Question 1

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

Accepted Answer

With advancements in technology, the world has become more connected than ever before, and the impact of technology on various aspects of life, including social, economic, and political, cannot be ignored. In many ways, technology has overtaken globalization as the primary driver of change.

Question 2

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

Accepted Answer

Technology companies often face short product lifecycles due to rapidly evolving technologies and changing consumer demands. To remain relevant and competitive, they must constantly introduce new products and upgrades to their existing offerings. This is a key characteristic for global market and strategy as companies need to be agile and adaptive to meet local market needs in different regions around the world. Additionally, offering continuous updates and new products helps companies to retain existing customers and attract new ones.

Question 3

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

Accepted Answer

While U.S. ports are significant in global trade, they do not handle over 50 percent of global trade. The majority of global trade is distributed among various international ports around the world.

Question 4

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.

Accepted Answer

C-TPAT is a voluntary program aimed at improving the security of private companies' supply chains with respect to terrorism. It does not specifically assess the vulnerability of U.S. ports nor deny entry to ships based on their country of origin's security standards.

Question 5

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.

Accepted Answer

Strategies such as compression and lean supply chains may require additional work to achieve in the global environment due to factors such as cultural differences, longer distances, and different regulations.

Question 6

From a customer service perspective, one of the four important characteristics for global markets and strategy is that companies need to attempt to standardize to reduce complexity, but they have to recognize that global markets need some customization.

Accepted Answer

Global customers may have different preferences and cultural backgrounds, so some level of customization is often necessary. However, standardization can help companies achieve operational efficiency and reduce costs. A balance between standardization and customization is necessary for successful global customer service.

Question 7

Water desalinization and fracking for oil and gas production are examples of technologies that can unleash resources and contribute to economic advantage.

Accepted Answer

Both water desalinization and fracking have the potential to unlock untapped resources, such as clean water and oil/gas reserves, leading to economic benefits. However, there are also environmental and social considerations that need to be addressed before utilizing these technologies.

Question 8

Many countries hope to improve trade by engaging in Regional Trade Agreements (RTAs), the best-known example of an RTA is the European Union (EU).

Accepted Answer

This is true, as many countries see RTAs as a way to increase trade and economic cooperation within a specific region. The EU is one of the most well-known and successful examples of an RTA.

Question 9

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.

Accepted Answer

This statement is true. Shortening the order cycle time can have several benefits for the supply chain, including reduced inventory levels, improved cash flow, and lower current assets and accounts receivable.

Question 10

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

Accepted Answer

The statement is true. The United States relies on global trade for economic growth and national security, but it also needs to balance that with security concerns, such as preventing the entry of illicit goods or individuals. Finding a balance between security and trade efficiency is crucial.

Question 11

According to the Factor Endowment Theory, a country that lacks one or more of the four major production factors-land, labor, capital, and entrepreneurship-will not be able to successfully participate in global trade.

Accepted Answer

The Factor Endowment Theory suggests that countries with an abundance of one or more of the four major production factors should specialize in producing goods and services that require those factors, and then trade with countries that have different factor endowments. However, countries that lack certain production factors can still participate in global trade by specializing in goods and services that require the factors they do have and importing goods and services that require the factors they lack.

Question 12

In terms of volume of exports, the United States is the world's leader in global trade flow.

Accepted Answer

China has surpassed the United States as the world's largest exporter in terms of volume of goods exported.

Question 13

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

Accepted Answer

Adam Smith's theory of the invisible hand, which advocates for a market economy driven by self-interest and competition, also laid the foundation for his concept of the division of labor or specialization of labor. This idea entails breaking down large tasks into smaller, more specialized ones, allowing individuals to become experts in their field and leading to increased productivity and efficiency.

Question 14

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

Accepted Answer

Adam Smith's concept of the Theory of Absolute Advantage in "The Wealth of Nations" explains how countries benefit from trading if they have an absolute advantage in producing certain goods more efficiently than other countries.

Question 15

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) Knowledge dissemination
D) Geo-political standing

Accepted Answer

While geo-political standing may have an impact on global trade flows, it is not considered an essential factor for economic growth and development. The other factors listed, including population growth and age distribution, urbanization, and knowledge dissemination, are widely recognized as key drivers of economic progress and international trade expansion.

Question 16

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

Accepted Answer

With the availability of online platforms, communication tools and faster technology, it has become easier for individuals and small companies to operate globally.

Question 17

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

Accepted Answer

The theory of comparative advantage suggests that a country should specialize in producing and exporting goods in which it has a relative efficiency (lower opportunity cost), even if it has an absolute advantage in producing more than one good. This specialization allows for increased overall efficiency and benefits from trade, as countries import goods that they are relatively less efficient at producing.

Question 18

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.

Accepted Answer

The Trade Act of 2002 requires exporters to electronically submit shipping documents to U.S. Customs 24 hours before the cargo is loaded onto a vessel at a foreign port, not before delivery to a port or vessel departure.

Question 19

Advancements in technology and the growth of transportation services have prevented many smaller, less developed countries from participating in global supply chains.

Accepted Answer

Advancements in technology and the growth of transportation services have actually made it easier for smaller, less developed countries to participate in global supply chains through e-commerce, improved logistics, and access to international markets.

Question 20

The Regional Trade Agreements (RTAs), 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.

Accepted Answer

The answer of The Regional Trade Agreements (RTAs), the establishment...

Quiz 2: Global Dimensions of Supply Chains