Question 1

Which of the following is true with regard to offshoring?

Accepted Answer

A) Offshoring is common in the service sector, including banking, software code writing, legal services, and customer-service activities. 
B) Russia is the current leader in the processing of advanced economies' relocated business services. 
C) Offshoring substantially reduces the overall efficiency of MNEs. 
D) With rapid globalization and internationalization of businesses, offshoring is a visibly declining trend. 
A) Offshoring is common in the service sector, including banking, software code writing, legal services, and customer-service activities. 
B) Russia is the current leader in the processing of advanced economies' relocated business services. 
C) Offshoring substantially reduces the overall efficiency of MNEs. 
D) With rapid globalization and internationalization of businesses, offshoring is a visibly declining trend.

Question 2

Which of the following should be considered first in making the decision to export OTC towels to Canada?

Accepted Answer

A) What is the probability of OTC and Earth Waves entering into a joint venture? 
B) How much fluctuation occurs in the exchange rate between the Canadian dollar and the British pound? 
C) What is the likelihood of Earth Waves opening a subsidiary in Canada? 
D) What documentation would be required for OTC to export towels to Asia? 
A) What is the probability of OTC and Earth Waves entering into a joint venture? 
B) How much fluctuation occurs in the exchange rate between the Canadian dollar and the British pound? 
C) What is the likelihood of Earth Waves opening a subsidiary in Canada? 
D) What documentation would be required for OTC to export towels to Asia?

Question 3

A focal firm's overreliance on suppliers can potentially lead to ________.

Accepted Answer

A) reduced control over important value-chain tasks 
B) added competitive advantage for the focal firm 
C) an excessive burden on home-country suppliers 
D) consolidation of the focal firm's network of intermediaries 
A) reduced control over important value-chain tasks 
B) added competitive advantage for the focal firm 
C) an excessive burden on home-country suppliers 
D) consolidation of the focal firm's network of intermediaries

Question 4

Which of the following statements is true with regard to the R&D activities of a firm?

Accepted Answer

A) As a strategic asset, R&D activities are of moderate importance to the firm. 
B) R&D activities are usually concentrated at home. 
C) R&D activities have a low likelihood of being internalized. 
D) R&D activities have a high likelihood of being outsourced. 
A) As a strategic asset, R&D activities are of moderate importance to the firm. 
B) R&D activities are usually concentrated at home. 
C) R&D activities have a low likelihood of being internalized. 
D) R&D activities have a high likelihood of being outsourced.

Question 5

Offshoring is common in the service sector, including banking, software code writing, legal services, and customer-service activities.

Accepted Answer

A) True 
 B)False

Question 6

Most companies cite cost cutting as the main reason for global sourcing.

Accepted Answer

A) True 
 B)False

Question 7

In a short essay, describe how cost efficiencies are a benefit to sourcing abroad, and explain how information and communications technology can help reduce costs for an international firm.

Accepted Answer

The primary rationale for global sourcin

Question 8

Which of the following documents is the contract between the shipping company and the exporter?

Accepted Answer

A) pro forma invoice 
B) bill of lading 
C) export declaration 
D) commercial invoice 
A) pro forma invoice 
B) bill of lading 
C) export declaration 
D) commercial invoice

Question 9

Captive sourcing is an arrangement in which the focal firm contracts with an independent supplier to manufacture products according to well-defined specifications.

Accepted Answer

A) True 
 B)False

Question 10

The likelihood of internalizing ________ rather than outsourcing it is considerably high.

Accepted Answer

A) R&D 
B) manufacturing of parts 
C) sales and distribution 
D) customer service 
A) R&D 
B) manufacturing of parts 
C) sales and distribution 
D) customer service

Question 11

Prox Inc. is a U.S.-based manufacturer of consumer electronics. It decides to export to Mexico and wants to protect its goods against damage, loss, and pilferage. Which of the following documents is applicable here?

Accepted Answer

A) insurance certificate 
B) bill of lading 
C) pro forma invoice 
D) license 
A) insurance certificate 
B) bill of lading 
C) pro forma invoice 
D) license

Question 12

________ will internationalize via FDI because they require direct contact with customers.

Accepted Answer

A) Insurance firms 
B) Accountants 
C) Construction firms 
D) Retailing firms 
A) Insurance firms 
B) Accountants 
C) Construction firms 
D) Retailing firms

Question 13

Countries with weak legal environments can erode key strategic assets of firms.

Accepted Answer

A) True 
 B)False

Question 14

As a strategic asset, ________ is of the lowest importance to a firm.

Accepted Answer

A) customer service 
B) R&D, design 
C) manufacturing of parts 
D) marketing and branding 
A) customer service 
B) R&D, design 
C) manufacturing of parts 
D) marketing and branding

Question 15

The exporter usually first issues a quotation or pro forma invoice upon request by potential customers.

Accepted Answer

A) True 
 B)False

Question 16

The Internet provides the means to export pure services.

Accepted Answer

A) True 
 B)False

Question 17

The more diverse the firm's global supply chain, the lesser the cost of logistics.

Accepted Answer

A) True 
 B)False

Question 18

Given the complexities of international business, manufacturing is generally the only value-chain activity that firms outsource abroad.

Accepted Answer

A) True 
 B)False

Question 19

Contract manufacturing can best be defined as ________.

Accepted Answer

A) the outsourcing to independent suppliers of business service functions such as accounting, payroll, human resource functions, travel services, IT services, customer service, or technical support 
B) the relocation of a business process or entire manufacturing facility to a foreign country 
C) sourcing from the firm's own production facilities 
D) an arrangement in which the focal firm contracts with an independent supplier to manufacture products according to well-defined specifications 
A) the outsourcing to independent suppliers of business service functions such as accounting, payroll, human resource functions, travel services, IT services, customer service, or technical support 
B) the relocation of a business process or entire manufacturing facility to a foreign country 
C) sourcing from the firm's own production facilities 
D) an arrangement in which the focal firm contracts with an independent supplier to manufacture products according to well-defined specifications

Question 20

Focal firms that internationalize through exporting will most likely perform ________ in the home market.

Accepted Answer

A) sales 
B) distribution 
C) marketing 
D) manufacturing 
A) sales 
B) distribution 
C) marketing 
D) manufacturing

Which of the following is true with regard to offshoring?

Which of the following should be considered first in making the decision to export OTC towels to Canada?

A focal firm's overreliance on suppliers can potentially lead to ________.

Which of the following statements is true with regard to the R&D activities of a firm?

Offshoring is common in the service sector, including banking, software code writing, legal services, and customer-service activities.

Most companies cite cost cutting as the main reason for global sourcing.

In a short essay, describe how cost efficiencies are a benefit to sourcing abroad, and explain how information and communications technology can help reduce costs for an international firm.

Which of the following documents is the contract between the shipping company and the exporter?

Captive sourcing is an arrangement in which the focal firm contracts with an independent supplier to manufacture products according to well-defined specifications.

The likelihood of internalizing ________ rather than outsourcing it is considerably high.

Prox Inc. is a U.S.-based manufacturer of consumer electronics. It decides to export to Mexico and wants to protect its goods against damage, loss, and pilferage. Which of the following documents is applicable here?

________ will internationalize via FDI because they require direct contact with customers.

Countries with weak legal environments can erode key strategic assets of firms.

As a strategic asset, ________ is of the lowest importance to a firm.

The exporter usually first issues a quotation or pro forma invoice upon request by potential customers.

The Internet provides the means to export pure services.

The more diverse the firm's global supply chain, the lesser the cost of logistics.

Given the complexities of international business, manufacturing is generally the only value-chain activity that firms outsource abroad.

Contract manufacturing can best be defined as ________.

Focal firms that internationalize through exporting will most likely perform ________ in the home market.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention and Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters

Exam 13: Exporting and Global Sourcing

Which of the following is true with regard to offshoring?

Which of the following should be considered first in making the decision to export OTC towels to Canada?

A focal firm's overreliance on suppliers can potentially lead to ________.

Which of the following statements is true with regard to the R&D activities of a firm?

Offshoring is common in the service sector, including banking, software code writing, legal services, and customer-service activities.

Most companies cite cost cutting as the main reason for global sourcing.

In a short essay, describe how cost efficiencies are a benefit to sourcing abroad, and explain how information and communications technology can help reduce costs for an international firm.

Which of the following documents is the contract between the shipping company and the exporter?

Captive sourcing is an arrangement in which the focal firm contracts with an independent supplier to manufacture products according to well-defined specifications.

The likelihood of internalizing ________ rather than outsourcing it is considerably high.

Prox Inc. is a U.S.-based manufacturer of consumer electronics. It decides to export to Mexico and wants to protect its goods against damage, loss, and pilferage. Which of the following documents is applicable here?

________ will internationalize via FDI because they require direct contact with customers.

Countries with weak legal environments can erode key strategic assets of firms.

As a strategic asset, ________ is of the lowest importance to a firm.

The exporter usually first issues a quotation or pro forma invoice upon request by potential customers.

The Internet provides the means to export pure services.

The more diverse the firm's global supply chain, the lesser the cost of logistics.

Given the complexities of international business, manufacturing is generally the only value-chain activity that firms outsource abroad.

Contract manufacturing can best be defined as ________.

Focal firms that internationalize through exporting will most likely perform ________ in the home market.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention and Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters