Test Bank Docx Global Supply Chain Management Ch.12

File: ch12, Chapter 12: Global Supply Chain Management

Multiple Choice

1. The rapid growth of globalization and global trade are a result of:
2. Information technology
3. Transportation
4. Rising global incomes
5. All of the above
6. None of the above

Level: Easy

1. For supply chain management, globalization trends have resulted in:
2. Less competition
3. Greater competition
4. Greater coordination
5. Fewer markets
6. b and c

Level: Easy

1. Environmental factors that must be considered in a global supply chain strategy include:
2. Lead time
3. Supplier quality
4. Political
5. Demographic
6. c and d

Level: Medium

1. Supply chain benefits that can be achieved through a global strategy include:
2. Economies of scale
3. Product complexity
4. Political risk
5. Total cost reduction
6. Variable lead times

Level: Medium

1. Barriers to implementing an effective global strategy include:
2. Management of overall costs
3. Risk of political instability
4. Exchange rate risks
5. Longer lead times
6. All of the above

Level: Easy

1. Unexpected costs that can arise from trade at a global level include:
2. Border delays
3. Increased transit times
4. Tariffs
5. Higher inventory
6. All of the above

Level: Easy

1. A well-functioning _________________ is critical for transporting products into global markets.
2. Technology system
3. Culture
4. Infrastructure
5. Political system
6. All of the above

Level: Difficult

1. Environmental regulations are an example of a ________ factor impacting global supply chains.
2. Cultural
3. Political
4. Technological
5. Economical
6. Financial

Level: Difficult

1. Work ethic and gender roles are examples of a ____________ factor impacting global supply chains.
2. Cultural
3. Political
4. Technological
5. Economical
6. Financial

Level: Easy

1. The profile of the global consumer has changed to put greater emphasis on __________.
2. Standardized products
3. Individualism
4. Customized products
5. Technology
6. b and c

Level: Medium

1. A _________ marketing approach focuses on bringing standardization to the global market.
2. Local
3. Strategic
4. Tactical
5. Global
6. Segmented

Level: Medium

1. A ____________marketing approach focuses on bringing customization to global consumers.
2. Local
3. Strategic
4. Tactical
5. Global
6. Segmented

Level: Medium

1. Challenges to implementing a standardized product across the globe include:
2. Uniformity in distribution
3. More balanced supply and demand
4. Achieving consistency across global operations
5. Low variability in operations
6. None of the above

Level: Medium

1. _____________ is a strategy that delays customization until demand is more clearly known.
2. CPFR
3. Vendor managed inventory
4. Postponement
5. RFID
6. None of the above

Level: Easy

1. When people relate to each other more as equals, the culture is characterized as having:
2. Large power distance
3. Individualism
4. Small power distance
5. Masculinity
6. High context

Level: Medium

1. Countries that rely greatly on explicit contracts and communication are known as:
2. Collectivism cultures
3. Weak uncertainty avoidance cultures
4. Large power distance cultures
5. Low context cultures
6. None of the above

Level: Medium

1. A weak transportation infrastructure in a developing country can result in:
2. Low shipping time variability
3. High lead time variability
4. Lower distribution costs
5. All of the above
6. None of the above

Level: Medium

1. Multiple types of technology are required for a global supply chain to function including:
2. Information
3. Manufacturing
4. Equipment
5. All of the above
6. None of the above

Level: Easy

1. Manufacturing in a country primarily because of low cost labor is not always the best strategy because:
2. Labor can be a small percentage of cost
3. Labor costs can change over time
4. Workers could be unskilled
5. Other costs outweigh labor cost advantage
6. All of the above

Level: Easy

1. _______ is an example of a non-cost consideration on which companies are increasingly focused.
2. Labor
3. Facilities
4. Capital
5. Poor product design
6. Transportation

Level: Medium

1. NAFTA is an example of a:
2. Tariff
3. Quota
4. Regional trade agreement
5. Trade protection mechanism
6. Trigger price mechanism

Level: Medium

1. _______ is an example of a trade protection mechanism.
2. NAFTA
3. Regional trade agreement
4. Trigger price mechanism
5. GATT
6. WTO

Level: Medium

1. It is possible for companies to minimize exchange rate risk through:
2. Global sourcing networks
3. Diversifying production locations
4. Single sourcing
5. Tariffs
6. a and b

Level: Easy

1. A quantitative restriction on the volume of imports is known as a/an:
2. Trigger price mechanism
3. Tariff
4. Import quota
5. Export duty
6. Local content requirement

Level: Easy

1. A non-tariff barrier that requires part of the product be manufactured inside the country is known as a/an:
2. Technical standards
3. Health regulations
4. Tariff
5. Local content requirement
6. Import quota

Level: Easy

True/False

1. Most, if not all companies now operate in a global environment.

Level: Easy

1. Reasons for the advances in global trade include advanced transportation methods and information technology.

Level: Easy

1. Consumers across the globe have more money to spend, which has fueled globalization.

Level: Medium

1. Globalization has resulted in less competitive prices for consumers.

Level: Medium

1. Globalization has accelerated and changed the nature of competition.

Level: Easy

1. Globalization and new markets creates many opportunities for companies but few risks.

Level: Easy

1. It is possible for a global strategy to fail because of cultural differences or misunderstandings.

Level: Easy

1. Firms with primarily a domestic focus are typically more profitable than multinational firms.

Level: Medium

1. One advantage of a global supply chain network is the ability to specifically target local markets.

Level: Medium

1. Customer preferences in emerging markets are typically homogenous, making global supply chains easier to manage than mature markets.

Level: Difficult

1. The biggest global challenge for companies is dealing with political instability and economic factors such as currency stability.

Level: Difficult

1. A global marketing approach that brings standardized products to consumers is not an effective strategy.

Level: Difficult

1. The local marketing approach is becoming less widely used as companies move into global markets.

Level: Easy

1. A global marketing approach has the benefit of making supply and demand easier to balance.

Level: Difficult

1. An effective way to implement a merged global and local marketing approach is to utilize a postponement strategy.

Level: Medium

1. In countries with a small power distance culture, people treat each other more as equals.

Level: Medium

1. Cultures with weak uncertainty avoidance are less tolerant of risk.

Level: Medium

1. Access to a developed and robust infrastructure is often a challenge for companies setting up global supply chains.

Level: Easy

1. The cost of wages is the most important factor for companies to consider when evaluating the labor infrastructure in a global environment.

Level: Difficult

1. For high-technology products with short life-cycles, establishing a global supply chain based on low cost labor generally makes sense.

Level: Difficult

1. Non-cost considerations have become less of a determining factor used when companies decide where to locate global facilities.

Level: Medium

1. Regional trade agreements and trade protection policies can potentially to make global trade both easier and more difficult for companies.

Level: Medium

1. A strategy to reduce exchange rate risk is to build flexibility into manufacturing operations and diversify supplier networks.

Level: Medium

1. The World Trade Organization (WTO) and General Agreement on Tariffs and Trade (GATT) have made global trade more difficult because of the added bureaucracy.

Level: Difficult

1. When countries establish local content requirements for an industry, the manufacturing firm must produce a certain percentage of the product within the country.

Level: Easy

Essay

1. List and provide an example of the four environmental factors that must be considered when designing a global supply chain.

Level: Easy

1. Outsourcing strategies are often pursued with the primary objective to lower costs through cheap labor. Describe the challenges to this strategy and the reasons why it is not as successful as anticipated.

Level: Medium