AM330 Study Guide Final Test
2026/2027
Vendor compliance - ANSWER Rules for business interactions with vendors.
Global Competitiveness Index (GCI) - ANSWER Measures national competitiveness and
ease of business.
Basic requirements - ANSWER Infrastructure, health, and primary education factors.
Efficiency enhancers - ANSWER Higher education and market efficiency factors.
Innovation and sophistication indexes - ANSWER Business sophistication and innovation
factors.
Economic development - ANSWER Country's overall stability and security status.
Bureaucratic efficiency - ANSWER Effectiveness of government administrative systems.
Infrastructure - ANSWER Transportation, communication, and power supply systems.
Labor cost - ANSWER Expenses related to hiring workers in production.
Shipping cost and time - ANSWER Expenses and duration related to transporting goods.
Cultural values and norms - ANSWER Societal communication patterns and behaviors.
Import duties - ANSWER Taxes imposed by importing governments on goods.
Risk of natural disasters - ANSWER Potential exposure to environmental hazards.
Human Development Index (HDI) - ANSWER Measures development using GDP, life
expectancy, literacy.
Full container load (FCL) - ANSWER Standard shipping container fully loaded with
goods.
Less than container load (LCL) - ANSWER Cargo that does not fill a full shipping
container.
Consolidator - ANSWER Combines cargo from multiple shippers for cost reduction.
Sourcing Calendar - ANSWER Timeline for merchandise development and retail periods.
Private Brand Retailers - ANSWER Retailers developing and sourcing their own brands.
, Brand Managers - ANSWER Outsource production to reduce costs and increase
efficiency.
Apparel Sourcing Intermediary - ANSWER Expert companies in design and logistics for
sourcing.
CMT factory - ANSWER Cut-make-trim factory handling production costs.
Full-package production - ANSWER Vendor manages all aspects of manufacturing
process.
Advantages of CMT - ANSWER Greater control and flexibility in production.
Disadvantages of CMT - ANSWER Coordination issues and sourcing responsibilities.
Outsourcing acquisition - ANSWER Delegating fabric sourcing to specialized factories.
Technical Design - ANSWER Process of developing product specifications and
standards.
World Risk Index - ANSWER Assesses countries' vulnerability to natural disasters.
Government Efficiency Index (GEI) - ANSWER Measures government spending
wastefulness and transparency.
Merchandise development - ANSWER Process of creating and preparing products for
sale.
Human resources - ANSWER Need additional human resources
Sourcing and negotiating - ANSWER Responsible for extra costs
Shipping and handling - ANSWER Related to development of multiple samples
Fabric investment - ANSWER Delays in approvals
Minimum order qty requirements - ANSWER Help full package factories
Outsourcing technical design - ANSWER Advantages include faster response time to
market and saving on costs
Order problems - ANSWER Anticipate order problems such as fabric shortages and
transportation delays
Lead times - ANSWER Disadvantages include longer lead times and communication
problems due to time zones
Different styling preferences - ANSWER Related to developing vs developed countries
Last-minute risks - ANSWER Other last-minute risks for sourcing company include full
package contract canceled unexpectedly
2026/2027
Vendor compliance - ANSWER Rules for business interactions with vendors.
Global Competitiveness Index (GCI) - ANSWER Measures national competitiveness and
ease of business.
Basic requirements - ANSWER Infrastructure, health, and primary education factors.
Efficiency enhancers - ANSWER Higher education and market efficiency factors.
Innovation and sophistication indexes - ANSWER Business sophistication and innovation
factors.
Economic development - ANSWER Country's overall stability and security status.
Bureaucratic efficiency - ANSWER Effectiveness of government administrative systems.
Infrastructure - ANSWER Transportation, communication, and power supply systems.
Labor cost - ANSWER Expenses related to hiring workers in production.
Shipping cost and time - ANSWER Expenses and duration related to transporting goods.
Cultural values and norms - ANSWER Societal communication patterns and behaviors.
Import duties - ANSWER Taxes imposed by importing governments on goods.
Risk of natural disasters - ANSWER Potential exposure to environmental hazards.
Human Development Index (HDI) - ANSWER Measures development using GDP, life
expectancy, literacy.
Full container load (FCL) - ANSWER Standard shipping container fully loaded with
goods.
Less than container load (LCL) - ANSWER Cargo that does not fill a full shipping
container.
Consolidator - ANSWER Combines cargo from multiple shippers for cost reduction.
Sourcing Calendar - ANSWER Timeline for merchandise development and retail periods.
Private Brand Retailers - ANSWER Retailers developing and sourcing their own brands.
, Brand Managers - ANSWER Outsource production to reduce costs and increase
efficiency.
Apparel Sourcing Intermediary - ANSWER Expert companies in design and logistics for
sourcing.
CMT factory - ANSWER Cut-make-trim factory handling production costs.
Full-package production - ANSWER Vendor manages all aspects of manufacturing
process.
Advantages of CMT - ANSWER Greater control and flexibility in production.
Disadvantages of CMT - ANSWER Coordination issues and sourcing responsibilities.
Outsourcing acquisition - ANSWER Delegating fabric sourcing to specialized factories.
Technical Design - ANSWER Process of developing product specifications and
standards.
World Risk Index - ANSWER Assesses countries' vulnerability to natural disasters.
Government Efficiency Index (GEI) - ANSWER Measures government spending
wastefulness and transparency.
Merchandise development - ANSWER Process of creating and preparing products for
sale.
Human resources - ANSWER Need additional human resources
Sourcing and negotiating - ANSWER Responsible for extra costs
Shipping and handling - ANSWER Related to development of multiple samples
Fabric investment - ANSWER Delays in approvals
Minimum order qty requirements - ANSWER Help full package factories
Outsourcing technical design - ANSWER Advantages include faster response time to
market and saving on costs
Order problems - ANSWER Anticipate order problems such as fabric shortages and
transportation delays
Lead times - ANSWER Disadvantages include longer lead times and communication
problems due to time zones
Different styling preferences - ANSWER Related to developing vs developed countries
Last-minute risks - ANSWER Other last-minute risks for sourcing company include full
package contract canceled unexpectedly
