SOLUTIONS MANUAL
TU
Transportation: A Global Supply Chain
VI
Perspective
A2
Robert A. Novack, Brian J. Gibson, and Yoshinori Suzuki
──────────────────────────────────────────────────
10th Edition
6_
AP
PR
OV
ED
??
,ST
TABLE OF CONTENTS
UV
Solutions Manual: Transportation: A Global Supply Chain Perspective, 10th Edition
By Robert A. Novack, Brian J. Gibson, and Yoshinori Suzuki
Part I Introduction to Global Transportation
IA
Chapter 1 Global Supply Chains: Role and Importance of Transportation
Chapter 2 Transportation and the Economy
26
Chapter 3 Transportation Technology and Systems
Chapter 4 Costing and Pricing for Transportation
_A
Reading Suggested Readings for Part I
Part II Traditional Modes and Logistics Services
Chapter 5 Motor Carriers
PP
Chapter 6 Railroads
Chapter 7 Airlines
RO
Chapter 8 Water Carriers and Pipelines
Chapter 9 Logistics Services
Reading Suggested Readings for Part II
VE
Part III Strategic Transportation Management
Chapter 10 Transportation Risk Management
Chapter 11 Global Transportation Management
D?
Chapter 12 Transportation Regulation and Public Policy
Chapter 13 Issues and Challenges for Global Supply Chains
?
1
,ST
Solution and Answer Guide: Novack, Transportation: A Global Supply Chain Perspective, 10e, 2024, 9780357908549;
Chapter 1: Global Supply Chains: The Role and Importance of Transportation
Solution and Answer Guide
UV
NOVACK , TRANSPORTATION: A GLOBAL SUPPLY CHAIN PERSPECTIVE, 10E, 2024,
9780357908549; CHAPTER 1: GLOBAL SUPPLY CHAINS: THE ROLE AND IMPORTANCE OF
TRANSPORTATION
IA
TABLE OF CONTENTS
Content Type ............................................................................................... 1
26
[Study Questions] ........................................................................................ 1
END OF SECTION EXERCISE SOLUTIONS .....................................................................4
[CASE QUESTIONS] .........................................................................................4
_A
CONTENT TYPE
PP
[STUDY QUESTIONS]
1. Transportation has sometimes been described as the glue that holds global supply
chains together. What is the meaning of this statement and do you agree? Why or why
RO
not?
Solution:
Most students will probably agree that transportation is the “glue” of the supply chain
since it connects the individual parts of the chain. Still, they should point out that
information is also important to hold the supply chain together. The essence of the
VE
statement is that supply chains are extended enterprises with many parts, and the
final outcome is a product delivered on time to a particular location without damage
or delay. Transportation and information flows are key to this outcome. They should
also point out that transportation and information can provide a strategic advantage,
so they should be an important part of the planning process. Overall, supply chains
D?
play an important role in helping organizations gain a strategic advantage in the global
economy of the 21st century.
2. During the last 20 to 30 years, there have been a number of countries whose
economies have experienced important economic expansion and development. One
group of countries has been labeled the BRIC countries and the other the VISTA
?
countries. Identify each of the nine countries and provide some insights about their
economies and economic importance.
Solution:
BRIC countries are Brazil, Russia, India, and China. The VISTA countries are Viet Nam,
Indonesia, South Africa, Turkey, and Argentina. The BRIC group is generally considered
to be the most advanced economy. China is clearly the most important, as indicated
by the grade flow data in the chapter. They are important for manufactured production
well as resources. India has advanced rapidly through their educated and industrious
citizens and technology, and organizations in India have become an important part of
,ST
Solution and Answer Guide: Novack, Transportation: A Global Supply Chain Perspective, 10e, 2024, 9780357908549;
Chapter 1: Global Supply Chains: The Role and Importance of Transportation
many supply chains. Russia and Brazil both have vast resources that can be the basis
for funds, but they are also developing more advanced manufacturing sectors. They
UV
are challenged by their geography, size, and political factors. The VISTA countries have
established themselves as countries for sourcing some basic manufacturing because
of low labor costs. They also provide agricultural products and other resources for
exporting. The key dimension for both the BRIC and VISTA countries is that
establishing global supply chains has allowed them to be a part the global economies.
IA
There is abundant information about the BRIC and VISTA countries on the internet if
you want to make this question a special assignment or extra credit.
3. The theories of absolute and comparative advantage have been offered as an
economic rationale for trade between and among regions and countries. Compare and
26
contrast the two concepts. Which of the two do you think is more important for
explaining the growth in global trade during the last 25 years? Why?
Solution:
Both theories are offered as a rationale for expanded trade between and among
_A
regions and countries to promote growth and development. Absolute advantage is the
oldest concept and easiest to explain, since each country has an advantage in the
production of one or more products in the two-country scenario. Comparative
advantage postulates that even if one country has an advantage in both products,
trade can still be advantageous. Comparative advantage has probably been the most
PP
important for overall development in our complex global economy since countries can
produce so many products that are competitive with other countries, to some degree.
However, complete advantage is still important to rationalize some major work flows,
especially for basic materials and agricultural products. There are also seasonal and
weather-related factors that provide advantages at particular times of the year for
RO
different regions.
4. The overall growth of global trade has more than doubled since 2000. Why? What has
been the most important factor prompting this growth? Is this rate of growth likely to
continue in the future? Why or why not?
Solution:
VE
There are several reasons for this growth. Some of it can be explained by population
growth and improved education systems in developing countries. Capital for
development has become more widely available from private and public sources. There
is also more acceptance of products manufactured in other countries. But probably
the most important reasons are trade agreements and lower tariffs on imported
D?
products. These have been greatly expanded because of the recognition of how
important global trade can be to economic development and the health and welfare of
the citizens of the country. One of the biggest challenges to progress in promoting
global trade is the political instability and terrorism that have developed in some areas
of the world, such as Africa and parts of the Middle East. These factors undermine the
?
benefits that can accrue from the growth in global trade. One can argue that the
growth will continue because of the economic and political forces at work in the global
economy, but there will be ups and downs or bumps along the road because of human
error and greed.
5. The size of a country’s population and the associated age distribution can be causal
factors for economic growth. Why is the size of the population important to economic
development? Can size be a disadvantage? Why is age distribution important?
TU
Transportation: A Global Supply Chain
VI
Perspective
A2
Robert A. Novack, Brian J. Gibson, and Yoshinori Suzuki
──────────────────────────────────────────────────
10th Edition
6_
AP
PR
OV
ED
??
,ST
TABLE OF CONTENTS
UV
Solutions Manual: Transportation: A Global Supply Chain Perspective, 10th Edition
By Robert A. Novack, Brian J. Gibson, and Yoshinori Suzuki
Part I Introduction to Global Transportation
IA
Chapter 1 Global Supply Chains: Role and Importance of Transportation
Chapter 2 Transportation and the Economy
26
Chapter 3 Transportation Technology and Systems
Chapter 4 Costing and Pricing for Transportation
_A
Reading Suggested Readings for Part I
Part II Traditional Modes and Logistics Services
Chapter 5 Motor Carriers
PP
Chapter 6 Railroads
Chapter 7 Airlines
RO
Chapter 8 Water Carriers and Pipelines
Chapter 9 Logistics Services
Reading Suggested Readings for Part II
VE
Part III Strategic Transportation Management
Chapter 10 Transportation Risk Management
Chapter 11 Global Transportation Management
D?
Chapter 12 Transportation Regulation and Public Policy
Chapter 13 Issues and Challenges for Global Supply Chains
?
1
,ST
Solution and Answer Guide: Novack, Transportation: A Global Supply Chain Perspective, 10e, 2024, 9780357908549;
Chapter 1: Global Supply Chains: The Role and Importance of Transportation
Solution and Answer Guide
UV
NOVACK , TRANSPORTATION: A GLOBAL SUPPLY CHAIN PERSPECTIVE, 10E, 2024,
9780357908549; CHAPTER 1: GLOBAL SUPPLY CHAINS: THE ROLE AND IMPORTANCE OF
TRANSPORTATION
IA
TABLE OF CONTENTS
Content Type ............................................................................................... 1
26
[Study Questions] ........................................................................................ 1
END OF SECTION EXERCISE SOLUTIONS .....................................................................4
[CASE QUESTIONS] .........................................................................................4
_A
CONTENT TYPE
PP
[STUDY QUESTIONS]
1. Transportation has sometimes been described as the glue that holds global supply
chains together. What is the meaning of this statement and do you agree? Why or why
RO
not?
Solution:
Most students will probably agree that transportation is the “glue” of the supply chain
since it connects the individual parts of the chain. Still, they should point out that
information is also important to hold the supply chain together. The essence of the
VE
statement is that supply chains are extended enterprises with many parts, and the
final outcome is a product delivered on time to a particular location without damage
or delay. Transportation and information flows are key to this outcome. They should
also point out that transportation and information can provide a strategic advantage,
so they should be an important part of the planning process. Overall, supply chains
D?
play an important role in helping organizations gain a strategic advantage in the global
economy of the 21st century.
2. During the last 20 to 30 years, there have been a number of countries whose
economies have experienced important economic expansion and development. One
group of countries has been labeled the BRIC countries and the other the VISTA
?
countries. Identify each of the nine countries and provide some insights about their
economies and economic importance.
Solution:
BRIC countries are Brazil, Russia, India, and China. The VISTA countries are Viet Nam,
Indonesia, South Africa, Turkey, and Argentina. The BRIC group is generally considered
to be the most advanced economy. China is clearly the most important, as indicated
by the grade flow data in the chapter. They are important for manufactured production
well as resources. India has advanced rapidly through their educated and industrious
citizens and technology, and organizations in India have become an important part of
,ST
Solution and Answer Guide: Novack, Transportation: A Global Supply Chain Perspective, 10e, 2024, 9780357908549;
Chapter 1: Global Supply Chains: The Role and Importance of Transportation
many supply chains. Russia and Brazil both have vast resources that can be the basis
for funds, but they are also developing more advanced manufacturing sectors. They
UV
are challenged by their geography, size, and political factors. The VISTA countries have
established themselves as countries for sourcing some basic manufacturing because
of low labor costs. They also provide agricultural products and other resources for
exporting. The key dimension for both the BRIC and VISTA countries is that
establishing global supply chains has allowed them to be a part the global economies.
IA
There is abundant information about the BRIC and VISTA countries on the internet if
you want to make this question a special assignment or extra credit.
3. The theories of absolute and comparative advantage have been offered as an
economic rationale for trade between and among regions and countries. Compare and
26
contrast the two concepts. Which of the two do you think is more important for
explaining the growth in global trade during the last 25 years? Why?
Solution:
Both theories are offered as a rationale for expanded trade between and among
_A
regions and countries to promote growth and development. Absolute advantage is the
oldest concept and easiest to explain, since each country has an advantage in the
production of one or more products in the two-country scenario. Comparative
advantage postulates that even if one country has an advantage in both products,
trade can still be advantageous. Comparative advantage has probably been the most
PP
important for overall development in our complex global economy since countries can
produce so many products that are competitive with other countries, to some degree.
However, complete advantage is still important to rationalize some major work flows,
especially for basic materials and agricultural products. There are also seasonal and
weather-related factors that provide advantages at particular times of the year for
RO
different regions.
4. The overall growth of global trade has more than doubled since 2000. Why? What has
been the most important factor prompting this growth? Is this rate of growth likely to
continue in the future? Why or why not?
Solution:
VE
There are several reasons for this growth. Some of it can be explained by population
growth and improved education systems in developing countries. Capital for
development has become more widely available from private and public sources. There
is also more acceptance of products manufactured in other countries. But probably
the most important reasons are trade agreements and lower tariffs on imported
D?
products. These have been greatly expanded because of the recognition of how
important global trade can be to economic development and the health and welfare of
the citizens of the country. One of the biggest challenges to progress in promoting
global trade is the political instability and terrorism that have developed in some areas
of the world, such as Africa and parts of the Middle East. These factors undermine the
?
benefits that can accrue from the growth in global trade. One can argue that the
growth will continue because of the economic and political forces at work in the global
economy, but there will be ups and downs or bumps along the road because of human
error and greed.
5. The size of a country’s population and the associated age distribution can be causal
factors for economic growth. Why is the size of the population important to economic
development? Can size be a disadvantage? Why is age distribution important?
