China 10.8%
Holding inventory costs - Answer -cost of products
cost of warehousing
opportunity costs
Institutions that facilitate globalization - Answer -World Trade Organization (trade in
agriculture, services, inventions and intellectual property)
Sovereign Governments (institutional structure - rules, enforcement mechanisms and
orgs that support market transactions)
Domestic vs. International Risks - Answer --*Transportation*: coordinate more carriers,
multiple transfers, higher risk internationally
-*Lead Times*: lead times and lead time uncertainties are higher internationally
-*Cost*: international is more complex and expensive than domestic
-*Inventory*: holding inventory costs money (cost of products, cost of warehouse and
opportunity cost)
-*Product*: people internationally like different things, take them into account
-*Packaging/Labels*: international require different information and in different
languages
-*Complexity*: international is more expensive and complex than domestic logistics
Supply chains have become increasingly more complex because.... - Answer -supply
chains have elongated:
,-partnerships
-outsourcing and off-shoring (thus more sophisticated management and control)
Supply Chains are... - Answer -multi-layered, interconnected and interdependent
Off-Shoring - Answer -refers to moving business activities out of the company's home
country to another location in a different country (usually to take advantage of lower cost
environments)
Outsourcing - Answer -the act of one company contracting with another company to
provide services that might otherwise be performed by in- house employees
Supply chain management has become more strategic because... - Answer --they are
an enabler and differentiator
-time to market and distribution are key success factors
-they are a business (cash-to-cash cycle, managing an end-to-end process)
World trade has increased in complexity because of... - Answer --connectivity
-globalization
-competitiveness
-volatility
Collaborative supply chain management therefore can be difficult to achieve in practice,
due to... - Answer -the inherent reluctance of organizations to openly share their data
and information with other supply chain participants, many of whom are, or are
perceived to be, competitors.
Which is NOT true of logistics management? - Answer -It does not deal with reverse
flows of goods from the customer back to the manufacturer
What is the goal of logistics management? - Answer -it is to meet the customers'
requirements
Which activity is a part of logistics management?
a. promoting a product
b. advertising a service
c. sales planning
d. customer service
e. all of the above - Answer -d. customer service
Which is NOT true of international logistics? - Answer -internationally, it manages
different logistic activities then domestic
Which complexities are common for international shipping operations?
dealing with multiple transportation modes
,-shipment coordination with multiple carriers, including foreign countries
-higher risk of product damage or delay
-complexity of customs regulations - Answer -all of the above
What is NOT true of the time factor in international shipping? - Answer -transportation
lead times are very consistent
What is the impact of international sourcing on inventory management? - Answer -
higher transportation and inventory holding costs
The example of selling organic cosmetics abroad is used in the video to suggest that ...
- Answer -for successful sales around the world, tastes, preferences, and needs of a
much wider range of customers should be studied and understood
The video suggests that in order to comply with regulations of a foreign country to sell
food products there, it may be necessary to do all of the following, except to... - Answer
-remove gluten from the product
Outsourcing and off-shoring are making supply chains _________. - Answer -longer
Importance of supply chain management is reflected by - Answer -all of the above:
-the increasing importance of collaboration with supply chain partners
-SC is a critical part that needs to be adapted to changes in business environment
-SC capabilities are key to compete based on time-to-market
-SC executives sitting in the Board
Open borders, reduced barriers, cost effective long-distance transportation and low-cost
labor markets resulted in supply chains to be - Answer -more complex
Which of the following are true about carbon footprint across the supply chain? -
Answer -environmental issues add to the complexity of supply chains and legislation
about environmental issues is likely to increase complexity of supply chains
Inflation, increasing factory wages and longer ocean freight is... - Answer -increasing
near-shoring and re-shoring
The 18th century economist David Ricardo explained that international trade is essential
because... - Answer -every nation has something they do best and if they trade with
each other, both parties will live better
Free Trade Agreements (FTA) - Answer -an agreement between 2 or more countries
that were going to do a reduce cost; globalization
-EX: NAFTA
As a result of local and regional agreements among nations, the business environment
is becoming... - Answer -more complex and challenging
, Local and regional free trade agreements promote... - Answer -greater trade among the
parties to the agreement.
The most common trade barriers are... - Answer -tariffs, import quotas and non-tariff
barriers
What are some critical factors when considering location? - Answer --*Labor Costs*:
single largest cost element in supply chains
-*Fuel and Transport Costs*: companies need to assess how the decisions they make
will affect transport costs (road, rail, sea or air)
-*Suppliers and Stakeholders*: is it worth the risk moving from tried, tested and trusted
partners in the supply chain ecosystem if they are located outside a specific FTA zone?
-*Customers*: Losing a major customer would be a large price to pay for lower tariffs
The challenge for business people engaged in international trade is... - Answer -to be
aware of the multiple existing and proposed Free Trade Agreements because they will
affect tariffs, labor costs, and local and regional legislation
The role of the World Trade Organization is... - Answer -to provide a global forum for
governments to negotiate trade agreements and to settle trade disputes.
The WTO agreements provide the legal ground rules for international commerce. As
such,... - Answer -these contracts bind governments to keep their trade policies within
the agreed limits
In addition to the agreements organized and approved by the WTO,... - Answer -there
are nations that have bilateral agreements or participate in regional groups to foster
regional free trade zones
The key to unlocking the potential of future trade agreements lies in... - Answer -
reducing non-tariff barriers, frequently customs procedures
Only a small fraction of business took advantage of the applicable FTAs in force
because... - Answer -management finds the requirements of the FTA so complex that
the cost of adhering outweighed the advantages
Miller argues that a new supply chain discipline is nascent; he calls it Tariff Engineering.
What is tariff engineering as Miller describes it? Tariff engineering is... - Answer -the
configuration of the global supply chain to take advantage of the lower tariffs and
preferential treatments
The structure of the supply chain, where each supplier, manufacturing facility and
distribution center, will be located is the result of the most productive configuration of a
number of critical factors. The factors Miller identifies as critical include:
i. Labor
