Exam 15: Managing International Operations

Scenario: Hafstrom Motors Based in Kentucky, Hafstrom Motors has always used spare parts made in America for its automobiles. However, sales and profits have slumped over the past three years. A senior manager at the company comes up with new strategies for improving the firm's production activities. -The senior manager recommends that Hafstrom obtain auto parts from a country where production activities would generate more value than it would generate elsewhere.He wants to take advantage of ________.

Which of the following is true of American Depository Receipts (ADRs)?

A loan in which a parent company deposits money with a host-country bank,which then lends the money to a subsidiary located in the host country is called a ________.

Discuss the standardization versus adaptation decision for managers when considering production facilities,and describe considerations for managers when acquiring fixed assets.

The make-or-buy decision primarily relates to ________.

It is important for low-cost competitors to locate near their markets in order to keep track of buyer preferences.

Availability and cost of labor in the local market is crucial to capacity planning.

What are the guidelines that provide the basis for quality certification called?

________ refers to the concentration of production facilities in one location.

A back-to-back loan is one in which a subsidiary acquires a loan from the same bank where its parent secured the first loan.

Explain the concept of capital structure as it applies to a company with international operations.

Capacity planning applies only to manufacturing companies.

Debt appeals to companies because it lowers the amount of taxes the companies must pay.

The ISO 9000 is a production technique in which inputs to the production process arrive exactly when they are needed.

Companies with decentralized production facilities are often pursuing ________ strategies.

Companies usually decide to reinvest when a market is experiencing rapid growth.

Scenario: Wilson Industries Inc. Wilson Industries Inc. is a multinational firm that designs and produces premium leather bags for major destinations worldwide. The company's board of directors is meeting to discuss changes that might be needed in the company's operations. -The board will also examine new production techniques the company could use to create its product.This examination is a part of ________.

Which of the following determines the process that a company will use to create its product?

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

Storage facilities,retail outlets,and production equipment in the host country are examples of ________.