Question 1

A/An _____ can only be changed or canceled upon agreement of all parties.

Accepted Answer

A) compensation trade 
B) revocable letter of credit 
C) buy-back 
D) optional commission 
E) irrevocable letter of credit 
A) compensation trade 
B) revocable letter of credit 
C) buy-back 
D) optional commission 
E) irrevocable letter of credit E

Question 2

Developing countries seldom rely on personal relations and trust to cover many legal issues because of an adequate legal system.

Accepted Answer

A) True 
 B)False  False

Question 3

Regardless of the technique used to overcome worldwide sourcing barriers, the effort will fail unless top management supports worldwide sourcing.

Accepted Answer

A) True 
 B)False  True

Question 4

With a _____, both parties agree that payment occurs as long as exchange rates do not fluctuate outside an agreed-upon range or band.

Accepted Answer

A) hedging agreement 
B) payment in a foreign currency 
C) speculation agreement 
D) currency adjustment clause 
E) payment in U.S.dollars 
A) hedging agreement 
B) payment in a foreign currency 
C) speculation agreement 
D) currency adjustment clause 
E) payment in U.S.dollars

Question 5

A/An _____ can be changed or canceled at any time by the buyer without the seller's consent.

Accepted Answer

A) irrevocable letter of credit 
B) Incoterm 
C) revocable letter of credit​ 
D) CISG 
E) switch trade 
A) irrevocable letter of credit 
B) Incoterm 
C) revocable letter of credit​ 
D) CISG 
E) switch trade

Question 6

A major complaint about Americans is our ignorance of other cultures.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not one of the factors that drive global sourcing performance?

Accepted Answer

A) Availability of critical resources. 
B) Information sharing with suppliers. 
C) Ability to speak multiple foreign languages. 
D) Sourcing and contracting systems. 
E) International purchasing office support. 
A) Availability of critical resources. 
B) Information sharing with suppliers. 
C) Ability to speak multiple foreign languages. 
D) Sourcing and contracting systems. 
E) International purchasing office support.

Question 8

_____ are internationally recognized commercial terms that describe the responsibilities of the buyer and seller in the arrangement of transportation.

Accepted Answer

A) Incoterms 
B) Duties 
C) Letters of credit 
D) Values 
E) Tariffs 
A) Incoterms 
B) Duties 
C) Letters of credit 
D) Values 
E) Tariffs

Question 9

Trade shows are often one of the worst ways to gather information on many suppliers at one time.

Accepted Answer

A) True 
 B)False

Question 10

Few offshore suppliers anticipate exchange rate fluctuations by incorporating a risk factor into their price.

Accepted Answer

A) True 
 B)False

Question 11

A FTZ _____ is typically housed in a port or an industrial park and is available to multiple companies.

Accepted Answer

A) warehouse 
B) twilight zone 
C) subzone 
D) general-purpose zone 
E) None of these answers. 
A) warehouse 
B) twilight zone 
C) subzone 
D) general-purpose zone 
E) None of these answers.

Question 12

According to the CISG, a/an _____ is one of the countries that have ratified the treaty.

Accepted Answer

A) rogue state 
B) independent commonwealth 
C) trading block 
D) contracting state 
E) The CISG is no longer in force. 
A) rogue state 
B) independent commonwealth 
C) trading block 
D) contracting state 
E) The CISG is no longer in force.

Question 13

All of the following are examples of how a finance department can support international currency requirements except _____.

Accepted Answer

A) pay in U.S.dollars 
B) identify the currency a firm should use for payment based on projections of currency fluctuations 
C) provide advice about hedging and currency forecasts 
D) act as a clearinghouse for offshore currencies to make payment for offshore purchases 
E) provide advice as to whether to seek a new contract or renegotiate an existing one because of currency changes 
A) pay in U.S.dollars 
B) identify the currency a firm should use for payment based on projections of currency fluctuations 
C) provide advice about hedging and currency forecasts 
D) act as a clearinghouse for offshore currencies to make payment for offshore purchases 
E) provide advice as to whether to seek a new contract or renegotiate an existing one because of currency changes

Question 14

The use of a full-service trading company may actually result in a lower total cost for international purchases compared with performing each activity individually.

Accepted Answer

A) True 
 B)False

Question 15

_____ occurs when a firm physically builds a plant in another country or provides a service, equipment, or technology to support the plant; the firm then agrees to take a portion of the plant's output as payment.

Accepted Answer

A) Switch trading 
B) Buy-back 
C) Offset 
D) Counterpurchase 
E) Barter 
A) Switch trading 
B) Buy-back 
C) Offset 
D) Counterpurchase 
E) Barter

Question 16

Buyers should not underestimate the potential effects of extended distances on their ability to plan and manage a worldwide supply chain.

Accepted Answer

A) True 
 B)False

Question 17

_____ involves contracting with independent suppliers outside the organization (domestic or foreign) to provide products or services that were performed inside the organization.

Accepted Answer

A) Re-shoring 
B) Nearshoring 
C) Outsourcing 
D) offshoring 
E) International purchasing 
A) Re-shoring 
B) Nearshoring 
C) Outsourcing 
D) offshoring 
E) International purchasing

Question 18

_____ involves contracting with independent suppliers located outside geographic boundaries of the United States for goods and services.

Accepted Answer

A) Re-shoring 
B) Domestic sourcing 
C) Nearshoring 
D) Outsourcing 
E) Offshoring 
A) Re-shoring 
B) Domestic sourcing 
C) Nearshoring 
D) Outsourcing 
E) Offshoring

Question 19

All of the following are common measures used to manage currency fluctuation in international purchasing except _____.

Accepted Answer

A) letters of credit 
B) purchase in U.S.dollars 
C) sharing currency fluctuation risk 
D) currency adjustment contract clauses 
E) currency hedging 
A) letters of credit 
B) purchase in U.S.dollars 
C) sharing currency fluctuation risk 
D) currency adjustment contract clauses 
E) currency hedging

Question 20

FTZs allow an importing company to delay, eliminate, or decrease its duty payments on foreign-sourced goods that enter the zone site.

Accepted Answer

A) True 
 B)False

A/An _____ can only be changed or canceled upon agreement of all parties.

Developing countries seldom rely on personal relations and trust to cover many legal issues because of an adequate legal system.

Regardless of the technique used to overcome worldwide sourcing barriers, the effort will fail unless top management supports worldwide sourcing.

With a _____, both parties agree that payment occurs as long as exchange rates do not fluctuate outside an agreed-upon range or band.

A/An _____ can be changed or canceled at any time by the buyer without the seller's consent.

A major complaint about Americans is our ignorance of other cultures.

Which of the following is not one of the factors that drive global sourcing performance?

_____ are internationally recognized commercial terms that describe the responsibilities of the buyer and seller in the arrangement of transportation.

Trade shows are often one of the worst ways to gather information on many suppliers at one time.

Few offshore suppliers anticipate exchange rate fluctuations by incorporating a risk factor into their price.

A FTZ _____ is typically housed in a port or an industrial park and is available to multiple companies.

According to the CISG, a/an _____ is one of the countries that have ratified the treaty.

All of the following are examples of how a finance department can support international currency requirements except _____.

The use of a full-service trading company may actually result in a lower total cost for international purchases compared with performing each activity individually.

_____ occurs when a firm physically builds a plant in another country or provides a service, equipment, or technology to support the plant; the firm then agrees to take a portion of the plant's output as payment.

Buyers should not underestimate the potential effects of extended distances on their ability to plan and manage a worldwide supply chain.

_____ involves contracting with independent suppliers outside the organization (domestic or foreign) to provide products or services that were performed inside the organization.

_____ involves contracting with independent suppliers located outside geographic boundaries of the United States for goods and services.

All of the following are common measures used to manage currency fluctuation in international purchasing except _____.

FTZs allow an importing company to delay, eliminate, or decrease its duty payments on foreign-sourced goods that enter the zone site.

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policies and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Supply Management and Commodity Strategy Development

Supplier Evaluation and Selection

Supplier Quality Management

Supplier Management and Development: Creating a World-Class Supply Base

Strategic Cost Management

Purchasing and Supply Chain Analysis: Tools and Techniques

Negotiation and Conflict Management

Contract Management

Purchasing Law and Ethics

Lean Supply Chain Management

Purchasing Services

Supply Chain Information Systems and Electronic Sourcing

Performance Measurement and Evaluation

Purchasing and Supply Strategy Trends

Filters

Exam 10: Worldwide Sourcing

A/An _____ can only be changed or canceled upon agreement of all parties.

Developing countries seldom rely on personal relations and trust to cover many legal issues because of an adequate legal system.

Regardless of the technique used to overcome worldwide sourcing barriers, the effort will fail unless top management supports worldwide sourcing.

With a _____, both parties agree that payment occurs as long as exchange rates do not fluctuate outside an agreed-upon range or band.

A/An _____ can be changed or canceled at any time by the buyer without the seller's consent.

A major complaint about Americans is our ignorance of other cultures.

Which of the following is not one of the factors that drive global sourcing performance?

_____ are internationally recognized commercial terms that describe the responsibilities of the buyer and seller in the arrangement of transportation.

Trade shows are often one of the worst ways to gather information on many suppliers at one time.

Few offshore suppliers anticipate exchange rate fluctuations by incorporating a risk factor into their price.

A FTZ _____ is typically housed in a port or an industrial park and is available to multiple companies.

According to the CISG, a/an _____ is one of the countries that have ratified the treaty.

All of the following are examples of how a finance department can support international currency requirements except _____.

The use of a full-service trading company may actually result in a lower total cost for international purchases compared with performing each activity individually.

_____ occurs when a firm physically builds a plant in another country or provides a service, equipment, or technology to support the plant; the firm then agrees to take a portion of the plant's output as payment.

Buyers should not underestimate the potential effects of extended distances on their ability to plan and manage a worldwide supply chain.

_____ involves contracting with independent suppliers outside the organization (domestic or foreign) to provide products or services that were performed inside the organization.

_____ involves contracting with independent suppliers located outside geographic boundaries of the United States for goods and services.

All of the following are common measures used to manage currency fluctuation in international purchasing except _____.

FTZs allow an importing company to delay, eliminate, or decrease its duty payments on foreign-sourced goods that enter the zone site.

Introduction to Purchasing and Supply Chain Management

The Purchasing Process

Purchasing Policies and Procedures

Supply Management Integration for Competitive Advantage

Purchasing and Supply Management Organization

Supply Management and Commodity Strategy Development

Supplier Evaluation and Selection

Supplier Quality Management

Supplier Management and Development: Creating a World-Class Supply Base

Strategic Cost Management

Purchasing and Supply Chain Analysis: Tools and Techniques

Negotiation and Conflict Management

Contract Management

Purchasing Law and Ethics

Lean Supply Chain Management

Purchasing Services

Supply Chain Information Systems and Electronic Sourcing

Performance Measurement and Evaluation

Purchasing and Supply Strategy Trends

Filters