ISM Exam INTE Topic 1 Question 21 Discussion

Actual exam question for ISM's INTE exam

Question #: 21
Topic #: 1

[All INTE Questions]

FGH, Inc., a specialty construction company located in Italy, orders bulky customized sound equipment from a sole-source supplier in Asi

a. The equipment is to be installed in a new auditorium that FGH is constructing. Failure to complete the project in time for its scheduled opening will subject FGH to penalties. FGH receives notice from the supplier that the equipment is packaged and ready to ship as planned via ocean freight but that an impending storm may cause delays. FGH needs to stay within budget. In this situation, which of following is the BEST course of action for FGH to take?

AWait until the storm's path can be predicted more accurately

BEvaluate options for a multimodal shipment

CArrange for immediate air freight of the equipment

DUse ocean freight after the storm subsides

Show Suggested Answer

Suggested Answer: D

An oligopoly is a market structure where a few sellers dominate the market and many buyers ex-ist. In such a market, prices and output levels are often controlled by the leading firms or through collusion, such as forming a cartel. These firms hold significant market power, which allows them to influence prices and other market factors. Oligopolies are common in industries where high en-try barriers exist, such as telecommunications, airlines, and oil and gas. Reference:

* Perloff, J. M. (2016). Microeconomics: Theory and Applications with Calculus. Pearson.

* Mankiw, N. G. (2014). Principles of Microeconomics. Cengage Learning.

by Avery at Jan 25, 2025, 02:14 PM

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Rolande

1 months ago

Wait, the equipment is coming from Asia and they're building a project in Italy? Talk about a global supply chain! I guess when you need specialized sound gear, you gotta do what you gotta do. Just hope they don't get hit with any 'sound' delays!

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Brinda

1 months ago

Waiting until the storm's path is more accurate could be risky, especially with the tight deadline. And using ocean freight after the storm might put us dangerously close to the opening date. I think the air freight is the safest bet, even if it's a bit pricier.

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2 months ago

The penalties for not completing the project on time are a major concern, so I think the best option is to go with the air freight. It's the fastest way to get the equipment to the site and avoid those penalties.

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