SCMT 5.2 quiz questions

A decision to sell in a developing country may be coupled with a decision to procure from it because ...

of the need to balance the country's strong currency flow as a condition of doing business

What are some of the direct and indirect benefits of international sourcing?

-cheaper products -higher quality products -ability to offer more competitive prices in the domestic market (all of the above)

How are working conditions overseas may be different from those in the US?

-child labor -long working days -poorly ventilated, unclean work areas (all of the above)

Which factors should a firm consider when adopting a specific sourcing channel?

-firm's experience with sourcing internationally -sales volume -business strategy (all of the above)

What is the price to pay for the benefits of international sourcing?

-firms need to manage all operations and commercial arrangements with a supplier overseas -firms need to face all the challenges of managing all the logistics activities in an international -firms need to deal with a myriad of special challenges (all of the above)

Which types of a country's infrastructure are important for international supplier selection?

-highways, railways, and airways -ports and airports -banking, legal and power infrastructure (all of the above)

Which is NOT a way to source internationally?

set up a marketing subsidiary to supervise a network of distributors

Assume a manager is considering either buying a foreign product from a distributor located in the buyer's own country OR buying the same product sourced from a supplier abroad? Which of the following is NOT a true advantage from buying from the domestic distributor?

the buyer has better control of the product availability and quality

The example of H. F. Johnson risking his life to secure access to a superior wax plant in Brazil is given in the video to illustrate this motivation for a company to engage in international sourcing:

to differentiate itself from the competition based on product quality not attainable with domestically available raw materials

Which issues of international supplier selection were NOT considered in this video?

types of international trade terms

The video suggests that the worst impact of declining to use a supplier whose practices will be seen unethical in the US is this:

Jobs will be lost

A Japanese delegation meets a Brazilian delegation in Rio de Janeiro to negotiate shipments of piranha from the Amazon. Which behaviors will be appropriate, according to the video?

None of the above

Which of the following is NOT a disadvantage of buying directly from a supplier abroad?

The buyer will have to pay a higher price.

An example of Starbucks sourcing coffee from overseas illustrates this rationale for international sourcing:

better availability

Which argument does the video use to explain child labor in poor countries?

children have to work to help their families put food on the table

According to the video, starting to buy from abroad may have this effect on the company's negotiating position with domestic suppliers of the same products:

domestic suppliers will likely offer better contract terms to keep the business with the company

Regardless of the motivation for international sourcing to complement domestic sourcing, which effect is likely to be present?

higher supply chain resiliency

Which is NOT a country risk?

how serious your supplier is about serving your company

According to the video, a mutual earnest effort to understand each other s perspectives when dealing with a foreign company is likely to result in this outcome:

increased chances of a successful business relationship

What is excluded from the national culture of a country?

individual experiences of a particular person

What advice does the video give regarding a foreign culture?

it is important to understand it and be sensitive to it

According to the video, which is the most common motivation for international sourcing?

lower cost