Solution Manual for Transportation A Global Supply Chain Perspective, 10th Edition by Robert A. NovackBrian GibsonYoshinori Suzuki-Transportation has sometimes been described as the glue that holds global supply chains t
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Solution Manual for Transportation A Global Supply Chain Perspective, 10th Edition by Robert A. NovackBrian GibsonYoshinori Suzuki-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 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 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 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
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educated and industrious citizens and technology, and organizations in India have become an important part
of 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 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.
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 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 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 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 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:
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
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?
Solution:
The sheer size of the population can be very important because labor is one of the prime factors for
economic growth, and population numbers indicate the availability of labor. The size of the population can
also indicate the market size and potential for selling products. Size can be a disadvantage if the economy
cannot provide employment opportunities. Large size can also challenge the education system and may
require government resources to sustain the basic needs of the citizenry. Age distribution affects the size of
the labor pool of available employees. Also, older populations require more medical assistance and other
services, which can drain the resources of individuals or government agencies. The population data and
commentary in the chapter provide the basis for some interesting discussion. Again, this topic has abundant
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