Question 1

When the dollar is weak, the final cost of goods tends to be relatively less than originally agreed upon.

Accepted Answer

A) True 
 B)False

Question 2

___________________ is when the recipient obtains a share of the production work for its own order.

Accepted Answer

A)  Offsets 
B)  Indirect offsets 
C)  Coproduction 
D)  Sub-contractor production 
E)  Licensed production

Question 3

(Most) of the (global risk) issues are ____________________________.

Accepted Answer

A)  distance and communication 
B)  time value of money and quality issues 
C)  pipeline problems and staffing issues 
D)  competition 
E)  all of the above

Question 4

_______________ occur where products or services transferred in an offset arrangement are unrelated to the specific products referred to in the export agreement.

Accepted Answer

A)  Offsets 
B)  Indirect offsets 
C)  Coproduction 
D)  Sub-contractor production 
E)  Licensed production

Question 5

xclusively foreign costs are those that would not be incurred if a domestic source were found. Examples of these costs are _________________.

Accepted Answer

A)  duty charges 
B)  customs fees 
C)  import fees 
D)  currency exchange costs 
E)  all of the above

Question 6

The intense attention on the outflow of work to overseas locations has generated ________ about which jobs or professions will be outsourced next.

Accepted Answer

A)  fear 
B)  concern 
C)  stress 
D)  interest 
E)  joy

Question 7

hina is now a _______ player in the world economy and accounts for more than 6 percent of world trade. This is remarkable for a developing economy. There has been strong import growth, both for processing trade and for domestic consumption.

Accepted Answer

A)  relatively new 
B)  minor 
C)  major 
D)  major-minor 
E)  first class

Question 8

________________________ occur as a result of an offset are research and development agreements conducted in the buying country.

Accepted Answer

A)  Offsets 
B)  Indirect offsets 
C)  Technology transfers 
D)  Coproduction 
E)  Licensed production

Question 9

There are many ethical considerations that (companies) must learn in order to be successful. This is one reason that many companies hire _________ to do their sourcing.

Accepted Answer

A)  agents 
B)  importers 
C)  nationals 
D)  brokers 
E)  wholesalers

Exam 10: Global Sourcing