Answer to Question 1
TRUE
Answer to Question 2
International logistics usually make use of multiple transportation modes, including land, ocean, and air transport. Land transportation is conducted via highways and railroads, ocean transport is via container ships, and air transport is via commercial or cargo aircraft. Transportation modes involve several trade-offs. The three main considerations are cost, transit time to deliver the goods, and predictability, the match between anticipated and actual transit times.
Land transport is usually more expensive than ocean transport but cheaper than air. Exporters often opt for ocean shipping even when land transport is available because of the revolution in ocean transport with the development of 20- and 40-foot shipping containers, the big boxes loaded onto seagoing vessels. The ability of a modern ship to carry thousands of containers yields economies of scale, making ocean transport very cost effective. Given its high cost, air transport is used mostly to transport perishable products (like food and flowers), products with a high value-to-weight ratio (such as fine jewelry and laptop computers), and urgently needed goods (such as medicines and emergency supplies). It accounts for only 1 percent of international shipments.
Answer to Question 3
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