Question 1

What is an illegal activity in the United States is never an accepted business practice in many other regions.

Accepted Answer

A) True 
 B)False

Question 2

Domestic purchasing must include the additional costs associated with conducting domestic transactions.

Accepted Answer

A) True 
 B)False

Question 3

Insurance protection for international shipments is optional because oceangoing carrier liability is generally unlimited.

Accepted Answer

A) True 
 B)False

Question 4

Counterpurchase requires a company to fulfill its countertrade requirements by purchasing products within a country unrelated to its primary business.

Accepted Answer

A) True 
 B)False

Question 5

A supplier can draw against the letter of credit upon presentation of the required documents.

Accepted Answer

A) True 
 B)False

Question 6

A/An _____ can be changed or canceled at any time by the buyer without the seller's consent.

Accepted Answer

A)  irrevocable letter of credit 
B)  Incoterm 
C)  revocable letter of credit 
D)  CISG 
E)  switch trade 
A)  irrevocable letter of credit 
B)  Incoterm 
C)  revocable letter of credit 
D)  CISG 
E)  switch trade

Question 7

With a _____, both parties agree that payment occurs as long as exchange rates do not fluctuate outside an agreed-upon range or band.

Accepted Answer

A)  hedging agreement 
B)  payment in a foreign currency 
C)  speculation agreement 
D)  currency adjustment clause 
E)  payment in U.S. dollars 
A)  hedging agreement 
B)  payment in a foreign currency 
C)  speculation agreement 
D)  currency adjustment clause 
E)  payment in U.S. dollars

Question 8

FTZs allow an importing company to delay, eliminate, or decrease its duty payments on foreign-sourced goods that enter the zone site.

Accepted Answer

A) True 
 B)False

Question 9

_____ is a broad term that refers to all international and domestic trade where buyer and seller have at least a partial exchange of goods for goods.

Accepted Answer

A)  Six Sigma 
B)  Countertrade 
C)  Re-shoring 
D)  IPO 
E)  CISG 
A)  Six Sigma 
B)  Countertrade 
C)  Re-shoring 
D)  IPO 
E)  CISG

Question 10

An inverted tariff means that no duties or quota charges will be placed on goods that are reexported from the FTZ.

Accepted Answer

A) True 
 B)False

Question 11

A/An _____ is a secure location approved by the appropriate U.S. Customs and Border Protection (CBP) office.

Accepted Answer

A)  offshore supplier 
B)  international purchasing office 
C)  agent 
D)  offset 
E)  foreign trade zone 
A)  offshore supplier 
B)  international purchasing office 
C)  agent 
D)  offset 
E)  foreign trade zone

Question 12

_____ is/are shared beliefs or group norms that are internalized and affect(s) the way people think, while _____ is/are based on values and attitudes and affect(s) the people act.

Accepted Answer

A)  Behavior…values 
B)  Culture…infrastructure 
C)  Values…behavior 
D)  Infrastructure…behavior 
E)  Jurisprudence…culture 
A)  Behavior…values 
B)  Culture…infrastructure 
C)  Values…behavior 
D)  Infrastructure…behavior 
E)  Jurisprudence…culture

Question 13

_____ is a process that involves the straight exchange of goods for goods with no exchange of currency.

Accepted Answer

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

Question 14

Firms that centralize operational activities during global sourcing are likely to realize lower total cost of ownership, better inventory management, and improved performance to external customers.

Accepted Answer

A) True 
 B)False

Question 15

Barter requires trading parties to enter into a series of contracts to fulfill trading requirements.

Accepted Answer

A) True 
 B)False

Question 16

_____ involves contracting with independent suppliers located outside geographic boundaries of the United States for goods and services.

Accepted Answer

A)  Re-shoring 
B)  Domestic sourcing 
C)  Nearshoring 
D)  Outsourcing 
E)  Offshoring 
A)  Re-shoring 
B)  Domestic sourcing 
C)  Nearshoring 
D)  Outsourcing 
E)  Offshoring

Question 17

Sharing currency fluctuation risk with a supplier works best on items that have a set delivery date such as with capital equipment.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not an example of resources that affect global sourcing success?

Accepted Answer

A)  Budget support for travel. 
B)  A large corporate headquarters building. 
C)  Access to qualified personnel. 
D)  Time for personnel to develop global strategies. 
E)  Availability of required information and data. 
A)  Budget support for travel. 
B)  A large corporate headquarters building. 
C)  Access to qualified personnel. 
D)  Time for personnel to develop global strategies. 
E)  Availability of required information and data.

Question 19

Despite its apparent simplicity, barter is one of the least-practiced forms of countertrade today.

Accepted Answer

A) True 
 B)False

Question 20

Developing countries seldom rely on personal relations and trust to cover many legal issues because of an adequate legal system.

Accepted Answer

A) True 
 B)False

What is an illegal activity in the United States is never an accepted business practice in many other regions.

Domestic purchasing must include the additional costs associated with conducting domestic transactions.

Insurance protection for international shipments is optional because oceangoing carrier liability is generally unlimited.

Counterpurchase requires a company to fulfill its countertrade requirements by purchasing products within a country unrelated to its primary business.

A supplier can draw against the letter of credit upon presentation of the required documents.

A/An _____ can be changed or canceled at any time by the buyer without the seller's consent.

With a _____, both parties agree that payment occurs as long as exchange rates do not fluctuate outside an agreed-upon range or band.

FTZs allow an importing company to delay, eliminate, or decrease its duty payments on foreign-sourced goods that enter the zone site.

_____ is a broad term that refers to all international and domestic trade where buyer and seller have at least a partial exchange of goods for goods.

An inverted tariff means that no duties or quota charges will be placed on goods that are reexported from the FTZ.

A/An _____ is a secure location approved by the appropriate U.S. Customs and Border Protection (CBP) office.

_ is/are shared beliefs or group norms that are internalized and affect(s) the way people think, while _ is/are based on values and attitudes and affect(s) the people act.

_____ is a process that involves the straight exchange of goods for goods with no exchange of currency.

Firms that centralize operational activities during global sourcing are likely to realize lower total cost of ownership, better inventory management, and improved performance to external customers.

Barter requires trading parties to enter into a series of contracts to fulfill trading requirements.

_____ involves contracting with independent suppliers located outside geographic boundaries of the United States for goods and services.

Sharing currency fluctuation risk with a supplier works best on items that have a set delivery date such as with capital equipment.

Which of the following is not an example of resources that affect global sourcing success?

Despite its apparent simplicity, barter is one of the least-practiced forms of countertrade today.

Developing countries seldom rely on personal relations and trust to cover many legal issues because of an adequate legal system.

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

What is an illegal activity in the United States is never an accepted business practice in many other regions.

Domestic purchasing must include the additional costs associated with conducting domestic transactions.

Insurance protection for international shipments is optional because oceangoing carrier liability is generally unlimited.

Counterpurchase requires a company to fulfill its countertrade requirements by purchasing products within a country unrelated to its primary business.

A supplier can draw against the letter of credit upon presentation of the required documents.

A/An _____ can be changed or canceled at any time by the buyer without the seller's consent.

With a _____, both parties agree that payment occurs as long as exchange rates do not fluctuate outside an agreed-upon range or band.

FTZs allow an importing company to delay, eliminate, or decrease its duty payments on foreign-sourced goods that enter the zone site.

_____ is a broad term that refers to all international and domestic trade where buyer and seller have at least a partial exchange of goods for goods.

An inverted tariff means that no duties or quota charges will be placed on goods that are reexported from the FTZ.

A/An _____ is a secure location approved by the appropriate U.S. Customs and Border Protection (CBP) office.

_____ is/are shared beliefs or group norms that are internalized and affect(s) the way people think, while _____ is/are based on values and attitudes and affect(s) the people act.

_____ is a process that involves the straight exchange of goods for goods with no exchange of currency.

Firms that centralize operational activities during global sourcing are likely to realize lower total cost of ownership, better inventory management, and improved performance to external customers.

Barter requires trading parties to enter into a series of contracts to fulfill trading requirements.

_____ involves contracting with independent suppliers located outside geographic boundaries of the United States for goods and services.

Sharing currency fluctuation risk with a supplier works best on items that have a set delivery date such as with capital equipment.

Which of the following is not an example of resources that affect global sourcing success?

Despite its apparent simplicity, barter is one of the least-practiced forms of countertrade today.

Developing countries seldom rely on personal relations and trust to cover many legal issues because of an adequate legal system.

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

_ is/are shared beliefs or group norms that are internalized and affect(s) the way people think, while _ is/are based on values and attitudes and affect(s) the people act.