OMP 105 / MMP 104:

Distribution and Logistics Management

Module Test IV

I. Multiple Choice.

_____ 1. It is the worldwide allocating of resources or dispersing of goods.

a. Facilities Management

b. International Distribution

c. Logistics Management

d. Supply Chain Management

_____ 2. In this type of distribution, the production facility is located in a foreign location and the goods are shipped backed to the firm's country and to other countries. This is done mainly to take advantage of the cheap cost of manufacturing in the developing countries.

a. Fully Integrated Global Supply Chain

b. International Distribution System

c. International Supplier

d. Offshore Manufacturing

_____ 3. In this case, a producer in one country furnishes raw materials from several other countries. The finished goods need not necessarily be exported. Such a supply chain may not be associated with an international marketing effort since the manufacturer is only interested in sourcing supplies from other countries.

a. Fully Integrated Global Supply Chain

b. International Distribution System

c. International Supplier

d. Offshore Manufacturing

_____ 4. Under this system, the manufacturing function takes place in the domestic country and the produced goods are exported to foreign countries. This type of supply chain is associated with indirect and direct export entry mode.

a. Fully Integrated Global Supply Chain

b. International Distribution System

c. International Supplier

d. Offshore Manufacturing

_____ 5. These supply chains have become quite popular with the development of transportation and telecommunications infrastructure. In these supply chains, products are supplied, manufactured, and distributed from various facilities located throughout the world.

a. Fully Integrated Global Supply Chain

b. International Distribution System

c. International Supplier

d. Offshore Manufacturing

_____ 6. This is the company in the destination country that will handle the customs clearing procedures, dealings with the port, and delivery to your residence.

a. Customs Broker c. Freight Forwarder

b. Destination Agent d. Origin Agent

_____ 7. This is the actual port where the container is brought (already loaded and sealed) to be loaded onto the ship.

a. Customs Broker c. Export Port

b. Destination Agent d. Move Manager

_____ 8. It is used to represent a function that can be performed by any of several people or companies. It is the company that will oversee your shipment, sign the contract or agreement with, and it is the company that will be sending you your bill.

a. Customs Broker c. Move Manager

b. Freight Forwarder d. Shipper

_____ 9. This is the company that will arrange the ocean freight and do the export documentation. This is also the company that will move your cargo from the pickup point to the port.

a. Customs Broker c. Move Manager

b. Freight Forwarder d. Shipper

_____ 10. This is you, the person doing the shipment.

a. Customs Broker c. Move Manager

b. Freight Forwarder d. Shipper

II. Matching Type.

a. Agents

b. Aggressive Exporter

c. Barter

d. Consolidating Warehouse

e. Contract Manufacturing

f. Countertrade

g. Customs Bonded Warehouse

h. Customs Broker

i. Destination Port

j. Direct Exporting

k. Domestic Purchasing

l. Exporting

m. Franchising

n. House Bill of Lading

o. Indirect Exporting

p. Joint Ventures

q. Licensing

r. Origin Agent

s. Passive Exporter

t. Piggybacking

u. Ship Line

v. Wholly Owned Subsidiary

_____ 1. This is the local company that will do the visual survey, i.e. it will send someone to your home to see what is being shipped before quoting for the move, in order to give an accurate quote. It will also pack and load the shipment.

_____ 2. This is where the goods are finally unloaded in the country of destination.

_____ 3. This is the destination warehouse where your goods will be held until they clear customs.

_____ 4. It is usually engaged by an importer to get clearances from the customs of the importing country for the shipments and also to arrange for the transportation from the port to the final destination.

_____ 5. It is a document showing information specific to your shipment such as your name.

_____ 6. It is the most traditional and well-established form of operating in foreign markets. It is also the marketing of goods produced in one country into another.

_____ 7. One who awaits orders or comes across them by chance.

_____ 8. One who develops marketing strategies which provide a broad and clear picture of what the firm intends to do in the foreign market.

_____ 9. The organization may use an agent, distributor, or overseas subsidiary, or act via a government agency.

_____ 10. It is the direct exchange of one good for another.

_____ 11. Its advantages are method of obtaining sales by seller and getting a slice of the order and method of breaking into a "closed" market.

_____ 12. Manufacturer or exporter needs little expertise.

_____ 13. This happens when a foreign buyer gets interested in domestic manufacturer, comes to him to buy goods, takes the trouble of transporting it to the buyer's country, and sells it after proper marketing.

_____ 14. This method means that organizations with little exporting skill may use the services of one that has.

_____ 15. These are independent individuals or firms who are contracted to act on behalf of exporters to obtain orders on a commission basis.

_____ 16. It is defined as "the method of foreign operation whereby a firm in one country agrees to permit a company in another country to use the manufacturing, processing, trademark, know-how or some other skill provided by the licensor."

_____ 17. It is an underexplored entry mode in international markets, but it has been widely used as a rapid method of expansion within major developed markets in North America and Western Europe, most notably by fast food chains, consumer service businesses such as hotel or car rental, and business services.

_____ 18. It can be defined as "an enterprise in which two or more investors share ownership and control over property rights and operation".

_____ 19. A company gets a manufacturer in the foreign country to manufacture products for it on a contract basis. The company then undertakes to market the products in the foreign country under its brand name.

_____ 20. The most extensive form of participation is 100% ownership and this involves the greatest commitment in capital and managerial effort.