WorksheetsMGT1163: CH3, Global Dimensions in SCM and Strategic Integration
Total questions: 15
Worksheet time: 15mins
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
11. Which mode of entry involves a firm investing directly in facilities to produce or market a good in a foreign country?
A) Exporting
B) Licensing
C) Joint Venture
D) Foreign Direct Investment (FDI)
12. What is the role of a customs broker in global compliance?
A) Manufacturing products for international markets
B) Assisting firms with the paperwork and arrangements for importing or exporting goods
C) Transporting goods across international borders
D) Monitoring supply chain efficiency
13. Which factor is critical for ensuring that global supply chains can handle volume and seasonal fluctuation demands?
A) Government regulation
B) Supplier capability
C) Licensing agreements
D) Local market presence
14. Which of the following best describes franchising as a mode of entry?
A) A company directly invests in production facilities abroad
B) A company grants rights to a foreign entity to operate under its brand
C) A company ships products to foreign markets without any local presence
D) A strategic partnership where companies share resources and profits
15. What is the main purpose of compliance regulation in global trade?
A) To increase the speed of international transactions
B) To protect domestic industries from foreign competition
C) To enforce government regulations regarding imported and exported goods
D) To reduce the cost of importing goods
