Q1. What are the main elements of the land transportation and warehousing infrastructure?

How
does the quality and dependability of these infrastructures affect an international shipment?

Land Transportation Infrastructure: This includes things like roads, railways, ports, airports,
and waterways. Think of these as the highways, train tracks, airports, and harbors that goods use
to move around.
Warehousing Infrastructure: This involves places where goods are stored, like warehouses and
distribution centers. Imagine them as giant storage spaces for products.
The quality of these infrastructure elements really matters for international shipments:
 Faster and Cheaper: Good infrastructure means quicker and more affordable shipping.
It's like having well-maintained roads for a faster road trip.
 Safe and Secure: Quality infrastructure helps keep goods safe from theft, damage, or bad
weather, kind of like a good shelter for your stuff.
 Competitive Advantage: It can make businesses stand out by offering fast deliveries,
which customers love.
 Rules and Environment: Good infrastructure also helps follow rules and is better for the
environment because it uses resources more efficiently.
 Access to Markets: Being close to good infrastructure helps companies reach more
places easily.
On the flip side, if the infrastructure isn't great, it can slow things down, make shipping
expensive, and even cause problems like damaged goods or missed deadlines. So, having solid
infrastructure is a big deal in international trade.

Q2. Using a product and country of your choice, determine what would be the best method of
entry for an exporter interested in that market. Justify your decision using the guidelines
provided in the chapter.

Product: Truffle-infused Olive Oil

Country: Japan
The best method of entry for an exporter interested in the Truffle infused olive oil market could
be a combination of strategies:
1. Indirect Exporting: The exporter partners with Japanese importers or distributors who
specialize in gourmet food products. These intermediaries have established relationships with
local retailers and can navigate the Japanese market effectively. This also helps mitigate risks.
Japanese distributors typically have local market knowledge, established networks, and
understanding of import regulations.
2. Piggy- Backing: "Piggybacking" for entering the Japanese market with truffle-infused olive oil
involves partnering with an established Japanese gourmet food distributor. This leverages their
distribution network, expertise, and local market knowledge to introduce the product. Shared
marketing, access to their industry relationships, and compliance with Japanese standards are key
benefits. The approach reduces upfront costs and risks, with room for expansion if successful in
the Japanese gourmet food market.
Q3. What are the general provisions of the United Nations Convention on Contracts for the
International Sale of Goods?

The United Nations Convention on Contracts for the International Sale of Goods (CISG),
commonly referred to as the Vienna Convention, primarily focuses on regulating contractual
aspects between exporters and importers. It delineates protocols governing the formation,
execution, and consequences of breaching contracts.
The process of contract formation, as outlined by the CISG, encompasses the act of making
offers, accepting, or rejecting those offers based on their terms, and the potential for
counteroffers if the original terms are not accepted. Once established, the contract can take the
form of either a verbal or written agreement, and it carries an irrevocable status with a stipulated
timeframe for action by both parties, in accordance with CISG provisions.
In cases of contract breach under the CISG, a breach is identified when either party involved in
the contract fails to meet their obligations, thereby violating the terms of the agreement. It's
worth noting that the CISG offers sellers a certain degree of flexibility in the event of a contract
breach.

Q4. Explain why a developing country would want to prevent its importers from purchasing CIF
or CIP and instead require CFR or CPT shipments.

A developing nation will favor CFR or CPT shipments over CIF or CIP to reduce costs. CFR or
CPT requires the seller to pay for transportation that does not include insurance costs. The
developing nation can arrange its own insurance getting better rates and flexibility to protect
against risks like damage and theft. By having independent insurance, a developing country can
make sire it complies with its countries regulations and avoid custom related issues.

Q5. What are the differences between Letter of Credit and Standby Letter of Credit?

A letter of credit is normally used as a payment guaranteed for transactions and ensure payment
will be meet as agreed. This payment Is triggered when the seller fulfils its conditions in its
contract. As a standby letter of credit is used in international or domestic transactions where a
backup payment is guaranteed and attempts to hedge out the risks including bankruptcy and
insufficient cash flows. This payment is triggered when it is demonstrated by the party that they
have failed to keep financial obligations in its contract.

Q6. In the case study “Using Six Sigma in the Management of City Logistics Processes”, what
were the conclusions of the project? What steps/methods were used to reach this conclusion? List
each step and explain them briefly.

The case study "Using Six Sigma in the Management of City Logistics Processes" concluded that
left turns have a large impact on fuel consumption, which increased air pollution, The study
suggests that changing infrastructure along with things such as traffic lights, could lead to a
reduction in air pollution.

Define: This phase involves identifying the problem, which is the increase in pollution. Also
specifying the problem, where is occurs and who is affected.

Measure: In this step, data is collected and analyzed to understand the current process
performance. Here data on air pollution was taken from measuring station from 2016-2019

Analyze: Analyzing the data helps identify the root causes of problems in the process. Here the
overall state was found to be caused by size of the emissions and location, land use and
topography factors. A diagram was used to analyze various factors focusing on freight transport
in the context of city logistics processes.

Improve: Based on the analysis, changes and improvements are proposed and implemented in the
process. Here the placement of lights at intersections are proposed to reduce fuel consumption in
those areas. It was identified that left turns as a major factor in influencing air pollution.

Control: Control measures are put in place to ensure that the process remains stable and
continues to perform at the desired level. The proposed control measurements here are Shewhart
carts to calculate continuous data reports.

CTQ (Critical to Quality) is a Six sigma concept that identity’s key attributes critical to meeting
one’s expectations and satisfaction. In the case study, CTQ was used to identify the needs of the
city logistic clients, residents by focusing on air pollution and infrastructure.

SIPOC – SIPOC is a representation that defines the suppliers, inputs, processes, outputs and
customers of a process or system. In the case study, the SIPOC was used to map out the city
logistics process and showing the flow of inputs and outputs, suppliers, and customers. This
helps understand the overall system.

The CTQ and SIPIC play roles in identifying important quality factors and mapping out the
system.

Q7. In the case study “COVID- 19: outcomes for Global Supply Chains”, What were the cause-
impact propositions formulated as result of the analysis?

Proposition 1: "The increase in government stimulus plans and control of the economy, with an
emphasis on job preservation and business survival, will lead to a more focus on national and
regional suppliers."
 Governments are implementing stimulus plans and exerting control over economic activities in
response to economic issues. This suggests that these actions will influence companies to
prioritize national and regional suppliers to ensure job preservation and support local businesses.

Proposition 2: "The demand for more robust and resilient Supply Chains will lead to shorter SC
with fewer tiers."
The increasing need for robust and resilient supply chains in the face of disruptions like the
Covid is expected to drive companies to shorten their supply chains and reduce the number of
tiers. This implies a move towards simpler and more manageable supply chain structures.

Proposition 3: "The demand for more robust and resilient Supply Chains will establish flexible
and adaptable supply chains."
The emphasis on resilience is expected to drive the establishment of flexible and adaptable
supply chains. Companies will likely prioritize structures and processes that can respond fast to
disruptions.

Proposition 4: "The demand for more robust and resilient Supply Chains will lead to shorter and
less price sensitivity supply chains."
Resilient supply chains may be achieved by prioritizing proximity and reliability over cost. This
proposition suggests that the demand for resilience will result in shorter supply chains and a
reduced sensitivity to price.

Proposition 5: "The demand for more robust and resilient Supply Chains will lead to multi-level
sourcing policies."
To enhance resilience, companies may adopt multi-level sourcing policies. This involves
diversifying sources for materials and components, reducing dependency on a single supplier and
/or location, and mitigating risks associated with supply chain disruptions.

Proposition 6: "The demand for more robust and resilient Supply Chains will lead to a higher
overall cost for the final products and services."
Achieving resilience often involves additional costs, such as investments and risk management.
This proposition says that the pursuit of resilience will result in an overall increase in the cost of
final products and services.

Proposition 7: "The demand for more robust and resilient Supply Chains will lead to an
acceleration of end-to-end digital transformation."
Resilience in supply chains can be facilitated by digital transformation. This suggests that the
demand for resilience will create an adoption of digital technologies across the supply chain.

Proposition 8: "In the Post COVID-19 world, there will be an improvement in SC delivery
reliability acceptance."
The expectation is that post-pandemic, there will be an increased recognition and acceptance of
supply chain delivery reliability as a critical factor. Companies and stakeholders are likely to
place higher importance on dependable operations.

Proposition 9: "In the Post COVID-19 world, there will an increase in the overall SC cost."
Post-COVID-19, the overall cost of supply chain operations is expected to rise. This due to the
implementation of measures to enhance resilience and reliability, as well as the potential increase
in costs associated with adapting to new operating systems.

Proposition 10: "In the Post COVID-19 world, there will be a decrease in the profitability of
low-cost suppliers."
This suggests that post-pandemic, low-cost suppliers may experience a decrease in profitability.
This could be a result of increased emphasis on factors like reliability and resilience, which
might come at the expense of selecting suppliers based on low-cost considerations.

Proposition 11: "In the Post COVID-19 world, there will be an increase in the profitability of
the value cost suppliers."
Conversely, suppliers offering value, which may include factors such as reliability, resilience,
and flexibility, are expected to experience increased profitability in the post-COVID-19 era. This
reflects a shift in priorities towards suppliers that contribute more than just savings.

 Propositions 1-5: These propositions suggest a shift towards shorter, more resilient, and
flexible supply chains, with an emphasis on reliability over cost.
 Propositions 6-11: Indicate that achieving resilient supply chains will come at a cost,
both in increased expenses and shifts in supplier profitability.
 Proposition 7: Speak more on the role of digital transformation as a key for resilient
supply chains.
 Propositions 8-11: These focus on the post-COVID-19 landscape, predicting increased
recognition of supply chain reliability and potential shifts in supplier profitability.

List at least 3 propositions and how they effect a global supply chain.

One proposition includes the increase in government stimulus plans and control of the economy,
with an emphasis on job preservation and business survival, will lead to a more focus on national
and regional supplier. A government stimulus helps boost consumption as people will continue to
spend but may also create supply chain bottle necks created by supply and demand mismatches.
These bottlenecks create costs and delays and hurt companies bottom line.

Proposition 3 includes the demand for more robust and resilient Supply Chain will establish
flexible and adaptable supply chains. Robustness implies there is better performance during a
disruption like Covid-19. Resilience implies there will be a quick recovery time. These desirable
traits effect the Global supply chain by reducing ricks without impacting the revenue and bottom
line. Global supply chains may adopt different manufacturing processes to enhance adaptability.

Proposition 5 includes the demand for more robust and resilient Supply Chains will lead to
multi-level sourcing policies. Having multi-level sourcing policies allow for a company to shift
sourcing, distribution, and manufacturing activities around quickly. This can affect the global
supply chain by reducing costs and get products out quicker to keep up with demands. This may
also increase complexity.