Question 1

All of the following are common methods for overcoming barriers to worldwide sourcing except _____.

Accepted Answer

A)  education and training 
B)  publicizing success stories 
C)  measurement and reward systems 
D)  payment only in foreign currency 
E)  use of third party or external agents 
A)  education and training 
B)  publicizing success stories 
C)  measurement and reward systems 
D)  payment only in foreign currency 
E)  use of third party or external agents

Question 2

Most offshore organizations like dealing with the U.S. legal system and long contracts.

Accepted Answer

A) True 
 B)False

Question 3

All of the following are examples of why organizations source worldwide except _____.

Accepted Answer

A)  access to the only source available 
B)  react to buying patterns of competitors 
C)  higher ethics 
D)  cost/price benefits 
E)  establish a presence in another country market 
A)  access to the only source available 
B)  react to buying patterns of competitors 
C)  higher ethics 
D)  cost/price benefits 
E)  establish a presence in another country market

Question 4

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

Accepted Answer

A)  Identify potential suppliers. 
B)  Solicit quotes or proposals.. 
C)  Obtain product samples. 
D)  Manage countertrade requirements. 
E)  Conduct overseas sales and marketing-related activities. 
A)  Identify potential suppliers. 
B)  Solicit quotes or proposals.. 
C)  Obtain product samples. 
D)  Manage countertrade requirements. 
E)  Conduct overseas sales and marketing-related activities.

Question 5

Social culture and laws, personnel skills and abilities, and business culture are three areas where differences are the greatest across different geographic units.

Accepted Answer

A) True 
 B)False

Question 6

All of the following are common measures used to manage currency fluctuation in international purchasing except _____.

Accepted Answer

A)  letters of credit 
B)  purchase in U.S. dollars 
C)  sharing currency fluctuation risk 
D)  currency adjustment contract clauses 
E)  currency hedging 
A)  letters of credit 
B)  purchase in U.S. dollars 
C)  sharing currency fluctuation risk 
D)  currency adjustment contract clauses 
E)  currency hedging

Question 7

Trade shows are often one of the worst ways to gather information on many suppliers at one time.

Accepted Answer

A) True 
 B)False

Question 8

Few trade consulates have trade experts who are eager to do business with American buyers.

Accepted Answer

A) True 
 B)False

Question 9

_____ involves proactively integrating and coordination common items and materials, processes, designs, technologies, and suppliers across worldwide purchasing, engineering, and operating locations.

Accepted Answer

A)  International purchasing 
B)  Sole sourcing 
C)  Nearshoring 
D)  Re-shoring 
E)  Global sourcing 
A)  International purchasing 
B)  Sole sourcing 
C)  Nearshoring 
D)  Re-shoring 
E)  Global sourcing

Question 10

_____ agreements require the seller to purchase some agreed-uponpercentage of goods from a country over a specified period but allow a company to fulfill its countertrade requirement with any company or industry in the country.

Accepted Answer

A)  Offset 
B)  Compensation trading 
C)  Switch trading 
D)  Buy-back 
E)  Barter 
A)  Offset 
B)  Compensation trading 
C)  Switch trading 
D)  Buy-back 
E)  Barter

Question 11

Duty rates vary widely over seemingly small differences between items.

Accepted Answer

A) True 
 B)False

Question 12

_____ relates to a commercial purchase transaction between a buyer and a supplier located in different countries.

Accepted Answer

A)  International purchasing 
B)  Re-shoring 
C)  Global sourcing 
D)  Nearshoring 
E)  None of the above. 
A)  International purchasing 
B)  Re-shoring 
C)  Global sourcing 
D)  Nearshoring 
E)  None of the above.

Question 13

According to Dick Locke, all of the following are advice about language and communication except _____.

Accepted Answer

A)  if a supplier is using English as a second language, the buyer should be responsible for preventing communication problems 
B)  always pay in U.S. dollars when dealing with worldwide suppliers 
C)  to aid in communication, speak slowly, use more communication graphics, and eliminate jargon, slang, and sports and military metaphors from your language 
D)  bring an interpreter to all but the most informal meetings 
E)  document, in writing, the conclusions and decisions made in a meeting before adjourning 
A)  if a supplier is using English as a second language, the buyer should be responsible for preventing communication problems 
B)  always pay in U.S. dollars when dealing with worldwide suppliers 
C)  to aid in communication, speak slowly, use more communication graphics, and eliminate jargon, slang, and sports and military metaphors from your language 
D)  bring an interpreter to all but the most informal meetings 
E)  document, in writing, the conclusions and decisions made in a meeting before adjourning

Question 14

Which of the following statements regarding countertrade is false?

Accepted Answer

A)  Items involving large dollar amounts, such as military contracts, are prime candidates for countertrade. 
B)  Companies can expect countertrade demands from a country when that country's goods may have a low or nondifferentiated perception in the world marketplace. 
C)  Highly valued items or those sought after by the buying country are less susceptible to countertrade demands. 
D)  Countertrade may include items that are available from many sources, commodity-type items, or items not perceived as technologically superior or having higher quality compared with other available products. 
E)  Countertrade is a simple process as it avoids currency exchange fluctuations. 
A)  Items involving large dollar amounts, such as military contracts, are prime candidates for countertrade. 
B)  Companies can expect countertrade demands from a country when that country's goods may have a low or nondifferentiated perception in the world marketplace. 
C)  Highly valued items or those sought after by the buying country are less susceptible to countertrade demands. 
D)  Countertrade may include items that are available from many sources, commodity-type items, or items not perceived as technologically superior or having higher quality compared with other available products. 
E)  Countertrade is a simple process as it avoids currency exchange fluctuations.

Question 15

Hedging is a form of risk insurance that can protect both parties from currency fluctuations.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A)  domestic corporate sales, general, and administrative expenses 
B)  packaging 
C)  base price 
D)  inventory carrying cost 
E)  insurance premiums 
A)  domestic corporate sales, general, and administrative expenses 
B)  packaging 
C)  base price 
D)  inventory carrying cost 
E)  insurance premiums

Question 17

In some societies, such as Thailand and Indonesia, saying "yes" is merely being polite and does not necessarily mean that they agree with what you are saying.

Accepted Answer

A) True 
 B)False

Question 18

All of the following are examples of why organizations source worldwide except _____.

Accepted Answer

A)  cost/price benefits 
B)  access to product and process technology 
C)  quality 
D)  introduce competition to domestic suppliers 
E)  ability to influence domestic consumers 
A)  cost/price benefits 
B)  access to product and process technology 
C)  quality 
D)  introduce competition to domestic suppliers 
E)  ability to influence domestic consumers

Question 19

A FTZ _____ is typically housed in a port or an industrial park and is available to multiple companies.

Accepted Answer

A)  warehouse 
B)  twilight zone 
C)  subzone 
D)  general-purpose zone 
E)  None of the above. 
A)  warehouse 
B)  twilight zone 
C)  subzone 
D)  general-purpose zone 
E)  None of the above.

Question 20

_____ are internationally recognized commercial terms that describe the responsibilities of the buyer and seller in the arrangement of transportation and clarify when the ownership of the merchandise takes place.

Accepted Answer

A)  Incoterms 
B)  Duties 
C)  Letters of credit 
D)  Values 
E)  Tariffs 
A)  Incoterms 
B)  Duties 
C)  Letters of credit 
D)  Values 
E)  Tariffs

All of the following are common methods for overcoming barriers to worldwide sourcing except _____.

Most offshore organizations like dealing with the U.S. legal system and long contracts.

All of the following are examples of why organizations source worldwide except _____.

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

Social culture and laws, personnel skills and abilities, and business culture are three areas where differences are the greatest across different geographic units.

All of the following are common measures used to manage currency fluctuation in international purchasing except _____.

Trade shows are often one of the worst ways to gather information on many suppliers at one time.

Few trade consulates have trade experts who are eager to do business with American buyers.

_____ involves proactively integrating and coordination common items and materials, processes, designs, technologies, and suppliers across worldwide purchasing, engineering, and operating locations.

_____ agreements require the seller to purchase some agreed-uponpercentage of goods from a country over a specified period but allow a company to fulfill its countertrade requirement with any company or industry in the country.

Duty rates vary widely over seemingly small differences between items.

_____ relates to a commercial purchase transaction between a buyer and a supplier located in different countries.

According to Dick Locke, all of the following are advice about language and communication except _____.

Which of the following statements regarding countertrade is false?

Hedging is a form of risk insurance that can protect both parties from currency fluctuations.

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

In some societies, such as Thailand and Indonesia, saying "yes" is merely being polite and does not necessarily mean that they agree with what you are saying.

All of the following are examples of why organizations source worldwide except _____.

A FTZ _____ is typically housed in a port or an industrial park and is available to multiple companies.

_____ are internationally recognized commercial terms that describe the responsibilities of the buyer and seller in the arrangement of transportation and clarify when the ownership of the merchandise takes place.

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

All of the following are common methods for overcoming barriers to worldwide sourcing except _____.

Most offshore organizations like dealing with the U.S. legal system and long contracts.

All of the following are examples of why organizations source worldwide except _____.

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

Social culture and laws, personnel skills and abilities, and business culture are three areas where differences are the greatest across different geographic units.

All of the following are common measures used to manage currency fluctuation in international purchasing except _____.

Trade shows are often one of the worst ways to gather information on many suppliers at one time.

Few trade consulates have trade experts who are eager to do business with American buyers.

_____ involves proactively integrating and coordination common items and materials, processes, designs, technologies, and suppliers across worldwide purchasing, engineering, and operating locations.

_____ agreements require the seller to purchase some agreed-uponpercentage of goods from a country over a specified period but allow a company to fulfill its countertrade requirement with any company or industry in the country.

Duty rates vary widely over seemingly small differences between items.

_____ relates to a commercial purchase transaction between a buyer and a supplier located in different countries.

According to Dick Locke, all of the following are advice about language and communication except _____.

Which of the following statements regarding countertrade is false?

Hedging is a form of risk insurance that can protect both parties from currency fluctuations.

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

In some societies, such as Thailand and Indonesia, saying "yes" is merely being polite and does not necessarily mean that they agree with what you are saying.

All of the following are examples of why organizations source worldwide except _____.

A FTZ _____ is typically housed in a port or an industrial park and is available to multiple companies.

_____ are internationally recognized commercial terms that describe the responsibilities of the buyer and seller in the arrangement of transportation and clarify when the ownership of the merchandise takes place.

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