Deck 2: Global Dimensions of Supply Chains

Question 1

One could argue that the external role of technology in recent years has moved ahead of globalization as an agent or driver of change.

Answer 1

True

Question 2

From a customer service perspective, one of the four important characteristics for global market and strategy is that technology companies counteract short product lifecycle with continual upgrades and new products.

Answer 2

True

Question 3

U.S. ports play a major role in global supply chains since over 50 percent of global trade passes through them.

Answer 3

False

Question 4

The Customs Trade Partnership Against Terrorism (C-TPAT) was put in place to assess the vulnerability of U.S. ports and to deny entry to ships from countries that do not meet U.S. security standards.

Question 5

Strategies such as compression and lean supply chains take the same amount of work to achieve in the global environment as in the domestic environment.

Question 6

From a customer service perspective, one of the four important characteristics for global markets and strategy is that companies need to attempt to standardize to reduce complexity, but they have to recognize that global markets need some customization.

Question 7

Water desalinization and fracking for oil and gas production are examples of technologies that can unleash resources and contribute to economic advantage.

Question 8

Many countries hope to improve trade by engaging in Regional Trade Agreements (RTAs), the best-known example of an RTA is the European Union (EU).

Question 9

Reduced order cycle time has become an important part of supply chain management since it can lead to lower inventory levels for customers, improved cash flow, lower current assets, and accounts receivable.

Question 10

Given the importance of global trade to the United States, a delicate balance exists between security and the efficient flow of global commerce.

Question 11

According to the Factor Endowment Theory, a country that lacks one or more of the four major production factors-land, labor, capital, and entrepreneurship-will not be able to successfully participate in global trade.

Question 12

In terms of volume of exports, the United States is the world's leader in global trade flow.

Question 13

The underlying logic of Adam Smith's theory was used to advance the rationalization that he called specialization of labor.

Question 14

Adam Smith in his renowned treatise, The Wealth of Nations , provided not only a rationale for a market economy based upon competition, but also advanced a rationale for trade among nations called the:

A) Theory of Comparative Advantage
B) Theory of Absolute Advantage
C) Theory of Temporary Advantage
D) Theory of Competitive Advantage

Question 15

Which of the following is not one of the essential factors for economic growth and increased development of global trade flows?

A) Population growth and age distribution
B) Urbanization
C) Knowledge dissemination
D) Geo-political standing

Question 16

Operating globally has become easier to accomplish for even individuals and small companies, because of the advances in information/communications technology.

Question 17

The central theme behind the theory of comparative advantage is that if one country has an advantage (lower cost) in the production of two products, they should focus on the production of both so that they gain the greatest advantage in trade when compared to other countries that may have a lesser advantage.

Question 18

The Trade Act of 2002 requires exporters to electronically submit shipping documents to U.S. Customs 24 hours before delivery to a port or 24 hours before vessel departure.

Question 19

Advancements in technology and the growth of transportation services have prevented many smaller, less developed countries from participating in global supply chains.

Question 20

The Regional Trade Agreements (RTAs), the establishment of the General Agreement on Tariffs and Trade (GATT), and its 1995 successor, the World Trade Organization (WTO), have together led to multilateral trade promotion and lowered barriers to international business transactions.

Question 21

In recent years, due to political unrest in various parts of the world, large numbers of people have migrated to other countries, particularly in Europe. How would the influx of a large group of people impact the economy of a developed nation with an aging population, such as Germany or Italy?

Question 22

The Trade Act of 2002 requires exporters to electronically submit shipping documents to U.S. Customs _____ hours after delivery to a port.

A) 5
B) 48
C) 12
D) 24

Question 23

What are the essential factors for economic growth and increased development of global trade flows? Why are they so important in today's global economy?

Question 24

As suggested, the aging populations in more developed countries will result in _____ health care costs and/but _____ in the size of the working population or labor pool.

A) increased; a reduction
B) increased; stagnation
C) steady; a decrease
D) nominal raises in; an increase

Question 25

_____, _____, and _____ are the top three recipients of exports from the United States, in that order.

A) China; Mexico; Canada
B) Canada; China; India
C) China; Canada; Mexico
D) Mexico; Canada; Australia

Question 26

Global trade clearly has a significant impact on the economies of various countries. Explain how global interdependence impacts countries overall (a macro basis), as well as how it impacts individual organizations doing business within various countries (a micro basis).

Question 27

Which of the following is a significant intended outcome of the United States-Mexico-Canada Agreement (USMCA), which recently replaced the older North American Free Trade Agreement (NAFTA)?

A) An unimpeded flow of goods among the three nations
B) Enhancements in the cross-border movement of goods and services
C) A reduction in duties and customs fees for the trading partners
D) All of these answers

Question 28

Which of the following is an important issue for economic development and vitality of the economy?

A) Migration
B) Agriculture
C) Entrepreneurship
D) Healthcare

Question 29

Where is a megacity most likely to develop?

A) Asia
B) Canada
C) Europe
D) Australia

Question 30

Why are customer service and its related strategy so important for companies operating global supply chains? Do you think that customer service is more important than lower cost to the customers?

Question 31

Which one of the countries below is not part of NAFTA?

A) United States
B) Canada
C) Argentina
D) Mexico

Question 32

The top ten countries account for almost _____ of the total world population.

A) 75%
B) 55%
C) 60%
D) 45%

Question 33

What contributions do successful supply chains make to companies?

Question 34

Explain the underlying rationale for global trade and explain the difference between comparative and absolute advantage.

Question 35

According to prediction, _____, _____, and _____ will all house so called "Megacities", whereas _____ will not have any cities of this size.

A) Asia; Europe; Latin America; North America
B) Asia; Latin America; North America; Africa
C) Africa; Europe; North America; Asia
D) Asia; Latin America; North America; Europe

Question 36

Which two countries account for approximately 36% of the total world population?

A) China and United States
B) United States and India
C) India and Russia
D) China and India