Question

1- Which of the following is not true about managing logistics in China?

Select one:

a. It is a waste of time to visit China as most of the things can be done remotely these days.

b. It is important to make sure the logistics providers have IT system capacities.

c. Larger logistics companies might be better and more reliable but small ones may provide customized services.

d. Export/import compliance is strictly required.  

2- Which of the following is not a reason why MNCs are staying in China even though the manufacturing costs in China are rising fast?

Select one:

a. Chinese labor is more skilled and productive than some Southeast Asian countries.

b. China has a large domestic market for multinational firms to exploit.

c. Chinese domestic companies are very weak competitors.

d. China has efficient logistics and supply chain system.

3- Which of the following does not explain the increasing cost of manufacturing in China?

Select one:

a. Rising cost of raw materials and land use

b. Political risks such as trade war between U.S. and China

c. Anti-corruption campaign

d. Rising labor cost

4- Which of the following are the major concerns of outsourcing?

Select one or more:

a.
Quality control

b.

The complexity of management and control of supply chain

c.

Ethics related issues (product safety; working conditions, environment, etc.)

d.
Intellectual property theft

e.
Managing the relationships with the suppliers

Answer 1

1.

Correct Answer:

A

It is always good to interact with the supply chain partners on few occasions and it can struck a better deal, that cannot be achieved via remote interactions.

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2.

Correct Answer:

C

It is not true that Chinese companies are weak competitors, because China has become one of the biggest exporters of the world and it could not be true if these companies are weak in any ways.

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3.

Correct Answer:

C

Anti-corruption campaign does not bring any cost to the companies if they comply with the regulations. So, this factor does not explain the rising cost of production.

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4.

Correct Answer:

A

Quality control is one of the major concerns to be faced by the companies when they do outsourcing as the firm is located at distant places and they cannot be monitored with ease.