ExerciseChapter 11. The total value of international trade in services and merchandise is about _. Ba) $ 9 billion b) $ 9 trillion c) $ 9 million d) $ 9 thousand e) None of the above2. International trade is still mostly concentrated among the developed countries of the Northern Hemisphere. Which country is the largest importer of the world? Aa) United States b) Germany c) China d) Japan3. The common currency of most of the countries of the European Union is called _. Da) the euro-dollar b) the european currency unit (ECU) c) the thaler d) the euro4. Which of the following entities was created at the Bretton-Woods Conference of 1944? Aa) International Monetary Fund b) World Trade Conference c) Marshall Plan d) United Nations5. On occasion, a firm will respond to a competitors 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 _. Ba) cost driver b) competitive driver c) technology driver d) market driver e) None of the above6. 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 _.Ba) an absolute advantage in the production of automobilesb) an absolute advantage in the production of beefc) a comparative advantage in the production of automobilesd) a comparative advantage in the production of beef7. 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? Aa) India will buy chairs as long as the price is lower than 0.67 tons of steelb) India will sell chairs as long as the price is higher than 0.67 tons of steelc) Russia will buy chairs as long as the price is lower than 0.6 tons of steeld) 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) _.Aa) the country of innovation only b) developing countriesc) any country with the manufacturing technology necessary to manufacture itd) 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? Aa) Cultural differences b) Economic issuesc) Currency differences d) Infrastructure constraints10. 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? Da) The Economists Intelligence Unit b) The Central Intelligence Agencyc) The U.S. Department of Commerce d) The United Nations UNICEFChapter 21. Which one was not one of the characteristics of the early days of logistics? Da)An emphasis on making sure that the goods arrived in good condition b) An emphasis on low-cost transportationc) Long transit times d) An emphasis on customer satisfaction2. 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? Ba) Peter Maersk b) Malcom McLean c) Joseph Battaglia d) Hapag Lloyd e) None of the above3. 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 _.Aa) interest rates b) the value of inventories in general c) the value of the goods held in inventoryd) the creation of Just-In-Time inventory management systems4. 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 _.Da) shipping the correct goods b) shipping the goods in the right quantityc) shipping the entire order at once d) delivering the goods on the day and at the time promised5. 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 _.Da) draw system b) push system c) elastic system d) pull system e) None of the above6. Which of the following is not an element of international logistics, according to the authors, although it is a part of domestic logistics? Aa) Reverse logistics b) The management of transportation c) The management of inventories d) The management of paperwork7. 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 _.Da) is global . b) is international. c) includes international activities d) All of the aboveChapter 31) 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 exchangesB) a countrys electrical supply and road networkC) the amount of computerization a country hasD) a developed banking system2) Because some ports are becoming increasingly limited in their ability to handle ever-larger ships it is possible that _.A) ship sizes will become smallerB) massive government programs will do what is necessary to upgrade the smaller portsC) large ships will go to hub ports where feeder ships will traverse to and from the smaller portsD) ocean shipping costs will rapidly decline3) The busiest cargo airport in the world is _.A) HeathrowB) Denver InternationalC) OHareD) Dallas-Fort Worth International4) 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 containerB) higher train speeds, development of more custom service by railroads, and concerns about terrorismC) increased shipments of high-value goods like computers, unreliability of air freight, and the building of new railroadsD) All of the above5) In the European Union, the goal for mail delivery sent to a national address is _.A) two daysB) three daysC) D + 1D) D + 26) 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 above7) Regarding water availability in the infrastructure _.A) more than 95 percent of the worlds population has running waterB) many cities have old leaky pipesC) it is not important to economic developmentD) All of the above8) 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 PanamaB) Guillard LakeC) The Panama RiverD) Great Lake9) As a defense measure to keep invading military troops from using their railroads, Spain and Russia _.A) built explosives into bridges and tunnelsB) made drive controls in locomotives opposite to what they were in the rest of EuropeC) developed widths between the rails different from those of the rest of EuropeD) All of the above 10) Although there is no equivalent term in English, the French term ouvrages dart has to do with _.A) civil engineering structuresB) museumsC) galleriesD) telecommunicationsChapter 111) Dead-weight tonnage _. A)is the maximum weight of the cargo that a vessel can carryB)is 2,204.6 poundsC)does not include the bunkerD)All of the aboveE)None of the above2) In containerized shipping, the term TEU stands for _.A)Trans-European UnitsB)Terminal Event UtilizationC)Trip Extension UnitD)two-end Undercarriage3) Countries with an open registry often provide _.A)secondary registriesB)flags of convenienceC)more strict regulation of shipsD)an opportunity for ship owners from developing countries to register their ships in the United StatesE)None of the above4) Breakbulk ships _.A)are expected to increase in numberB)have low labor costsC)can call at just about any port to pick up different kinds of cargo loadsD)All of the aboveE)None of the above5) Ships dedicated to the transport of petroleum products are called _.A)LASH bargesB)dry bulk carriersC)hague carriersD)crude carriersE)None of the above6) Refrigerated ships are slowly being replaced by _.A)refrigerated containersB)dry bulk carriersC)tramp shipsD)LASH bargesE)None of the above7) LNG and LPG ships _.A)are obsoleteB)cannot compete with container shipsC)often operate on long-term contractsD)All of the above8) The total capacity of the ship expressed in long tons is called _.A)ship sizeB)full tonnageC)dead-weight tonnageD)weight tonnageE)ship capacity9) Ships too large to pass through the Panama Canal are called _.A)trampsB)panamax shipsC)post-Panamax shipsD)capesize shipsE)None of the above10) Ships designed to carry one single type of refined petroleum product are sometimes called _.A)LASH shipsB)post-production shipsC)conference shipsD)NVOCCsE)None of the aboveChapter 121. 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 players3. OBC service stands for _.a) over ballast crestingb) onboard courierc) onboard computerd) old benefit connectionse) None of the above4. 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 cargob) the airline will be more concerned about volume than weightc) the airline will charge the higher of the volume-weight or the actual weight of the cargod) the airline will be concerned about the rates it will charge at different altitudes it flies5. The international airfreight business is regulated by _. a) the Federal Aviation Administration b) the Civil Aeronautics Board c) the Civil Air Patrol d) Aeroflot6. The Paris convention of 1919 _. a) established the concept of sovereignty of a country over its airspaceb) limited the liability of international airlines in accidentsc) resulted in an open skies agreement between the United States and the Netherlandsd) All of the abovee) None of the above7.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 courierc) scheduled airfreight serviced) charter airfreight service8. Airfreighters are fitted with a tail stand during loading operations in order to _.a) prevent nose-up mishaps during loadingb) speed up refueling operationsc) provide electrical power to the rear (aft) of the aircraftd) prevent damage to the aircraft by airport traffic9.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 enginesb) changes in the routing of aircraft to reduce fuel consumptionc) reduced air speed to reduce carbon emissionsd) use of airports outside of large cities to limit noise during night activities10. 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 aircraftb) conducting background checks for all airlines and airport employees who are in contact with international cargo air shipmentsc) con