UARK SCMT 3643 EXAM 2
QUESTIONS AND ANSWERS
,1. Moore's Law is the observation made by Intel co-founder Gordon Moore that *the number of
transistors on a chip doubles every year (18 months) while the costs are halved*
-this trend will continue into the foreseeable future (exponentially; growth of
computer power)
2. 30 Exponential if your stride is 1 meter, 30 linear steps will take you 30 meters from the starting
Steps point
-with a 1 meter stride, 30 exponential steps will take you 26 trips around the world!
3. Technology will... force the reassessment of global markets and economies and industries on a scale
never experienced before in human history
4. Technology Life (s-curves) the stages includes ferment, takeott, maturity and discontinuity
Cycle
5. International 1936, developed International Commerce Terms rules (or Incoterms® rules) that
Chamber of formalized international trade responsibilities
Commerce -the rules were revised in 1953, 1967, 1980, 1990, and 2000 and the newest was
revised in 2010
6. Reasons to Inter- -*Revenue* (high-growth markets, stable, high-income markets, monopolistic
nationalize: market structures, trade restricted sectors and seasonality)
-*Cost* (economies of scale, minimizing input costs, hedging)
-*Risk* (diversification, correlation of returns and product life-cycle)
-*Spot Opportunities*
-*Strategic Business* (to establish an early presence in new markets; first mover
advantage, to deny market sanctuaries to competitors, to accelerate the learning
curve)
, 7. Incoterm they follow international trade practices and are always reflecting the way shipping
is conducted. -the changes mplemented in 2010 were significant, but were
designed to facilitate the division of
responsibilities between the exporter and the importer.
-11 ditterent abbreviations with a 3 letter acronym (EX: EXW, DAP, FOB...)
8. Incoterm Rules -The exact point at which the responsibility for the goods transfers from the
exporter to the importer
-Which tasks will be performed by the exporter and the importer
-Which activities will be paid by the exporter and the importer
9. What are the 3 1. *Pre-Carriage* - the domestic transportation in the exporting country (any
ways to divide inland movement BEFORE the container is delivered to the port/terminal)
the exporter and 2. *Main Carriage* - the international transportation between the exporting
importer transac- country and the importing country
tions? 3. *On Carriage* - the domestic transportation in the importing country (any
inland movement AFTER the container is picked up from the port/terminal)
10. What are the fac- (depends on which export strategy a company is following)
tors on choos- -the type of product being sold (weight, volume, perishability, value, sensitivity to
ing the right In- temperature changes, and so on)
coterm? -the method of shipment
-the ability and willingness of either of the exporter and importer to perform the
tasks involved
-the amount of trust placed by either of the parties in the other party
11. Incoterm Fami- The ICC specifies that there are two groups of Incoterms rules:
lies 1. Seven Incoterms rules that can be used for any means of transportation (EXW,
FCA, CPT, CIP, DAT, DAP and DDP)
2. Four Incoterms rules that can only be used for ocean transportation; these are
the oldest terms of trade (FAS, FOB, CFR and CIF)
QUESTIONS AND ANSWERS
,1. Moore's Law is the observation made by Intel co-founder Gordon Moore that *the number of
transistors on a chip doubles every year (18 months) while the costs are halved*
-this trend will continue into the foreseeable future (exponentially; growth of
computer power)
2. 30 Exponential if your stride is 1 meter, 30 linear steps will take you 30 meters from the starting
Steps point
-with a 1 meter stride, 30 exponential steps will take you 26 trips around the world!
3. Technology will... force the reassessment of global markets and economies and industries on a scale
never experienced before in human history
4. Technology Life (s-curves) the stages includes ferment, takeott, maturity and discontinuity
Cycle
5. International 1936, developed International Commerce Terms rules (or Incoterms® rules) that
Chamber of formalized international trade responsibilities
Commerce -the rules were revised in 1953, 1967, 1980, 1990, and 2000 and the newest was
revised in 2010
6. Reasons to Inter- -*Revenue* (high-growth markets, stable, high-income markets, monopolistic
nationalize: market structures, trade restricted sectors and seasonality)
-*Cost* (economies of scale, minimizing input costs, hedging)
-*Risk* (diversification, correlation of returns and product life-cycle)
-*Spot Opportunities*
-*Strategic Business* (to establish an early presence in new markets; first mover
advantage, to deny market sanctuaries to competitors, to accelerate the learning
curve)
, 7. Incoterm they follow international trade practices and are always reflecting the way shipping
is conducted. -the changes mplemented in 2010 were significant, but were
designed to facilitate the division of
responsibilities between the exporter and the importer.
-11 ditterent abbreviations with a 3 letter acronym (EX: EXW, DAP, FOB...)
8. Incoterm Rules -The exact point at which the responsibility for the goods transfers from the
exporter to the importer
-Which tasks will be performed by the exporter and the importer
-Which activities will be paid by the exporter and the importer
9. What are the 3 1. *Pre-Carriage* - the domestic transportation in the exporting country (any
ways to divide inland movement BEFORE the container is delivered to the port/terminal)
the exporter and 2. *Main Carriage* - the international transportation between the exporting
importer transac- country and the importing country
tions? 3. *On Carriage* - the domestic transportation in the importing country (any
inland movement AFTER the container is picked up from the port/terminal)
10. What are the fac- (depends on which export strategy a company is following)
tors on choos- -the type of product being sold (weight, volume, perishability, value, sensitivity to
ing the right In- temperature changes, and so on)
coterm? -the method of shipment
-the ability and willingness of either of the exporter and importer to perform the
tasks involved
-the amount of trust placed by either of the parties in the other party
11. Incoterm Fami- The ICC specifies that there are two groups of Incoterms rules:
lies 1. Seven Incoterms rules that can be used for any means of transportation (EXW,
FCA, CPT, CIP, DAT, DAP and DDP)
2. Four Incoterms rules that can only be used for ocean transportation; these are
the oldest terms of trade (FAS, FOB, CFR and CIF)
