Global Sourcing Exam 1 UPDATED Exam
Questions and CORRECT Answers
If done right, global sourcing helps businesses to: - Correct Answer- Reduce
material/operating costs
Improve quality
Increase product availability
Respond quickly to changing market
If done irresponsibly, global sourcing could create: - Correct Answer- Increase rates of
unemployment
Deepening the gaps between the rich and poor within developed countries
Unfair labor practices in developing countries
Child labor exploitation
Environmental degradation
What is sourcing? - Correct Answer- a set of business processes and activities by which
business acquire and deliver components or fully furnished products or services from outside
of the organization, with the objectives of finding, evaluating, and engaging suppliers of
goods and services to achieve long-term competitive advantages
What is a supply chain? - Correct Answer- a network of materials, information, and service
processing links within the characteristics of supply, transformation, and demand
What is supply chain management? - Correct Answer- The systematic, strategic coordination
of the traditional business functions, within a particular company and across businesses
within the supply chain, for the long-term performance of the individual companies and the
supply chain as a whole
What are the business activities required to conduct successful global sourcing of textiles and
apparel? - Correct Answer- - Making decisions regarding the amount of product needed
- Identifying production sites capable of producing goods
- Negotiating prices and discounts
, - Maintaining relationships with the manufacturers to ensure on-time delivery of the right
quality products
Goals of global supply chain management of textiles and apparel. - Correct Answer- Includes
coordination and collaboration with channel partners, logistics management, supply and
demand management, integration of all business functions, and coordination with inter-
functional activities
Goals of global sourcing: economic - Correct Answer- Cost reduction
Productivity growth
Value acquisition
Quick response and flexible product supply
Supply assurance
Quality assurance
Efficient capacity management
Triple bottom lines of sustainability - Correct Answer- Environmental improvement
Economic improvement
Social improvement
When the three come together is where sustainable global sourcing happens
What are Sourcing Job Responsibilities? - Correct Answer- tends to concentrate on
acquisition and delivery of components or fully finished products or services from outside of
the organization to the organization
What are the skills required to be a successful sourcer? - Correct Answer- building
relationships, long-term effects (people now are looking for sustainable and ethical practices)
Is global sourcing a B2B, C2C, or B2C activity? - Correct Answer- Global sourcing is a B2B
activity
Comparative Advantage Theory - Correct Answer- - In 1817, David Ricardo introduced the
notion of comparative (or relative) advantage to explain the nature of international trade
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