SCMN3720 Exam 1 Study Guide
Which countries (in order) are the top 3 exporters in the world?
China, United States, Germany
Which countries (in order) are the top 3 importers in the world?
United States, China, Germany
What are the two largest countries in the world, based on population?
China, India
How much has the volume of global trade growth between 1990 and 2020?
More than doubled
Explain the concepts of absolute advantage and comparative advantage,
how they are different, and why they are relevant to transportation?
• Absolute advantage- Trade is beneficial if cost of production for the same
product differ between countries. (Access to certain materials or products
not available domestically)
• Comparative advantage- Trade is also beneficial even if one country has
lower cost of production than other country in multiple products.
(Differences in the cost of producing products in different countries)
What are some major contributing factors influencing global flows and
trade?
1.Population and age distribution
2.Urbanization
3.Land and resources
, 4.Technology and information
5.Globization
What are some of the key benefits of globalization?
1. Lower prices
2. Wider availability of goods and services
3. Land and resource development
4. New job opportunities
5. BRIC and VISTA countries
What are some of the key challenges of globalization?
1. Increased level of complexity and competition
2. Shorter product life cycles
3. New forms of competition
4. New business models
What is transportation and why is it important?
The movement of goods to satisfy demand. It enables commerce and is
needed for economic stability and growth.
What are the 3 key flows in the supply chain concept, and where does
demand fit in?
1. Products and related services
2. Information
3. Financials (cash)
Demand drives all of these
How does transportation play an important role in supply chain efficiency?
Transportation service quality contributes to improved customer service
and faster cash flow
Which countries (in order) are the top 3 exporters in the world?
China, United States, Germany
Which countries (in order) are the top 3 importers in the world?
United States, China, Germany
What are the two largest countries in the world, based on population?
China, India
How much has the volume of global trade growth between 1990 and 2020?
More than doubled
Explain the concepts of absolute advantage and comparative advantage,
how they are different, and why they are relevant to transportation?
• Absolute advantage- Trade is beneficial if cost of production for the same
product differ between countries. (Access to certain materials or products
not available domestically)
• Comparative advantage- Trade is also beneficial even if one country has
lower cost of production than other country in multiple products.
(Differences in the cost of producing products in different countries)
What are some major contributing factors influencing global flows and
trade?
1.Population and age distribution
2.Urbanization
3.Land and resources
, 4.Technology and information
5.Globization
What are some of the key benefits of globalization?
1. Lower prices
2. Wider availability of goods and services
3. Land and resource development
4. New job opportunities
5. BRIC and VISTA countries
What are some of the key challenges of globalization?
1. Increased level of complexity and competition
2. Shorter product life cycles
3. New forms of competition
4. New business models
What is transportation and why is it important?
The movement of goods to satisfy demand. It enables commerce and is
needed for economic stability and growth.
What are the 3 key flows in the supply chain concept, and where does
demand fit in?
1. Products and related services
2. Information
3. Financials (cash)
Demand drives all of these
How does transportation play an important role in supply chain efficiency?
Transportation service quality contributes to improved customer service
and faster cash flow
