Question 1

Which of the following can a vertically integrated firm that buys its components from independent suppliers avoid?

Accepted Answer

A)   Problems associated with transfer pricing decisions
B)   The risk of losing its proprietary product technology to competitors
C)   The risk of losing out on the opportunities to enhance its dynamic capabilities
D)   Being dependent on suppliers to invest in specialized assets
E)   Responding to changes in exchange rates and trade barriersF) A) and E)
G) A) and B)

Question 2

Manufacturing firms should typically aim at lowering the costs of value creation by:

Accepted Answer

A)   decreasing inventory turnover.
B)   stocking huge amounts of inventory.
C)   lowering the quality of products.
D)   increasing after-sales services cost.
E)   reducing production costs.F) B) and D)
G) A) and E)

Question 3

In international business,when consumer demand is prone to large and unpredictable shifts,the firm that can adapt most quickly to these shifts will gain an advantage.

Accepted Answer

A) True 
 B)False

Question 4

Proprietary software solutions to implement electronic data interchange systems now dominate the market for global supply chain management software.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is an implication of a mass production system?

Accepted Answer

A)   It results in short production runs
B)   It fails to realize economies of scale
C)   It reduces the number of defects and eliminates waste.
D)   It helps to accommodate consumer preferences for product diversity
E)   It creates massive inventories that have to be stored in large warehouses.F) B) and D)
G) C) and D)

Question 6

Which of the following is true according to the transnational strategy?

Accepted Answer

A)   Foreign facilities are viewed as nothing more than low-cost production facilities.
B)   Valuable knowledge resides only in a firm's domestic operations.
C)   Foreign sites can take the lead role for the design of products to serve important regional markets.
D)   Local managers should not be empowered to enhance their factories strategic standing within the corporation.
E)   The strategy opposes the empowerment of local managers to enhance their factories strategic standing within the corporation.F) A) and B)
G) A) and C)

Question 7

Since refined sugar has a low value-to-weight ratio,even if it is shipped halfway around the world,their transportation costs account for a very small percentage of total costs.

Accepted Answer

A) True 
 B)False

Question 8

When substantial investments in specialized assets are required to manufacture a component,a firm will prefer to contract it out to a supplier rather than make the component internal

Accepted Answer

A) True 
 B)False

Question 9

Currency appreciation can transform a low-cost location into a high-cost location.

Accepted Answer

A) True 
 B)False

Question 10

Describe how making all or part of a product in-house facilitates investments in highly specialized assets.

Accepted Answer

The arguments that support making all or...

Question 11

Which of the following statements is true about strategic alliances with suppliers?

Accepted Answer

A)   In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform.
B)   There is nothing as trust between the firm and its suppliers in strategic alliances.
C)   Strategic alliances are short-term relationships that benefit only the independent suppliers.
D)   In a strategic alliance the benefits arising from investments in specialized assets and vertical integration are lost.
E)   A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners.F) C) and D)
G) All of the above

Question 12

Industrial products have few national differences in consumer taste and preference,hence the need for local responsiveness is reduced for such products.

Accepted Answer

A) True 
 B)False

Question 13

Define minimum efficient scale of output.How does this influence the location decisions of production activities?

Accepted Answer

The level of output at which most plant-...

Question 14

Which of the following is an objective of lean production?

Accepted Answer

A)   Reducing the quality of a product to keep unit costs low
B)   Reducing setup times for complex equipment
C)   Replacing customized production with mass production
D)   Decreasing utilization of individual machines through scheduling
E)   Increasing the level of minimum efficient scale of outputF) C) and E)
G) A) and B)

Question 15

Which of the following is true of a product that serves universal needs?

Accepted Answer

A)   It becomes necessary to customize the product to suit small consumer groups.
B)   It becomes necessary to accommodate demands for local responsiveness.
C)   It increases the attractiveness of concentrating production at an optimal location.
D)   It is difficult to serve national differences in consumer taste and preference.
E)   It is attractive to globally disperse production to all major markets.F) A) and E)
G) A) and D)

Question 16

When flexible manufacturing technologies are not available,a firm can manufacture products customized to various national markets at a single factory sited at the optimal location.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is a consequence of using flexible machine cells?

Accepted Answer

A)   It fails to adapt to the production of different products.
B)   It generally results in stockpiles of partly finished products.
C)   It improves capacity utilization and reduces wastes.
D)   It increases setup time for complex equipment.
E)   It adds to the cost structure of a firm.F) None of the above
G) C) and E)

Question 18

Which of the following is a drawback of ISO 9000 certification?

Accepted Answer

A)   It is bureaucratic and costly for many firms.
B)   It is an impossible standard to achieve.
C)   It is losing its prominence in international business.
D)   It is ineffective in Europe.
E)   It is ineffective in bringing about quality improvement.F) A) and D)
G) A) and E)

Question 19

Which of the following is a disadvantage of a firm that enters long-term alliances?

Accepted Answer

A)   It may lose the ability to realize economies of scale.
B)   It does not have the authority to terminate the alliance if partners fail to perform.
C)   It loses the capability to capture the benefits of vertical integration.
D)   It may limit its strategic flexibility by the commitments it makes to its alliance partners.
E)   It risks losing opportunities to build on its skills and capabilities.F) D) and E)
G) B) and E)

Question 20

Briefly describe the advantages and disadvantages of entering strategic alliances with suppliers.

Accepted Answer

Several international businesses have tr...

Exam 15: Global Production, Outsourcing, and Logistics

In international business,when consumer demand is prone to large and unpredictable shifts,the firm that can adapt most quickly to these shifts will gain an advantage.

Correct AnswerverifiedShow Answer

Which of the following is true of a product that serves universal needs?

Correct AnswerverifiedShow Answer

Which of the following is true according to the transnational strategy?

Correct AnswerverifiedShow Answer

Currency appreciation can transform a low-cost location into a high-cost location.

Correct AnswerverifiedShow Answer

Which of the following is a drawback of ISO 9000 certification?

Correct AnswerverifiedShow Answer

Industrial products have few national differences in consumer taste and preference,hence the need for local responsiveness is reduced for such products.

Correct AnswerverifiedShow Answer

Manufacturing firms should typically aim at lowering the costs of value creation by:

Correct AnswerverifiedShow Answer

Which of the following is an objective of lean production?

Correct AnswerverifiedShow Answer

Which of the following is a consequence of using flexible machine cells?

Correct AnswerverifiedShow Answer

Proprietary software solutions to implement electronic data interchange systems now dominate the market for global supply chain management software.

Correct AnswerverifiedShow Answer

Describe how making all or part of a product in-house facilitates investments in highly specialized assets.

Correct AnswerverifiedThe arguments that support making all or...View AnswerShow Answer

Since refined sugar has a low value-to-weight ratio,even if it is shipped halfway around the world,their transportation costs account for a very small percentage of total costs.

Correct AnswerverifiedShow Answer

Which of the following can a vertically integrated firm that buys its components from independent suppliers avoid?

Correct AnswerverifiedShow Answer

Define minimum efficient scale of output.How does this influence the location decisions of production activities?

Correct AnswerverifiedThe level of output at which most plant-...View AnswerShow Answer

Briefly describe the advantages and disadvantages of entering strategic alliances with suppliers.

Correct AnswerverifiedSeveral international businesses have tr...View AnswerShow Answer

Which of the following is an implication of a mass production system?

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage of a firm that enters long-term alliances?

Correct AnswerverifiedShow Answer

When flexible manufacturing technologies are not available,a firm can manufacture products customized to various national markets at a single factory sited at the optimal location.

Correct AnswerverifiedShow Answer

Which of the following statements is true about strategic alliances with suppliers?

Correct AnswerverifiedShow Answer

When substantial investments in specialized assets are required to manufacture a component,a firm will prefer to contract it out to a supplier rather than make the component internal

Correct AnswerverifiedShow Answer

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The arguments that support making all or...
View Answer

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The level of output at which most plant-...
View Answer

Correct Answer
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Several international businesses have tr...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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