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ISM INTE Exam - Topic 1 Question 22 Discussion

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?
D) Customs-Trade Partnership Against Terrorism (C-TPAT)
A) United Nations Convention on Contracts for the International Sale of Goods (CISG)
B) Foreign Corrupt Practices Act (FCPA)
C) Global Environmental Management Initiative (GEMI)

ISM INTE Exam - Topic 1 Question 22 Discussion

Actual exam question for ISM's INTE exam
Question #: 22
Topic #: 1
[All INTE Questions]

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?

Show Suggested Answer Hide 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
10 months ago
Surprised that C-TPAT is the best option for this situation.
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Glen
10 months ago
C-TPAT is essential for reducing delays!
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Francoise
10 months ago
Really? I thought CISG would be more relevant here.
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Inocencia
11 months ago
Totally agree, C-TPAT is the way to go!
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Cyril
11 months ago
C-TPAT helps streamline cargo inspections.
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Bobbye
11 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
11 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
11 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
11 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
11 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
11 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
11 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
11 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
12 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
1 year 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
1 year 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
1 year 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
1 year ago
B) Foreign Corrupt Practices Act (FCPA)
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Tennie
1 year ago
I think C-TPAT would be the best choice to reduce cargo inspections.
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Janey
1 year ago
D) Customs-Trade Partnership Against Terrorism (C-TPAT)
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Isabella
1 year 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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