FINALS REVIEWER

Question 1

involves importing and exporting
products. The strategy can allow you to work with foreign
suppliers and sell to customers around the world while
keeping your physical premises within your home
country.

Answer 1

IINTERNATIONAL

Question 2

a company develop to expand
its operations into the global market, selling the same
products in every location.

Answer 2

STANDARDIZATION

Question 3

can center your business to
individual locations.

Answer 3

MULTINATIONAL

Question 4

Refers to the spread of the flow of
financial products, goods, technology, information, and
jobs across national borders and cultures. It describes an
interdependence of nations around the globe fostered
through free trade.

Answer 4

GLOBALIZATION

Question 5

The purchase and sale of
goods and services by companies in different countries.

Answer 5

INTERNATIONAL TRADE

Question 6

– is sold to the global market.

Answer 6

EXPORT

Question 7

– is brought from the global market

Answer 7

IMPORT

Question 8

– A theory in international trade is also
sometimes referred to as laissez-faire economics. There
are no restrictions on trade.

Answer 8

FREE TRADE

Question 9

A theory in international trade
that believes having regulation is important ensure that
markets function properly.

Answer 9

PROTECTIONISM

Question 10

seeks to create
competitive advantage by leveraging resources and
capabilities across different markets.

Answer 10

GLOBALIZATION STRATEGY

Question 11

This
document always accompanies the shipment and specifics
the exact content of the shipment, such as number of
boxes or containers. Some shippers combine the invoice
and the packing list in one document.

Answer 11

SHIPMENT OF DANGEROUS GOODS

Question 12

This transportation
document fulfills three critical roles in transportation: it is
a contract goods from one place to another and to deliver
to a designated consignee; it is a receipt for the goods
signed by the consignee; and it is a certificate of title to
ownership of the goods.

Answer 12

BILL OF LADING (BOL)

Question 13

– provided by
an independent inspection organization, validates that the
imported goods conform to the standards set by the
importing country.

Answer 13

CERTIFICATE OF CERTIFICATION

Question 14

provided by
the exporter’s Chamber of Commerce, authenticates that
the goods to be imported were produced in the country in
which the exporter is located.

Answer 14

CERTIFICATE OF MANUFACTURE

Question 15

– is a quote detailing the final
cost of an anticipated order provided by the exporter to
the importer for the purpose of the importer obtaining a
letter of credit.

Answer 15

PROFORMA INVOICE

Question 16

is presented to the
importer upon shipment and receipt of commercial goods.
This contains a very precise definition of the goods
shipped, the terms of trade (incoterms), all order charges,
and the terms of payment and currency.

Answer 16

COMMERCIAL INVOIVE

Question 17

Agreement between the
issuing bank and the exporter independent of the
exporter/importer relationship. This means that the bank,
if the importer is unable to pay, is contractually obliged to
pay the exporter.

Answer 17

LETTER OF CREDIT

Question 18

This Incoterm specified that the seller’s
responsibility ends once the goods are made available at
their premises. The buyer shoulders the risks and costs of
transportation and establishes the least responsibilities for
the seller. Under this term, the seller must pack and make
the goods available for the buyer at the agreed location,
which can be the seller’s premises, a port, or a warehouse.
In turn, the buyer is responsible for arranging and paying
for the goods transport, customs fees, and loading and
unloading of the cargo.

Answer 18

EXW

Question 19

– is an agreement that means “Free Carrier”, where
the seller’s obligations are to deliver the cargo to an
agreed-upon port, known as the “Named Place”. The
seller is responsible for exporting the shipment, and all
steps before that. The buyer assumes the responsibility for
the cargo once they are ready to be loaded onto the carrier

Answer 19

FCA

Question 20

A type of Supply
Chain Model relies on a manufacturer producing the same
good over and over and expecting customer demand with
little variation.

Answer 20

CONTINUES FLOW MODEL

Question 21

prioritizes flexibility, as a company
may have a specific need at any given moment and must
be prepared to pivot accordingly.

Answer 21

AGILE MODEL

Question 22

emphasizes the quick turnover of a
product with a short life cycle.

Answer 22

FAST MODEL

Question 23

– makes sure production
can easily be ramped up or wound down.

Answer 23

FLEXIBLE FLOW MODEL

Question 24

includes utilizing equipment
and machinery in the most ideal ways in addition to
managing inventory and processing orders most
efficiently.

Answer 24

EFFICIENT MODEL

Question 25

is often the case for highly specialized industries with high technical requirements such as an automobile manufacturer.

Answer 25

CUSTOM MODEL

Question 26

Create cultural and political connections between countries from all over the world and promote the development of higher standards of living, wealth, job opportunities, and more.

Answer 26

GLOBAL TRADE NETWORK

Question 27

THE ADVANTAGES OF GLOBALIZATION:

Answer 27

 Larger market for Goods and Services  Cheaper consumer prices  Outsourcing can benefit both domestic firms and foreign labor  Increased standard of living

Question 28

THE DISADVANTAGES OF GLOBALIZATION:

Answer 28

Some poorer countries can be left behind  Concentrates wealth in richer countries  Cultures and the products consumed around the world can become homogenized  Poorer countries can be exploited of their labor and physical & intellectual resources

Question 29

hese 6- digit codes or 10 digits (in U.S.) harmonized codes which vary by country detail the fees and restrictions associated with the transport of goods across national border. Their main purpose is to facilitate the recognition of cargos by customs officials to ensure that the correct items and duties can be assessed in a shipment.

Answer 29

HS CODES (HARMONIZED SYSTEMS) –

Question 30

To determine whether the exporter or the importer assumes the risk at certain points in the shipment in addition to indicating which party is responsible for each task in the transportation process. It minimize the confusion over the interpretation of shipping terms by outlining who is obliged to take control of and/or insure goods.

Answer 30

INCOTERMS (INTERNATIONALL COMMERCE TERMS)

Question 31

This focuses on the level of existing competition the company can expect to encounter in the local market like cost of market entry and control; cost of product and communication adaption; potential for growth in local population, income size; and the presence of dominant foreign firms that can impose high barriers to entry

Answer 31

COMPETITIVE ADVANTAGE

Question 32

– Determining how well the company’s products and culture will fit a local national marketplace. Key considerations are language, laws, geographical proximity, stability, cultural similarity, and other micro factors.

Answer 32

MARKET ATTRACTIVENESS

Question 33

A complete supply chain dedicated to the reverse flow of products and materials for the purpose of returns, repair, remanufacture, and/or recycling.

Answer 33

REVERSE LOGISTICS –

Question 34

principle says there is a distinct relationship between channel inventory, throughout rate, and flow time, this law applies or requires measuring inventory in individual units, flow time in days, and throughput in units per day and assumes that inventory moving through the channel pipeline occurs in a “steady state”.

Answer 34

LITTLE’S LAW

Question 35

– if the demand consumers stock, a planned replenishment order is created when stocking levels in individual finished goods reach a predetermined reorder level. Once planners examine the replenishment order, they release it as a production order to be built in the plant.

Answer 35

MTS or MAKE-TO-STOCK

Question 36

– If inventory is not available, the customer order continues its backward flow and initiates a replenishment order. This backward flow is always the

Answer 36

MTO or MAKE-TO-ORDER

Question 37

This transaction function refers to the placement of customer and channel replenishment orders, as well as the gathering of information concerning marketplace trends. This involved in channel stock replenishment streamlined by the use of point-of-sale (POS) and automated replenishment systems

Answer 37

ORDERING FLOW –

Question 38

– refers to the possibility of financial loss caused by shifts in demand, customer tastes, carrying costs, obsolescence, and spoilage grow proportionally, product failures, warranties, and price fluctuations and in some cases, they will even guarantee product satisfaction, accepting returns for full credit.

Answer 38

RISK

Question 39

defines the supply chaon as “the integrated processes of Plan, Source, Make, Deliver, Return, and Enable spanning from the suppliers’ supplier to the customers’ customer”. This framework was created to assist in understanding, describing, and evaluating supply chains developed by the APICS Supply Chain Counci

Answer 39

SCOR or SUPPLY CHAIN OPERATIONS REFERENCE –

Question 40

to ensure that the supply channel possesses sufficient stock to satisfy customer requirements and to act as a buffer guarding against uncertainties in supply and demand.

Answer 40

WAREHOUSING –

Question 41

– defined as separating a heterogeneous group of products, often acquired from multiple suppliers, into homogeneous subgroups.

Answer 41

SORTING OUT –

Question 42

form of sorting breaks down large lots of products into smaller lots for sale

Answer 42

ALLOCATION

Question 43

refers to channel activities associated with product warehousing and transportation. The goal is to provide targeted levels of customer service at the lowest carrying cost at all channel echelons.

Answer 43

PRODUCT POSSESSION