Deck 2: Global Dimensions of Supply Chains

Question 1

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.

Answer 1

False

Question 2

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 and trade when compared to other countries that may have a lesser advantage.

Answer 2

False

Question 3

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) Land and resources
D) Knowledge dissemination
E) Geo-political standing

Answer 3

E

Question 4

From a customer service perspective, one of the four important characteristics for global market 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 5

The scope and magnitude of trade flows between the United States and other countries have grown considerably in the last several decades.

Question 6

While the total world population has been increasing on an absolute basis, the rate of increase has declined.

Question 7

Tariffs and other trade barriers have been significantly reduced among many countries, allowing a much more competitive global economy.

Question 8

MFN stands for Many Foreign Nationals.

Question 9

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

Question 10

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

Question 11

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

Question 12

Honda and Toyota only manufacture automobiles in Japan.

Question 13

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 14

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

Question 15

The Regional Trade Agreements, 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 16

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 17

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

Question 18

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 19

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

Question 20

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 21

Where is a megacity most likely to develop?

A) Asia
B) Canada
C) France
D) England

Question 22

The top ten countries account for almost "X"% of the total world population.

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

Question 23

A number of authors have observed that traditional, hierarchical organizations have changed in the current global economy. How have organizations changed? Why have they changed? What are the impacts of those changes likely to be?

Question 24

What contributions do successful supply chains make to companies?

Question 25

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
E) 36

Question 26

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 27

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 28

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

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

Question 29

What is meant by the current description of the global economy that "time and distance have been compressed"? Do you agree? What has been the impact of this compression?

Question 30

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 31

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 32

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

A) China and US
B) US and India
C) India and Russia
D) Russia and China
E) China and India

Question 33

Which country is not one of the three top recipients of exports from the United States?

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

Question 34

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

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

Question 35

Which of the following is not an important issue for economic development and vitality of the economy?

A) Migration
B) Urbanization
C) Entrepreneurship
D) None of these answers

Question 36

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