Q&A Hero

Q: External, rather than in-house providers of logistics services best defines A) third-party logistics suppliers. B) outsourced development. C) external settlement. D) external sourcing.

Q: (p. 362) A(n) _____ is a government entity that invests the savings of a nation. A. angel investor B. private investor C. central bank D. sovereign wealth fund

Q: Major management issues in supply chain management include each of the following except A) distribution network configuration. B) inventory control. C) supply contracts. D) social engineering.

Q: (p. 362) Almost all FDI comes from: A. hedge funds. B. sovereign wealth funds. C. multinational corporations. D. private equity.

Q: Factors influencing demand include A) economic conditions. B) competition. C) weather conditions. D) all of the above.

Q: (p. 362) Which of the following statements about portfolio investments is true? A. It is measured as the dollar value of funds invested by a parent corporation. B. It is limited and speculative. C. It confers a degree of control over the company. D. It is a long-term investment that cannot be sold anytime.

Q: A major activity related to the supply chain management problem in EC is the A) demand forecast. B) distribution. C) third-party logistics. D) order-taking process.

Q: (p. 362) All of the following statements are true of FDI EXCEPT: A. it is the financial process by which a corporation takes partial or total control of foreign assets. B. it is measured as the dollar value of funds invested by a parent corporation. C. it is a short-term investment that can be sold anytime. D. it is almost always made by transnational corporations.

Q: The movement of returns from customers to vendors best defines A) back flow logistics. B) reverse release. C) reverse logistics. D) bullwhip logistics.

Q: The administrative activities of order taking and fulfillment involve each of the following except A) sales quote. B) social engineering. C) order configuration. D) settlement.

Q: (p. 362) This is the financial process by which a corporation takes partial or total control of foreign assets with the intention of having a long-term presence. A. TPI B. Indirect investment C. Portfolio investment D. FDI

Q: How does traditional logistics typically differ from EC logistics? A) EC logistics deals with the movement of large amounts of materials to a few destinations. B) Traditional logistics deals with the movement of large amounts of materials to a few destinations. C) EC logistics is more predictable because demand is stable and consistent. D) Traditional logistic shipments typically are small parcels sent to many customers' homes.

Q: (p. 362) This is the limited, speculative purchase of stocks and bonds of a foreign company by individuals or mutual funds. A. Portfolio investment B. FDI C. TNI D. Direct investment

Q: The logistics of EC systems, typically involving small parcels sent to many customers' homes best defines A) e-logistics. B) e-shopping. C) e-delivery. D) e-fulfillment.

Q: (p. 362) This is measured as the dollar value of funds invested by a parent corporation for starting, acquiring, or expanding an enterprise in a foreign nation. A. Portfolio investment B. FDI C. Debt security D. TNI

Q: The operations involved in the efficient and effective flow and storage of goods, services, and related information from point of origin to point of consumption best defines A) order fulfillment. B) front-office operations. C) back-office operations. D) logistics.

Q: (p. 362) Direct investment means: A. buying or creating facilities in another country for producing in local markets. B. buying or creating facilities in home country. C. buying facilities based in home country for the purpose of exporting products. D. buying facilities in home country for the sole purpose of importing essential goods.

Q: The business processes, such as sales and advertising, which are visible to customers best defines A) order fulfillment. B) front-office operations. C) back-office operations. D) logistics.

Q: (p. 362) When multinational corporations invest their funds to start a business in a foreign country, this is called a(n): A. FDI. B. TPI. C. LDC. D. TNI.

Q: Activities that support fulfillment of orders, such as packing, delivery, accounting, and logistics best defines A) order fulfillment. B) front-office operations. C) back-office operations. D) logistics.

Q: (p. 361) Which Act makes it illegal for U.S. citizens anywhere in the world to bribe foreign officials? A. The International Anti-Bribery Act B. The Foreign Corrupt Practices Act C. The Sarbanes-Oxley Act D. The Foreign Investment and National Security Act

Q: Order fulfillment refers to each of the following except A) providing customers with what they have ordered. B) providing ordered products or services on time. C) providing all related customer services. D) providing price guarantees.

Q: (p. 359) With regard to MNCs in the United States: A. it is still rare for top executives to be naturalized citizens. B. boards of directors are dominated by foreign country majorities. C. most employees at company headquarters are foreign country nationals. D. each company must be chartered by a state.

Q: E-infrastructure services include each of the following except A) security. B) consulting services. C) integration standards. D) systems development.

Q: (p. 359) Which of the following is true about typical MNCs? A. Most MNCs are said to be stateless. B. Corporations are formed under international incorporation laws. C. They remain national rather than international. D. MNCs have become too transnational.

Q: Business partners, government, customers, and suppliers are A) e-markets. B) e-processes. C) e-communities. D) e-infrastructure.

Q: (p. 358) All of the following ratios are used to compute the TNI EXCEPT: A. foreign employment to total employment. B. foreign assets to total assets. C. foreign sales to total sales. D. foreign assets to total unemployment.

Q: (p. 358) The most widely used index measure of a corporation's "multinationality" is called the: A. LDC. B. TNI. C. FDI. D. TNC.

Q: Which of the following is not an EC service? A) e-partnership management B) e-infrastructure C) e-process D) e-markets

Q: (p. 356) Business entities in foreign countries controlled by parent transnational corporations are known as: A. foreign affiliates. B. indigenous producers. C. domestically owned firms. D. parent firms.

Q: Amazon.com's initial business model called for A) mobile retailing that had numerous portable or rented warehouses with small inventories. B) virtual retailing that had no warehouses and no inventory. C) mobile retailing that had a central warehouse with a large inventory. D) virtual retailing with two large warehouses in high-volume locations.

Q: (p. 356) The United Nations defines transnational corporations (TNCs) as: A. doing business in the state in which they are incorporated. B. doing business in the state of incorporation as well as neighboring states in the same country. C. companies that have erased national allegiances and become itinerant firms that move investment and activity from nation to nation in search of profits. D. parent firms that control the assets of affiliated entities in foreign countries including branches, subsidiaries, and joint ventures.

Q: IT is the least frequently outsourced business activity.

Q: (p. 356) Transnational corporations are defined as: A. doing business in the state in which they are incorporated. B. doing business in the state of incorporation as well as neighboring states in the same country. C. parent entities that control assets of affiliated entities in foreign countries. D. entities formed between two or more parties only to import essential goods.

Q: Ameritrade is an example of a transaction broker.

Q: Partnet, Travelocity, and Autobytel are marketplace concentrators.

Q: (p. 356) Which of the following is a less preferred name, compared to the others, for a multinational corporation? A. Global B. Multidomestic C. Transnational D. International

Q: (p. 356) The economic policy of lowering tariffs and other barriers to encourage trade and investment is known as: A. liberalization. B. globalization. C. capitalism. D. multinationality.

Q: Trademark and domain names are types of EC support services.

Q: (p. 355) All of the following are a part of global production EXCEPT: A. research. B. distribution. C. logistics. D. portfolio investment.

Q: iEntry is a search engine that locates information and aggregates B2B news.

Q: (p. 354) Identify the tier that is a part of internationalization. A. Indirect investments B. Importing essential goods C. Licensing franchises D. Portfolio investment

Q: B2Business.net is a directory that contains listings of B2B services organized by type of service.

Q: (p. 354) This is a part of the tiers of internationalization. A. Indirect investments B. Establishment of foreign sales offices C. Portfolio investment D. Importing essential goods

Q: The goal of CPFR is to streamline product flow from manufacturing plants all the way to customers' homes.

Q: (p. 354) Which of the following is a part of the tiers of internationalization? A. Export sales B. Indirect investments C. Importing essential goods D. Portfolio investment

Q: A major problem in order fulfillment is the demand forecast.

Q: RFID and CPFR were found effective for improving supply chains and reducing problems along them.

Q: (p. 354) Each of the five tiers of internationalization is seen as all of the following EXCEPT: A. a theory. B. an ideal. C. a model. D. a policy.

Q: With a rolling warehouse, products on the delivery truck are not preassigned to a retailer, but the decision about the quantity to unload at each destination is made at the time of unloading, which lowers logistics costs.

Q: (p. 354) The five tiers of internationalization in MNCs: A. state a common method to enter foreign market in five stages. B. represent alternate ways to extend business activity into foreign markets. C. explain a common method to enter the domestic market in stages. D. represent ways to expand business in the domestic market.

Q: Merge-in-transit is a model in which components for a product come from two or more different physical locations. For example, in shipping a desktop PC, the monitor may come from the East Coast of the United States and the CPU from the West Coast.

Q: (p. 354) Most multinational corporations (MNCs) are: A. public enterprises. B. state-owned. C. cooperatives. D. private enterprises.

Q: Visibility decreases along the supply chain.

Q: (p. 354) An entity headquartered in one country that does business in one or more foreign countries is called a(n): A. MNC. B. LDC. C. TNI. D. FDI.

Q: Supplychainer.com (2006) recommends automating your pickings as one of seven elements for optimal order fulfillment.

Q: (p. 378) Bluewashing is a report from a corporation about its actions in support of the 10 Global Compact principles.

Q: B2B order fulfillment commonly uses business process management software to automate various steps in the process.

Q: (p. 375) The Global Compact is a code of conduct that enforces its principles.

Q: Allowing for the return of unwanted merchandise and providing for product exchanges are necessary to maintain customers' trust and loyalty.

Q: (p. 375) Voluntary CSR is the full corrective for flaws in markets.

Q: IBM pioneered the production of the components of computers via mass production and to offer customization in their assembly.

Q: (p. 369) The OECD is a group of 33 nations formed in 1961 as an outgrowth of cooperation to rebuild Europe after World War II.

Q: The ability to easily change the logistics provider is one advantage of outsourcing.

Q: (p. 369) The OECD Guidelines for Multinational Enterprises is a set of 16 broadly worded principles about protecting and conserving the natural environment.

Q: An effective way to solve order fulfillment problems is for an organization to partner with UPS, FedEx, or other shippers.

Q: (p. 367) The Sullivan Principles was a 1977 code of conduct that required multinational corporations in South Africa to do business in a nondiscriminatory way.

Q: An efficient solution to many supply chain problems is to change the supply chain structure from a hub to a linear structure.

Q: (p. 366) Even without making direct investments in a nation, powerful MNCs can shake its economy.

Q: Allowing business partners to electronically track and monitor inventory levels and production activities can improve inventory management and inventory levels, as well as minimize the administrative expenses of inventory management.

Q: (p. 364) The primary motive of companies investing in LDCs is getting an adequate return on capital invested.

Q: Electronic payments can expedite both the order fulfillment cycle and the payment delivery period. With such systems, payment processing can be significantly more expensive and fraud is harder to control.

Q: (p. 362) Almost all FDI comes from multinational corporations.

Q: (p. 362) Foreign direct investment is the limited, speculative purchase of stocks and bonds in a foreign company by individuals.

Q: Outsourcing collaborators are external, rather than in-house, providers of logistics services.

Q: (p. 362) The single measure that best captures the activity and power of MNCs is portfolio investment.

Q: The distribution network configuration is a major management issue in supply chain management.

Q: (p. 362) When an MNC invests funds to acquire a foreign company, this is called a foreign direct investment.

Q: Pure EC companies are likely to have more problems because they do not have a logistics infrastructure already in place and are forced to use external logistics services rather than in-house departments for these functions.

Q: (p. 359) In many fifth-tier companies, there is a strong trend toward more centralized authority rather than more "statelessness."