What is the primary objective of global supply chain management? a) Maximizing local production
b) Reducing international tariffs
c) Efficiently managing the flow of goods, information, and finances across international borders
d) Increasing domestic employment Answer: c) Efficiently managing the flow of goods, information, and finances across international borders
Which of the following is a major challenge in global supply chain management? a) High local demand
b) Simple logistics
c) Complex regulatory environments and trade compliance
d) Limited product variety Answer: c) Complex regulatory environments and trade compliance
What is the primary role of a freight forwarder in global supply chains? a) Manufacturing products
b) Managing human resources
c) Coordinating and organizing shipments for companies
d) Marketing products Answer: c) Coordinating and organizing shipments for companies
Which strategy involves sourcing materials and components from suppliers located around the world? a) Local sourcing
b) Global sourcing
c) Domestic procurement
d) Regional procurement Answer: b) Global sourcing
What is the significance of Incoterms in global supply chain management? a) They are used to set production targets
b) They are international commercial terms defining responsibilities of buyers and sellers in international transactions
c) They are guidelines for domestic transportation
d) They are financial statements for international trade Answer: b) They are international commercial terms defining responsibilities of buyers and sellers in international transactions
Which of the following is a key benefit of global supply chain management? a) Increased local production
b) Access to a broader range of suppliers and markets
c) Reduced international competition
d) Simplified logistics Answer: b) Access to a broader range of suppliers and markets
Which technology is commonly used to track international shipments in global supply chains? a) CRM systems
b) RFID
c) Blockchain
d) ERP systems Answer: b) RFID
What is the purpose of a customs broker in global supply chain management? a) Designing products
b) Facilitating the import and export of goods by handling customs clearance
c) Manufacturing goods
d) Marketing products internationally Answer: b) Facilitating the import and export of goods by handling customs clearance
Which factor is crucial for selecting international suppliers in a global supply chain? a) Proximity to the company’s headquarters
b) Compliance with local regulations
c) Availability of local labor
d) Cultural similarities Answer: b) Compliance with local regulations
What does the term “nearshoring” refer to in global supply chain management? a) Outsourcing production to distant countries
b) Relocating production to countries close to the company’s home market
c) Sourcing raw materials locally
d) Increasing domestic production Answer: b) Relocating production to countries close to the company’s home market
Which risk is particularly associated with global supply chains? a) High local competition
b) Currency exchange rate fluctuations
c) Stable political environments
d) Predictable demand patterns Answer: b) Currency exchange rate fluctuations
What is the main purpose of a trade agreement in global supply chain management? a) To increase domestic tariffs
b) To facilitate easier and more cost-effective international trade
c) To limit the number of international suppliers
d) To promote local sourcing Answer: b) To facilitate easier and more cost-effective international trade
Which strategy helps in mitigating risks associated with global supply chains? a) Single sourcing
b) Reducing inventory levels
c) Diversifying supplier base
d) Increasing production speed Answer: c) Diversifying supplier base
What is the primary focus of global logistics in supply chain management? a) Reducing employee turnover
b) Managing the flow of goods across international borders efficiently
c) Increasing local production
d) Enhancing product design Answer: b) Managing the flow of goods across international borders efficiently
What does the term “offshoring” refer to in global supply chain management? a) Sourcing products locally
b) Outsourcing production to another country
c) Increasing domestic production capacity
d) Marketing products internationally Answer: b) Outsourcing production to another country
Which global supply chain strategy focuses on minimizing costs through economies of scale and lower labor costs? a) Localization
b) Global standardization
c) Customization
d) Regional adaptation Answer: b) Global standardization
What is the main advantage of using a global supply chain? a) Increased production time
b) Access to new markets and resources
c) Higher local labor costs
d) Simplified logistics management Answer: b) Access to new markets and resources
Which of the following can significantly impact global supply chains? a) Local weather conditions
b) International trade policies and regulations
c) Domestic marketing strategies
d) Employee satisfaction Answer: b) International trade policies and regulations
What is the role of a third-party logistics (3PL) provider in global supply chains? a) To manufacture goods
b) To manage logistics and transportation services on behalf of other companies
c) To handle marketing and sales
d) To oversee product design and development Answer: b) To manage logistics and transportation services on behalf of other companies
What is a key challenge of managing a global supply chain? a) Limited product variety
b) High domestic demand
c) Cultural and language differences
d) Stable international regulations Answer: c) Cultural and language differences