Exam 17: International Operations Management

Free trade zones enable firms to lower costs by importing key components and then assembling products locally.

The business strategy followed by the firm sets the stage for the role of operations management within an international firm.

Executives at Moxley Manufacturing want to improve the firm's productivity. Which of the following would most likely help Moxley achieve this goal?

What type of production location makes sense for a firm following a cost leadership strategy?

A product's value-to-weight ratio affects the importance of transportation costs in the product's delivered price.

Which service typically cannot occur without customer participation?

An experiment found that consumer preference for Tempomax watches fell by 74 percent when the consumers were told that Tempomax watches were produced in Pakistan instead of Germany. Which term best explains this occurrence?

The management of the flow of finished products, services, and goods from the firm to customers is called materials management.

How does a JIT inventory management system work? Why is factory location especially important to firms that use JIT?

Which government policies are especially important in the decision about where to locate an international facility? Why do free trade zones often influence the location decisions of international businesses?

What is the central role of operations management within an international firm?

What are the four characteristics of international services? Why is quality management difficult for international service providers?

Hong Kong's Roly International Holdings locates its factories in China where it can produce inexpensive Christmas decorations due to low wage rates. These goods are then shipped via slow, inexpensive cargo ships to discounters like Wal-Mart. Roly International Holdings follows a ________ strategy in its operations management.

What has the most significant impact on planning and implementing operations management activities?

How does a product's value-to-weight ratio influence the production location decision?

When technology is evolving rapidly or delivered, costs can change as a result of inflation or exchange rate fluctuation, making inputs in-house is the most logical choice.

A product's value-to-weight ratio primarily affects ________.

Buying from an external supplier reduces a firm's financial and operating risk.

Managing information is not only important for an international firm; it is also more complex than for a domestic firm.

What are the essential location decisions faced by international operations managers? What country features and product-related characteristics influence the decision of where to locate an international facility?