Deck 12: Global Supply Chain Management

Question 1

For supply chain management, globalization trends have resulted in:

A) Less competition
B) Greater competition
C) Greater coordination
D) Fewer markets
E) b and c

Answer 1

E

Question 2

When people relate to each other more as equals, the culture is characterized as having:

A) Large power distance
B) Individualism
C) Small power distance
D) Masculinity
E) High context

Answer 2

C

Question 3

Unexpected costs that can arise from trade at a global level include:

A) Border delays
B) Increased transit times
C) Tariffs
D) Higher inventory
E) All of the above

Answer 3

E

Question 4

Work ethic and gender roles are examples of a ____________ factor impacting global supply chains.

A) Cultural
B) Political
C) Technological
D) Economical
E) Financial

Question 5

Multiple types of technology are required for a global supply chain to function including:

A) Information
B) Manufacturing
C) Equipment
D) All of the above
E) None of the above

Question 6

Supply chain benefits that can be achieved through a global strategy include:

A) Economies of scale
B) Product complexity
C) Political risk
D) Total cost reduction
E) Variable lead times

Question 7

Manufacturing in a country primarily because of low cost labor is not always the best strategy because:

A) Labor can be a small percentage of cost
B) Labor costs can change over time
C) Workers could be unskilled
D) Other costs outweigh labor cost advantage
E) All of the above

Question 8

A ____________marketing approach focuses on bringing customization to global consumers.

A) Local
B) Strategic
C) Tactical
D) Global
E) Segmented

Question 9

Environmental regulations are an example of a ________ factor impacting global supply chains.

A) Cultural
B) Political
C) Technological
D) Economical
E) Financial

Question 10

Countries that rely greatly on explicit contracts and communication are known as:

A) Collectivism cultures
B) Weak uncertainty avoidance cultures
C) Large power distance cultures
D) Low context cultures
E) None of the above

Question 11

_______ is an example of a non-cost consideration on which companies are increasingly focused.

A) Labor
B) Facilities
C) Capital
D) Poor product design
E) Transportation

Question 12

Barriers to implementing an effective global strategy include:

A) Management of overall costs
B) Risk of political instability
C) Exchange rate risks
D) Longer lead times
E) All of the above

Question 13

The profile of the global consumer has changed to put greater emphasis on __________.

A) Standardized products
B) Individualism
C) Customized products
D) Technology
E) b and c

Question 14

A _________ marketing approach focuses on bringing standardization to the global market.

A) Local
B) Strategic
C) Tactical
D) Global
E) Segmented

Question 15

Environmental factors that must be considered in a global supply chain strategy include:

A) Lead time
B) Supplier quality
C) Political
D) Demographic
E) c and d

Question 16

A weak transportation infrastructure in a developing country can result in:

A) Low shipping time variability
B) High lead time variability
C) Lower distribution costs
D) All of the above
E) None of the above

Question 17

_____________ is a strategy that delays customization until demand is more clearly known.

A) CPFR
B) Vendor managed inventory
C) Postponement
D) RFID
E) None of the above

Question 18

A well-functioning _________________ is critical for transporting products into global markets.

A) Technology system
B) Culture
C) Infrastructure
D) Political system
E) All of the above

Question 19

The rapid growth of globalization and global trade are a result of:

A) Information technology
B) Transportation
C) Rising global incomes
D) All of the above
E) None of the above

Question 20

Challenges to implementing a standardized product across the globe include:

A) Uniformity in distribution
B) More balanced supply and demand
C) Achieving consistency across global operations
D) Low variability in operations
E) None of the above

Question 21

Most, if not all companies now operate in a global environment.

Question 22

A non-tariff barrier that requires part of the product be manufactured inside the country is known as a/an:

A) Technical standards
B) Health regulations
C) Tariff
D) Local content requirement
E) Import quota

Question 23

Reasons for the advances in global trade include advanced transportation methods and information technology.

Question 24

A quantitative restriction on the volume of imports is known as a/an:

A) Trigger price mechanism
B) Tariff
C) Import quota
D) Export duty
E) Local content requirement

Question 25

An effective way to implement a merged global and local marketing approach is to utilize a postponement strategy.

Question 26

It is possible for a global strategy to fail because of cultural differences or misunderstandings.

Question 27

Customer preferences in emerging markets are typically homogenous, making global supply chains easier to manage than mature markets.

Question 28

The local marketing approach is becoming less widely used as companies move into global markets.

Question 29

Globalization and new markets creates many opportunities for companies but few risks.

Question 30

Globalization has resulted in less competitive prices for consumers.

Question 31

It is possible for companies to minimize exchange rate risk through:

A) Global sourcing networks
B) Diversifying production locations
C) Single sourcing
D) Tariffs
E) a and b

Question 32

A global marketing approach that brings standardized products to consumers is not an effective strategy.

Question 33

Globalization has accelerated and changed the nature of competition.

Question 34

The biggest global challenge for companies is dealing with political instability and economic factors such as currency stability.

Question 35

Firms with primarily a domestic focus are typically more profitable than multinational firms.

Question 36

One advantage of a global supply chain network is the ability to specifically target local markets.

Question 37

NAFTA is an example of a:

A) Tariff
B) Quota
C) Regional trade agreement
D) Trade protection mechanism
E) Trigger price mechanism

Question 38

A global marketing approach has the benefit of making supply and demand easier to balance.

Question 39

_______ is an example of a trade protection mechanism.

A) NAFTA
B) Regional trade agreement
C) Trigger price mechanism
D) GATT
E) WTO

Question 40

Consumers across the globe have more money to spend, which has fueled globalization.

Question 41

The cost of wages is the most important factor for companies to consider when evaluating the labor infrastructure in a global environment.

Question 42

A strategy to reduce exchange rate risk is to build flexibility into manufacturing operations and diversify supplier networks.

Question 43

Cultures with weak uncertainty avoidance are less tolerant of risk.

Question 44

Outsourcing strategies are often pursued with the primary objective to lower costs through cheap labor. Describe the challenges to this strategy and the reasons why it is not as successful as anticipated.

Question 45

Regional trade agreements and trade protection policies can potentially to make global trade both easier and more difficult for companies.

Question 46

The World Trade Organization (WTO) and General Agreement on Tariffs and Trade (GATT) have made global trade more difficult because of the added bureaucracy.

Question 47

For high-technology products with short life-cycles, establishing a global supply chain based on low cost labor generally makes sense.

Question 48

List and provide an example of the four environmental factors that must be considered when designing a global supply chain.

Question 49

When countries establish local content requirements for an industry, the manufacturing firm must produce a certain percentage of the product within the country.

Question 50

In countries with a small power distance culture, people treat each other more as equals.

Question 51

Access to a developed and robust infrastructure is often a challenge for companies setting up global supply chains.

Question 52

Non-cost considerations have become less of a determining factor used when companies decide where to locate global facilities.