Global Sourcing in Purchasing and Supply Chain Management MCQs

Global Sourcing in Purchasing and Supply Chain Management MCQs

The following Global Sourcing in Purchasing and Supply Chain Management MCQs have been compiled by our experts through research, in order to test your knowledge of the subject of Global Sourcing in Purchasing and Supply Chain Management. We encourage you to answer these multiple-choice questions to assess your proficiency.
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1: The Countertrade exchange of goods for goods in half or complete payment of a sales transaction.

A.   True

B.   False

2: The value of two nation’s currency versus the currency of another nation or economic zone is known as Currency exchange rate.

A.   True

B.   False

3: Foreign trade zone is a designated area where goods can be stored within the U.k. boundaries without payment until the goods are passed to the buying company.

A.   True

B.   False

4: Taking disadvantage of situations and people by evaluating the consequences.

A.   Opportunism

B.   Foreign trade zone

C.   Poaching

D.   Protectionism

5: Poaching is the extent to which the service provider is inclined to use information gained through its relationship with the customer for its own, _____unauthorized, benefit should the customer be unable to detect such action.

A.   Necessarily

B.   Perhaps

C.   Hardly believable

D.   None of these

6: What does "global sourcing" refer to in purchasing and supply chain management?

A.   Sourcing materials from international suppliers to reduce costs

B.   Sourcing materials from local suppliers to support the domestic economy

C.   Sourcing materials from a single supplier to ensure consistency

D.   Sourcing materials and services from suppliers around the world to optimize the supply chain

7: What is the primary motivation for organizations to engage in global sourcing?

A.   To increase the complexity of the supply chain

B.   To limit supplier options and reduce competition

C.   To gain access to a broader range of suppliers and reduce costs

D.   To decrease the efficiency of the supply chain

8: Which factor is NOT a potential risk associated with global sourcing?

A.   Political instability in sourcing countries

B.   Currency fluctuations and exchange rate risks

C.   Shorter lead times and faster delivery

D.   Supply chain disruptions due to natural disasters

9: What is the main advantage of using multiple suppliers from different countries in global sourcing?

A.   Increased dependency on a single supplier

B.   Reduced complexity in managing the supply chain

C.   Enhanced flexibility and risk mitigation

D.   Higher transportation costs

10: How does global sourcing impact environmental sustainability in supply chain management?

A.   It leads to higher greenhouse gas emissions due to longer transportation distances

B.   It minimizes the environmental impact by promoting local sourcing

C.   It can positively impact sustainability through responsible sourcing practices

D.   It has no impact on environmental sustainability

11: Which strategy aims to involve suppliers as collaborative partners in the global sourcing process?

A.   Sole sourcing

B.   Dual sourcing

C.   Multiple sourcing

D.   Supplier relationship management

12: What does "nearshoring" refer to in global sourcing?

A.   Sourcing from suppliers located in the same country as the organization

B.   Sourcing from suppliers located in nearby countries to reduce transportation costs

C.   Sourcing from suppliers located in distant countries for strategic reasons

D.   Sourcing from suppliers located in nearby or neighboring countries

13: How can organizations address the challenges of global sourcing?

A.   By avoiding global sourcing altogether and relying on local suppliers

B.   By conducting thorough risk assessments and adopting risk mitigation strategies

C.   By focusing solely on cost reduction and disregarding other factors

D.   By centralizing all sourcing decisions at the headquarters

14: In global sourcing, what does the term "incoterms" refer to?

A.   International taxation regulations related to sourcing

B.   International trade agreements and tariffs

C.   The set of rules defining the responsibilities of buyers and sellers regarding the delivery of goods

D.   The certification process for global suppliers

15: How can global sourcing contribute to supply chain resilience?

A.   By reducing complexity and relying on a single supplier for all materials

B.   By increasing supply chain vulnerabilities and dependence on foreign suppliers

C.   By diversifying suppliers across different countries to mitigate risks

D.   By ignoring supply chain risks and challenges