Domestic And International Logistics Quiz

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  • 1/10 Questions

    In the second half of the twentieth century, international trade experienced a notable growth, especially after the 1970s. The outcome has been a shift in global trade flows with many developing countries having a growing participation in international trade. By 2003, international trade was accounting for about 15 percent of the global GDP, a twofold increase since 1950. Three main factors can be linked to this process: 

    • Weather Patterns, Fuel Prices, Trade Agreements
    • Production Systems, Transport Efficiency, Integration Process
    • Production Systems, Fuel Prices, Trade Agreements
    • Weather Patterns, Integration Process, Trade Agreements
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Domestic And International Logistics Quiz - Quiz

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  • 2. 

    When compared to Domestic Logistics, International Logistics performance cycles are ___________.

    • Longer, less consistent, and less flexible

    • Shorter, more consistent and less flexible

    • Longer, more consistent and more flexible

    • Longer, less consistent and more flexible

    Correct Answer
    A. Longer, less consistent, and less flexible
    Explanation
    International logistics involves the movement of goods and materials across different countries, which often requires dealing with various customs regulations, documentation, and transportation modes. These additional complexities and uncertainties make the performance cycles longer, as it takes more time to coordinate and execute international shipments. The international logistics process is also less consistent due to factors such as different regulations and infrastructure in different countries. Additionally, the need to comply with various regulations and adapt to different cultural and business practices makes international logistics less flexible compared to domestic logistics.

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  • 3. 

    To meet the global challenges, management must evaluate the complexity of global supply chain operations. Indicate which one of the following statements is an example of global managerial complexity. 

    • Decreased amount of documentation required for international operations

    • Low incidence of counter trade and duty drawback found in some international situations

    • Unique national accommodations such as performance features, power supply characteristics and safety requirements.

    • Documentation that is standardized across products

    Correct Answer
    A. Unique national accommodations such as performance features, power supply characteristics and safety requirements.
    Explanation
    The statement "Unique national accommodations such as performance features, power supply characteristics and safety requirements" is an example of global managerial complexity because it highlights the challenges that arise from having to adapt to different national standards and regulations in different countries. This complexity can make it difficult for management to streamline operations and ensure consistency across global supply chain operations.

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  • 4. 

    Land Bridges. The concept of a land bridge is based on the idea that containerized ocean cargo needs to "cross" some landmass; for example, cargo from South-East Asia needs to cross North America on its way to Europe. Land Bridges are strategic examples of: 

    • Intermodal Operations

    • International Cooperation

    • International Agreements

    • Intermodal Competition

    Correct Answer
    A. Intermodal Operations
    Explanation
    The concept of a land bridge involves the transportation of containerized ocean cargo across a landmass. This means that the cargo is transported by multiple modes of transportation, such as ships, trains, and trucks, in a coordinated and seamless manner. Therefore, it falls under the category of intermodal operations, which refers to the integration of different modes of transportation to optimize the movement of goods.

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  • 5. 

    Increasingly, supply chains involve relationships that cross international boundaries. Indicate which one of the following is a challenge for going global?

    • Lower labor and material costs

    • Returns and repairs of defective products

    • Incentives and tax deductions

    • Globalization of consumer markets

    • Increased availability of technology and communications solutions

    Correct Answer
    A. Returns and repairs of defective products
    Explanation
    Returns and repairs of defective products are a challenge for going global because when a company operates internationally, it becomes more difficult and costly to handle returns and repairs. This is because products may need to be shipped back to the country of origin, which can be time-consuming and expensive. Additionally, there may be language barriers, different consumer protection laws, and logistical challenges in coordinating returns and repairs across different countries. Therefore, managing returns and repairs of defective products becomes a significant challenge when operating in a global supply chain.

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  • 6. 

    There are specific guidelines in developing a global logistics strategy. Indicate which statement below IS NOT considered a primary guideline: 

    • Logistics planning should be integrated into the company's strategic planning process.

    • Logistics departments need to be guided by a clear vision and must measure output regularly.

    • Import/export management should try to ensure integrated management of all elements of the logistics supply chain, from origin to destination.

    • Logistics functions such as procurement, manufacturing, distribution, and sales should be locally and independently optimized for continuous improvement.

    Correct Answer
    A. Logistics functions such as procurement, manufacturing, distribution, and sales should be locally and independently optimized for continuous improvement.
    Explanation
    The statement "Logistics functions such as procurement, manufacturing, distribution, and sales should be locally and independently optimized for continuous improvement" is not considered a primary guideline in developing a global logistics strategy. Instead, a primary guideline is to ensure integrated management of all elements of the logistics supply chain, from origin to destination. This means that all logistics functions should be coordinated and aligned to achieve overall efficiency and effectiveness in the global logistics strategy.

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  • 7. 

    A conservative Estimate is that as much as 90% of global demand is not currently fully satisfied by local supply. Indicate which one of the following statements IS NOT a reason that justifies such global supply chains: 

    • To achieve lower operations costs

    • To obtain superior quality

    • To accommodate local customers requirements and government regulations

    • To reduce and rationalize capacity and availability of supply

    • To obtain tax incentives

    Correct Answer
    A. To reduce and rationalize capacity and availability of supply
    Explanation
    The statement "to reduce and rationalize capacity and availability of supply" is not a reason that justifies global supply chains. Global supply chains are typically established to achieve lower operational costs, obtain superior quality, accommodate local customer requirements and government regulations, and obtain tax incentives. The purpose of global supply chains is not to reduce or rationalize capacity and availability of supply, but rather to expand access to resources and markets.

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  • 8. 

    There are few activities that are exclusively specific to International Logistics; however the traditional logistics activities are managed differently in an international environment than they are in a domestic environment. Indicate which one of the statements IS NOT specific to Global Logistics.

    • Transportation is more complicated, involving different modes of transportation, different carriers, different documents, and much greater transit times.

    • Insurance is more complex and somewhat treacherous.

    • Packaging needs are different due to higher risks.

    • Means of payment are less involved, with lower risks of non-payment and currency fluctuations.

    Correct Answer
    A. Means of payment are less involved, with lower risks of non-payment and currency fluctuations.
    Explanation
    The means of payment being less involved, with lower risks of non-payment and currency fluctuations, is not specific to global logistics. This statement suggests that international transactions have fewer complexities and risks compared to domestic transactions. However, in reality, global logistics involves various challenges and risks, including complex transportation, insurance, and packaging needs. Therefore, this statement does not align with the unique characteristics of global logistics.

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  • 9. 

    Global marketing must address all aspects of changing consumer behavior. Global marketing entails operating simultaneously in different environments, coordinating international activities, and learning from the experiences gained in one country to make marketing decisions in other countries. Indicate which one of the statements below IS NOT a driving force for global marketing strategies:

    • Companies are more aggressive in pursuing economies of scale in both manufacturing and marketing.

    • Consumers currently demand more customized and unique products and services.

    • New marketing tools and technologies have helped companies reach new markets and track sales in those markets more effectively.

    • Option 4

    Correct Answer
    A. Consumers currently demand more customized and unique products and services.
    Explanation
    The correct answer is "Consumers currently demand more customized and unique products and services." This statement is not a driving force for global marketing strategies because it focuses on consumer demands for personalized and unique products, which is more related to product development and customization rather than the overall strategy of global marketing. The driving forces for global marketing strategies are the pursuit of economies of scale in manufacturing and marketing, the use of new marketing tools and technologies to reach new markets, and the coordination of international activities and learning from experiences in different countries.

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  • 10. 
    Losed Loop Supply Chains include the returns process in order to capture additional value; still includes all traditional forward SC activities plus the following: Re-Acquisition of Products from the end user; Reverse Logistics to move product to point of disposition; Testing, Sorting, and determination of condition; Refurbishment (remanufacturing, repair, recycle), and Remarketing of refurbished goods.  - ProProfs

    Losed Loop Supply Chains include the returns process in order to capture additional value; still includes all traditional forward SC activities plus the following: Re-Acquisition of Products from the end user; Reverse Logistics to move product to point of disposition; Testing, Sorting, and determination of condition; Refurbishment (remanufacturing, repair, recycle), and Remarketing of refurbished goods. 

    • (1) ASSETS, (2) REVENUES, (3)EXPENSES

    • (1) REVENUES, (2) ASSETS, (3)EXPENSES

    • (1) REVENUES, (2) EXPENSES, (3) ASSETS

    • (1) EXPENSES, (2) REVENUES, (3) ASSETS

    Correct Answer
    A. (1) REVENUES, (2) EXPENSES, (3) ASSETS
    Explanation
    In a closed loop supply chain, the returns process is included to capture additional value. This process involves re-acquiring products from the end user, reverse logistics to move the product to the point of disposition, testing and sorting the product to determine its condition, refurbishment (remanufacturing, repair, recycle), and remarketing of the refurbished goods. These activities involve expenses incurred in the process of re-acquiring, testing, refurbishing, and remarketing the products. The revenues are generated from the sale of the refurbished goods, and the assets include the inventory of returned products and the refurbished goods ready for sale. Therefore, the correct order is (1) REVENUES, (2) EXPENSES, (3) ASSETS.

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  • Current Version
  • Aug 29, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Dec 07, 2014
    Quiz Created by
    Joejoewyatt
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