Homework Project #4
Name: Student (Preview)
Start Time: Oct 23, 2002 14:48 Time Allowed: 14 days
Number of Questions: 27
 

Question 1  (2 points)
Purchasing materials for manufacture or sale from foreign suppliers is known as exporting trading. 
 
True 
False 

Question 2  (2 points)Global companies are more successful if they are able to develop strategies that simultaneously enable them to achieve their business objectives at business locations throughout the world. 
 
True 
False 

Question 3  (2 points)Intermodalism is the joint use of two or more transportation modes. 
 
True 
False 

Question 4  (2 points)Global logistics managers have learned that it is more effective to use one mode of transportation for a shipment, from origin to destination, than to break the transport up into two or more modes. 
 
True 
False 

Question 5  (2 points)The use of land transportation for a portion of a container's voyage refers to land or micro bridge service. 
 
True 
False 

Question 6  (2 points)International Sourcing is located in Liverpool, England and is shipping an order to Yokohama, Japan. The shipment goes by container ship to Charleston, South Carolina, where the containers are off-loaded onto rail cars for transport to Seattle, Washington. There, the containers are loaded onto a container ship for transport to Yokohama. This shipment involves the use of a landbridge. 
 
True 
False 

Question 7  (2 points)Ad volorem custom duties are import duties stated as a percentage of the commodities weight or number of items. 
 
True 
False 

Question 8  (3 points)Areas within a country that the U.S. Custom Service treats as foreign territory are known as foreign trade zones. 
 
True 
False 

Question 9  (3 points)Madrid Drum is a Spanish company that imports steel sheets from Japan to their drum manufacturing plant in Daytona Beach, Florida. Madrid does not have to pay the 10 percent duty on the imported sheets because U.S. customs treats the plant area as foreign territory. The finished drums are then moved into the U.S. market by paying the lower 3 percent rate for the finished product. This arrangement is possible in the United States BECAUSE Madrid has secured the services of a customs house broker. Is the reason true? 
 
True 
False 

Question 10  (4 points)Global markets have developed because of? 
 
U.S. companies moving overseas 
Foreign firms establishing plants in the U.S. 
Similar needs and wants throughout the world 
Government sponsorship of trading missions 

Question 11  (4 points)Which of the following best distinguishes global marketing from multi-national marketing? 
 
The global emphasis on tailoring products and marketing strategies to meet perceived local needs 
The global emphasis on satisfying common demands worldwide 
The global emphasis on profits and efficiency 
The global emphasis on the marketing mix and marketing functions 

Question 12  (4 points)Which are the major modes of international transportation? 
 
Water and air 
Water and rail 
Rail and motor 
Rail and air 

Question 13  (4 points)Which is a major category of ocean shipping? 
 
Passenger travel 
Common carriers 
exempt carriers 
Liner vessels 

Question 14  (4 points)Which is the main advantage of international air transport? 
 
Freight rates 
Flexibility 
Transit times 
Accessibility 

Question 15  (4 points)Which conditions must be present before motor carriers and rail carriers can be used for international shipments? 
 
Shipments much be in volume and in bulk 
The shipment must be between countries in the same continent 
No customs barriers can be imposed 
All of the above conditions 

Question 16  (4 points)International air freight has the disadvantage of: 
 
Reliability 
Short transit times 
High freight rates 
Security 

Question 17  (4 points)Which type of strategic global channel intermediary provides expert advice to small international shippers, consolidates small shipments, and perform routine actions shipments require? 
 
Foreign freight forwarder 
NVOCC 
Customs house broker 
export packer 

Question 18  (4 points)Which global strategic channel intermediary consolidates and breaks down containers which contain a number of different shipments that originate at or terminate at inland points? 
 
RO-RO 
NVOCC 
EDI 
ICC 

Question 19  (4 points)Gemini products wishes to enter foreign markets but lacks the resources to do so. They evaluate their alternatives and approach Overseas Traders, LLC., a company that specializes in the foreign distribution of products of the type which Gemini manufactures. Overseas purchases $50000 of Gemini's products for sale on the intermediary market. Overseas is which type of global logistics channel intermediary? 
 
NVOCC 
Export packer 
Export trading company 
Customs house broker 

Question 20  (4 points)A country's customs regulations have the objectives of providing revenue and 
 
encouraging imports 
reducing paperwork 
protecting domestic industries 
providing for the national defense 

Question 21  (4 points)Good A is valued at $400, and is subject to an import duty of 10 percent. Which type of import duty is assessed on Good A? 
 
Unit duty 
Compound duty 
ad valorem duty 
protection tax 

Question 22  (4 points)Customs regulations raise revenue through the collection of import duties. Which is not a means of determining the duty owed? 
 
A percentage of the value of imported goods 
Cost per unit 
Compound duty 
Exchange rates 

Question 23  (4 points)Sylvan Exports plans to import 500 sets of dishes with a value of $500 a set. The compound customs rate for this shipment is 8 percent of the value and $35 for each set imported. How much customs duty will Sylvan have to pay for this shipment? 
 
17500 
20000 
37500 
75000 

Question 24  (4 points)Sinclair Machinery imported 300 engines from a manufacturer in France. The import duty paid was $1000. Finding no market for the engines, Sinclair reexported the engines to Brazil, and applied for a drawback. How much of the paid duty will Sinclair receive back? 
 
100 
500 
990 
none, duty paid cannot be refunded 

Question 25  (10 points)Describe the global transportation options available to the logistics manager. 



Question 26  (10 points)Discuss the ways governments influence global logistics and international trade. 



Question 27  (50 points)***Attention: This case requires you to write a short report to hand in SEPARATELY to the Instructor. Thanks.**** Case 6-2 Casey-Lynn Corporation (pp. 218-219 in the textbook) The Casey-Lynn Corporation, a major producer of stereo receiver equipment, is currently faced with a rapidly growing product line and the inventory problems associated with a multiple product line Casey-Lyn's president, Mary Lynagh, has decided to initiate a program to anlaze the company's inventory requirement utilizing different inventory analysis tools. The first phase of this program consists of an ABC analysis of the company's product line (shown in the table). Ms. Lynagh has encountered difficulties in deciding on the appropriate criteria to use in the classification and in developing appropriate cutoff evels for each class of inventory. To solve her dilemma, Ms. Lynagh has contracted the services of a logistics consulting firm to perform the inventory analysis. Case Questions: If you were employed by the consulting firm, how would you construct your method of analysis? What criteria would you use? What cutoff levels? Be sure to give explanations of the reasoning behind all of your decision and methods.