JAN 2012 CONFIDENTIAL

UNIVERSITI KUALA LUMPUR

Malaysian Institute of Marine Engineering Technology

FINAL EXAMINATION
JAN 2012 SESSION

SUBJECT CODE : LOB 30503

SUBJECT TITLE : INTERNATIONAL LOGISTICS

LEVEL : BACHELOR

TIME / DURATION : 9.00 AM-12.00PM / 3 HOURS

DATE : 18 MAY 2012

INSTRUCTIONS TO CANDIDATES

1. Please read the instructions given in the question paper CAREFULLY.

2. This question paper is printed on both sides of the paper.
3. Please write your answers on the answer booklet provided.
4. This question paper consists of TWO (2) sections; Section ‘A’ and Section ‘B’.
Answer all questions in Section ‘A' and THREE (3) questions only from
Section ‘B’.
5. Answer all questions in English.

THERE ARE 3 PAGES OF QUESTIONS, EXCLUDING THIS PAGE.

LOB 30503 INTERNATIONAL LOGISTICS

 JAN 2012 CONFIDENTIAL

SECTION A (Total: 40 marks)

INSTRUCTION: Answer ALL questions.

Please use the answer booklet provided.

Question 1
a) New markets are opening up and existing markets are expanding worldwide. The
economies of the industrialized nations have matured, their economic growth rates have
slackened, so firms in those countries are seeking market opportunities abroad. An
increasing number of firms are engaging in international marketing and distribution.
Describe FOUR (4) factors that would influence a company to enter international
markets.
(16 marks)
b) Several options are available within international market entry strategies. List down
FOUR (4) channel strategy.
(4 marks)

Question 2
a) Many facilitator organizations are involved in the exporting activity. Explain THREE (3)
ROLES of the following exporting organizations in global logistics:
1. Export distributor
2. Customhouse broker
3. International Freight Forwarder
(12 marks)

b) International documentation is much more complex than domestic documentation

because each country has its own specifications and requirements. Errors in
documentation can create long, costly delays in shipping. Classify FOUR (4)
DOCUMENTATION with their functions.
(8marks)

LOB 30503 INTERNATIONAL LOGISTICS

 JAN 2012 CONFIDENTIAL

SECTION B (Total: 60 marks)

INSTRUCTION: Answer only THREE (3) questions.

Please use the answer booklet provided.

Question 3
a) To ensure that international customers pay for products shipped to customers, letters of
credit are often issued. Define the meaning of “Letter of Credit”
(4 marks)
b) It is crucial that logistics managers involved in international trade understand how letters
of credit work. If they misinterpret information or fail to diligently follow the shipping
instructions contained in the document, it could jeopardize the company’s chances of
receiving payment for the goods shipped. Discuss how “Letters of Credit” are used in
international business transactions.
(16 marks)

Question 4
Three major geographic regions account for the bulk of the world economic activity and
international trade: North America, Western Europe and the Pacific Rim which includes
China and Japan. Briefly identify the opportunities and challenges facing firms seeking
to market products in the following regions:
1. Western Europe
2. North America
(20 marks)

LOB 30503 INTERNATIONAL LOGISTICS

 JAN 2012 CONFIDENTIAL

Question 5
a) Planning within an organization exists at many levels, as well as in many functional
areas. Most organizations formally update their plans on a yearly basis. It is important to
tie all of the functional plans together to ensure that they mesh and support the overall
corporate plan and objectives. Does the logistics strategic planning process interface
with marketing? Discuss briefly.
(16 marks)
b) Arrange accordingly major steps in the corporate strategic planning process
(4 marks)

Question 6
a) The Total Quality Management (TQM) approach stresses long-term benefit resulting
from continuous improvement to systems, programs, products and people.
Improvements most often result from combination of small innovations. Determine how
Total Quality Management (TQM) differs from traditional management.
(10 marks)
b) Discuss whether TQM can be applied to logistics?
(10 marks)

LOB 30503 INTERNATIONAL LOGISTICS