Question 1

Whether the purchase transaction is with a domestic or offshore producer, there are certain common costs.

Accepted Answer

A) True 
 B)False

Question 2

Social culture and laws, personnel skills and abilities, and business culture are three areas where differences are the greatest across different geographic units.

Accepted Answer

A) True 
 B)False

Question 3

In some societies, such as Thailand and Indonesia, saying "yes" is merely being polite and does not necessarily mean that they agree with what you are saying.

Accepted Answer

A) True 
 B)False

Question 4

A supplier can draw against the letter of credit upon presentation of the required documents.

Accepted Answer

A) True 
 B)False

Question 5

Most offshore organizations like dealing with the U.S.legal system and long contracts.

Accepted Answer

A) True 
 B)False

Question 6

Under the incoterm _____, the seller prepares the goods at its location and places them at a named place (factory or warehouse) for pickup.

Accepted Answer

A) delivered duty paid 
B) ex works 
C) cost, insurance, and freight 
D) free on board 
E) freight alongside ship 
A) delivered duty paid 
B) ex works 
C) cost, insurance, and freight 
D) free on board 
E) freight alongside ship

Question 7

Insurance protection for international shipments is optional because oceangoing carrier liability is generally unlimited.

Accepted Answer

A) True 
 B)False

Question 8

A critical assessment of the increased supply risks associated with offshore sources can be made after contracting, not necessarily before a commitment is made.

Accepted Answer

A) True 
 B)False

Question 9

_____ relates to a commercial purchase transaction between a buyer and a supplier located in different countries.

Accepted Answer

A) International purchasing 
B) Re-shoring 
C) Global sourcing 
D) Nearshoring 
E) None of these answers. 
A) International purchasing 
B) Re-shoring 
C) Global sourcing 
D) Nearshoring 
E) None of these answers.

Question 10

All of the following are elements of total cost for worldwide sourcing except _____.

Accepted Answer

A) payment and currency fees 
B) port terminal and handling fees 
C) communication costs 
D) base price 
E) new product advertising 
A) payment and currency fees 
B) port terminal and handling fees 
C) communication costs 
D) base price 
E) new product advertising

Question 11

Counterpurchase requires a company to fulfill its countertrade requirement by purchasing products within a country unrelated to its primary business.

Accepted Answer

A) True 
 B)False

Question 12

The most common method for overcoming barriers to worldwide sourcing involves education and training, which can generate support for the process as well help overcome the anxiety associated with change.

Accepted Answer

A) True 
 B)False

Question 13

_____ involves proactively integrating and coordinating common items and materials, processes, designs, technologies, and suppliers across worldwide purchasing, engineering, and operating locations.

Accepted Answer

A) International purchasing 
B) Sole sourcing 
C) Nearshoring 
D) Re-shoring 
E) Global sourcing 
A) International purchasing 
B) Sole sourcing 
C) Nearshoring 
D) Re-shoring 
E) Global sourcing

Question 14

_____ is a broad term that refers to all international and domestic trade where buyer and seller have at least a partial exchange of goods for goods.

Accepted Answer

A) Six Sigma 
B) Countertrade 
C) Re-shoring 
D) IPO 
E) CISG 
A) Six Sigma 
B) Countertrade 
C) Re-shoring 
D) IPO 
E) CISG

Question 15

_____ requires a selling firm to purchase a specified amount of goods from the country that purchased its products.

Accepted Answer

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

Question 16

From an ethical standpoint, what is considered to be an unethical or even illegal activity in the United States is never an accepted business practice in many other regions.

Accepted Answer

A) True 
 B)False

Question 17

The United States is still the undisputed product and process technology leader in the world.

Accepted Answer

A) True 
 B)False

Question 18

According to Dick Locke, all of the following are advice about language and communication except _____.

Accepted Answer

A) if a supplier is using English as a second language, the buyer should be responsible for preventing communication problems 
B) always pay in U.S.dollars when dealing with worldwide suppliers 
C) to aid in communication, speak slowly, use more communication graphics, and eliminate jargon, slang, and sports and military metaphors from your language 
D) bring an interpreter to all but the most informal meetings 
E) document, in writing, the conclusions and decisions made in a meeting before adjourning 
A) if a supplier is using English as a second language, the buyer should be responsible for preventing communication problems 
B) always pay in U.S.dollars when dealing with worldwide suppliers 
C) to aid in communication, speak slowly, use more communication graphics, and eliminate jargon, slang, and sports and military metaphors from your language 
D) bring an interpreter to all but the most informal meetings 
E) document, in writing, the conclusions and decisions made in a meeting before adjourning

Question 19

Countries lacking foreign exchange for payment but rich in natural resources cannot benefit from buy-back or compensation trading.

Accepted Answer

A) True 
 B)False

Question 20

Sharing currency fluctuation risk with a supplier works best on items that have a set delivery date such as with capital equipment.

Accepted Answer

A) True 
 B)False

Whether the purchase transaction is with a domestic or offshore producer, there are certain common costs.

Social culture and laws, personnel skills and abilities, and business culture are three areas where differences are the greatest across different geographic units.

In some societies, such as Thailand and Indonesia, saying "yes" is merely being polite and does not necessarily mean that they agree with what you are saying.

A supplier can draw against the letter of credit upon presentation of the required documents.

Most offshore organizations like dealing with the U.S.legal system and long contracts.

Under the incoterm _____, the seller prepares the goods at its location and places them at a named place (factory or warehouse) for pickup.

Insurance protection for international shipments is optional because oceangoing carrier liability is generally unlimited.

A critical assessment of the increased supply risks associated with offshore sources can be made after contracting, not necessarily before a commitment is made.

_____ relates to a commercial purchase transaction between a buyer and a supplier located in different countries.

All of the following are elements of total cost for worldwide sourcing except _____.

Counterpurchase requires a company to fulfill its countertrade requirement by purchasing products within a country unrelated to its primary business.

The most common method for overcoming barriers to worldwide sourcing involves education and training, which can generate support for the process as well help overcome the anxiety associated with change.

_____ involves proactively integrating and coordinating common items and materials, processes, designs, technologies, and suppliers across worldwide purchasing, engineering, and operating locations.

_____ is a broad term that refers to all international and domestic trade where buyer and seller have at least a partial exchange of goods for goods.

_____ requires a selling firm to purchase a specified amount of goods from the country that purchased its products.

From an ethical standpoint, what is considered to be an unethical or even illegal activity in the United States is never an accepted business practice in many other regions.

The United States is still the undisputed product and process technology leader in the world.

According to Dick Locke, all of the following are advice about language and communication except _____.

Countries lacking foreign exchange for payment but rich in natural resources cannot benefit from buy-back or compensation trading.

Sharing currency fluctuation risk with a supplier works best on items that have a set delivery date such as with capital equipment.

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

Whether the purchase transaction is with a domestic or offshore producer, there are certain common costs.

Social culture and laws, personnel skills and abilities, and business culture are three areas where differences are the greatest across different geographic units.

In some societies, such as Thailand and Indonesia, saying "yes" is merely being polite and does not necessarily mean that they agree with what you are saying.

A supplier can draw against the letter of credit upon presentation of the required documents.

Most offshore organizations like dealing with the U.S.legal system and long contracts.

Under the incoterm _____, the seller prepares the goods at its location and places them at a named place (factory or warehouse) for pickup.

Insurance protection for international shipments is optional because oceangoing carrier liability is generally unlimited.

A critical assessment of the increased supply risks associated with offshore sources can be made after contracting, not necessarily before a commitment is made.

_____ relates to a commercial purchase transaction between a buyer and a supplier located in different countries.

All of the following are elements of total cost for worldwide sourcing except _____.

Counterpurchase requires a company to fulfill its countertrade requirement by purchasing products within a country unrelated to its primary business.

The most common method for overcoming barriers to worldwide sourcing involves education and training, which can generate support for the process as well help overcome the anxiety associated with change.

_____ involves proactively integrating and coordinating common items and materials, processes, designs, technologies, and suppliers across worldwide purchasing, engineering, and operating locations.

_____ is a broad term that refers to all international and domestic trade where buyer and seller have at least a partial exchange of goods for goods.

_____ requires a selling firm to purchase a specified amount of goods from the country that purchased its products.

From an ethical standpoint, what is considered to be an unethical or even illegal activity in the United States is never an accepted business practice in many other regions.

The United States is still the undisputed product and process technology leader in the world.

According to Dick Locke, all of the following are advice about language and communication except _____.

Countries lacking foreign exchange for payment but rich in natural resources cannot benefit from buy-back or compensation trading.

Sharing currency fluctuation risk with a supplier works best on items that have a set delivery date such as with capital equipment.

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