Question 1

The ________ of a company is the mix of equity,debt,and internally generated funds that it uses to finance its activities.

Accepted Answer

A)  enterprise value 
B)  stock value 
C)  capital structure 
D)  corporate structure 
A)  enterprise value 
B)  stock value 
C)  capital structure 
D)  corporate structure

Question 2

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

Accepted Answer

A)  Debt 
B)  Equity 
C)  Stock value 
D)  Enterprise value 
A)  Debt 
B)  Equity 
C)  Stock value 
D)  Enterprise value

Question 3

Scenario: Audio Component Outsourcing
Echo Corporation manufactures high-quality audio components, such as speakers, amplifiers, and receivers, for home entertainment systems. Echo has been losing market share in recent years due to the competitive pricing of other audio component manufacturers that engage in outsourcing. Echo managers are attempting to convince Nathan Douglas, the firm's founder and CEO, that outsourcing would enable the firm to be more competitive without sacrificing quality.
-Which of the following is most likely a potential benefit for Echo if it outsources some of its manufacturing activities?

Accepted Answer

A)  heightened communications awareness 
B)  increased activity in e-commerce sales 
C)  strong intellectual property protection 
D)  eliminating the exposure of assets to political risk 
A)  heightened communications awareness 
B)  increased activity in e-commerce sales 
C)  strong intellectual property protection 
D)  eliminating the exposure of assets to political risk

Question 4

Scenario: Audio Component Outsourcing
Echo Corporation manufactures high-quality audio components, such as speakers, amplifiers, and receivers, for home entertainment systems. Echo has been losing market share in recent years due to the competitive pricing of other audio component manufacturers that engage in outsourcing. Echo managers are attempting to convince Nathan Douglas, the firm's founder and CEO, that outsourcing would enable the firm to be more competitive without sacrificing quality.
-Which of the following should most likely be considered in making the decision to outsource some of Echo's manufacturing activities?

Accepted Answer

A)  Do purchasing components present the lowest cost option for Echo? 
B)  Would Echo engineers be willing to relocate to a foreign nation? 
C)  Is Echo prepared to cover moving expenses for its managerial talent? 
D)  Can Echo find employees for a customer service center in the U.S.? 
A)  Do purchasing components present the lowest cost option for Echo? 
B)  Would Echo engineers be willing to relocate to a foreign nation? 
C)  Is Echo prepared to cover moving expenses for its managerial talent? 
D)  Can Echo find employees for a customer service center in the U.S.?

Question 5

American Depository Receipts (ADRs)are ________.

Accepted Answer

A)  certificates that represent shares of stock in American companies 
B)  dollar deposits made by foreign firms conducting business in the U.S. 
C)  certificates that trade in the U.S. and represent shares of stock in a non-U.S. company 
D)  currency deposits made in the U.S. by firms based in other countries 
A)  certificates that represent shares of stock in American companies 
B)  dollar deposits made by foreign firms conducting business in the U.S. 
C)  certificates that trade in the U.S. and represent shares of stock in a non-U.S. company 
D)  currency deposits made in the U.S. by firms based in other countries

Question 6

Scenario: Audio Component Outsourcing
Echo Corporation manufactures high-quality audio components, such as speakers, amplifiers, and receivers, for home entertainment systems. Echo has been losing market share in recent years due to the competitive pricing of other audio component manufacturers that engage in outsourcing. Echo managers are attempting to convince Nathan Douglas, the firm's founder and CEO, that outsourcing would enable the firm to be more competitive without sacrificing quality.
-Which of the following most likely supports the argument of Echo managers to outsource some of the firm's manufacturing activities?

Accepted Answer

A)  Echo managers could reduce the wages of U.S. based employees and sub-contractors. 
B)  Echo could save money by reducing the costs incurred in manufacturing the component parts. 
C)  Echo managers could implement a marketing campaign for foreign markets that is identical to the outsourced firm's marketing campaign. 
D)  Echo could merge with one of its U.S.-based competitors to gain a larger market share. 
A)  Echo managers could reduce the wages of U.S. based employees and sub-contractors. 
B)  Echo could save money by reducing the costs incurred in manufacturing the component parts. 
C)  Echo managers could implement a marketing campaign for foreign markets that is identical to the outsourced firm's marketing campaign. 
D)  Echo could merge with one of its U.S.-based competitors to gain a larger market share.

Question 7

Supply issues (location and availability of vendors)are also important in location planning.

Accepted Answer

A) True 
 B)False

Question 8

A major disadvantage of American Depository Receipts (ADRs)is that investors who buy them must pay currency-conversion fees.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following processes will a computer assembling firm engage in if it decides to manufacture its own monitors and printers?

Accepted Answer

A)  outsourcing 
B)  vertical integration 
C)  niche marketing 
D)  lean production 
A)  outsourcing 
B)  vertical integration 
C)  niche marketing 
D)  lean production

Question 10

Hot money is the cash that can be quickly withdrawn from a market in times of crisis.

Accepted Answer

A) True 
 B)False

Question 11

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.
-If Wilson Industries selects a new area for its production units,the company will be implementing ________.

Accepted Answer

A)  capacity planning 
B)  process planning 
C)  facilities location planning 
D)  product structure modeling 
A)  capacity planning 
B)  process planning 
C)  facilities location planning 
D)  product structure modeling

Question 12

Venture capital is a source of debt financing for successful multinational companies.

Accepted Answer

A) True 
 B)False

Question 13

The centralization of production facilities is a typical policy for companies that pursue ________.

Accepted Answer

A)  horizontal integration 
B)  product differentiation 
C)  a global strategy 
D)  a multinational strategy 
A)  horizontal integration 
B)  product differentiation 
C)  a global strategy 
D)  a multinational strategy

Question 14

Why might companies decide to reinvest,scale back,or divest local operations?

Accepted Answer

Companies maintain the current level of

Question 15

________ in the computer industry is the outsourcing of the actual assembly of computers plus the job of shipping them to distributors and other intermediaries.

Accepted Answer

A)  Agile manufacturing 
B)  Just in time manufacturing 
C)  Lean manufacturing 
D)  Stealth manufacturing 
A)  Agile manufacturing 
B)  Just in time manufacturing 
C)  Lean manufacturing 
D)  Stealth manufacturing

Question 16

Scenario: Verandas International
Verandas International is expanding its operations in North America. The Dutch company supplies customized furniture to five-star hotels. Verandas International is a leader in this industry, but the company believes it must increase its geographic reach to maintain that position.
-The Verandas U.S.subsidiary was turned down when it tried to borrow from a U.S.bank.The bank manager suggested that the parent firm deposit money with the U.S.bank's Dutch branch,and then the U.S.bank's home office would lend the money to the U.S.subsidiary.This type of arrangement is known as a(n)________.

Accepted Answer

A)  mortgage loan 
B)  title loan 
C)  back-to-back loan 
D)  syndicated loan 
A)  mortgage loan 
B)  title loan 
C)  back-to-back loan 
D)  syndicated loan

Question 17

________ is an integrated effort to systematically and continuously improve the quality of an organization's products and/or services.

Accepted Answer

A)  Total quality management 
B)  Quality-of-life index 
C)  Integrated business planning 
D)  Organizational restructuring 
A)  Total quality management 
B)  Quality-of-life index 
C)  Integrated business planning 
D)  Organizational restructuring

Question 18

Total quality management reduces the responsibility on each individual in the production process.

Accepted Answer

A) True 
 B)False

Question 19

The decentralization of production facilities is a typical policy for companies that pursue ________.

Accepted Answer

A)  a multinational strategy 
B)  a global strategy 
C)  mass customization 
D)  vertical integration 
A)  a multinational strategy 
B)  a global strategy 
C)  mass customization 
D)  vertical integration

Question 20

Discuss why companies strive toward quality improvement and the two methods of doing so.

Accepted Answer

Companies strive toward quality improvem

The ________ of a company is the mix of equity,debt,and internally generated funds that it uses to finance its activities.

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

American Depository Receipts (ADRs)are ________.

Supply issues (location and availability of vendors)are also important in location planning.

A major disadvantage of American Depository Receipts (ADRs)is that investors who buy them must pay currency-conversion fees.

Which of the following processes will a computer assembling firm engage in if it decides to manufacture its own monitors and printers?

Hot money is the cash that can be quickly withdrawn from a market in times of crisis.

Venture capital is a source of debt financing for successful multinational companies.

The centralization of production facilities is a typical policy for companies that pursue ________.

Why might companies decide to reinvest,scale back,or divest local operations?

________ in the computer industry is the outsourcing of the actual assembly of computers plus the job of shipping them to distributors and other intermediaries.

________ is an integrated effort to systematically and continuously improve the quality of an organization's products and/or services.

Total quality management reduces the responsibility on each individual in the production process.

The decentralization of production facilities is a typical policy for companies that pursue ________.

Discuss why companies strive toward quality improvement and the two methods of doing so.

Globalization

Cross-Cultural Business

Political Economy and Ethics

Economic Development of Nations

International Trade Theory

Political Economy of Trade

Foreign Direct Investment

Regional Economic Integration

International Financial Markets

International Monetary System

International Strategy and Organization

Analyzing International Opportunities

Selecting and Managing Entry Modes

Developing and Marketing Products

Hiring and Managing Employees

Filters

Exam 15: Managing International Operations

The ________ of a company is the mix of equity,debt,and internally generated funds that it uses to finance its activities.

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

American Depository Receipts (ADRs)are ________.

Supply issues (location and availability of vendors)are also important in location planning.

A major disadvantage of American Depository Receipts (ADRs)is that investors who buy them must pay currency-conversion fees.

Which of the following processes will a computer assembling firm engage in if it decides to manufacture its own monitors and printers?

Hot money is the cash that can be quickly withdrawn from a market in times of crisis.

Venture capital is a source of debt financing for successful multinational companies.

The centralization of production facilities is a typical policy for companies that pursue ________.

Why might companies decide to reinvest,scale back,or divest local operations?

________ in the computer industry is the outsourcing of the actual assembly of computers plus the job of shipping them to distributors and other intermediaries.

________ is an integrated effort to systematically and continuously improve the quality of an organization's products and/or services.

Total quality management reduces the responsibility on each individual in the production process.

The decentralization of production facilities is a typical policy for companies that pursue ________.

Discuss why companies strive toward quality improvement and the two methods of doing so.

Globalization

Cross-Cultural Business

Political Economy and Ethics

Economic Development of Nations

International Trade Theory

Political Economy of Trade

Foreign Direct Investment

Regional Economic Integration

International Financial Markets

International Monetary System

International Strategy and Organization

Analyzing International Opportunities

Selecting and Managing Entry Modes

Developing and Marketing Products

Hiring and Managing Employees

Filters