BADM 338 Global Supply Chain Exam Study Guide

Flashcards for key vocabulary and concepts from the lecture notes.

Procurement

Umbrella term for sourcing and purchasing products/services in a supply chain.

Focal Firm

The initiator of an international business transaction; the primary company.

OEM

Original Equipment Manufacturer (top tier of the supply chain), like Apple.

White Goods

Large home electrical goods, like cookers and washing machines.

Vertical Integration

Practice where a single entity controls the entire process of a product, from raw materials to distribution.

Offshoring

Transferring a specific activity of GSC to other countries.

Nearshoring

Choosing an outsource provider in the home country or a nearby country.

Backshoring/Reshoring/Reverse-shoring

Moving specific GSC production activities back to the home country.

Outsourcing

Moving individual steps of production to a different region, not necessarily a different country.

Offshoring

Moving individual steps of production to a different COUNTRY.

Domestic Internal Sourcing

No outsourcing or offshoring (make).

Domestic External Sourcing

Outsourcing, but no offshoring (buy).

Global Internal Sourcing

No outsourcing, but offshoring (make).

Global External Sourcing

Outsourcing and offshoring (buy).

Adverse Selection

Hidden information problem existing prior to a transaction.

Moral Hazard

Problem existing after a transaction.

Service Level Agreement (SLA)

Binding agreement between customer and supplier to identify service.

Asset Specificity

Investment specific to a business relationship.

Global Supplier Associations

Represent a Make/Buy Hybrid.

Subcontracting

BUY (outsourcing).

Shelter Operations

HYBRID.

Wholly Owned

MAKE.

ISO

International Organization for Standardization; promotes international trade through standards.

ISO 9000

Quality management standard intended to increase business efficiency and customer satisfaction.

Lloyds of London

Not an insurer, but a society of members who underwrite insurance in syndicates.

Transaction Cost

Cost of doing business, not actual item (searching, negotiation, enforcing).

Exporting Firms adopt ISO 9000

Sell goods or services to customers in foreign markets

Total Quality Management (TQM)

Quality Process and commitment to improve high-quality processes

Six Sigma

Commitment to improve high-quality processes

Currency Exchange Rate

Ratio of a unit of currency of Country A to a unit of currency of Country B.

Spot Exchange

Currencies traded for immediate delivery.

Forward exchange

Agreement to exchange currency at a specific date in the future.

Hub-and-spoke

System provides a route pattern which allows customers to board in smaller volume cities, travel to "hub" cities and connect to their final destinations.

Floating Exchange Rate

Price determined by market forces; fluctuates day to day.

Fixed or Pegged Exchange Rate

Currency anchored to another currency.

Managed or Dirty Float System

National government attempts to manage a currency within a range.

Globalization

Increasing exposure and relative importance of international markets.

De-Globalization

Decreasing exposure and importance of international markets.

Neo-liberal

Strategy for economic development based on free markets, balanced budgets, and minimal government intervention.

Forward GVC Participation

Producing and exporting inputs that are further re-exported.

Backward GVC Participation

Using imported inputs to produce goods that are exported.

US Foriegn Investmnet Review - CFIUS

Preventing chinese investments and acquisitions, raise tariffs 25%.

Antidumping duties

Tariffs for goods sold below fair market value to protect domestic industries.

Countervailing duties

Tariffs on imports that receive unfair government subsidies.

Decoupling

Reducing economic interdependence between countries.

Just in time production

Process that redefines and simplifies manufacturing by reducing inventory levels and delivering raw materials just when they are needed

Anywhere but China

Result of De-Globalization

Price Elasticity

% Decrease in Quantity Demanded / % increase in price per unit

Factor proportions theory

Factor abundance in land, labor, capital local endowments is what you wanna do with your supply chain

New trade theory

trade not just due to resource differences, but to benefit from economies of scale, specialization, and a greater variety of goods, even if they have similar resources.

3PLs

logistics provider that handles specific supply chain functions like warehousing and transportation for a company

4PLS

logistics provider that manages and coordinates the entire supply chain, often integrating multiple 3PLs and service providers.