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Supply Chain > Chapter 10 > Flashcards

Chapter 10 Flashcards

(51 cards)

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1
Q

Reasons why companies can locate anywhere in the world

A

increased globalization, technology, transportation, and open markets

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2
Q

Global Location Decisions involve:

A
  1. Defining each facility’s strategic role
  2. Determining the location for each facility
  3. Identifying the market(s) that each facility will serve
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3
Q

Offshore Factory

A

A factory set up for manufacturing or assembly in a country where labor/raw materials are less expensive, for eventual import back into the manufacturer’s home country

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4
Q

Source Factory

A

manufactures products at low cost but with skilled workers and significant managerial resources

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5
Q

Server Factory

A

a factory set up to take advantage of government incentives and/or reduced tax/tariff barriers, to meet regional or local market needs

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6
Q

Contributor Factory

A

Focused on product development and engineering for products that they manufacture

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7
Q

Outpost Factory

A

factory set up in an area with an abundance of advance suppliers, competitors, research facilities, etc

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8
Q

Lead Factory

A

source of product and process innovation and competitive advantage across the entire organization

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9
Q

Taxes and Incentives

A

countries with high tariffs discourage importing goods into country

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10
Q

Reciprocal Tariff

A

A tax or trade restriction imposed by one country on another in response to similar actions taken by that country

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11
Q

Ad Valorem Tariffs

A

Calculated as a percentage of the imported good’s value

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12
Q

Specific Tariffs

A

a fixed monetary amount per unit of the imported good, regardless of value

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13
Q

Compound Tariff

A

combine ad valorem and specific, fixed amount + percentage of value

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14
Q

Mixed Tariff

A

expressed as either a specific or an ad valorem rate and, are sometimes used as a transition phase between different tariff systems

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15
Q

Currency Stability

A

Impacts business costs and consequently location decisions

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16
Q

Access and Proximity to Markets

A

the trend in manufacturing is to be within delivery proximity of your customers

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17
Q

Labor Issues

A
  • labor availability, productivity, and skill
  • unemployment/ underemployment rates
  • wage rates
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18
Q

Right-To-Work Laws

A

28 states have laws protecting the right of employees to decide whether or not to join a union

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19
Q

Access to Suppliers and cost

A

supplier proximity influences the delivery of materials and the effectiveness of the supply chain

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20
Q

Utility Availability and Cost

A

in heavy industries the availability and cost of energy are critical considerations

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21
Q

Environmental Issues

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A

Global warming, air pollution, and acid rain are debated as being the price of industrialization

22
Q

Land availability and costs

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A

as land and construction costs in big cities continue to escalate, the rend is to locate in suburbs and rural areas

23
Q

Quality of Life Issues

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A

education, economy, politics, healthcare, mobility, public safety

24
Q

Business Clusters

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A

Geographic concentrations of interconnected companies and institutions

25
World Trade Organization
deals with the global rules of trade between nations, main goal is to ensure that trade flows as smoothly, predictably, and freely as possible
26
International Trade
the exchange of capital, goods, and services across international borders or territories
27
Four Ts of International Trade
Transaction Costs, Transport costs, time costs, tariff and non-tariff costs
28
Separation Factors (exogenous)
- Distance, transportation costs, travel time - Part of a trade agreement
29
Country Specific Factors (endogenous)
- Customs procedures - Performance of national transport and logistics
30
Global Supply Chain Opportunities
Increased revenue, increased sourcing options, lower total costs
31
Global Supply Chain Challenges
Tariffs or duties, trade wars, transporting goods across borders can be complex
32
International Freight Security
challenge of global supply chain, since 9/11 more conflict between US and industry for security
33
Department of Homeland Security mission
1. Prevent terrorist attacks within US 2. Reduce americas vulnerability to terrorism 3. Minimize damage from potential attacks and natural disasters
34
US Customs and Border Protection
Gateway agency for more than 20 other government agencies each of which has some control over various aspects of international trade, mission is to safeguard americas borders
35
CBP Continued
works to secure and facilitate imports arriving in the US, accommodating the increasing volume and complexities of international trade - Protects the US through active inspections at ports of entry - Strong base of industry partnerships and technology
36
Trade Compliance/Global Trade Management Systems
automate the process of checking every transaction, the only way to keep current w continuously changing laws
37
Benefits of Trade Compliance System
Increased level of compliance than manual, decreased physical customs inspections, faster release of shipments, avoidance of fines and penalties
38
Import Process
When shipment reaches US importer of record (purchaser) must file entry documents at port of entry
39
Goods are not legally entered into US commerce until:
1. Shipment has arrived within port of entry 2. Delivery to the shipping destination has been authorized by the CBP 3. Estimated duties have been paid
40
Tariff
direct tax applied to goods impored from a different country
41
Duties
indirect taxes imposed on consumer of imported goods
42
Foreign Trade Zones (FTZs)
Physical areas inside the US supervised by US customs and border protection that are considred out of US territory
43
Permitted activities of FTZ
Assembly, Exhibition, Inspection, Salvage, Destruction, Reclassification, Manufacturing, Processing, Storage, Testing, Relabeling, Repackaging
44
While in the FTZ, merchandise is
not subject to US duty or excise tax
45
Export Process
shipments must conform to export administration regulations shipper must: know the product or tech being exported, know where its being produced, know where and to whom it is being sent, know who will use product, know if there are illegal restrictions THEN complete and submit shippers export declaration
46
Deemed Export
release of technology or source code that is subject to the export administration regulations, to a foreign national located in the US
47
Penalties for Violations
Criminal Penalties- fines, prison Civil Penalites- Substantial fines, sanctions Statutory Sanctions- seizure and forefeiture of items in violation, including vessels and aircraft, loss of import priveleges
48
Customs Broker
move global shipments through customs and handle documentation
49
International Freight Forwarders
move goods to and from foreign destination
50
Trading Companies
Put buyers and sellers from different countries together and handle export/import arrangements, documentation, and transportation
51
Non-Vessel-Operating Common Carriers
Operate like freight forwarders but use only scheduled ocean liners

Supply Chain (15 decks)

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