Global sourcing has significantly increased in recent years. Is this:
- true?
- partly true?
- false?
Which of the following is not a way of organising international operations?
- global companies
- multi-national companies
- trans-national companies
- international companies
- national companies
Worldwide sourcing refers to any purchase, where the supplier and buyer are in different countries. Is this:
- true?
- partly true?
- false?
Which of the following is not a common reason for worldwide sourcing?
- access to product and process technology
- lower overall costs
- currency fluctuations
- competition from domestic suppliers
- establish a presence in a new market
Which of the following is not a common barrier to worldwide sourcing?
- resistance to change
- access to limited sources
- lack of skills in global sourcing
- longer lead times
- different business cultures
International competition means that the cost of items bought globally is, always, less than the cost from domestic suppliers. Is this:
- true?
- neither true nor false?
- false?
Which of the following costs are likely to rise with worldwide purchasing?
- packaging and transport
- broker and agent fees
- customs duty
- currency risk
- all of the above
There is no way that worldwide purchases can be protected against currency fluctuations. Is this:
- true?
- partly true?
- false?
Which of the following is least likely to be an issue, when moving from domestic to international sourcing?
- cultural differences
- product quality
- total cost of ownership
- information about worldwide sources
- extended logistics
- legal frameworks
Which of the following is not, generally, a good source of information for international sourcing?
- telephone directories
- industrial directories
- trade shows
- government agencies
- Internet searches
Selecting an international supplier is essentially the same as selecting a domestic supplier. Is this:
- true?
- partly true?
- false?
Which, of the following, is not an important question for buyers to ask of international purchases?
- is there a significant difference in total cost of ownership?
- can suppliers guarantee reliable deliveries?
- what are the terms for trade and payment?
- what is a supplier’s overriding mission?
- what legal system is used?
- what is the effect of longer supply chains?
Business culture is essentially the same throughout the world. Is this:
- true?
- either true or false?
- false?
Purchases are always controlled by the legislation in the buyer’s home country, not the supplier’s. Is this:
- true?
- partly true?
- false?
A countertrade agreement is an arrangement where a buyer pays cash, in some form of ‘over the counter’ arrangement. Is this:
- true?
- partly true?
- false?
Which of the following is not a common type of countertrade arrangement?
- switch trading
- offset
- counterpurchase
- barter
- credit transfer
- buy-back
Effective global sourcing represents a sophisticated level of strategic development. Is this:
- true?
- partly true?
- false?
Which of the following is not, necessarily, a factor that encourages success in global sourcing?
- sophisticated communications
- inter-modal logistics
- information sharing with suppliers
- well-defined procedures for sourcing
- international purchasing office support
- decentralised purchasing operations