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CIPS Global Logistics Strategy Sample Questions (Q48-Q53):
NEW QUESTION # 48
How do transacting parties commonly address potential conflicts of laws in international trade agreements?
- A. By avoiding any legal clauses in their contracts
- B. By relying on international arbitration exclusively
- C. By deferring the choice of law to the distributor or buyer
- D. By choosing the law of one of the transacting parties' home states
Answer: D
Explanation:
International trade agreements commonly specify the law of one of the transacting parties' home states to resolve legal conflicts effectively. [P-121]
NEW QUESTION # 49
What is a key consideration for organizations when determining the allocation of resources for reverse logistics activities?
- A. Meeting government regulations
- B. Maximizing profit margins
- C. Reducing production costs
- D. Satisfying customer preferences
Answer: D
Explanation:
Customer preferences and demands for environmental responsibility drive resource allocation in reverse logistics. [P-179]
NEW QUESTION # 50
A company is experiencing difficulties in managing supply chain complexity and information flow across multiple tiers of suppliers. Which strategy can help them address these challenges?
- A. Focusing on competitive relationships with suppliers
- B. Implementing layering and tiering in the supply chain network
- C. Increasing the use of subcontractors
- D. Eliminating all lower-tier suppliers
Answer: B
Explanation:
Layering and tiering help manage supply chain complexity by structuring supplier interactions and improving information flow. [P-34]
NEW QUESTION # 51
What forms can governmental incentives take to encourage investment in infrastructure and export industries in a region?
- A. Grants and subsidies
- B. All of the above
- C. Tax credits and tax rebates
- D. Tax holidays and investment allowances
Answer: B
Explanation:
Governmental incentives can take multiple forms, including grants, subsidies, tax credits, tax rebates, tax holidays, and investment allowances to promote infrastructure and export growth. [P-53]
NEW QUESTION # 52
What is the main characteristic of closed loop supply chains?
- A. They minimize forward flows activities and processes.
- B. They prioritize open-loop systems to reduce impacts on the environment.
- C. They involve cyclical motions of both forward and reverse flows with minimal leakage or losses.
- D. They consider only reverse flows activities from point of consumption to point of origin.
Answer: C
Explanation:
Closed loop supply chains are characterized by their design to consider both forward and reverse flows activities and processes in a cyclical motion with minimal leakage or losses. [P-144]
NEW QUESTION # 53
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