Exam 15: Managing International Operations

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Large companies are less likely than small companies to make rather than buy, especially when a product requires a large financial investment in equipment or facilities.

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The process by which a company extends its control over additional stages of production either inputs or outputs is called ________.

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American Depository Receipts (ADRs) are ________.

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Deciding whether to make a component or buy it from another company is called vertical integration.

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It is usually important for low-cost competitors to locate near their markets in order to stay on top of changes in buyer preferences.

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TQM principles can be linked to ISO 9000 standards through ________.

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________ is foreign direct investment in factories, equipment, and land that cannot be pulled out of the market quickly.

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Productivity is a very important factor in determining the value that a location adds to a certain economic activity.

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Discuss the concept of just-in-time (JIT) manufacturing. What is its importance to business?

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The process of assessing a company's ability to produce enough output to satisfy market demand is called market planning.

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Companies can obtain financial resources through which of the following means?

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Production facilities, inventory warehouses, computer storage capacity, retail outlets, and production and office equipment are all types of ________.

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Deciding the process a company will use to create its product is called process planning.

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What are American Depository Receipts (ADRs)? Explain how they work.

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________ is an international certification that companies get when they meet the highest quality standards in their industries.

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Many international subsidiaries obtain financial capital by issuing equity that is purchased solely by the parent and as a rule is not publicly traded.

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A decision to reinvest in business operations is likely in the presence of a(n) ________.

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Companies may scale back their international investments when it becomes apparent that making operations profitable will take longer than expected.

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________ are listed and traded in Luxembourg and London.

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________ are company assets such as production facilities, inventory warehouses, retail outlets, and production and office equipment.

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