SCM S6 Global Sourcing Strategies

What is the main goal of global sourcing?

• Increase lead time

• Reduce innovation

• Minimize supplier options

• Optimize cost, quality, and capacity

Which of the following best describes strategic sourcing?

• Choosing the cheapest supplier

• Building long-term value through supplier partnerships

• Avoiding global suppliers

• Ignoring compliance requirements

What does TCO stand for in sourcing decisions?

• Total Cost of Optimization

• Time-Cost Overview

• Total Cost of Ownership

• Trade Compliance Option

What is one risk associated with global sourcing?

• Stable currency

• Shorter lead times

• Greater exposure to trade disruptions

• Simplified customs procedures

Which factor is NOT typically used in supplier selection?

• Reliability

• ESG compliance

• Brand popularity

• Quality assurance

What advantage does local sourcing provide over global sourcing?

• Higher carbon footprint

• Longer delivery times

• Closer proximity and better responsiveness

• Greater currency fluctuation risk

Which region benefits from the USMCA trade agreement?

• South America

• Asia-Pacific

• North America

• Africa

What is the purpose of a trade agreement?

• Increase import taxes

• Raise customs duties

• Facilitate cross-border trade

• Eliminate global sourcing

Which is a likely consequence of tariffs?

• Lower product costs

• Simplified shipping

• Disrupted supplier networks

• Streamlined logistics

What triggered major supply chain shifts from China to Vietnam and India?

• Brexit

• EU regulations

• US–China trade war

• Amazon logistics policy