Question 1

Cultural differences between countries seldom result in unwelcome surprises when buying internationally.

Accepted Answer

A) True 
 B)False

Question 2

____ occurs when a selling company agrees to accept goods from the buying country as partial payment,even if it does not want them,and then sells,at a discount,the credits for these goods to a third-party trader,which sells or markets the goods.

Accepted Answer

A)   Compensation trading
B)   Buy-back
C)   Barter
D)   Counterpurchase
E)   Switch tradingF) A) and E)
G) A) and B)

Question 3

____ requires a selling firm to purchase a specified amount of goods from the country that purchased its products.

Accepted Answer

A)   Switch trading
B)   Barter
C)   Compensation trading
D)   Counterpurchase
E)   Buy-backF) A) and D)
G) C) and D)

Question 4

A/An ____ can be changed or canceled at any time by the buyer without the seller's consent.

Accepted Answer

A)   irrevocable letter of credit
B)   incoterm
C)   revocable letter of credit
D)   CISG
E)   switch tradeF) A) and C)
G) All of the above

Question 5

Trade shows are often one of the best ways to gather information on many suppliers at one time.

Accepted Answer

A) True 
 B)False

Question 6

____ are internationally recognized standard definitions that describe the responsibilities of a buyer and seller in a commercial transaction.

Accepted Answer

A)   Incoterms
B)   Duties
C)   BOLs
D)   Values
E)   TariffsF) A) and C)
G) A) and D)

Question 7

A critical assessment of the increased supply risks associated with offshore sources must be made after contracting,not before a commitment is made.

Accepted Answer

A) True 
 B)False

Question 8

Buyers are never reluctant to shift business from domestic sources to unknown foreign sources.

Accepted Answer

A) True 
 B)False

Question 9

____ refers to all international and domestic trade where buyer and seller have at least a partial exchange of goods for goods.

Accepted Answer

A)   Six Sigma
B)   Countertrade
C)   Strategic sourcing
D)   IPO
E)   CISGF) C) and E)
G) A) and B)

Question 10

The use of forward exchange contracts encourages speculation.

Accepted Answer

A) True 
 B)False

Question 11

Firms that decentralize operational activities during global sourcing are unlikely to realize lower total cost of ownership,better inventory management,and improved performance to external customers.

Accepted Answer

A) True 
 B)False

Question 12

All of the following are typical reasons why a country imposes countertrade demands except ____.

Accepted Answer

A)   some countries simply lack the hard currency to purchase imported goods
B)   countertrade provides a means of selling products in markets to which a company may have otherwise lacked access
C)   developing nations often require Western multinationals to accept goods as at least partial payment for sales within their country
D)   the country may need assistance to produce its own goods and services
E)   sourcing in a particular country expedites the sales by the company into that specific countryF) A) and B)
G) A) and C)

Question 13

Insurance protection for international shipments is optional because oceangoing carrier liability is generally unlimited.

Accepted Answer

A) True 
 B)False

Question 14

Always assume that an offshore company can automatically satisfy a buyer's performance requirements or expectations.

Accepted Answer

A) True 
 B)False

Question 15

International purchasing does not create additional costs that are not part of domestic purchasing.

Accepted Answer

A) True 
 B)False

Question 16

All of the following are examples of why organizations source worldwide except ____.

Accepted Answer

A)   cost/price benefits
B)   access to product and process technology
C)   quality
D)   introduce competition to domestic suppliers
E)   ability to influence consumersF) A) and B)
G) B) and D)

Exam 10: Worldwide Sourcing

Trade shows are often one of the best ways to gather information on many suppliers at one time.

Correct Answer
verified

____ requires a selling firm to purchase a specified amount of goods from the country that purchased its products.

Correct Answer
verified

International purchasing does not create additional costs that are not part of domestic purchasing.

Correct Answer
verified

All of the following are examples of why organizations source worldwide except ____.

Correct Answer
verified

____ occurs when a selling company agrees to accept goods from the buying country as partial payment,even if it does not want them,and then sells,at a discount,the credits for these goods to a third-party trader,which sells or markets the goods.

Correct Answer
verified

The use of forward exchange contracts encourages speculation.

Correct Answer
verified

____ are internationally recognized standard definitions that describe the responsibilities of a buyer and seller in a commercial transaction.

Correct Answer
verified

A/An ____ can be changed or canceled at any time by the buyer without the seller's consent.

Correct Answer
verified

____ refers to all international and domestic trade where buyer and seller have at least a partial exchange of goods for goods.

Correct Answer
verified

A critical assessment of the increased supply risks associated with offshore sources must be made after contracting,not before a commitment is made.

Correct Answer
verified

All of the following are typical reasons why a country imposes countertrade demands except ____.

Correct Answer
verified

Firms that decentralize operational activities during global sourcing are unlikely to realize lower total cost of ownership,better inventory management,and improved performance to external customers.

Correct Answer
verified

Always assume that an offshore company can automatically satisfy a buyer's performance requirements or expectations.

Correct Answer
verified

Insurance protection for international shipments is optional because oceangoing carrier liability is generally unlimited.

Correct Answer
verified

Buyers are never reluctant to shift business from domestic sources to unknown foreign sources.

Correct Answer
verified

Cultural differences between countries seldom result in unwelcome surprises when buying internationally.

Correct Answer
verified

Exam 10: Worldwide Sourcing

Trade shows are often one of the best ways to gather information on many suppliers at one time.

Correct AnswerverifiedShow Answer

____ requires a selling firm to purchase a specified amount of goods from the country that purchased its products.

Correct AnswerverifiedShow Answer

International purchasing does not create additional costs that are not part of domestic purchasing.

Correct AnswerverifiedShow Answer

All of the following are examples of why organizations source worldwide except ____.

Correct AnswerverifiedShow Answer

____ occurs when a selling company agrees to accept goods from the buying country as partial payment,even if it does not want them,and then sells,at a discount,the credits for these goods to a third-party trader,which sells or markets the goods.

Correct AnswerverifiedShow Answer

The use of forward exchange contracts encourages speculation.

Correct AnswerverifiedShow Answer

____ are internationally recognized standard definitions that describe the responsibilities of a buyer and seller in a commercial transaction.

Correct AnswerverifiedShow Answer

A/An ____ can be changed or canceled at any time by the buyer without the seller's consent.

Correct AnswerverifiedShow Answer

____ refers to all international and domestic trade where buyer and seller have at least a partial exchange of goods for goods.

Correct AnswerverifiedShow Answer

A critical assessment of the increased supply risks associated with offshore sources must be made after contracting,not before a commitment is made.

Correct AnswerverifiedShow Answer

All of the following are typical reasons why a country imposes countertrade demands except ____.

Correct AnswerverifiedShow Answer

Firms that decentralize operational activities during global sourcing are unlikely to realize lower total cost of ownership,better inventory management,and improved performance to external customers.

Correct AnswerverifiedShow Answer

Always assume that an offshore company can automatically satisfy a buyer's performance requirements or expectations.

Correct AnswerverifiedShow Answer

Insurance protection for international shipments is optional because oceangoing carrier liability is generally unlimited.

Correct AnswerverifiedShow Answer

Buyers are never reluctant to shift business from domestic sources to unknown foreign sources.

Correct AnswerverifiedShow Answer

Cultural differences between countries seldom result in unwelcome surprises when buying internationally.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified