Question 1

Maquiladoras in Mexico:

Accepted Answer

A) are designed to take advantage of low Mexican labor costs. 
B) are different from foreign trade zones. 
C) are best suited to sophisticated manufacturing and product design. 
D) are reconfiguring to focus on labor-intensive assembly. 
E) cannot be owned by non-Mexicans. 
A) are designed to take advantage of low Mexican labor costs. 
B) are different from foreign trade zones. 
C) are best suited to sophisticated manufacturing and product design. 
D) are reconfiguring to focus on labor-intensive assembly. 
E) cannot be owned by non-Mexicans. A

Question 2

A foreign trade zone (FTZ)in the U.S.is completely different in purpose from a maquiladora in Mexico.

Accepted Answer

A) True 
 B)False  False

Question 3

When comparing the total cost of ownership from an international supplier to that of a domestic supplier,the international supplier's:

Accepted Answer

A) lower labor costs are easily eroded by additional shipping and insurance costs. 
B) lower labor rates must be considered in the context of productivity and quality. 
C) lower labor costs offset the high cost of inefficient equipment and processes. 
D) prices are carefully controlled by the U.S.government to prevent dumping. 
E) price will be higher if the U.S.dollar is strengthening on the exchange rate. 
A) lower labor costs are easily eroded by additional shipping and insurance costs. 
B) lower labor rates must be considered in the context of productivity and quality. 
C) lower labor costs offset the high cost of inefficient equipment and processes. 
D) prices are carefully controlled by the U.S.government to prevent dumping. 
E) price will be higher if the U.S.dollar is strengthening on the exchange rate. B

Question 4

Commercial letters of credit (CLCs)are the least actively used structured payment instruments in global trade.

Accepted Answer

A) True 
 B)False

Question 5

It is as easy to compare total cost of ownership from an offshore source to that of a domestic one.

Accepted Answer

A) True 
 B)False

Question 6

Global supply activities can be coordinated through:

Accepted Answer

A) regional purchasing offices. 
B) a global commodity management organization. 
C) international purchasing offices. 
D) regional purchasing offices and a global commodity management organization. 
E) regional purchasing offices,a global commodity management organization and international purchasing offices. 
A) regional purchasing offices. 
B) a global commodity management organization. 
C) international purchasing offices. 
D) regional purchasing offices and a global commodity management organization. 
E) regional purchasing offices,a global commodity management organization and international purchasing offices.

Question 7

A document which is drawn by the buyer's bank at the buyer's request,and guarantees that the bank will pay the agreed-on amount when all prescribed conditions,such as satisfactory delivery,have been completed,is called a sight draft.

Accepted Answer

A) True 
 B)False

Question 8

When purchasing goods or services from an offshore supplier,the most conservative risk management approach is to price in the currency of the supplier.

Accepted Answer

A) True 
 B)False

Question 9

For the Incoterm CIF (Cost,Insurance and Freight),the seller clears the goods for export,is responsible for delivering the goods on board at the port of shipment,pays the costs associated with transport of the goods to the port of destination,and procures and pays for marine insurance in the buyer's name for the shipment.

Accepted Answer

A) True 
 B)False

Question 10

The NAFTA,the EU,ASEAN and the WTO are all examples of Free Trade Agreements which were designed to facilitate trade between and among member countries.

Accepted Answer

A) True 
 B)False

Question 11

The most-cited reason for international trade is:

Accepted Answer

A) better overall value. 
B) better quality. 
C) more advanced technology. 
D) lower total costs. 
E) lower price. 
A) better overall value. 
B) better quality. 
C) more advanced technology. 
D) lower total costs. 
E) lower price.

Question 12

The world's leading exporter of manufactured goods is:

Accepted Answer

A) Germany. 
B) the U.S. 
C) China. 
D) Japan. 
E) the European Union. 
A) Germany. 
B) the U.S. 
C) China. 
D) Japan. 
E) the European Union.

Question 13

When sourcing offshore,a buyer:

Accepted Answer

A) normally will let domestic suppliers counter the global supplier's offer. 
B) may assume that quality control systems and processes are universal. 
C) will account for unknown risks by adding 10 percent to total cost assessments. 
D) will always state the price in U.S.dollars. 
E) must have extensive knowledge and analysis of the country. 
A) normally will let domestic suppliers counter the global supplier's offer. 
B) may assume that quality control systems and processes are universal. 
C) will account for unknown risks by adding 10 percent to total cost assessments. 
D) will always state the price in U.S.dollars. 
E) must have extensive knowledge and analysis of the country.

Question 14

Duty drawbacks permit a refund of duties paid on imported materials that are later exported.

Accepted Answer

A) True 
 B)False

Question 15

It is common for international trade disputes to be settled through international arbitration partly because the costs of litigation exceed the costs of arbitration.

Accepted Answer

A) True 
 B)False

Question 16

If the purchaser wants the supplier to assume all responsibilities for all costs associated with transportation to the named place of destination,including duties and other costs payable upon import,the following Incoterm should be used:

Accepted Answer

A) Free alongside ship (FAS). 
B) Free on Board (FO
B) . 
C) Cost and Freight (CFR). 
D) Delivered Duty Paid (DDP). 
E) Any of the above. 
A) Free alongside ship (FAS). 
B) Free on Board (FO
B) . 
C) Cost and Freight (CFR). 
D) Delivered Duty Paid (DDP). 
E) Any of the above.

Question 17

Countertrade historically has been very common in the sale by U.S.firms of armaments to other nations,but very uncommon in civilian procurement projects.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following discourages countertrade?

Accepted Answer

A) shortage of foreign exchange. 
B) shortage of available credit. 
C) desire to promote labor-intensive exports. 
D) well-developed domestic economy. 
E) need to develop export markets for new products. 
A) shortage of foreign exchange. 
B) shortage of available credit. 
C) desire to promote labor-intensive exports. 
D) well-developed domestic economy. 
E) need to develop export markets for new products.

Question 19

Improvements in transportation and communications have reduced the lead time for offshore purchases.

Accepted Answer

A) True 
 B)False

Question 20

The growth in international trade has come from an increase in the international sale of goods but not services.

Accepted Answer

A) True 
 B)False

Maquiladoras in Mexico:

A foreign trade zone (FTZ)in the U.S.is completely different in purpose from a maquiladora in Mexico.

When comparing the total cost of ownership from an international supplier to that of a domestic supplier,the international supplier's:

Commercial letters of credit (CLCs)are the least actively used structured payment instruments in global trade.

It is as easy to compare total cost of ownership from an offshore source to that of a domestic one.

Global supply activities can be coordinated through:

A document which is drawn by the buyer's bank at the buyer's request,and guarantees that the bank will pay the agreed-on amount when all prescribed conditions,such as satisfactory delivery,have been completed,is called a sight draft.

When purchasing goods or services from an offshore supplier,the most conservative risk management approach is to price in the currency of the supplier.

The NAFTA,the EU,ASEAN and the WTO are all examples of Free Trade Agreements which were designed to facilitate trade between and among member countries.

The most-cited reason for international trade is:

The world's leading exporter of manufactured goods is:

When sourcing offshore,a buyer:

Duty drawbacks permit a refund of duties paid on imported materials that are later exported.

It is common for international trade disputes to be settled through international arbitration partly because the costs of litigation exceed the costs of arbitration.

If the purchaser wants the supplier to assume all responsibilities for all costs associated with transportation to the named place of destination,including duties and other costs payable upon import,the following Incoterm should be used:

Countertrade historically has been very common in the sale by U.S.firms of armaments to other nations,but very uncommon in civilian procurement projects.

Which of the following discourages countertrade?

Improvements in transportation and communications have reduced the lead time for offshore purchases.

The growth in international trade has come from an increase in the international sale of goods but not services.

Purchasing and Supply Management

Supply Strategy

Supply Organization

Supply Processes and Technology

Make or Buy,insourcing and Outsourcing

Need Identification and Specification

Quality

Quantity and Inventory

Delivery

Price

Cost Management

Supplier Selection

Supplier Evaluation and Supplier Relationships

Legal and Ethics

Other Supply Responsibilities

Supply Function Evaluation and Trends

Filters

Exam 14: Global Supply Management

Maquiladoras in Mexico:

A foreign trade zone (FTZ)in the U.S.is completely different in purpose from a maquiladora in Mexico.

When comparing the total cost of ownership from an international supplier to that of a domestic supplier,the international supplier's:

Commercial letters of credit (CLCs)are the least actively used structured payment instruments in global trade.

It is as easy to compare total cost of ownership from an offshore source to that of a domestic one.

Global supply activities can be coordinated through:

A document which is drawn by the buyer's bank at the buyer's request,and guarantees that the bank will pay the agreed-on amount when all prescribed conditions,such as satisfactory delivery,have been completed,is called a sight draft.

When purchasing goods or services from an offshore supplier,the most conservative risk management approach is to price in the currency of the supplier.

The NAFTA,the EU,ASEAN and the WTO are all examples of Free Trade Agreements which were designed to facilitate trade between and among member countries.

The most-cited reason for international trade is:

The world's leading exporter of manufactured goods is:

When sourcing offshore,a buyer:

Duty drawbacks permit a refund of duties paid on imported materials that are later exported.

It is common for international trade disputes to be settled through international arbitration partly because the costs of litigation exceed the costs of arbitration.

If the purchaser wants the supplier to assume all responsibilities for all costs associated with transportation to the named place of destination,including duties and other costs payable upon import,the following Incoterm should be used:

Countertrade historically has been very common in the sale by U.S.firms of armaments to other nations,but very uncommon in civilian procurement projects.

Which of the following discourages countertrade?

Improvements in transportation and communications have reduced the lead time for offshore purchases.

The growth in international trade has come from an increase in the international sale of goods but not services.

Purchasing and Supply Management

Supply Strategy

Supply Organization

Supply Processes and Technology

Make or Buy,insourcing and Outsourcing

Need Identification and Specification

Quality

Quantity and Inventory

Delivery

Price

Cost Management

Supplier Selection

Supplier Evaluation and Supplier Relationships

Legal and Ethics

Other Supply Responsibilities

Supply Function Evaluation and Trends

Filters