The most common form of international payment for supply chain transactions is a:

Question 1The following arrangement exists when only one supplier has the capability to fill a need:

  Sole source

  Single source

 Question 2The most common form of international payment for supply chain transactions is a:

  Promissory note

  Letter of credit

 Question 3Joint ventures enable partners to share:

  Costs

  Technology

  Economies of scale

  All of the above

 Question 4Modes of transportation include:

  Rail

  Air

  Pipeline

  All of the above

 Question 5International sourcing decisions should include:

  Stability of design

  Completeness of engineering documentation

  Ability to provide technical assistance

  All the above

 Question 6A purchase order is not a legally binding document.

  True

  False

 Question 7Evaluating supplier bids in a systematic way includes all of the following except:

  Supplier’s responsiveness

  Information from technical and operational analysis

  Cost and price analysis

  Personal relationship with salesperson

 Question 8Multiple sourcing generally results in:

  Increased risks

  Reduced risks

  Equal risks

  All of the above

 Question 9Generally, organizations use a matrix structure to support international business structures:

  True

  False

 Question 10Avoiding sole sourcing begins with the design phase.

  True

  False