What factors impact sourcing decisions the custom duties


Chapter 5: Global Sourcing, Nouf Alkharashi, Shradha Arora, Rose Chang, Ricky Prasad

Kunz, G., & Garner, M. (2007). Going Global: The Textile and Apparel Industry, 2nd ed. New York, NY: Fairchild Publications.

1. What is EDI used for?

2. The custom duties can be paid after the product has been acquired by the customer. True or False?

3. As a WTO rule, the COO is the country
a) who has contributed 50% or more in product transformation
b) who has contributed 50% or more in monetary value
c) where garment assembly occurs and product is "substantially transformed"
e) all of the above

4. What factors impact sourcing decisions?

A. type and quantity of products needed, manufacturing philosophies
B. monetary costs of acquisition, sourcing calendars
C. time required to produce and deliver the products
D. custom requirements in different countries, product development systems
E. all of the above

5. In the last 50 years, Apparel imported into the United States has grown from 5% to 50%. True or False?

6. Production costs consist of costs for __(1--fill in the blank), product development, AND __(2-fill in blank) costs. CMT consists of __(3-fill in the blank) costs and trim.

Select the best choice.
a) 1) labor..... 2) CMT .... 3) fabric
b) 1) sourcing.... 2) CMT .... 3) labor
c) 1) fabric ...... 2) CMT.....3) labor
d) 1) fabric.... 2) CMT.... 3) sourcing

7. According to Kunz and Garner, which country is considered the go-to source for its efficient labor force and supply chain?

A) Mexico
B) India
C) The U.S.
D) China
E) Bangladesh
F) none of the above

8. In this sourcing process, the (fill in this blank #1)is responsible for the sourcing of materials for product, planning, designing, product development; whilethe (fill in this blank #2) is contracted/hiredto produce the garments.
Also, the (fill in the blank #3) pays for the production and transportation costs.

9. Three types of Private Brand importers in the U.S. retail market that are mentioned are:
a) mass merchant, boutique shops, department store
b) specialty chain store, mass merchant, department store
c) both a & b
d) Macy's, Victoria's Secret, Walmart
e) both b & d

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