SCM 413 Final Exam UPDATED ACTUAL Questions and CORRECT
Answers
Question: Which of the following is not a reason for globalization? A. Increase revenue B. advance
technology C. enhance sustainability D. increase market access uncertainty
Correct Answer: D. increase market access uncertainty
Question: 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 E. all of the above reduce direct
costs
Correct Answer: E. all of the above reduce direct costs
Question: Which strategy is not focused on local markets? A. no international B. multi-domestic C.
transnational D. global
Correct Answer: C. transnational
Question: 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
Correct Answer: D. simplify product variations
Question: Jones Company has more manufacturing capacity than is needed for their domestic customers.
By entering into a joint venture in another country, 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
Correct Answer: B. achieve economies of scale
Question: 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
Correct Answer: A. take advantage of lower labor rates
Question: Trade agreements between adjacent countries can reduce operating costs in which of the
following ways? A. increased economies of scale B. reduced border inefficiencies C. lowering or
eliminating tariffs D. all of these
Correct Answer: D. all of these
Question: Globalized supply chains often experience extended performance cycle times for all of the
following reasons EXCEPT
Correct Answer: A. longer production run times B. longer transit times C. delays for customers
inspections D. financing requirements: C. delays for customers inspections
Question: 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 D. protect domestic infrastructure
, Correct Answer: D. protect domestic infrastructure
Question: All of the following are examples of international logistics documentation EXCEPT which one?
A. export irrevocable commercial letter of credit B. certificate of origin C. commercial invoice D. shipping
invoice
Correct Answer: D. shipping invoice
Question: Ad-valorem payments are tax and duty payments made to the government based up on which of
the following? A. the intended usage of the product B. the import season C. the value of the product D.
hazardous material content
Correct Answer: C. the value of the product
Question: For firms importing products into the United States, the listing of goods and corresponding tariff
rates is the
Correct Answer: A. harmonized tariff of the united states B. customs tariff listing C. electronic export
information D. ad-valorem table: A. harmonized tariff of the united states
Question: A firm which provides advice and/or shipment coordinating services for an importer or exporter
is known as a
Correct Answer: A. customs liaison B. import advisor C. customs broker D. boarder agent: C. customs
broker
Question: Which of the following in an example of supply chain risk? A. a change in the dynamics of
product demand due to changes in regional weather patterns B. a change in availability of product due to
fire at the supplier C. a change in regulations regarding the raw materials that can be used to manufacture
product D. production delays due to a breakdown of the manufacturing equipment E. all of these are supply
chain risks
Correct Answer: E. all of these are supply chain risks
Question: Which of the following is NOT a type of supply chain risk? A. demand B. supply C. compliance
D. all of the above are correct
Correct Answer: C. compliance
Question: The primary objective of high-performance supply chains is to _______. A. minimize the total
cost of delivery to customers B. minimize the assets required to service customers C. maximizes the
customer service offering D. meet the customer service requirements of key customers
Correct Answer: D. meet the customer service requirements of key customers
Question: All of the following are environmental initiatives used by firms and their supply chains EXCEPT
Correct Answer: A. reduced packaging B. product recycling after useful life C. waste electrical and
electronic equipment D. supply chain redesign to minimize carbon: C. waste electrical and electronic
equipment
Question: Historically, firms have focused their supply chain management activities to the partners closest
in the supply chain (direct suppliers, direct customers). However, more recently, firms are attempting to
establish visibility of the supply chain from extraction of raw materials to consumer purchases. This is
known as
Correct Answer: A. end-to-end supply chain management B. lifecycle management C. supply chain
expansion D. total cost management: A. end-to-end supply chain management
Answers
Question: Which of the following is not a reason for globalization? A. Increase revenue B. advance
technology C. enhance sustainability D. increase market access uncertainty
Correct Answer: D. increase market access uncertainty
Question: 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 E. all of the above reduce direct
costs
Correct Answer: E. all of the above reduce direct costs
Question: Which strategy is not focused on local markets? A. no international B. multi-domestic C.
transnational D. global
Correct Answer: C. transnational
Question: 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
Correct Answer: D. simplify product variations
Question: Jones Company has more manufacturing capacity than is needed for their domestic customers.
By entering into a joint venture in another country, 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
Correct Answer: B. achieve economies of scale
Question: 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
Correct Answer: A. take advantage of lower labor rates
Question: Trade agreements between adjacent countries can reduce operating costs in which of the
following ways? A. increased economies of scale B. reduced border inefficiencies C. lowering or
eliminating tariffs D. all of these
Correct Answer: D. all of these
Question: Globalized supply chains often experience extended performance cycle times for all of the
following reasons EXCEPT
Correct Answer: A. longer production run times B. longer transit times C. delays for customers
inspections D. financing requirements: C. delays for customers inspections
Question: 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 D. protect domestic infrastructure
, Correct Answer: D. protect domestic infrastructure
Question: All of the following are examples of international logistics documentation EXCEPT which one?
A. export irrevocable commercial letter of credit B. certificate of origin C. commercial invoice D. shipping
invoice
Correct Answer: D. shipping invoice
Question: Ad-valorem payments are tax and duty payments made to the government based up on which of
the following? A. the intended usage of the product B. the import season C. the value of the product D.
hazardous material content
Correct Answer: C. the value of the product
Question: For firms importing products into the United States, the listing of goods and corresponding tariff
rates is the
Correct Answer: A. harmonized tariff of the united states B. customs tariff listing C. electronic export
information D. ad-valorem table: A. harmonized tariff of the united states
Question: A firm which provides advice and/or shipment coordinating services for an importer or exporter
is known as a
Correct Answer: A. customs liaison B. import advisor C. customs broker D. boarder agent: C. customs
broker
Question: Which of the following in an example of supply chain risk? A. a change in the dynamics of
product demand due to changes in regional weather patterns B. a change in availability of product due to
fire at the supplier C. a change in regulations regarding the raw materials that can be used to manufacture
product D. production delays due to a breakdown of the manufacturing equipment E. all of these are supply
chain risks
Correct Answer: E. all of these are supply chain risks
Question: Which of the following is NOT a type of supply chain risk? A. demand B. supply C. compliance
D. all of the above are correct
Correct Answer: C. compliance
Question: The primary objective of high-performance supply chains is to _______. A. minimize the total
cost of delivery to customers B. minimize the assets required to service customers C. maximizes the
customer service offering D. meet the customer service requirements of key customers
Correct Answer: D. meet the customer service requirements of key customers
Question: All of the following are environmental initiatives used by firms and their supply chains EXCEPT
Correct Answer: A. reduced packaging B. product recycling after useful life C. waste electrical and
electronic equipment D. supply chain redesign to minimize carbon: C. waste electrical and electronic
equipment
Question: Historically, firms have focused their supply chain management activities to the partners closest
in the supply chain (direct suppliers, direct customers). However, more recently, firms are attempting to
establish visibility of the supply chain from extraction of raw materials to consumer purchases. This is
known as
Correct Answer: A. end-to-end supply chain management B. lifecycle management C. supply chain
expansion D. total cost management: A. end-to-end supply chain management
