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Exercise
Chapter 1
1. The total value of international trade in services and merchandise is about ___. B
a) $ 9 billion b) $ 9 trillion c) $ 9 million d) $ 9 thousand e) None of the above
2. International trade is still mostly concentrated among the developed countries of the Northern Hemisphere. Which country is the largest importer of the world? A
a) United States b) Germany c) China d) Japan
3. The common currency of most of the countries of the European Union is called ___. D
a) the euro-dollar b) the european currency unit (ECU) c) the thaler d) the euro
4. Which of the following entities was created at the Bretton-Woods Conference of 1944? A
a) International Monetary Fund b) World Trade Conference c) Marshall Plan d) United Nations
5. On occasion, a firm will respond to a competitor's move by retaliating. For example, Linde Gas (an American firm producing industrial gasses) entered the French market when Air Liquide (a French company in the same industry) decided to enter the U.S. market. Such a move is considered a ___. B
a) cost driver b) competitive driver c) technology driver d) market driver e) None of the above
6. Argentina can produce one ton of meat (beef) using 0.1 years of labor. It can also produce one automobile using two years of labor. In order to produce one ton of beef, the United States uses 0.2 years of labor. It can produce an automobile using 1.5 years of labor. Argentina has ___.B
a) an absolute advantage in the production of automobiles b) an absolute advantage in the production of beef
c) a comparative advantage in the production of automobiles d) a comparative advantage in the production of beef
7. Russia can produce 25 tons of steel or 15 chairs using the same amount of resources. Using the exact same amount of resources, India can produce 18 tons of steel and 12 chairs. According to the theory of comparative advantage, at what price will Russia and India trade chairs? A
a) India will buy chairs as long as the price is lower than 0.67 tons of steel
b) India will sell chairs as long as the price is higher than 0.67 tons of steel
c) Russia will buy chairs as long as the price is lower than 0.6 tons of steel
d) Impossible to determine with the information given
8. According to the International Product Life Cycle Theory, the country(ies) most likely to manufacture a product that has been recently developed (one that is the result of a brand-new design and uses patented technology) and is in its first commercialization year, is (are) ___.A
a) the country of innovation only b) developing countries
c) any country with the manufacturing technology necessary to manufacture it d) other developed countries
9. The international environment presents challenges for the international logistician. Which aspect of the international business environment is most likely to create frustrations? A
a) Cultural differences b) Economic issues c) Currency differences d) Infrastructure constraints
10. Information on foreign countries, including their economic environment, their political environment and their geography, can easily be found in several publications. Which is not one of the organizations that publishes background information on countries? D
a) The Economist's Intelligence Unit b) The Central Intelligence Agency
c) The U.S. Department of Commerce d) The United Nations' UNICEF
Chapter 2
1. Which one was not one of the characteristics of the "early days" of logistics? D
a)An emphasis on making sure that the goods arrived in good condition
b) An emphasis on low-cost transportation c) Long transit times d) An emphasis on customer satisfaction
2. Who was the person who popularized the idea of sea-going containers that could be loaded directly onto a ship, a truck, or a railroad car? B
a) Peter Maersk b) Malcom McLean c) Joseph Battaglia d) Hapag Lloyd e) None of the above
3. In the 1980s, companies started to manage their inventories much more closely than they had in the 1960s and 1970s. This was due to an increase in ___.A
a) interest rates b) the value of inventories in general c) the value of the goods held in inventory
d) the creation of Just-In-Time inventory management systems
4. It is not unusual for companies shipping to large manufacturers and retail chains to be penalized financially (not receiving the full invoice amount) for not ___.D
a) shipping the correct goods b) shipping the goods in the right quantity
c) shipping the entire order at once d) delivering the goods on the day and at the time promised
5. DRP (Distribution Requirements Planning) is a system that allows manufacturers, wholesalers and retailers of consumer products to manage their inventory "just-in-time:" DPR works as a ___.D
a) "draw" system b) "push" system c) "elastic" system d) "pull" system e) None of the above
6. Which of the following is not an element of international logistics, according to the authors, although it is a part of domestic logistics? A
a) Reverse logistics b) The management of transportation c) The management of inventories d) The management of paperwork
7. The definition of International Supply Chain Management is the same as the definition of Supply Chain Management, except that it makes explicit the fact that SCM ___.D
a) is global . b) is international. c) includes international activities d) All of the above
Chapter 3
1) Of the following, the best definition of a logistics infrastructure would be that it consists of ___.
A) all of the elements in place to facilitate transportation, communication, and business exchanges
B) a country's electrical supply and road network
C) the amount of computerization a country has
D) a developed banking system
2) Because some ports are becoming increasingly limited in their ability to handle ever-larger ships it is possible that ___.
A) ship sizes will become smaller
B) massive government programs will do what is necessary to upgrade the smaller ports
C) large ships will go to "hub" ports where "feeder" ships will traverse to and from the smaller ports
D) ocean shipping costs will rapidly decline
3) The busiest cargo airport in the world is ___.
A) Heathrow B) Denver International C) O'Hare D) Dallas-Fort Worth International
4) Factors contributing to the rise of U.S. freight railroads since about 1980 are ___.
A) road congestion, concerns about pollution and noise, and development of the multi-modal container
B) higher train speeds, development of more custom service by railroads, and concerns about terrorism
C) increased shipments of high-value goods like computers, unreliability of air freight, and the building of new railroads
D) All of the above
5) In the European Union, the goal for mail delivery sent to a national address is ___.
A) two days B) three days C) D + 1 D) D + 2
6) There are sometimes problems with electrical supply in ___.
A) Sub-Sahara Africa B) Saudi Arabia C) some parts of a developed country like the United States D) All of the above
7) Regarding water availability in the infrastructure ___.
A) more than 95 percent of the world's population has running water B) many cities have old leaky pipes
C) it is not important to economic development D) All of the above
8) As ships move through the Panama Canal, the locks they traverse use an inordinate amount of fresh water, including water from the reserve at ___.
A) Lake Panama B) Guillard Lake C) The Panama River D) Great Lake
9) As a defense measure to keep invading military troops from using their railroads, Spain and Russia ___.
A) built explosives into bridges and tunnels
B) made drive controls in locomotives opposite to what they were in the rest of Europe
C) developed widths between the rails different from those of the rest of Europe
D) All of the above
10) Although there is no equivalent term in English, the French term ouvrages d'art has to do with ___.
A) civil engineering structures B) museums C) galleries D) telecommunications
Chapter 11
1) Dead-weight tonnage ___.
A)is the maximum weight of the cargo that a vessel can carry B)is 2,204.6 pounds
C)does not include the bunker D)All of the above E)None of the above
2) In containerized shipping, the term TEU stands for ___.
A)Trans-European Units B)Terminal Event Utilization C)Trip Extension Unit D)two-end Undercarriage
3) Countries with an open registry often provide ___.
A)secondary registries B)flags of convenience C)more strict regulation of ships
D)an opportunity for ship owners from developing countries to register their ships in the United States E)None of the above
4) Breakbulk ships ___.
A)are expected to increase in number B)have low labor costs
C)can call at just about any port to pick up different kinds of cargo loads D)All of the above E)None of the above
5) Ships dedicated to the transport of petroleum products are called ___.
A)LASH barges B)dry bulk carriers C)hague carriers D)crude carriers E)None of the above
6) Refrigerated ships are slowly being replaced by ___.
A)refrigerated containers B)dry bulk carriers C)tramp ships D)LASH barges E)None of the above
7) LNG and LPG ships ___.
A)are obsolete B)cannot compete with container ships C)often operate on long-term contracts D)All of the above
8) The total capacity of the ship expressed in long tons is called ___.
A)ship size B)full tonnage C)dead-weight tonnage D)weight tonnage E)ship capacity
9) Ships too large to pass through the Panama Canal are called ___.
A)tramps B)panamax ships C)post-Panamax ships D)capesize ships E)None of the above
10) Ships designed to carry one single type of refined petroleum product are sometimes called ___.
A)LASH ships B)post-production ships C)conference ships D)NVOCCs E)None of the above
Chapter 12
1. FTK stands for ___.
a) Freight Transport Kelvin b) Full at 12-thousand c) First Terminal Kilometer d) Furthest Tracing Kernel. e) None of the above
2. Among freight often carried in the belly of scheduled international passenger airplanes are ___.
a) athletic shoes b) television sets c) critical machine or computer parts and fresh produce like fish d) DVD players
3. OBC service stands for ___.
a) over ballast cresting b) onboard courier c) onboard computer d) old benefit connections e) None of the above
4. In calculating airfreight rates, airlines figure the volume-weight of the shipment based on the volume yielding a certain weight value. As a result, ___.
a) the airline will charge the lesser of the volume-weight or the actual weight of the cargo
b) the airline will be more concerned about volume than weight
c) the airline will charge the higher of the volume-weight or the actual weight of the cargo
d) the airline will be concerned about the rates it will charge at different altitudes it flies
5. The international airfreight business is regulated by ___.
a) the Federal Aviation Administration b) the Civil Aeronautics Board c) the Civil Air Patrol d) Aeroflot
6. The Paris convention of 1919 ___.
a) established the concept of sovereignty of a country over its airspace
b) limited the liability of international airlines in accidents
c) resulted in an "open skies" agreement between the United States and the Netherlands
d) All of the above e) None of the above
7.A cargo service that allows an exporter to ship a large quantity of goods to a location not normally served by cargo airlines would be ___.
a) air mail service. b) an onboard courier c) scheduled airfreight service d) charter airfreight service
8. Airfreighters are fitted with a tail stand during loading operations in order to ___.
a) prevent "nose-up" mishaps during loading b) speed up refueling operations
c) provide electrical power to the rear (aft) of the aircraft d) prevent damage to the aircraft by airport traffic
9.Which of the following sustainability initiatives have not been adopted or tested by airlines and/or airports?
a) use of bio-fuels to power aircraft engines b) changes in the routing of aircraft to reduce fuel consumption
c) reduced air speed to reduce carbon emissions d) use of airports outside of large cities to limit noise during night activities
10. Certified Cargo Screening Facilities are charged with ___.
a) randomly selecting about twenty percent of all air cargo, and inspect these shipments before they are loaded on any aircraft
b) conducting background checks for all airlines and airport employees who are in contact with international cargo air shipments
c) conducting one-hundred-percent inspections of all shipments that will eventually travel on passenger aircraft
d) reporting on suspicious cargo shipments originating from abroad, through a program called "Automated Targeting System"
Chapter 13
1. Trucking, from a North American perspective, is ___.
A) Domestic B) heavy between the United States and Canada
C) involved in some trade across the U.S.-Mexico border D) All of the above E) None of the above
2. Trucks carrying international cargo tend to be ___.
A) semi-trucks B) identical from country to country
C) free of regulations in the foreign country they enter D) All of the above E) None of the above
3. In the European Union, trucking is often delayed by ___.
A) border controls B) grossly overloaded trucks C) social protests D) All of the above E) None of the above
4. U.S. railroads in 1998 had a market share of _____ of all long-distance ton miles shipped.
A) 40 percent B) 35 percent C) 22 percent D) 12 percent E)None of the above
5. The European Community has recently introduced the concept of _____ that run trains straight through from major ports to cities such as Milan and Vienna without changing locomotives and crews at each border.
A) freight corridors B) intermodal operations C) Bullet Trains D) land bridges E) None of the
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