Global sourcing

Usually, it is easy to imitate other companies' design skills.

False

According to the United Nations, sustainable development refers to the development that meets the _____ of the _______ without compromising the ability of ____ generations to meet their own _____.

needs, present, future, needs

Which of the following theories explains the statement "if a firm has a strong sense of identity as an 'America's manufacturer,' it will more likely to decide to make products domestically rather than source from foreign countries"?

socio-cognitive theory

A sales associate at a retail store is a member of the textile and apparel supply chain.

True

Import intermediaries or wholesalers are one of the main drivers of global sourcing in today's market environment.

True

Sorcerers manage relationship with foreign manufactures

True

Supply chain management is part of global sourcing.

True

Fill in the blank. ________________is an identification and tracking system for individual products and containers using bar codes for scanning.

UPC

Which of the following is(are) typical daily duties that today's sourcing managers perform in the U.S. apparel industry?

Vendor management Active participation in product development processes Manage cost, delivery, quality, and legal compliance objectives. Only A and C ALL OF THE ABOVE

Usually, when the textile and apparel industry is being developed, _________ production is the first then ____________ production.

apparel, textile

Trade is measured in _______________.

dollar value only (value of products traded) quantitative amounts only (number of products traded)

According to the Law of Supply and Demand, lower-priced goods sourced globally would increase_______

domestic demands

Which practices are considered collaborative consumption?

renting garments thrifting, or buying secondhand clothing Clothing resale ALL OF THE ABOVE

Merchandise trade balance is _______.

the difference between exports and imports

Global sourcing is a __________ activity.

B2B

Based on GDP per capita, determine the level of economic development for each country:

Developing Country CHINA Least-developed Country ETHIOPIA Developed Country HONG KONG

Which of the following is true about textile and apparel trades?

During the 1960s, most apparel exports were made by developed countries, such as the United States.

Market trend analysis is important sourcing function for _____ goals.

Economic

Perspectives that are necessary to consider for examining the global textile and apparel industries include:

Economic (business) Political (government) Social (labor) ALL OF THE ABOVE

According to Strategic Choice Theory, a "prospector" would be more likely source their products from a single supplier with long-term commitments and contracts.

False

According to comparative advantage theory, if Country A has absolute advantages over Country B, then trades will only happen from Country A to B, not the other way around.

False

According to the Industry Life Cycle theory, the textile industry grows before the apparel industry develops.

False

According to the international trade data, the United States no longer exports textiles to the world.

False

Asset-oriented resources are very difficult to trade or copy.

False

Because of the market economy principle, government has little or no influences on the industry's competitiveness.

False

China does not need to import textiles because they produce sufficient textiles domestically.

False

Corporate personhood concept is very new.

False

Fragmentation, sourcing, and international trade are all new phenomenon in human history

False

Global sourcing is a brand new business activity that was discovered in the last 20 years

False

Global sourcing is very much supported by domestic manufacturers.

False

Global sourcing refers to a short-term purchasing process while procurement refers to a long-term purchasing process

False

It is always the best when companies try to possess all resources from within rather than sourcing.

False

Making profit is the only important goal of global supply chain management

False

Minimum clothing needs are the same, regardless of where people live.

False

Sourcing is an entry level position.

False

Supply chain managers, manage supply of the products within and across companies. Managing demand of the products is the responsibility of the buyers.

False

Textile mills produce a wide variety of products, including fibers, yarns, fabrics, finishes, and garments.

False

The term procurement has a longer-term outlook than global sourcing does.

False

Triple bottom lines could always be contradictory so it would be impossible to work them out together.

False

Working with one company only and having a small number of factories in one country is helpful to reduce potential business risks.

False

Define trade-related terms:

Global organization that strives to improve operations and efficiencies of customs services WORLD CUSTOMS International classification of goods to determine import tariff rates HARMONIZED SYSTEM Classification of goods for keeping records of production and trade in Canada, Mexico, and the United States NAICS Trade agreement that eliminated tariffs between Canada, Mexico, and the United States NAFTA Classifications of goods used to determine tariffs on specific products imported into the US HTS

Which of the following is NOT true?

Global sourcing helps domestic manufacturing job growth.

Which of the following business types is classified into the business-to-business electronic market type, according to NAICS?

Import agent

Determine trends in clothing expenditure in the United States:

In the United States, clothing expenditure as a percent of total consumer expenditure has been gradually DECREASING In the United States, the total apparel expenditures have been gradually INCREASING

When the price of the goods decreases from cheaper cost of production from overseas, the domestic demand for those products will __________.

Increase

Which of the following is a goal of global supply chain management of textile and apparel?

Increase in company's profits Increase in consumer benefits Help protect environments and ensure social responsibility Only A and B ALL OF THE ABOVE

Which of the following describes the "new" market environment in the U.S. textile and apparel industry?

Intense competition Global manufacturing

Which of the following is true about the U.S. textile and apparel industry?

It is still strong as it hires many new talents, such as brand managers, product developers, sourcing managers, and so on.

Define terms related to consumption and well-being:

Quantity and quality of goods and services that are used by an individual or group during a given time period LEVEL OF CONSUMPTION A good or satisfactory condition of existence WELL BEING

Fill in the blank ___________________ is a wireless identification and tracking system for individual products and containers.

RFID

Match terms with correct definitions:

Relationship between change in income and the related change in expenditure INCOME ELASTICITY Relationship between change in price of a product and the related change in demand for this product PRICE ELASTICITY

Which of the following is a recommended skill for future sourcers?

Relationship skill Communication skill Multi-tasking skill ALL OF THE ABOVE

Which of the following theories most adequately explains the fact that firms should not source all critical resources from outside of the organization because it creates too much dependence on other firms' ability to deliver such resources?

Resource dependence theory

Which of the following is true?

Retailers sell products to consumers

Sourcers at companies like TOMs will have to work within the pre-determined identity of the companies. This theory is called

Socio-cognitive theory

Which of the following explain the definition of sourcing the most appropriately?

Sourcing refers to business activities involved in acquiring components of fully finished products from outside of the firm.

A network of materials, information, and service links related to supply, transformation, and demand in the marketplace is called....

Supply Chain

A cotton producer in Egypt is a member of the textile and apparel supply chain.

True

According to Porter, having a large domestic demand is beneficial for that country's industry to be competitive in the world.

True

According to the Industry Lifecycle Theory, large trade deficits are typically found in developed countries where apparel importing is more prevalent than apparel exporting.

True

Both taxes and inflation can have an effect on consumer expenditures.

True

Certain resources and skills are better off not being sourced, and rather grown and developed within the company.

True

Combined together, China and Bangladesh take care of over 40% of apparel exports in the world.

True

Fashion goods usually have shorter selling periods than basic goods.

True

From the perspective of the resource-based theory of the firm, businesses are sourcing to gain productive and valuable resources from other companies.

True

Global sourcing is one of the key functions of the global supply chain management

True

Harmonized System is used by almost all countries in the world.

True

In today's market environment, retailers are also involved in manufacturing through global sourcing.

True

Logistics is the science of moving products through the supply chain in a timely manner.

True

NAICS (North American Industrial Classification System) is based on the Harmonized System (HS) and is used to keep records of production and trade.

True

No matter how much resources that the country has, if the country does not have supporting system to utilize such resources, then the industry will not be competitive.

True

Some retailers in the U.S. textile and apparel industry source directly from foreign factories.

True

Sourcers who operate under the critical theory tend to put social and environmental consequences in their priorities.

True

Sourcing requires tremendous amount of internal collaboration with other members of the supply chain.

True

Successful employees in today's textile and apparel industry must possess sophisticated knowledge and skills in multicultural negotiation, world politics and geography, and international communications.

True

The textile and apparel industry was the main engine of the Industrial Revolution in the late 18th and early 19th

True

US apparel companies are extensively sourcing their products from all over the world

True

Which of the following businesses are engaged in global sourcing in today's marketplace?

Wholesalers Retailers Manufacturers ALL OF THE ABOVE

What is the major difference between wholesalers and retailers according to the business classification by NAICS?

Wholesalers sell their products to other businesses, while retailers do to ultimate consumers.

Which of the following is true about textile and apparel wholesaling?

Wholesaling is extremely popular in developed countries.

The U.S. textile and apparel retail industry is characterized as ___________ where large retailers and brand-named merchandising companies engage in design, marketing, and other value-added activities.

buyer-driven

When two countries could get benefited from trades, then international trade will take place. This is explained by which of the following theory?

comparative advantage theory

Which of the following theories most adequately explains the fact that some companies source parts (or components) of the products, not necessarily the entirely finished products?

fragmentation theory

Which of the following is not an outcome of textile and apparel supply chain management?

Consumers

Companies that focus on efficiently producing and distributing goods and services in predictable marketplaces are called the __________.

Defender

Which of the following is a supply chain member of cotton apparel?

A cotton farmer in Missouri A cotton apparel sewing factory in Bangladesh A cotton apparel designer in New York Only A and B ALL OF THE ABOVE

From the Strategic Choice Theory, which of the following is most likely to be a "prospector" whose goal is to adapt to changes in market situations?

A fast fashion retailer

According to law of supply and demand, when there is a high supply yet demand is low, the price of the goods __________.

Decrease

Which of the following is not part of the triple bottom lines of sustainability?

Long-Term Legacy

Which of the following explains the Industry Life Cycle theory correctly?

Low labor cost and economies of scales are most important in the initial stage.

Dying industry or "domestic job loss" usually refers to the _________ sector of the textile and apparel industry.

Manufacturing

Place the components of the textile and apparel supply chain in the correct order:

Manufacturing of manmade fibers and agricultural production of natural fibers 1 Manufacturing of textiles (yarns and fabrics) 2 Manufacturing of apparel products and home furnishings 3 Retailing of apparel products and home furnishings 4

Which of the business activities are required to conduct successful global sourcing?

Marketing and merchandising Purchasing and accounting Designing and Product development ALL OF THE ABOVE

Which of the following is false?

NAICS is valid in the United States only.

Which of the following can companies source?

New Design Techniques

Classify each type of apparel or textile business:

Production facility that manufactures garments (such as sweaters or underwear) straight from yarn (without making fabric first) APPARTEL KNITING MILL Production facility that specializes in applying different finishing to yarns and fabrics CONVERTER Production facility that manufactures apparel from fabric CUT AND SEW FACTORY Production facility that manufactures yarns and fabrics TEXTILE MILL

Match definitions with correct terms (some terms can be used more than once.

The process of identifying a vendor capable of providing necessary materials, production, and/or finished goods at specified quality and price levels within the identified time frame SOURCING The domestic, international, or global exchange of goods and services TRADE The interconnectedness and interdependence of the world's people, organizations, and countries in all aspects of life GLOBALIZATION The selection of most appropriate countries and factories when building a supply chain to meet your business needs SOURCING The sequence of business processes involving single or multiple companies located in one or more countries to deliver products and/or services SUPPLY CHAIN Contracting out a specific operation outside the company to a domestic or foreign vendor to get it done more efficiently or at a lower cost OUTSOURCING

What are the reasons for developing and newly developing nations to actively manufacture apparel?

These countries have an abundance of low-cost labor that is essential for labor-intensive apparel manufacturing. Because of relatively low requirements for capital and technology, countries begin industrialization from apparel manufacturing. Because clothing is a basic human need, all countries in the world historically have had some textile and apparel production. ALL OF THE ABOVE

Determine the type of textile and apparel products that countries tend to manufacture, based on the level of economic development:

These countries tend to manufacture a wide range of apparel products, many of which are exported. DEVELOPING COUNTRY These countries tend to manufacture a limited assortment of basic apparel goods, with little to no textile production. NEWLY DEVELOPING COUNTRY These countries tend to produce technology-intensive performance-based yarns and fabrics DEVELOPED COUNTRY

Match description with correct industry:

This industry is more labor intensive. APPAREL INDUSTRY This industry is more technology intensive. TEXTILE INDUSTRY This industry is more capital intensive TEXTILE INDUSTRY This industry has lower entry barriers. APPAREL INDUSTRY