MGT1163: CH3, Global Dimensions in SCM and Strategic Integration

What is the primary focus of Global Supply Chain Management (SCM)?

• • A) Managing domestic markets only

• • B) Integrating technology within a single market

• • C) Planning how the entire supply chain functions as an integrated whole globally

• • D) Reducing transportation costs within local regions

2. Which of the following is NOT considered a key player in Global Supply Chain Integration?

• • A) Logistic Service Provider

• • B) Terminal

• • C) Retail Customer

• • D) Government

3. What is one of the primary advantages of Low-Cost Country Sourcing?

• • A) High labor costs

• • B) Increase in total transportation costs

• • C) Exposure to state-of-the-art product and process technologies

• • D) Decreased competitive pressure

4. Which mode of entry involves granting rights to a foreign company to use intellectual property rights, such as trademark, patents, technology or a brand names?

• • A) Franchising

• • B) Licensing

• • C) Joint Venture

• • D) Foreign Direct Investment

5. What is the role of Customs and Border Protection (CBP)?

• • A) To manage internal company logistics

• • B) To inspect individuals and products entering a country for compliance

• • C) To facilitate the sale of domestic goods abroad

• • D) To design and manufacture logistics equipment

6. What is a significant challenge associated with global sourcing?

• • A) Lower production costs

• • B) Easier access to international markets

• • C) Issues with intellectual property protection

• • D) Increased supplier reliability

7. Which trend is NOT a factor fueling the growth in global logistics?

• • A) Increasing consumption

• B) Decreasing e-commerce activity

• • C) Ongoing reconfiguration of the supply chain

• • D) Technological advancements in logistics

8. In the context of global supply chain integration, what is the primary function of a forwarder?

• • A) Manufacturing goods

• • B) Handling customs and border protection

• • C) Administering and organizing the transfer of goods

• • D) Selling goods directly to consumers

9. Which of the following best describes a Joint Venture (JV)?

• • A) A single company managing all aspects of production and distribution

• • B) A strategic partnership where two or more entities share resources and profits

• • C) A company exporting its goods to a foreign market

• • D) A company licensing its technology to another firm

10. What is the primary disadvantage of low-cost country sourcing related to logistics?

• A) Decreased competitive pressure

• • B) Increased manufacturing costs

• C) Higher total costs due to transportation and inventory issues

• • D) Reduced technology exposure