Question 1

_____ is relocating sourcing to countries geographically closer to the United States.

Accepted Answer

A) Global sourcing 
B) Nearshoring 
C) Re-shoring 
D) Single sourcing 
E) Domestic sourcing 
A) Global sourcing 
B) Nearshoring 
C) Re-shoring 
D) Single sourcing 
E) Domestic sourcing

Question 2

The use of forward exchange contracts encourages speculation.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not an element of culture?

Accepted Answer

A) Language. 
B) Religion. 
C) Values and attitudes. 
D) Infrastructure. 
E) Social institutions. 
A) Language. 
B) Religion. 
C) Values and attitudes. 
D) Infrastructure. 
E) Social institutions.

Question 4

Domestic purchasing must include the additional costs associated with conducting domestic transactions.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements regarding countertrade is false?

Accepted Answer

A) Items involving large dollar amounts, such as military contracts, are prime candidates for countertrade. 
B) Companies can expect countertrade demands from a country when that country's goods may have a low or nondifferentiated perception in the world marketplace. 
C) Highly valued items or those sought after by the buying country are less susceptible to countertrade demands. 
D) Countertrade may include items that are available from many sources, commodity-type items, or items not perceived as technologically superior or having higher quality compared with other available products. 
E) Countertrade is a simple process as it avoids currency exchange fluctuations. 
A) Items involving large dollar amounts, such as military contracts, are prime candidates for countertrade. 
B) Companies can expect countertrade demands from a country when that country's goods may have a low or nondifferentiated perception in the world marketplace. 
C) Highly valued items or those sought after by the buying country are less susceptible to countertrade demands. 
D) Countertrade may include items that are available from many sources, commodity-type items, or items not perceived as technologically superior or having higher quality compared with other available products. 
E) Countertrade is a simple process as it avoids currency exchange fluctuations.

Question 6

_____ agreements require the seller to purchase some agreed-upon percentage of goods from a country over a specified period but allow a company to fulfill its countertrade requirement with any company or industry in the country.

Accepted Answer

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

Question 7

All of the following are common methods for overcoming barriers to worldwide sourcing except _____.

Accepted Answer

A) using companies with U.S.-based support personnel 
B) publicizing success stories 
C) measurement and reward systems 
D) payment only in foreign currency 
E) use of third party or external agents 
A) using companies with U.S.-based support personnel 
B) publicizing success stories 
C) measurement and reward systems 
D) payment only in foreign currency 
E) use of third party or external agents

Question 8

There is no dollar threshold on the Foreign Corrupt Practices Act, making it illegal to offer even a dollar as a bribe.

Accepted Answer

A) True 
 B)False

Question 9

A FTZ _____ is approved for a specific use or a specific company.

Accepted Answer

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

Question 10

Developing countries typically offer effective protection against the piracy of intellectual property.

Accepted Answer

A) True 
 B)False

Question 11

_____ is/are shared beliefs or group norms that are internalized and affect(s) the way people think, while _____ is/are based on values and attitudes and affect(s) how the people act.

Accepted Answer

A) Behavior…values 
B) Culture…infrastructure 
C) Values…behavior 
D) Infrastructure…behavior 
E) Jurisprudence…culture 
A) Behavior…values 
B) Culture…infrastructure 
C) Values…behavior 
D) Infrastructure…behavior 
E) Jurisprudence…culture

Question 12

In supply management, the cost/price benefits associated with sourcing in developing countries are an insignificant motivation for remaining competitive in an increasingly global environment.

Accepted Answer

A) True 
 B)False

Question 13

_____ is a process that involves the straight exchange of goods for goods with no exchange of currency.

Accepted Answer

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

Question 14

Which of the following is not one of the usual roles of an international purchasing office (IPO)?

Accepted Answer

A) Identify potential suppliers. 
B) Solicit quotes or proposals. 
C) Obtain product samples. 
D) Manage countertrade requirements. 
E) Conduct overseas sales and marketing-related activities. 
A) Identify potential suppliers. 
B) Solicit quotes or proposals. 
C) Obtain product samples. 
D) Manage countertrade requirements. 
E) Conduct overseas sales and marketing-related activities.

Question 15

_____ occurs when a selling company agrees to accept goods from the buying country as partial payment.

Accepted Answer

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

Question 16

Which of the following is not an example of cost differentials that arise between countries?

Accepted Answer

A) Lower labor rates. 
B) Fewer documentation requirements. 
C) Possible willingness to accept a lower profit margin. 
D) Exchange rate differences. 
E) Government subsidies. 
A) Lower labor rates. 
B) Fewer documentation requirements. 
C) Possible willingness to accept a lower profit margin. 
D) Exchange rate differences. 
E) Government subsidies.

Question 17

If the purpose of buying currency contracts is to realize a net gain, then the purchaser is _____ and not _____.

Accepted Answer

A) hedging….speculating 
B) speculating….hedging 
C) speculating….financing 
D) hedging….financing 
E) Purchasers do not get involved in managing currency fluctuation as this is solely a finance department activity. 
A) hedging….speculating 
B) speculating….hedging 
C) speculating….financing 
D) hedging….financing 
E) Purchasers do not get involved in managing currency fluctuation as this is solely a finance department activity.

Question 18

U.S.purchasers stuck with domestic suppliers that produce poor quality often begin to source offshore components with the hope of improving end-product quality.

Accepted Answer

A) True 
 B)False

Question 19

Duty rates vary widely over seemingly small differences between items.

Accepted Answer

A) True 
 B)False

Question 20

Purchasing should consider only suppliers that are capable of meeting rigid quality and delivery standards, although far too often price differentials become the primary criterion behind an offshore sourcing decision.

Accepted Answer

A) True 
 B)False

_____ is relocating sourcing to countries geographically closer to the United States.

The use of forward exchange contracts encourages speculation.

Which of the following is not an element of culture?

Domestic purchasing must include the additional costs associated with conducting domestic transactions.

Which of the following statements regarding countertrade is false?

_____ agreements require the seller to purchase some agreed-upon percentage of goods from a country over a specified period but allow a company to fulfill its countertrade requirement with any company or industry in the country.

All of the following are common methods for overcoming barriers to worldwide sourcing except _____.

There is no dollar threshold on the Foreign Corrupt Practices Act, making it illegal to offer even a dollar as a bribe.

A FTZ _____ is approved for a specific use or a specific company.

Developing countries typically offer effective protection against the piracy of intellectual property.

_ is/are shared beliefs or group norms that are internalized and affect(s) the way people think, while _ is/are based on values and attitudes and affect(s) how the people act.

In supply management, the cost/price benefits associated with sourcing in developing countries are an insignificant motivation for remaining competitive in an increasingly global environment.

_____ is a process that involves the straight exchange of goods for goods with no exchange of currency.

Which of the following is not one of the usual roles of an international purchasing office (IPO)?

_____ occurs when a selling company agrees to accept goods from the buying country as partial payment.

Which of the following is not an example of cost differentials that arise between countries?

If the purpose of buying currency contracts is to realize a net gain, then the purchaser is _ and not _.

U.S.purchasers stuck with domestic suppliers that produce poor quality often begin to source offshore components with the hope of improving end-product quality.

Duty rates vary widely over seemingly small differences between items.

Purchasing should consider only suppliers that are capable of meeting rigid quality and delivery standards, although far too often price differentials become the primary criterion behind an offshore sourcing decision.

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

_____ is relocating sourcing to countries geographically closer to the United States.

The use of forward exchange contracts encourages speculation.

Which of the following is not an element of culture?

Domestic purchasing must include the additional costs associated with conducting domestic transactions.

Which of the following statements regarding countertrade is false?

_____ agreements require the seller to purchase some agreed-upon percentage of goods from a country over a specified period but allow a company to fulfill its countertrade requirement with any company or industry in the country.

All of the following are common methods for overcoming barriers to worldwide sourcing except _____.

There is no dollar threshold on the Foreign Corrupt Practices Act, making it illegal to offer even a dollar as a bribe.

A FTZ _____ is approved for a specific use or a specific company.

Developing countries typically offer effective protection against the piracy of intellectual property.

_____ is/are shared beliefs or group norms that are internalized and affect(s) the way people think, while _____ is/are based on values and attitudes and affect(s) how the people act.

In supply management, the cost/price benefits associated with sourcing in developing countries are an insignificant motivation for remaining competitive in an increasingly global environment.

_____ is a process that involves the straight exchange of goods for goods with no exchange of currency.

Which of the following is not one of the usual roles of an international purchasing office (IPO)?

_____ occurs when a selling company agrees to accept goods from the buying country as partial payment.

Which of the following is not an example of cost differentials that arise between countries?

If the purpose of buying currency contracts is to realize a net gain, then the purchaser is _____ and not _____.

U.S.purchasers stuck with domestic suppliers that produce poor quality often begin to source offshore components with the hope of improving end-product quality.

Duty rates vary widely over seemingly small differences between items.

Purchasing should consider only suppliers that are capable of meeting rigid quality and delivery standards, although far too often price differentials become the primary criterion behind an offshore sourcing decision.

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

_ is/are shared beliefs or group norms that are internalized and affect(s) the way people think, while _ is/are based on values and attitudes and affect(s) how the people act.

If the purpose of buying currency contracts is to realize a net gain, then the purchaser is _ and not _.