Deck 13: Managing Supply Chains in Global Markets

Question 1

A firm operating in Thailand is considering whether or not to outsource its transportation. Which of the following factors are relevant to the decision?

A) Interest rates in Thailand
B) The firm's customer service strategy
C) The firm's strategy
D) All of these factors should be considered in making this decision

Answer 1

All of these factors should be considered in making this decision

Question 2

It is important to recognize that countries are heterogeneous entities, can have significant internal differences, and can vary regionally. Which of the following statements is false?

A) Some industries can be advanced in some regions for the country, but not others
B) Competition may vary by regions within a country
C) SCM managers have to be concerned about using country data and how it applies to a specific region
D) In developing countries the regional differences in education and economic output is fairly low

Answer 2

In developing countries the regional differences in education and economic output is fairly low

Question 3

Which of the following is NOT one of the components of the Global Supply Chain Assessment?

A) Background
B) Culture
C) Business environment
D) Supply chain practices and issues

Answer 3

Culture

Question 4

Suppose that Germany has a Gini Index of 27, while Singapore is 47 and the US is 45. This means

A) There are more millionaires in Germany than Singapore
B) The GDP per capita is higher in Singapore compared to US
C) The distribution of income is more equal in Germany
D) The distribution of income is more equal in Singapore

Question 5

Ms. Gomez works in a country with the potential of inflation. This has been experienced in the past. In response, Ms. Gomez should:

A) Move production to another neighboring country
B) Hold less inventory, as it will depreciate quickly
C) Own a warehouse, and not outsource it to a 3PL
D) Enter into short term contracts with suppliers, and longer term contracts with customers to lock in pricing

Question 6

Using the Ease of Doing Business ranking by the World Bank, a small company will spend more time and money starting up in which country? (Note: the World Bank Ranking is included for each country)

A) China - 78
B) Argentina - 117
C) Brazil - 125
D) Mexico - 45

Question 7

Broadly speaking there are at least four dimensions of tax policy that affect supply chains. Which of the following is NOT one of them?

A) General level of taxation
B) Complexity of the tax code
C) Tax distortion, such as incentives
D) Taxes on specific supply chain activities (labor, transport)

Question 8

India taxes goods every time they cross state lines. Which of the following is NOT an impact of this decision?

A) Firms focus on exporting goods
B) Lead times increase
C) Firms hold more inventory
D) Delivery times will increase

Question 9

Which of the following is NOT one of the factors to consider when evaluating the labor force in a particular country?

A) Skill level
B) Productivity
C) Cost
D) Health

Question 10

Several factors can be considered when explaining the differences in the skill level of labor forces. Which of the following is one of these factors?

A) Culture
B) Local traditions
C) GDP
D) Birth rate

Question 11

The third component of the Global Supply Chain Assessment Model is understanding the country's logistics infrastructure. Which of the following is NOT one of these related issues?

A) Language
B) Communication
C) Transportation
D) Information technology

Question 12

The quality of __________ reduces supply chain costs and contributes to the economic efficiency and consumer welfare.

A) Global Supply Chain Assessment Model
B) Information technology infrastructure
C) 3PLs
D) Transportation infrastructure

Question 13

Recall that the transportation system in the United States is well balanced among modes. This:

A) Is mirrored in most other countries, especially developing ones
B) Means two modes are utilized more than the rest
C) Means supply chain managers have a narrow set of choices
D) Means supply chain managers can choose the mode that best fits cost and service requirements

Question 14

Supply chain concepts and principles are universal; this applies to intermodal transportation. For this reason:

A) Intermodal shipments using both rail and truck are preferred
B) Intermodal shipments are used more frequently in developing countries
C) Intermodal moves are more costly, and usually slower
D) None of the statements are true

Question 15

Communication and information technology matter for several reasons EXCEPT:

A) Firm's can use it to improve asset utilization
B) Firm's can more accurately determine customer needs
C) Inventory can be managed more effectively
D) All of the statements are true

Question 16

Which of the following statements about third party logistics firms NOT true? They are:

A) An integral part of country's infrastructure
B) Available in both developing and developed countries
C) A source of local knowledge in markets where they operate
D) All of the statements about third party logistics firms are correct

Question 17

__________ help complement knowledge gaps, can have expertise in key issues and are connected to networks.

A) Global 3PLs
B) Government inspectors
C) Locals
D) Train masters

Question 18

While the discussion in the text has been limited to countries, it is important to recognize that countries are __________ entities.

A) Complex
B) Homogenous
C) Heterogeneous
D) Unstable

Question 19

The differences in area and population within a country can have important implications for the management of supply chains. This would include all of these EXCEPT:

A) Language(s)
B) Number of retail stores needed
C) Number of DC's needed to support retail stores
D) Mode(s) of transportation

Question 20

Rates of population growth are a good indicator of:

A) Infrastructure, as families can get to the hospital
B) Lack of free and affordable contraceptives
C) Growing markets
D) Increased competition between providers

Question 21

Supply chain management concepts and principles are universal but must be applied differently from one country to another.

Question 22

In an increasingly integrated world, supply chain managers have to operate locally.

Question 23

GDP per capita is a measure of the standard of living in a country and provides information about the distribution of income.

Question 24

The Global Supply Chain Assessment Model is best applied to developing economies, not developed economies.

Question 25

While developing countries tend to have low interest rates and high labor costs, in developed countries the relationship tends to be reversed; interest rates are high and labor costs are low.

Question 26

The World Bank ranks countries by the ease of doing business, and includes such things as trading across borders and getting electricity. The higher the index number, the easier it is to do business in the country.

Question 27

The competitive structure already in place in a country should be considered by supply chain managers.

Question 28

To measure contract enforcement proficiency in different countries, the World Bank and Yale studied the time it took to collect on a bounced check. The longer it took to collect on a bounced check, the more proficient the country in enforcing their regulations.

Question 29

Tax policy in a country can distort supply chain management decisions, adding costs to avoid higher levels of taxation.

Question 30

In Brazil, the government maintains a special tax structure for companies known as "maquiladoras."

Question 31

Labor cost is the most critical factor to consider when determining where to locate a facility.

Question 32

One labor management issue worth considering is the issue of fair labor practices when sourcing goods in high-wage, high skill areas where the unemployment rate is low.

Question 33

In many countries employee benefits are a substantial share of the total compensation for a worker.

Question 34

Modal variation between countries can be rather significant, but minor within a country.

Question 35

Intermodal transportation combines the best that two or more modes have to offer in such a way that the combined shipment is more effective than it would have been if any single mode had been selected.

Question 36

In a global context, the storage function of warehouses becomes especially important in developed countries.

Question 37

Supply chain concepts and principles are universally valid.

Question 38

General statements about countries can be inaccurate because countries are usually not homogeneous and have important differences among regions, industries and demographic variables.

Question 39

Tax policies may affect supply chain decisions like inventory management, but can usually be mitigated by using a 3PL, postponement and outsourcing.

Question 40

Since supply chain concepts and principles are universally valid, supply chain managers need not be sensitive to contextual differences between countries.