Deck 15: International Logistics Security

Question 1

Suppose a particular disease has an incidence of 1 percent in the population. The test used to detect this disease has a 5 percent Type I error rate; there is no Type II error rate. A physician sees test results from a patient that indicates that the patient has that disease; the probability that the patient actually has that disease is 0.01/0.0595, or about 17 percent. Explain this result.

Answer 1

The result received from the results state that the patient has a certain disease. There is a 0.01/0.0595 or 17 percent probability that the patient has a disease. However since there is a 1 percent incidence of the disease (incidence relates to new cases not existing cases, or prevalence), the chance that the diagnosis is wrong and a Type I error has occurred is possible. According to the definition of a Type I error, the null hypothesis has been rejected when it should actually be accepted because it is true. Given that there is a 17 percent probability the patient has the disease, it could a false positive that should have been rejected and the true negative is the actual result.

Question 2

What are the different main international logistics security programs, implemented either by international agencies or national governments?

Answer 2

The major differences in international logistics security programs that are put into practice by domestic governments or international agencies are that those implemented by countries tend to be limited in scale, specifically tailored to the domestic concerns of the country in question. There may be variation in the scope of the domestic security programs, depending on the priorities of each country.
From the international perspective, international agencies that are involved in international logistics security programs are the International Maritime Organization, the World Customs Organization, and the International Chamber of Commerce. Each of these has worked toward standardizing global security within international logistics, and expanding the protective strategies outside of the domestic realm. The WCO is vital in setting the framework for standard security operations for customs authorities worldwide. The use of electronic documentation, risk management ground rules, non-intrusive inspection of goods, and provision of benefits that serve as incentives to companies that can prove that they adhere to basic standards of security are each central components under the WCO.

Question 3

What are the main differences between the alternative approaches taken by the United States and the European Union in terms of security?

Answer 3

The major variations between the technique proposed by the United States and those of the European Union are that the U.S has greatly utilized stricter methods in the form of interdiction. Interdiction is a mainly preemptive strategy that intends to prevent all imports of suspected dangerous cargo and to prevent the entry of suspected dangerous individuals into the U.S. A few domestic examples are the formation of the Department of Homeland Security, Customs and Border Protection, and the currently operating Customs-Trade Partnership Against Terrorism (C-TPAT) within the U.S.
Alternatively, the European Union has adopted more preventative approaches through the promotion of international agreements against arms proliferation, the restitution of democratic governments within warring regions, decreasing poverty, and amplifying international teamwork for criminal investigations. Thus, the European Union has enlisted the institution of international agreements, such as implementing the International Ship and Port Facilities Code under the IMO (International Maritime Organization) and the SAFE Framework under the WCO (World Customs Organization). Other countries have followed the EU model of security as well.

Question 4

What are the problems of a security policy that is based on one-hundred-percent inspection?

Question 5

What are the four areas in which a corporation must enact security measures to protect itself against theft and terrorism?