Exam 14: Global Supply Management

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

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

The Foreign Corrupt Practices Act FCPA):

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

A foreign trade zone FTZ) in the U. S.:

When there is a large number of common requirements across facilities or business units, and the supply base is dispersed geographically, an appropriate global sourcing structure is:

The United Nations Convention for the International Sale of Goods CISG):

Which of the following would encourage countertrade?

In international buying, the entity that makes a contract with the buyer and then buys the product in its name from the foreign supplier, takes title, delivers to the place agreed on with the buyer, and then bills the buyer for the agreed-on price, is an):

Even though the economy of Mexico relies heavily on the jobs generated by maquiladoras, the government of Mexico has not set wage rates equal to those of India and China.

A temporary importation bond TIB) allows certain classes of merchandise, to be imported into the U. S. with the net effect that no duty is paid on the merchandise, provided it is reexported.

When dealing with an international supplier, a knowledgeable buyer:

The governing convention on shipping terms and responsibilities involved in international transportation is called ITAPS International Transport and Payment Specifications.)

Three approaches to global sourcing are to establish 1) global purchasing offices, 2) International Commodity Organizations ICOs), or 3) Regional Purchasing Offices RPOs).

The growth in international trade has come from an increase in the international sale of services as well as goods.

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.

When one condition of the countertrade agreement is that government and/or military-related exports be purchased, this is a swap trade arrangement.

When sourcing internationally:

The most-cited reason for international trade is:

The primary reasons for using a foreign trade zone FTZ) are 1) to avoid, postpone, or reduce duties on imported goods, and 2) to create economic benefits for the local community through job creation.