Question 1

Trade that takes place between a parent company and its subsidiaries abroad is called insourcing.

Accepted Answer

A) True 
 B)False  True

Question 2

China does not use free trade zones.

Accepted Answer

A) True 
 B)False  False

Question 3

The _____ of the product refers to the quality degradation over time and/or product obsolescence along the product life cycle.

Accepted Answer

A)  perishability
B)  cost of transportation
C)  cost of insurance
D)  value-to-volume ratio
E)  intermodal ratio A

Question 4

Various governments have established _____.

Accepted Answer

A)  export processing circles.
B)  export processing groups.
C)  export processing clans.
D)  export processing networks.
E)  export processing zones.

Question 5

We can expect that core services are usually performed by the service firm itself, regardless of the characteristics of the core service.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following should a company not do with a foreign intermediaries?

Accepted Answer

A)  treat companies as short-term partners
B)  withhold information from the distribution partner
C)  allow the distribution partner to make marketing strategy decisions
D)  all of the above

Question 7

In developing viable sourcing strategies on a global scale, companies must consider the costs of manufacturing and various resources as well as exchange rate fluctuations.All other considerations are minor.

Accepted Answer

A) True 
 B)False

Question 8

A lower break-even point makes a firm more susceptible to fluctuating demand conditions.

Accepted Answer

A) True 
 B)False

Question 9

If materials and components are shipped to a FTZ for further processing and finished products are sold in the United States, a U.S.import tariff will be assessed on the value of the materials and components, rather than on the value of the finished products.

Accepted Answer

A) True 
 B)False

Question 10

_____ transportation refers to the seamless transfer of goods from one mode of transport to another and vice versa without the hassle of unpacking and repackaging.

Accepted Answer

The answer of _____ transportation refers to the seamless transfer...

Question 11

_____ is defined as the design and management of a system that directs and controls the flows of materials into, through and out of the firm across national boundaries to achieve its corporate objectives at a minimum total cost.

Accepted Answer

The answer of _____ is defined as the design and...

Question 12

In 2017, the total logistics cost represented about 7.7 percent of the GDP in the _____.

Accepted Answer

A)  U.S.
B)  Ireland
C)  Portugal
D)  Belgium
E)  Romania

Question 13

_____ refers to the market segments or geographic area a firm's products are represented in.

Accepted Answer

The answer of _____ refers to the market segments or...

Question 14

If a retail firm sells a product under its own store name it is called a:

Accepted Answer

A)  unique brand.
B)  vertical brand.
C)  horizontal brand.
D)  store brand or private label.
E)  hybrid label.

Question 15

In the US, the Merchant Marine Act of 1920 significantly reduces the costs of logistics in and around the United States.

Accepted Answer

A) True 
 B)False

Question 16

_____ refers to the inflow of raw materials, parts, and supplies in and through the firm.

Accepted Answer

A)  Global logistics
B)  Physical distribution
C)  Materials management
D)  Purchasing processes
E)  Global distribution

Question 17

Global logistics encompasses:

Accepted Answer

A)  advertising and personal selling.
B)  purchasing and manufacturing.
C)  materials management and trucking.
D)  materials management and physical distribution.
E)  pricing and manufacturing.

Question 18

In Asian countries, personal "connections" of who knows whom frequently seem to outweigh the Western economic principle of profit maximization or cost minimization in conducting business.

Accepted Answer

A) True 
 B)False

Question 19

Today's modern jumbo cargo jets, such as the C-130 and the AN-32, can carry more than 200 tons of cargo.

Accepted Answer

A) True 
 B)False

Question 20

Sourcing strategy includes a number of basic choices that companies make in deciding how to serve foreign markets.

Accepted Answer

A) True 
 B)False

Exam 15: Global Logistics and Distribution

Trade that takes place between a parent company and its subsidiaries abroad is called insourcing.

China does not use free trade zones.

The _____ of the product refers to the quality degradation over time and/or product obsolescence along the product life cycle.

Various governments have established _____.

We can expect that core services are usually performed by the service firm itself, regardless of the characteristics of the core service.

Which of the following should a company not do with a foreign intermediaries?

In developing viable sourcing strategies on a global scale, companies must consider the costs of manufacturing and various resources as well as exchange rate fluctuations.All other considerations are minor.

A lower break-even point makes a firm more susceptible to fluctuating demand conditions.

If materials and components are shipped to a FTZ for further processing and finished products are sold in the United States, a U.S.import tariff will be assessed on the value of the materials and components, rather than on the value of the finished products.

_____ transportation refers to the seamless transfer of goods from one mode of transport to another and vice versa without the hassle of unpacking and repackaging.

_____ is defined as the design and management of a system that directs and controls the flows of materials into, through and out of the firm across national boundaries to achieve its corporate objectives at a minimum total cost.

In 2017, the total logistics cost represented about 7.7 percent of the GDP in the _____.

_____ refers to the market segments or geographic area a firm's products are represented in.

If a retail firm sells a product under its own store name it is called a:

In the US, the Merchant Marine Act of 1920 significantly reduces the costs of logistics in and around the United States.

_____ refers to the inflow of raw materials, parts, and supplies in and through the firm.

Global logistics encompasses:

In Asian countries, personal "connections" of who knows whom frequently seem to outweigh the Western economic principle of profit maximization or cost minimization in conducting business.

Today's modern jumbo cargo jets, such as the C-130 and the AN-32, can carry more than 200 tons of cargo.

Sourcing strategy includes a number of basic choices that companies make in deciding how to serve foreign markets.