Question 1

What does the term globalization in SCM refer to?
A)Supplying various products globally.
B)Setting up multiple production units around the world.
C)Increasing interconnectedness of countries and business for different markets and commodities.
D)None of the above.

Accepted Answer

Globalization is described as the increasing interconnectedness of countries around the globe through the growing quantity and range of cross-border dealings in commodities, freer worldwide capital flows, and more speedy and extensive distribution of technology.

Question 2

Globalization was possible majorly due to the _________ will to allow open import and export across countries through __________.
A)Political; agreements
B)Social; agreements
C)Traders'; organizations
D)Customers'; organizations

Accepted Answer

Political consensus for anything and everything is a must. It is due to government and political leaders' will that trade across borders is possible. The political leaders of different countries deciding to work together through agreements that result in globalization.

Question 3

Many Western businesses have moved their manufacturing to Asian countries. This is due to:
A)An increase in skilled workers.
B)Better production.
C)Cheaper labor costs.
D)New techniques.

Accepted Answer

Due to lower cost of workers, many Western businesses have moved their manufacturing to Asian countries. Because Asian countries are mostly underdeveloped or developing countries, they have cheap labor to offer due to unemployment and unskilled workers. Cutting labor costs attracts Western business to move to Asian countries because their total costs decrease drastically.

Question 4

In order for producers to make sure that their goods are reaching the right destination on time, they need to:
A)Organize raw materials and fully manufactured goods.
B)Have complete visibility of the whole supply chain.
C)Migrate workers.
D)None of the above.

Accepted Answer

A major goal for producers' worldwide is the need to make sure that their goods are reaching the right destination on time. The key requirement to make this happen is to have complete visibility of the entire supply chain. The producer must know the whereabouts of their inventory to know how soon the stock will be delivered.

Question 5

Which of the following agreements/organizations was established to encourage free traffic between member nations, decrease or eliminate tariffs, and manage worldwide trade agreements?
A)GATT
B)NAFTA
C)EU
D)WTO

Accepted Answer

The main work of the World Trade Organization (WTO) is to look over the universal set of laws of trade between countries. Furthermore it makes sure that trade flows easily, effortlessly, predictably, and with as few barriers as possible.

Question 6

Why are there now more complex and extended supply chains than ever before?
A)Migration of manufacturing firms.
B)Free trade.
C)Lower cost of labor.
D)More warehousing of stock.

Accepted Answer

The migration of manufacturing firms has bought with it more difficult and extended supply chains because it now requires more shipping to move goods to where they will be sold, leading to more synchronization and administration for both raw materials and finished goods.

Question 7

If a manufacturing firm is in a developing country and its market is in another, f it is very important to monitor the supply chain from _______ to ________ in order to ensure timely production and manufacturing.
A)Warehouse; end customer
B)Raw material source; end customer
C)Raw material source; warehouse
D)Storage' shipping

Accepted Answer

If the producer monitors production from the raw materials to the end customer he can work accordingly and keep deadlines.

Question 8

Globalization has led to more complex logistics and supply chains and planning and managing logistics as a complete system has become more difficult. To solve this problem the best solution for a global company is ________.
A)To outsource logistics operations
B)Global branding
C)Global production
D)The centralization of information

Accepted Answer

As the world today is a competitive market with extensive supply chains, the advantages of outsourcing enables companies to cut cost and beat their competitors.

Question 9

The services required by global companies that are traditionally not offered by third party logistics are:
A)Manufacturing support and origin management.
B)Origin management and destination management.
C)Manufacturing support and destination management.
D)All of the above.

Accepted Answer

Manufacturing support, origin management, and destination management all are services required by global companies now that they have become international.

Question 10

Which of the following countries has been the dominant factor behind the growth of international trade?
A)Taiwan
B)Korea
C)China
D)Pakistan

Accepted Answer

The rise in production of Chinese goods and services has led to a drastic increase in world trade and transport. China is emerging as an important player in the global market and influences logistics immensely.

Question 11

A trade bloc can be defined as a ____________.
A)Preferential trade agreement
B)Economic sanction
C)Shipment parameters
D)All of the above.

Accepted Answer

A trade bloc can be defined as a 'preferential trade agreement' (PTA) between a subset of countries, intended to significantly decrease or remove trade barriers within member countries. When a trade bloc contains neighboring or geographically close countries, it is referred to as a 'regional trade (or integration) agreement.'

Question 12

The two principal characteristics of a trade bloc are that it implies a reduction or elimination of barriers to trade and ___________
A)That it is discriminatory.
B)That it is restricted to member counties.
C)Both.
D)None of the above.

Accepted Answer

The two principal characteristics of a trade bloc are that it implies a reduction or elimination of barriers to trade, and this trade liberalization is discriminatory, in the sense that because it applies only to the member countries of the trade bloc, outside countries are discriminated against in their trade relations with trade bloc members.

Question 13

The addition of countries into trade blocs is commonly referred to as ________
A)Regionalism
B)Blocism
C)Sanctionism
D)All of the above.

Accepted Answer

The addition of countries into trade blocs is commonly referred to as regionalism, regardless of whether the trade bloc has a geographical basis or not. The initial waves of PTAs appeared in the 1930s, leading to a fragmentation of the world into trade blocs.

Question 14

1930s regionalism was motivated by the desire to pursue ______________development at a regional level in developing countries.
A)Export substitution
B)Import substitution
C)Both
D)None of the above.

Accepted Answer

1930s regionalism was motivated by the desire to pursue import substitution development at a regional level in developing countries in order to insulate a region from the world economy and to stabilize and foster the economy at a regional level.

Question 15

By providing efficiency opportunities, a larger market contributes to _________within the trade bloc.
A)Decrease distortions
B)Reduce profitability
C)Increase revenue
D)All of the above.

Accepted Answer

A larger market resulting from the creation and extension of trade blocs does not only increase the market power of its members, but it also provides opportunities for greater productivity efficiency for industries facing economies of scale and increased competition within the PTA market. This in turn may contribute to decrease distortions within the trade bloc.

Question 16

For each unit of exports lost, _________will fall by the difference in the value of the exports.
A)Real income
B)Unit size
C)Carrier bloc
D)None of the above

Accepted Answer

If a unit of exports generates more welfare than would alternative uses of the resources taken to produce it, losing exports is costly. For each unit of exports lost, real income will fall by the difference in the value of the exports, the imports that they buy, and their value in the domestic economy.

Question 17

Excluded countries can experience a reduction in their exports because of the trade diverting effect of a ___________.
A)PTA
B)PTS
C)CRM
D)SRS

Accepted Answer

Excluded countries can experience a reduction in their exports because of the trade diverting effect of a PTA. These countries can then be tempted to resort to protectionism as the relative size of their import-competing sector increases, reducing the chances for multilateral liberalization.

Question 18

Trade blocs can contribute to _________ global externalities and foster the adoption of co-ordination mechanisms among countries
A)Internalize
B)Externalize
C)Eliminate
D)None of the above.

Accepted Answer

Trade blocs can contribute to internalize global externalities and foster the adoption of co-ordination mechanisms among countries that may facilitate the multilateral process toward global trade liberalization.

Quiz 7: Global Management

What does the term globalization in SCM refer to?

Globalization was possible majorly due to the _ will to allow open import and export across countries through __.

Many Western businesses have moved their manufacturing to Asian countries. This is due to:

In order for producers to make sure that their goods are reaching the right destination on time, they need to:

Which of the following agreements/organizations was established to encourage free traffic between member nations, decrease or eliminate tariffs, and manage worldwide trade agreements?

Why are there now more complex and extended supply chains than ever before?

If a manufacturing firm is in a developing country and its market is in another, f it is very important to monitor the supply chain from _ to __ in order to ensure timely production and manufacturing.

Globalization has led to more complex logistics and supply chains and planning and managing logistics as a complete system has become more difficult. To solve this problem the best solution for a global company is ________.

The services required by global companies that are traditionally not offered by third party logistics are:

Which of the following countries has been the dominant factor behind the growth of international trade?

A trade bloc can be defined as a ____________.

The two principal characteristics of a trade bloc are that it implies a reduction or elimination of barriers to trade and ___________

The addition of countries into trade blocs is commonly referred to as ________

1930s regionalism was motivated by the desire to pursue ______________development at a regional level in developing countries.

By providing efficiency opportunities, a larger market contributes to _________within the trade bloc.

For each unit of exports lost, _________will fall by the difference in the value of the exports.

Excluded countries can experience a reduction in their exports because of the trade diverting effect of a ___________.

Trade blocs can contribute to _________ global externalities and foster the adoption of co-ordination mechanisms among countries