International Trade and Service Costs
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Questions and Answers

What does the delivery gap refer to?

  • The difference between service expectations and payments received.
  • The discrepancy between customer satisfaction and product pricing.
  • The difference between the firm's service standards and the actual service provided to customers. (correct)
  • The gap in communication between marketing and customer service.

    • Which statement best describes the concept of power distance?

  • The extent to which a society values equal distribution of power.
  • The degree to which government controls economic resources.
  • The level of economic disparity within a population.
  • The acceptance of social inequality as a natural part of society. (correct)

    • What is the main characteristic of a strategic alliance?

  • It requires significant financial investment from both parties.
  • It emphasizes unilateral decision-making by the dominant firm.
  • It is a collaborative relationship without creating an equity partnership. (correct)
  • It involves a formal equity partnership between firms.

    • Which of the following is NOT a government action affecting trade?

    <p>Cultural customs</p> Signup and view all the answers

    What differentiates weighted point scorecards from categorical scorecards?

    <p>Categorical scorecards assess performance without using weights.</p> Signup and view all the answers

    What is the primary reason for implementing tariffs?

    <p>Protect local businesses</p> Signup and view all the answers

    What is a potential consequence of inaccurate import paperwork?

    <p>Delays and additional costs</p> Signup and view all the answers

    Which of the following is a characteristic of services?

    <p>Intangible</p> Signup and view all the answers

    What does a quota limit?

    <p>Amount of imported goods</p> Signup and view all the answers

    What is the most risky strategy for entering foreign markets?

    <p>Setting up a new shop</p> Signup and view all the answers

    What does the Gini Index measure?

    <p>Income distribution among a population</p> Signup and view all the answers

    Which of the following represents a delivery gap?

    <p>Difference between promised and actual service</p> Signup and view all the answers

    What is the term for when a country imports more than it exports?

    <p>Trade deficit</p> Signup and view all the answers

    What does GDP measure?

    <p>The yearly value of all finished goods and services produced within a country's borders</p> Signup and view all the answers

    What is the function of OSHA legislation?

    <p>Ensure safety and health issues are managed in workplaces</p> Signup and view all the answers

    Which of the following is NOT a KPI for sustainability?

    <p>Measuring the cost of sustainability</p> Signup and view all the answers

    What is characterized by an order being filled perfectly?

    <p>Perfect order</p> Signup and view all the answers

    What term describes the gap between customer expectations and a firm's perception of those expectations?

    <p>Knowledge Gap</p> Signup and view all the answers

    What is a mandatory characteristic of metrics used in organizations?

    <p>Action-oriented and objective</p> Signup and view all the answers

    Which of the following describes a free market?

    <p>A market where consumer and competitor dynamics are central</p> Signup and view all the answers

    What essential quality defines the three most important qualities of data?

    <p>Accuracy, Completeness, Timeliness</p> Signup and view all the answers

    What is a key factor that can increase customer irritation during service failure?

    <p>Long resolution times</p> Signup and view all the answers

    Which of the following best describes the role of culture in a society?

    <p>Shared meanings, beliefs, morals, and values</p> Signup and view all the answers

    What distinguishes a strategic alliance from other forms of partnerships?

    <p>It does not require the creation of an equity partnership</p> Signup and view all the answers

    What is one of the main functions of infrastructure in a community or society?

    <p>To provide basic facilities and services</p> Signup and view all the answers

    How does the Gini Index primarily relate to a country's economic health?

    <p>It evaluates income inequality</p> Signup and view all the answers

    What is a primary consequence of having a communication gap in service delivery?

    <p>Reduction in customer loyalty</p> Signup and view all the answers

    Which of the following statements correctly describes the concept of Embargo?

    <p>A prohibition on trade with a specific country</p> Signup and view all the answers

    What does the term 'zone of tolerance' refer to in service delivery?

    <p>The range between expected and actual service</p> Signup and view all the answers

    Which factor primarily influences the decision to use direct investment when entering a foreign market?

    <p>Potential for high return</p> Signup and view all the answers

    Which set of components is essential for a thorough global market assessment?

    <p>Technological Analysis, Governmental Analysis, Economic Analysis, Socio-cultural Analysis</p> Signup and view all the answers

    What is indicated by a low Gini Index, such as 20 compared to 40?

    <p>Equitable income distribution</p> Signup and view all the answers

    What does the term 'inco-terms' refer to in international trade?

    <p>Guidelines for shipping responsibilities</p> Signup and view all the answers

    What is the impact of a trade deficit on a country's economy?

    <p>Higher levels of national debt</p> Signup and view all the answers

    What is required when the order fill rate is at 100%?

    <p>All orders must be filled as expected</p> Signup and view all the answers

    Which of the following is NOT a component of a Key Performance Indicator (KPI)?

    <p>Random variable</p> Signup and view all the answers

    What does the Knowledge Gap reflect?

    <p>The difference between customer expectations and the firm's perception of those expectations</p> Signup and view all the answers

    Which legislation is concerned primarily with safety issues in the workplace?

    <p>OSHA</p> Signup and view all the answers

    What characterizes a Service in economic terms?

    <p>It is an intangible offering that cannot be physically possessed</p> Signup and view all the answers

    What is a perfect order characterized by?

    <p>Complete accuracy in every aspect of the order</p> Signup and view all the answers

    Which of the following is a measure of economic performance?

    <p>GDP growth from one year to another</p> Signup and view all the answers

    What are the three most important qualities of data?

    <p>Accuracy, Completeness, and Timeliness</p> Signup and view all the answers

    What is the primary purpose of a Foreign Trade Zone?

    <p>Reduce customs duties</p> Signup and view all the answers

    What type of companies benefit the most from service jobs in the US?

    <p>Doctors' offices</p> Signup and view all the answers

    Which of the following factors is most likely to limit the amount of imported goods?

    <p>Quotas</p> Signup and view all the answers

    In terms of international trade, what is the significance of a joint venture?

    <p>It establishes a new entity between companies</p> Signup and view all the answers

    Which country was the top trading partner of the U.S. in 2023?

    <p>Mexico</p> Signup and view all the answers

    What type of market assessment includes factors like socioeconomic and political analyses?

    <p>Governmental Analysis</p> Signup and view all the answers

    Which concept represents the shift of responsibility during global shipping?

    <p>Inco-terms</p> Signup and view all the answers

    What is the likely outcome when a country has a trade deficit?

    <p>Dependence on foreign goods</p> Signup and view all the answers

    What is the significance of infrastructure in a community?

    <p>It supports the basic facilities and services necessary for societal function.</p> Signup and view all the answers

    Which of the following best describes the concept of power distance?

    <p>The willingness to accept social equality as natural.</p> Signup and view all the answers

    What is a key distinction between categorical scorecards and weighted point scorecards?

    <p>Categorical scorecards do not assign weights to performance categories.</p> Signup and view all the answers

    In free markets, the decision-making process is primarily influenced by which factors?

    <p>Consumer needs and competitor actions.</p> Signup and view all the answers

    What does the Gini Index indicate about a country's income distribution?

    <p>The equality or inequality of income distribution in the country.</p> Signup and view all the answers

    What is a characteristic of services that differentiates them from goods?

    <p>Services are heterogeneous and may vary in delivery.</p> Signup and view all the answers

    What is the main purpose of OSHA legislation?

    <p>To ensure workplace safety and health standards.</p> Signup and view all the answers

    Which of the following best describes the concept of a free market?

    <p>A market where consumers and competitors influence pricing.</p> Signup and view all the answers

    What does the order fill rate indicate when it is at 100%?

    <p>All orders requested were successfully filled.</p> Signup and view all the answers

    Which three qualities are considered most important for data accuracy?

    <p>Accuracy, Completeness, Timeliness</p> Signup and view all the answers

    How is GDP growth typically measured?

    <p>By comparing the yearly value of all finished goods and services produced.</p> Signup and view all the answers

    What is the significance of sustainability KPIs in business operations?

    <p>They help track the environmental impact of business practices.</p> Signup and view all the answers

    What is the effect of inaccurate import paperwork?

    <p>It leads to delays and additional costs</p> Signup and view all the answers

    Which of the following describes the characteristics of services?

    <p>Intangible, Inseparable, Heterogeneous, Perishable</p> Signup and view all the answers

    What is a trade deficit?

    <p>When a country imports more than it exports</p> Signup and view all the answers

    What do quotas limit in international trade?

    <p>The total volume of goods imported</p> Signup and view all the answers

    What is a significant aspect of the delivery gap in service provisioning?

    <p>It reflects the difference between expected and actual service delivery.</p> Signup and view all the answers

    What does the Gini Index measure in a society?

    <p>Income distribution inequality</p> Signup and view all the answers

    How does culture influence a group of people?

    <p>It creates shared meanings, beliefs, and values among members.</p> Signup and view all the answers

    Which component is essential for assessing the global market?

    <p>Economic Analysis</p> Signup and view all the answers

    What do weighted point scorecards provide that categorical scorecards do not?

    <p>Weights for each performance category to reflect importance.</p> Signup and view all the answers

    Which strategy is considered the least risky for entering foreign markets?

    <p>Exporting</p> Signup and view all the answers

    Which factor most directly impacts the effectiveness of a strategic alliance?

    <p>The cultural compatibility between the firms.</p> Signup and view all the answers

    What is the primary consideration in free market decision-making?

    <p>Balancing consumer needs with competition.</p> Signup and view all the answers

    What is the main characteristic of a free market?

    <p>Concerns for consumers and competitors</p> Signup and view all the answers

    Which factor is NOT considered a KPI for sustainability?

    <p>Measuring the cost of sustainability</p> Signup and view all the answers

    What constitutes a perfect order?

    <p>All aspects of the order meet expectations</p> Signup and view all the answers

    Which component is NOT part of establishing a Key Performance Indicator (KPI)?

    <p>General estimate</p> Signup and view all the answers

    Which is an essential quality to consider when assessing data?

    <p>Timeliness</p> Signup and view all the answers

    What is a primary purpose of OSHA legislation?

    <p>Addressing workplace safety and health issues</p> Signup and view all the answers

    Which aspect does the Knowledge Gap reflect?

    <p>Differences in customer expectations versus firm perception</p> Signup and view all the answers

    Which metric describes the accuracy of order fulfillment?

    <p>Order fill rate</p> Signup and view all the answers

    What is an important aspect of customer service recovery in relation to service failure?

    <p>The speed at which service failures are resolved</p> Signup and view all the answers

    How does culture typically influence communication in different countries?

    <p>By affecting the symbols and meanings used in communication</p> Signup and view all the answers

    What distinguishes a weighted point scorecard from other types of scorecards?

    <p>It assigns different weights to various performance categories</p> Signup and view all the answers

    Which of the following reflects a characteristic of a strategy that directly impacts trade?

    <p>Quotas restrict the quantity of imports</p> Signup and view all the answers

    What does the concept of power distance primarily address in a cultural context?

    <p>The acceptance of economic disparities within society</p> Signup and view all the answers

    Which of the following factors can contribute to a communication gap in service delivery?

    <p>High power distance in culture</p> Signup and view all the answers

    Which of the following best describes the consequences of having quotas on imported goods?

    <p>Restricts the amount of goods that can be imported</p> Signup and view all the answers

    What does a Gini Index of 0 indicate about income distribution?

    <p>Everyone has the same income</p> Signup and view all the answers

    Which concept refers to the fluctuation of exchange rates affecting costs?

    <p>Macro-influence</p> Signup and view all the answers

    What primarily causes the delivery gap in a service environment?

    <p>Inadequate training of staff</p> Signup and view all the answers

    Which of the following statements best describes the purpose of tariffs?

    <p>Support local businesses by making imports more expensive</p> Signup and view all the answers

    What characterizes a joint venture in international business?

    <p>Two or more companies create a new entity together</p> Signup and view all the answers

    What is the correct interpretation of GDP?

    <p>It examines the yearly value of all finished goods and services produced within a country's borders.</p> Signup and view all the answers

    Which of the following is a key characteristic of a Free Market?

    <p>Consumers and competitors significantly influence the market.</p> Signup and view all the answers

    Which factor does NOT contribute to the measurement of sustainability KPIs?

    <p>Cost of sustainability.</p> Signup and view all the answers

    How is the order fill rate calculated?

    <p>Total order number that needs to be filled divided by orders filled actually.</p> Signup and view all the answers

    Which term best describes the qualities essential for metrics used in organizations?

    <p>They should be action-oriented, objective, results-oriented, and focus on root causes.</p> Signup and view all the answers

    What signifies a perfect order in logistics?

    <p>When all aspects of the order, from processing to delivery, are executed flawlessly.</p> Signup and view all the answers

    Which of the following statements correctly describes the characteristics of services?

    <p>Services are intangible, heterogeneous, and cannot be physically possessed.</p> Signup and view all the answers

    What constitutes the knowledge gap in a business context?

    <p>The disparity between customers’ expectations and the firm's perception of those expectations.</p> Signup and view all the answers

    What is the primary effect of a long resolution time for service failures on customers?

    <p>It decreases customers' willingness to return.</p> Signup and view all the answers

    Which of the following accurately describes internal differences found within countries?

    <p>They can vary significantly across regions.</p> Signup and view all the answers

    What is a key component of weighted point scorecards that differentiates them from categorical scorecards?

    <p>Provides weights for each performance category.</p> Signup and view all the answers

    How does culture primarily influence a society's operations?

    <p>By shaping shared values and beliefs.</p> Signup and view all the answers

    Which factor is most likely to increase the likelihood of strategic alliances between firms?

    <p>Need for shared resources and capabilities.</p> Signup and view all the answers

    What is indicated by a zone of tolerance in service delivery?

    <p>The minimum level of service accepted by customers</p> Signup and view all the answers

    Which of the following best describes the relationship between tariffs and local businesses?

    <p>Tariffs protect local businesses by increasing the cost of imports</p> Signup and view all the answers

    What defines a joint venture in international business?

    <p>A new company formed by two or more businesses</p> Signup and view all the answers

    What characterizes a trade deficit?

    <p>A country importing more than it exports</p> Signup and view all the answers

    What is a significant impact of globalization on trade?

    <p>It facilitates the movement of goods and services internationally</p> Signup and view all the answers

    Which of the following is a common issue when importing goods?

    <p>Inaccurate paperwork leading to delays</p> Signup and view all the answers

    What does the Gini Index primarily indicate about a country's economy?

    <p>The distribution of income within a population</p> Signup and view all the answers

    Which component is NOT part of the global market assessment?

    <p>Cultural Superiority Analysis</p> Signup and view all the answers

    What does GDP represent in terms of economic measurement?

    <p>The yearly value of all finished goods and services produced within a country's borders</p> Signup and view all the answers

    What is a key factor that impacts the order fill rate?

    <p>The efficiency of logistics infrastructure</p> Signup and view all the answers

    Which characteristic describes the essence of services?

    <p>Services are intangible and cannot be stored</p> Signup and view all the answers

    What does a perfect order entail?

    <p>An order filled accurately, on time, and undamaged</p> Signup and view all the answers

    What does the Knowledge Gap indicate?

    <p>Discrepancies between customers' expectations and the company's perception of those expectations</p> Signup and view all the answers

    What is a primary component of a Key Performance Indicator (KPI)?

    <p>Starting-benchmark, target achievement, and time frame</p> Signup and view all the answers

    Study Notes

    Foreign Trade Zones

    • Customs duty is a tax avoided by foreign trade zones
    • Tariffs are implemented to prioritize local businesses
    • Import paperwork must be 100% accurate to avoid delays and costs
    • USMCA includes the United States, Canada, and Mexico
    • Geopolitical issues influence macro-economic factors
    • Embargoes prohibit trade
    • Incoterms define responsibility during international shipping
    • Joint ventures occur when international companies form a new entity
    • Mexico was the top trading partner of the U.S. in 2023
    • Zone of tolerance defines expected arrival time
    • Service jobs in the U.S. are increasing

    Reducing Service Costs

    • Trading can reduce service
    • Communication gaps exist between promised service quality and customer experience
    • Service characteristics include intangibility, inseparability, heterogeneity, and perishability
    • Delivery gap reflects the difference between actual service and standards

    Entering Foreign Markets

    • Entering foreign markets involves risk assessment strategies
    • Exporting is the least risky strategy
    • Nations with strong economies present high market growth opportunities
    • Quotas limit imported goods
    • Direct investment offers highest potential return
    • Infrastructure concerns and trade deficits influence international trade

    Global Market Assessment

    • Equilibrium in global trade is influenced by exchange rates
    • A global market assessment considers economic analysis, infrastructure, technological analysis, and socio-cultural analysis
    • Hofstede's cultural dimensions like power distance and individualism can be evaluated
    • Globalization facilitates cross-border movement of goods and services
    • Income distribution is assessed using the Gini Index
    • Global population density impacts business decisions

    Key Performance Indicators (KPIs)

    • GDP measures yearly value of goods/services within a country
    • Free markets focus on consumers and competitors
    • OSHA concerns safety and health issues
    • Sustainability KPIs include greenhouse gas emissions, and energy consumption
    • Order fill rate is the ratio of filled orders to total orders (100% represents 100% of orders filled)
    • Metrics should be action-driven and outcome-oriented
    • Perfect order criteria considers all aspects for ideal order fulfillment
    • KPI metrics should be accurate, complete, and timely
    • Sustainability KPIs show a high importance
    • Supply chain performance can be measured through various metrics (categorical scorecards)

    Services and Customer Service

    • Services cannot be physically possessed (intangible)
    • Service delivery directly relates to the customer (inseparable characteristic)
    • Service experiences vary (heterogenous)
    • Services cannot be stored (perishable)
    • Delays in resolving service issues frustrate customers
    • GDP and net foreign income contribute to service cost assessments
    • Infrastructure, government (tariffs, trade agreements, etc) and exchange control impact services
    • Cultural factors, language, distance, and equity partnerships affect services

    International Business Decisions

    • International business decisions are informed by consumer and competitor analysis
    • Understand the country where you'll conduct business (culture, etc)
    • Performance can be tracked through categorical scorecards
    • Performance is tracked through weighted-point scorecards and cost-based scorecards

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    Description

    This quiz covers important aspects of foreign trade zones, including customs duties, tariffs, and international agreements like USMCA. It also discusses service costs and characteristics that influence customer experience in an international context. Test your knowledge on how geopolitical factors, delivery gaps, and communication impact global trade.

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