ISM INTE Exam - Topic 1 Question 22 Discussion

Actual exam question for ISM's INTE exam

Question #: 22
Topic #: 1

GHI, Inc. is a U.S.-based company with an expanding product line. GHI widens its sourcing of components to global suppliers, including suppliers in countries which are not included in trading blocs or bilateral agreements with the United States. Compliance with which of the following will MOST likely reduce GHI's administrative burden of cargo inspections on materials imported from these sources?

AUnited Nations Convention on Contracts for the International Sale of Goods (CISG)

BForeign Corrupt Practices Act (FCPA)

CGlobal Environmental Management Initiative (GEMI)

DCustoms-Trade Partnership Against Terrorism (C-TPAT)

Show Suggested Answer

Suggested Answer: D

In a highly competitive market like office supplies, the most critical cost associated with shortag-es is typically lost sales. If PQR, Inc. experiences shipping delays and cannot maintain continuous inventory, customers are likely to turn to competitors to meet their needs. This can result in im-mediate lost sales and potentially long-term loss of customer loyalty. The cost of lost sales often outweighs other costs like idle workers or production downtime because it directly affects revenue and market share. Reference:

* Chopra, S., & Meindl, P. (2015). Supply Chain Management: Strategy, Planning, and Op-eration. Pearson.

* Christopher, M. (2016). Logistics & Supply Chain Management. Pearson UK.

by Chi at Feb 10, 2025, 06:02 PM

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Huey

6 months ago

Surprised that C-TPAT is the best option for this situation.

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Glen

6 months ago

C-TPAT is essential for reducing delays!

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Francoise

6 months ago

Really? I thought CISG would be more relevant here.

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Inocencia

7 months ago

Totally agree, C-TPAT is the way to go!

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Cyril

7 months ago

C-TPAT helps streamline cargo inspections.

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Bobbye

7 months ago

I’m a bit confused; I thought the FCPA was more about anti-corruption rather than cargo inspections.

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Gennie

7 months ago

I practiced a similar question where C-TPAT was mentioned, and it seemed to be the best option for reducing administrative burdens.

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Doug

8 months ago

I'm not entirely sure, but I remember something about the CISG being more about contracts than compliance.

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Melina

8 months ago

I think the answer might be D, C-TPAT, since it focuses on security and compliance which could help with inspections.

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Alesia

8 months ago

I'm feeling pretty confident about this one. The question is specifically asking about reducing the administrative burden of cargo inspections, and C-TPAT seems like the most relevant compliance program to address that.

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Dulce

8 months ago

Based on the information provided, I think D is the best answer. C-TPAT is a voluntary government-business initiative that aims to secure the supply chain, which should help reduce the burden of cargo inspections for GHI.

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Blair

8 months ago

I'm a bit confused on the differences between these compliance programs. I'll need to review my notes to make sure I understand the details of each one before selecting an answer.

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Mollie

8 months ago

The key here is to focus on which compliance program would most likely reduce the administrative burden of cargo inspections. I'm leaning towards D, Customs-Trade Partnership Against Terrorism (C-TPAT), since that seems to be the most directly relevant.

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Arlette

8 months ago

This seems like a tricky question. I'll need to think carefully about the different compliance options and how they might impact GHI's cargo inspections.

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Dustin

1 year ago

If GHI wants to reduce their administrative burden, they should just hire a team of highly trained llamas to handle the cargo inspections. Problem solved!

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Talia

12 months ago

Maybe they can also consider United Nations Convention on Contracts for the International Sale of Goods (CISG) for smoother imports.

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Amie

12 months ago

I agree, they should focus on compliance with Customs-Trade Partnership Against Terrorism (C-TPAT) to reduce their administrative burden.

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Reid

12 months ago

That's a funny idea, but I don't think llamas are the solution to GHI's cargo inspection problem.

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Rene

1 year ago

Wait, isn't the Global Environmental Management Initiative (GEMI) the one that helps companies with environmental sustainability? I doubt that's the answer here.

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Willard

12 months ago

B) Foreign Corrupt Practices Act (FCPA)

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Tennie

12 months ago

I think C-TPAT would be the best choice to reduce cargo inspections.

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Janey

12 months ago

D) Customs-Trade Partnership Against Terrorism (C-TPAT)

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Isabella

12 months ago

Yeah, C-TPAT focuses on supply chain security, so that could definitely help with cargo inspections.

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Clarence

1 year ago

D) Customs-Trade Partnership Against Terrorism (C-TPAT)

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Alline

1 year ago

A) United Nations Convention on Contracts for the International Sale of Goods (CISG)

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Jules

1 year ago

A) United Nations Convention on Contracts for the International Sale of Goods (CISG)

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Lezlie

1 year ago

The CISG is an interesting choice, but I don't think it's the most relevant here. This question is more about trade and logistics, not international sales contracts.

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Amalia

1 year ago

Hmm, I'm not so sure about that. I think the FCPA might also be a good option since it deals with compliance for companies operating globally.

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Lorriane

1 year ago

I agree, the FCPA could definitely help with compliance for global operations.

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Salena

1 year ago

D) Customs-Trade Partnership Against Terrorism (C-TPAT)

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Oneida

1 year ago

C) Global Environmental Management Initiative (GEMI)

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Lennie

1 year ago

B) Foreign Corrupt Practices Act (FCPA)

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Lashanda

1 year ago

A) United Nations Convention on Contracts for the International Sale of Goods (CISG)

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Laurene

1 year ago

I'm pretty sure the answer is D) Customs-Trade Partnership Against Terrorism (C-TPAT). It's a voluntary supply chain security program that helps companies reduce their cargo inspections by following certain security protocols.

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Larue

1 year ago

I'm not sure about that. Maybe A) United Nations Convention on Contracts for the International Sale of Goods (CISG) could also help streamline the process for GHI.

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Gertude

1 year ago

I agree with Oretha. C-TPAT would definitely help GHI reduce their administrative burden on cargo inspections from global suppliers.

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Oretha

1 year ago

I think the answer is D) Customs-Trade Partnership Against Terrorism (C-TPAT). It focuses on securing the international supply chain, which could help reduce cargo inspections.

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