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International Supply chain > Midterm Exam > Flashcards

Midterm Exam Flashcards

1
Q

Define Logistics

A

the part of the sc process that plans, implements, and controls the forward and reverse flow /storage of goods, services, etc.

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2
Q

Define supply chain management

A

Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all Logistics Management activities.

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3
Q

Define Outsourcing

A

obtain (goods or a service) from an outside or foreign supplier, especially in place of an internal source.

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4
Q

Define Reverse Logistics

A

a type of supply chain management that moves goods from customers back to the sellers or manufacturers.

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5
Q

How did the Germans approach reverse Logistics?

A

: require
companies to recycle all packaging, and
creating a post-consumer recycling program

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6
Q

How did Curitiba approach reverse logistics?

A

using recycling as an
anti-poverty program

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7
Q

The environment in which international logisticians operate is quite ______ from the domestic environment.

A

different

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8
Q

The inherent risks and hazards of international transportation are much_____

A

greater

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9
Q

International means of payment are more _______.

A

complicated

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10
Q

What made international shipping more efficient and faster?

A

The creation of multiple international institutions facilitated international trade
Reduction in transportation costs and transit times
Greater acceptance of “things foreign”

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11
Q

Define Adam Smith’s absolute advantage theory

A

If a country can produce a certain good more efficiently than other countries, it will trade with countries that produce other goods more efficiently

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12
Q

Define David Ricardo’s comparative advantage theory

A

Nations will trade with one another as long as they can produce certain goods relatively more efficiently than one another

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13
Q

Define Hector and Olin’s factor endowment theory

A

A country will enjoy a comparative advantage over other countries if it is naturally endowed with a greater abundance of one of the factors of economic production.

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14
Q

Raymond Vernon’s international product life cycle theory

A

Over its life, a product will be manufactured in different types of countries, in stages, generating trade between these countries

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15
Q

Michael Porter’s Cluster theory

A

Competitive clusters form when companies in the same industry, as well as their suppliers, concentrate in one geographic area.

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16
Q

Logistics cluster theory by Sheffi

A

Logistics clusters form when logistics companies concentrate in one geographic area.

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17
Q

Numerical example of Absolute Advantage theory :

France: 20,000 wine; 2 Machinery
Germany: 15,000 wine; 3 machinery

A

In this case, both countries are using the same amount of labor to produce these alternatives. France will specialize in making wine, and Germany will specialize in making machinery.

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18
Q

Numerical example of Comparative Advantage theory:

UK: 25 Tons of Wheat; 5 units of machinery
Brazil: 21 tons of wheat; 3 units of machinery

A

The nations will trade: If the UK sells 1 unit of machinery to Brazil for 6 units of wheat, both the UK and Brazil are better off. The UK has a comparative advantage in producing machinery, Brazil in growing wheat.

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19
Q

What are the international Trade drivers?

A

cost drivers
competitive drivers
market drivers
technology drivers

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20
Q

Cost drivers

A

Companies increase their sales worldwide to recover their high investment costs.

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21
Q

competitive drivers

A

Companies enter foreign markets to keep up with their competitors , retaliate against them, or enter a market first.

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22
Q

market drivers

A

Companies enter foreign markets because their customers expect them to be present in those countries.

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23
Q

technology drivers

A

Companies enter foreign markets because their customers use technology to make purchases from these markets

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24
Q

communication infrastructure

A

allows businesses to communicate clearly and quickly. This requires reliable phone lines, cell phone networks, internet service, and mail delivery

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25
How is leapfrogging a problem in infrastructure?
Some countries never build infrastructure in one technology, and “leapfrog” into the next one. (Gabon)
26
Marketing Subsidiary
a company that another company owns or controls.
27
The subsidiary is also called the _____ (holding) company, and owns at least ____ of voting stock
Parent, 50%
28
Green field operations
type of foreign direct investment (FDI) in which a parent company creates a subsidiary in a different country, building its operations from the ground up.
29
What happens in indirect exporting?
Exporter does not seek export sales. Allows manufacturer to concentrate on domestic market and leave exporting to the experts.
30
export trading company (ETC)
a firm with offices in multiple countries that purchases goods in one country and resells them in another.
31
For the ______selling to the ETC, as well as for the _____ buying from the ETC, the transactions are ______transactions, even though the goods eventually travel internationally
exporter, importer, domestic
32
An export management corporation (EMC) is normally located in the _____ country
exporting
33
The EMC acts as a representative for the exporter abroad, but never takes title to the goods. Instead, what does it do?
acts as a facilitator helping the exporter find buyers and earns a commission on the sale.
34
Piggy backing
refers to the possibility of a small firm piggy-backing on another firm’s efforts to enter a foreign market
35
Piggy backing example: A firm utilizes another company’s distribution channels abroad to sell its products. It uses another company’s _______ to sell its products abroad.
experience
36
What happens in active exporting?
Exporter actively participates in finding potential markets abroad. Best option for large firms or firms with international experience.
37
Agent
typically a small firm or individual located in the importing country. The agent will act as a representative of the exporter.
38
Distributor
typically located in the importing country. The distributor will purchase the goods from the exporter and therefore take title of them
39
Distributors are typically much larger than agents and therefore fall under _____ law, while agents fall under _____ law.
contract, protection of labor
40
Subsidiary (WOFE)
an independent company established in a foreign country but owned entirely by the exporting company.
41
A subsidiary allows the foreign firm to retain _____ of the foreign investment
complete control
42
What's the phenomenon of parallel imports ?
firms will sell goods in different markets at different prices, methods of entry, characteristics of the market, and varying exchange rates.
43
Liner Service
Fixed schedule Conferences Bill of Lading (evidencing contract of carriage) Master of the vessel issues B/L Break-bulk cargo (containerized ships) Carrier / shipper Mandatory liability based on conventions Freight forwarders / Customs house agents
44
Charter Service (Tramp)
Supply and demand No fixed schedule Bulk cargo (tanker and dry cargo) Ship-owner / charterer Contract for transportation (chartering) / contract of affreightment Charterer issues B/L Baltic Exchange
45
Panamax Vessel
A ship of the maximum size that can enter the locks of the Panama Canal ; 110 feet wide, 1000 feet long.
46
Post Panamax Vessel
A ship that is too large to enter the locks of the Panama Canal.
47
Handy Size Vessel
A ship in the 10,000 to 50,000 dead-weight ton range.
48
Suez Canal Vessel
A ship roughly 150,000 dead-weight tons, the maximum size that can fit through the Suez Canal.
49
Cape Size Vessel
A large dry-bulk carriers of a capacity greater than 80,000 dead-weight tons.
50
Aframax vessel
A large oil carrier of a capacity between 80 and 120,000 dead-weight tons.
51
A Very large Crude Carrier (VLCC) is an oil tanker of _____ 300,000 deadweight ton range , while an ultra large crude carrier (ULCC) oil tanker has ______ 300,000 deadweight ton range
up to, more than
52
A very Large Ore Carrier (VLOC) has more than _____ deadweight ton range while an Ultra Large Ore Carrier (ULOC) has more than _____ deadweight ton range
200,000 ; 300,000
53
Wet bulk
liquid cargo that is loaded directly into the hold of a ship
54
Dry Bulk
dry cargo that is loaded directly into the hold of a ship; takes the shape of the hold. Grain, for example.
55
Breakbulk
cargo that is packaged (bales, boxes, drums, crates, pallets) but not containerized. Vehicles are also considered break-bulk cargo.
56
containers
Cargo that is placed in containers before it is loaded onto a ship. containers are metallic boxes that are 8.5 x 8 x 20 or 8.5 x 8 x 40 feet.
57
What are some freight charges ?
Abritray Charge ; Cleaning fee (ARB) Bunker Adjustment Factor (Surcharge) Currency Adjustment Factor (CAF)
58
Packaging security issues center around
pilferage and theft
59
Good packaging security practices include
Tamper-proof seals on all FCL shipments. Measures designed to hide the nature of the goods being shipped (making secondary packaging “anonymous”). Measures designed to keep shipment information confidential.
60
The tariff structure on international air cargo is much simpler than that used by the ocean cargo industry. This is likely because
It is based on the weight and volume of the cargo.
61
The steps of how freight charge is calculated
1. Weight of shipment 2. Volume weight of shipment (dimensional weight) 3. Airlines charges the higher of the 2 prices
62
Because of their heavy reliance on fossil fuels,airlines and aircraft manufacturers have been active in reducing the ______ of the industry.
carbon footprint
63
some airports close at night to reduce the impact of _____ on the populations living near airports.
air traffic
64
Passenger aircraft
designed to carry passengers on the main deck(s) and freight on the belly ; ex: airbus 380
65
Cargo aircraft
carries cargo on the main deck, can be loaded thru its nose ; ex: Boeing 747F.
66
Passenger to freighter aircraft
can be loaded thru a side door ; ex: Boeing 737
67
Combi Aircraft
carries both cargo and passengers on the main deck
68
Quick Change Aircraft
uses seat pallets on the main deck
69
Intermodal transportation
A shipment that takes more than one mean of transportation from its departure to its point of destination, using only one bill of lading
70
International intermodal transportation is strongly linked to the creation of the ________, which is ideally suited to be shipped by truck, train, or ship, and can be easily transferred from one mode of _______to another.
container, transportation
71
What are the most common containers
40 ft high cube 20 ft
72
extended length container
oversized goods can be shipped (45 ft long)
73
Refrigerated containers (reefers)
ships Goods that need a controlled-temperature environment
74
Open top containers
Ships Goods that cannot fit through the doors of a traditional container
75
Liquids travel in _____ containers
liquid bulk
76
Flat rack container
ships oversized cargo
77
Barges
Ships bulk cargo
78
The increased importance of containerization in intermodal transport has created new transportation models, such as _____ and _______.
Land bridges and intermodal yards
79
Land Bridge
For goods that are shipped from Asia to Europe, it is often more economical to ship goods by ocean to the West Coast of North America
80
Intermodal Terminal (Dry Port)
A location where containerized goods change means of transportation.
81
Because international transportation is so complex, many shippers rely on _______ to handle their international shipments
freight forwarders
82
The 11 incoterms rules
EXW (Ex Works) ... FCA (Free Carrier) ... CPT (Carriage Paid To) ... CIP (Carriage and Insurance Paid To) ... DAP (Delivered at Place) ... DPU (Delivered at Place Unloaded) ... DDP (Delivered Duty Paid) ... FAS (Free Alongside Ship) FOB (Free On Board) CIF (cost insurance and freight) CFR (Cost and Freight)
83
Scope for most of the incoterms
Can be used for any type of goods
84
Modality for most of the incoterms
can be used for any mode of transportation.
85
Responsibilities for most of the incoterms (exporter)
The exporter must package the goods for the international voyage and provide the importer with the documents necessary
86
Resposnsibilities for most of the incoterms (importer)
The importer must do everything else.
87
The Point at which the responsibility for the good shifts from exporter to importer occurs When _____ or ____
the exporter makes the goods available to the importer. or the exporter delivers the goods to the first carrier in the exporting country.

International Supply chain (4 decks)

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