Exam#3 Study Guide

Exam#3 Study Guide - Chapter 10 Study Questions GLOBAL...

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Chapter 10 Study Questions GLOBAL TRANSPORTATION PLANNING 1. Discuss the relationship between international trade and global transportation International trade is a significant and growing aspect of the world market. International trade requires global transportation (from his email) International trade creates a tremendous amount of global transportation Create challenges for global transportation companies Global trade has contracted (good for cargo customers but bad for carriers) Transportation rates have dropped 2. Identify the largest trading partners with the United States Mexico, Canada, Japan, and China 3. What does it mean to say that one key issue in international trade is the need to balance free trade with security? The place to take care of security is at the point of origin If other places don’t have the same regulations that we do, it becomes a problem Free trade implies the unimpeded flow of goods, the need for security suggests some scrutiny which could lead to delays or even non-shipment of suspect goods. 4. What is the overall goal of free trade? Unimpeded flow of goods and enhancement of cross border traffic 5. Discuss the dilemma of free trade vs. protectionism. Desire to protect domestic markets by protectionists, free trade is winning the battle 6. List the main provisions of NAFTA. NAFTA includes U.S., Mexico, and Canada Principles include: -Unimpeded flow of goods -Enhanced cross-border movement of goods/services Principles were to enable transport carriers to move more easily between countries -Today, Canadian carriers have same rights in U.S. as U.S. carriers have in Canada, may transport domestic traffic when incidental to return trip; -Same accessibility is not currently available between U.S. and Mexico 7. Identify the three critical flows in global supply chains, i.e., flow of money, information, and physical goods. Flow of money (Transaction Channel) Critical to timely completion of transactions Flow of information (Communication Channel) Flow of physical goods (Distribution Channel) 8. Identify and define the three channels within the Global Logistics Channel, i.e., Transaction Channel, Communication Channel, and Distribution Channel.
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Transaction Channel: Specifying when and where legal title to goods transfers. Defines responsibility for: -Mode and carrier selection and shipment routing -Obtaining insurance coverage -Payment for transport services, insurance, and import duties -Compliance with regulations, management of goods while in-transit, and financial liability while in- transit Arranging payment for the goods -Obtaining payment is riskier in global trade compared to domestic trade -Advance payment would be ideal for exporter -Importer would be concerned about paying in advance of seeing/inspecting the goods -There are many terms of payment options used to balance these risks -- most commonly used method is a letter of credit Communication channel
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This note was uploaded on 02/01/2012 for the course BMGT 350 taught by Professor Boyd during the Fall '08 term at Maryland.

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Exam#3 Study Guide - Chapter 10 Study Questions GLOBAL...

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