1. Discuss how logistics management must evolve to reflect the differing needs for each stage of international development.

2. Discuss the logistics operational considerations for operating in a global environment.

3. Describe the logistics characteristics of a firm moving toward a globally integrated enterprise.

4. Describe some of the strategies that firms can use to overcome the challenges related to transportation infrastructure congestion.

5. Discuss the rationale and challenges related to sourcing from low-cost countries.

6. Discuss how product variations, security and import constraints, and transportation uncertainty should impact global sourcing and marketing decisions.

Challenge Questions

1. Suppose you were asked to advise a domestic firm in your region. Identify the critical value propositions that the firm uses to compete domestically. Using the value propo¬sitions that you have identified, develop and rationalize an argument for the firm to increase its global operations based on the points identified in Table 11.1.

2. For each region in Table 11.2, identify the country with the lowest and highest logistics cost as a percentage of GDP. For each of the six countries (three regions and lowest and highest in each), compare and contrast each country's logistics as a percentage of GDP

3. Select a component or finished good that you are familiar with that is sourced from a low-cost country. Develop a total cost value proposition to evaluate the potential of continued sourcing from a low-cost country.

For each of the cost components (material, manufacturing, transportation, packaging, inventory, handling, damage, risk, security), identify the major trade-offs associated with sourcing locally versus sourcing from a low-cost country.

Based on your assessment of the current environment in your country, what is the direction for each of these cost components over the next five years, and what is the likely trend regarding low-cost-country sourcing?