Exam 11: Global Location Decisions

All of the following are considered components of variable costs EXCEPT:

When trying to gauge a nation's competitiveness a manager may want to consult one of two primary world competitiveness rankings,the World Competitiveness Yearbook published by IMD and The Global Competitiveness Report prepared by the World Economic Forum.

A certain organization trying to decide where to locate their future factory is considering three locations.They are taking into account three factors: labor costs,currency stability,and proximity to market.Using the weights for each factor listed below and the scores achieved by each of the three considered locations,determine which location should be chosen for the new facility based on the weighted factory location model.                                                                                            SCORES(Maximum 100) FACTOR WEIGHT SITE A SITE B SITE C Labor Cost 0.20 90 65 90 Currency Stability 0.50 80 90 80 Proximity to Market 0.30 80 80 80

Regional trade agreements and the World Trade Organization provide a framework for managers in terms of investigating important facility location elements like tariffs,costs,and the free flow of goods and services in different regions of the world.

Suppose a company in the United States was trying to decide whether to locate their manufacturing facility in the United States or in Southeast Asia.Consider the following information in answering the question below: •Presently,this US company,which makes only one type of finish good,sells 40% of their product in the United States,10% of the product in Mexico,15% of their product in Canada,and 35% of their product to the rest of the world. •The product this company produces is presently tariffed heavily when imported into the United States. •The product consists of about 150 components of which 75 components are imported from Southeast Asia,40 components are imported from Mexico,and 35 components come from US suppliers. List four reasons why it would be favorable to locate the new manufacturing facility in the United States rather than in Southeast Asia.

Organizations that primarily compete on speed of delivery,such as FedEx and UPS,utilize which of the following approaches for location determination:

Examples of regional trade agreements include all of the following EXCEPT:

Which of the following is a factor in choosing a location?

The Bruntland Commission defines ____ as the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs.

According to the text,global location decisions are made to optimize the performance of the supply chain and be consistent with the firm's competitive strategy.

Which of the following issues is (are)important to consider when trying to determine the location of a firm's facilities?

A lead factory is set up in a location with an abundance of advanced suppliers,competitors,research facilities and knowledge centers in order to have access to the most current information on materials,components,technologies and products.