Question 1

Few offshore suppliers anticipate exchange rate fluctuations by incorporating a risk factor into their price.

Accepted Answer

A) True 
 B)False

Question 2

_____ requires a selling firm to purchase a specified amount of goods from the country that purchased its products.

Accepted Answer

A)  Nearshoring 
B)  Barter 
C)  Compensation trading 
D)  Counterpurchase 
E)  Buy-back 
A)  Nearshoring 
B)  Barter 
C)  Compensation trading 
D)  Counterpurchase 
E)  Buy-back

Question 3

A/An _____ can only be changed or canceled upon agreement of all parties.

Accepted Answer

A)  compensation trade 
B)  revocable letter of credit 
C)  buy-back 
D)  optional commission 
E)  irrevocable letter of credit 
A)  compensation trade 
B)  revocable letter of credit 
C)  buy-back 
D)  optional commission 
E)  irrevocable letter of credit

Question 4

All of the following are typical reasons why a country imposes countertrade demands except _____.

Accepted Answer

A)  some countries simply lack the hard currency to purchase imported goods 
B)  countertrade provides a means of selling products in markets to which a company may have otherwise lacked access 
C)  developing nations often require Western multinationals to accept goods as at least partial payment for sales within their country 
D)  the country may need assistance to produce its own goods and services 
E)  All of the above. 
A)  some countries simply lack the hard currency to purchase imported goods 
B)  countertrade provides a means of selling products in markets to which a company may have otherwise lacked access 
C)  developing nations often require Western multinationals to accept goods as at least partial payment for sales within their country 
D)  the country may need assistance to produce its own goods and services 
E)  All of the above.

Question 5

The use of forward exchange contracts encourages speculation.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not one of the factors that drive global sourcing performance?

Accepted Answer

A)  Centrally coordinated and centrally led decision making. 
B)  Site-based control of operational activities. 
C)  Ability to speak multiple foreign languages. 
D)  Sourcing and contracting systems. 
E)  International purchasing office support. 
A)  Centrally coordinated and centrally led decision making. 
B)  Site-based control of operational activities. 
C)  Ability to speak multiple foreign languages. 
D)  Sourcing and contracting systems. 
E)  International purchasing office support.

Question 7

_____ is the sum of the understandings that govern human interaction in a society.

Accepted Answer

A)  Values 
B)  Beliefs 
C)  Language 
D)  Behavior 
E)  Culture 
A)  Values 
B)  Beliefs 
C)  Language 
D)  Behavior 
E)  Culture

Question 8

Regardless of the technique used to overcome worldwide sourcing barriers, the effort will fail unless top management supports worldwide sourcing.

Accepted Answer

A) True 
 B)False

Question 9

Countries lacking foreign exchange for payment but rich in natural resources cannot benefit from buy-back or compensation trading.

Accepted Answer

A) True 
 B)False

Question 10

A major complaint about Americans is our ignorance of other cultures.

Accepted Answer

A) True 
 B)False

Question 11

A major concern with international purchasing is managing the risk associated with international currency fluctuations.

Accepted Answer

A) True 
 B)False

Question 12

The most common method for overcoming barriers to worldwide sourcing involves education and training, which can generate support for the process as well help overcome the anxiety associated with change.

Accepted Answer

A) True 
 B)False

Question 13

Buyers should not underestimate the potential effects of extended distances on their ability to plan and manage a worldwide supply chain.

Accepted Answer

A) True 
 B)False

Question 14

U.S. purchasers stuck with domestic suppliers that produce poor quality often begin to source offshore components with the hope of improving end-product quality.

Accepted Answer

A) True 
 B)False

Question 15

A critical assessment of the increased supply risks associated with offshore sources must be made after contracting, not before a commitment is made.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is not an element of culture?

Accepted Answer

A)  Language. 
B)  Religion. 
C)  Values and attitudes. 
D)  Infrastructure. 
E)  Social institutions. 
A)  Language. 
B)  Religion. 
C)  Values and attitudes. 
D)  Infrastructure. 
E)  Social institutions.

Question 17

A common approach for coordinating work efforts is to rely on audio conferencing of skype type visual meeting at scheduled time intervals.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not one of the usual roles of an international purchasing office?

Accepted Answer

A)  Expedite and trace shipments. 
B)  Negotiate supply contracts. 
C)  Make payments and bribes to foreign officials to secure or retain business. 
D)  Represent the buying firm to suppliers. 
E)  Manage technical and commercial concerns. 
A)  Expedite and trace shipments. 
B)  Negotiate supply contracts. 
C)  Make payments and bribes to foreign officials to secure or retain business. 
D)  Represent the buying firm to suppliers. 
E)  Manage technical and commercial concerns.

Question 19

Developing countries offer effective protection against the piracy of intellectual property.

Accepted Answer

A) True 
 B)False

Question 20

All of the following are elements of total cost for worldwide sourcing except _____.

Accepted Answer

A)  payment terms 
B)  customs brokers fees 
C)  additional fees or commissions 
D)  domestic income taxes 
E)  inventory carrying costs 
A)  payment terms 
B)  customs brokers fees 
C)  additional fees or commissions 
D)  domestic income taxes 
E)  inventory carrying costs

Few offshore suppliers anticipate exchange rate fluctuations by incorporating a risk factor into their price.

_____ requires a selling firm to purchase a specified amount of goods from the country that purchased its products.

A/An _____ can only be changed or canceled upon agreement of all parties.

All of the following are typical reasons why a country imposes countertrade demands except _____.

The use of forward exchange contracts encourages speculation.

Which of the following is not one of the factors that drive global sourcing performance?

_____ is the sum of the understandings that govern human interaction in a society.

Regardless of the technique used to overcome worldwide sourcing barriers, the effort will fail unless top management supports worldwide sourcing.

Countries lacking foreign exchange for payment but rich in natural resources cannot benefit from buy-back or compensation trading.

A major complaint about Americans is our ignorance of other cultures.

A major concern with international purchasing is managing the risk associated with international currency fluctuations.

The most common method for overcoming barriers to worldwide sourcing involves education and training, which can generate support for the process as well help overcome the anxiety associated with change.

Buyers should not underestimate the potential effects of extended distances on their ability to plan and manage a worldwide supply chain.

U.S. purchasers stuck with domestic suppliers that produce poor quality often begin to source offshore components with the hope of improving end-product quality.

A critical assessment of the increased supply risks associated with offshore sources must be made after contracting, not before a commitment is made.

Which of the following is not an element of culture?

A common approach for coordinating work efforts is to rely on audio conferencing of skype type visual meeting at scheduled time intervals.

Which of the following is not one of the usual roles of an international purchasing office?

Developing countries offer effective protection against the piracy of intellectual property.

All of the following are elements of total cost for worldwide sourcing except _____.

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policy and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Category Strategy Development

Supplier Evaluation and Selection

Supplier Quality Management

Supplier Management and Development: Creating a World-Class Supply Base

Strategic Cost Management

Purchasing and Supply Chain Analysis: Tools and Techniques

Negotiation and Conflict Management

Contract Management

Purchasing Law and Ethics

Lean Supply Chain Management

Purchasing Services

Supply Chain Information Systems and Electronic Sourcing

Performance Measurement and Evaluation

Purchasing and Supply Strategy Trends

Filters

Exam 10: Worldwide Sourcing

Few offshore suppliers anticipate exchange rate fluctuations by incorporating a risk factor into their price.

_____ requires a selling firm to purchase a specified amount of goods from the country that purchased its products.

A/An _____ can only be changed or canceled upon agreement of all parties.

All of the following are typical reasons why a country imposes countertrade demands except _____.

The use of forward exchange contracts encourages speculation.

Which of the following is not one of the factors that drive global sourcing performance?

_____ is the sum of the understandings that govern human interaction in a society.

Regardless of the technique used to overcome worldwide sourcing barriers, the effort will fail unless top management supports worldwide sourcing.

Countries lacking foreign exchange for payment but rich in natural resources cannot benefit from buy-back or compensation trading.

A major complaint about Americans is our ignorance of other cultures.

A major concern with international purchasing is managing the risk associated with international currency fluctuations.

The most common method for overcoming barriers to worldwide sourcing involves education and training, which can generate support for the process as well help overcome the anxiety associated with change.

Buyers should not underestimate the potential effects of extended distances on their ability to plan and manage a worldwide supply chain.

U.S. purchasers stuck with domestic suppliers that produce poor quality often begin to source offshore components with the hope of improving end-product quality.

A critical assessment of the increased supply risks associated with offshore sources must be made after contracting, not before a commitment is made.

Which of the following is not an element of culture?

A common approach for coordinating work efforts is to rely on audio conferencing of skype type visual meeting at scheduled time intervals.

Which of the following is not one of the usual roles of an international purchasing office?

Developing countries offer effective protection against the piracy of intellectual property.

All of the following are elements of total cost for worldwide sourcing except _____.

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policy and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Category Strategy Development

Supplier Evaluation and Selection

Supplier Quality Management

Supplier Management and Development: Creating a World-Class Supply Base

Strategic Cost Management

Purchasing and Supply Chain Analysis: Tools and Techniques

Negotiation and Conflict Management

Contract Management

Purchasing Law and Ethics

Lean Supply Chain Management

Purchasing Services

Supply Chain Information Systems and Electronic Sourcing

Performance Measurement and Evaluation

Purchasing and Supply Strategy Trends

Filters