SCMN Exam 3 Questions with All Correct Answers Latest Update
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Module
SCMN
Institution
SCMN
SCMN Exam 3 Questions with All Correct Answers Latest Update
What is Offshore Manufacturing? - Answer--Production of goods by one firm, under the label or brand of another firm.
What are the advantages of Offshore Manufacturing? - Answer--labor costs are cheaper, quickly rising
-strengthen...
SCMN Exam 3 Questions with All
Correct Answers 2024-2025 Latest
Update
What is Offshore Manufacturing? - Answer--Production of goods by one firm, under the
label or brand of another firm.
What are the advantages of Offshore Manufacturing? - Answer--labor costs are
cheaper, quickly rising
-strengthens competitive advantage
-able to leverage the comparative advantage of other nations
-gain market share
-help grow total market by innovation and introducing new products
What are the disadvantages of Offshore Manufacturing? - Answer--communication
involves difficult, heavy paperwork
-visibility is more challenging to maintain
-freight is more expensive, more risky
-stockouts have higher risk of shortages
-lead time is uncertain and longer cycle time
Why is the trend of Nearshoring & Onshoring taking place? - Answer--With increased
global competition & pressure to reduce costs, became more competitive & innovative,
many companies are turning to these based outsourcing vendors.
What is Nearshoring? - Answer--The practice of moving one's employees or business
activities from a distant country back to a country that is nearby.
What are INCOTERMS? - Answer--International rules that are accepted by
governments, legal authorities, and practitioners worldwide for the interpretation of the
most commonly used terms in international trade.
-They either reduce or remove altogether uncertainties arising from differing
interpretations of such terms in different countries.
How do INCOTERMS help organizations manage global operations & transactions? -
Answer--Specify risks, responsibilities, and payments for international transport
E term - Answer-Depature term:
, -Requires the least effort, risk, and costs for the seller (the exporter)
-Seller minimizes his risk by only making the goods available at his own premises
F term - Answer-Main carriage not paid by seller:
-Seller arranges & pays for pre-carriage in the country of export (i.e., delivers the goods
to an international carrier appointed by the buyer)
C term - Answer-Main carriage paid by seller:
-Seller arranges & pays for the main carriage but w/o assuming the risk of the main
carriage unless "I" term is used
D term - Answer-Arrival:
-Requires the least effort, risk, and costs for the buyer (the importer)
-Seller must deliver the goods to an agreed upon destination, which maximizes the
seller's costs & risks.
When you see the letter "I" in an INCOTERM, who is responsible for purchasing it? -
Answer-The seller
When an Incoterm includes the letter "I" it stands for intermodal transportation. T/F -
Answer-False- Insurance
What are some other names for Offshore Manufacturing? - Answer--Contract
Manufacturing
-Outsourcing
-Private Label Manufacturing
Why is documentation so important in global transactions? - Answer--It drives the entire
export process-moving info in a timely fashion is key to uninterrupted freight flows.
*Critical Success Factors:
-using the right documents
-availability in advance of shipment
-Accuracy
-impacts application of tariffs
-errors create delays & costs
What are the primary documents used in global trade? - Answer--Commercial invoice
-Bill of Lading
-Certificate of Origin
-Insurance Documents
-Letter of Credit
Commercial Invoice - Answer--Describes the transaction from
start to finish
-A bill for the goods from the seller to the buyer
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