Question 1

________ requires each individual to be focused on the quality of his or her own output.

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 A

Question 2

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 argues that Hafstrom could reduce its costs significantly by purchasing parts from companies located overseas rather than producing its own parts.Which of the following is the senior manager advocating?

Accepted Answer

A) outsourcing 
B) a greenfield investment 
C) lean production 
D) vertical integration 
A) outsourcing 
B) a greenfield investment 
C) lean production 
D) vertical integration A

Question 3

The process by which a company extends its control over additional stages of production is called vertical integration.

Accepted Answer

A) True 
 B)False  True

Question 4

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 5

Which of the following will a company that is pursuing a low-cost leadership strategy most likely use for creating its product?

Accepted Answer

A) implement handcrafted artisanship 
B) manufacture in large production batches 
C) manufacture components in-house 
D) customize products for each customer 
A) implement handcrafted artisanship 
B) manufacture in large production batches 
C) manufacture components in-house 
D) customize products for each customer

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 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 7

A fixed asset can also be referred to as a ________ asset.

Accepted Answer

A) liquid 
B) current 
C) tangible 
D) trading account 
A) liquid 
B) current 
C) tangible 
D) trading account

Question 8

Which of the following reasons encourages companies to buy a product rather than make it?

Accepted Answer

A) Buying a product gives managers greater control over the production process. 
B) Buying a product decreases the company's total costs significantly compared to making the product in-house. 
C) Buying a product ensures non-flexibility to local market conditions. 
D) Buying a product enables a company to gain a great deal of power in their relationships with suppliers. 
A) Buying a product gives managers greater control over the production process. 
B) Buying a product decreases the company's total costs significantly compared to making the product in-house. 
C) Buying a product ensures non-flexibility to local market conditions. 
D) Buying a product enables a company to gain a great deal of power in their relationships with suppliers.

Question 9

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 plans to examine Wilson's ability to produce enough bags to satisfy their customers' demands.This evaluation is known as ________.

Accepted Answer

A) capacity planning 
B) process planning 
C) lean production 
D) product structure modeling 
A) capacity planning 
B) process planning 
C) lean production 
D) product structure modeling

Question 10

Storage facilities,retail outlets,and production equipment are examples of ________.

Accepted Answer

A) liquid assets 
B) current assets 
C) fixed assets 
D) intangible assets 
A) liquid assets 
B) current assets 
C) fixed assets 
D) intangible assets

Question 11

One reason to buy a product instead of making it in-house is the greater flexibility to respond to market conditions.

Accepted Answer

A) True 
 B)False

Question 12

Capacity planning applies only to manufacturing companies.

Accepted Answer

A) True 
 B)False

Question 13

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 ________.

Accepted Answer

A) just-in-time manufacturing 
B) facilities layout planning 
C) process planning 
D) location economies 
A) just-in-time manufacturing 
B) facilities layout planning 
C) process planning 
D) location economies

Question 14

Which of the following statements is true regarding the ISO 9000 standards?

Accepted Answer

A) They specify details on how companies should develop its quality processes. 
B) The standards are applicable to Asia exclusively. 
C) ISO 9000 is a certification that companies get for their environment-friendly initiatives. 
D) The standards require each company to define and document its own quality processes. 
A) They specify details on how companies should develop its quality processes. 
B) The standards are applicable to Asia exclusively. 
C) ISO 9000 is a certification that companies get for their environment-friendly initiatives. 
D) The standards require each company to define and document its own quality processes.

Question 15

Which of the following statements is true of outsourcing?

Accepted Answer

A) It reduces economic risk by facilitating the purchase of large insurance policies. 
B) It reduces production risk by eliminating delays in the timely receipt of needed parts. 
C) It reduces political risk by enabling the company to avoid investing in plants and equipment abroad. 
D) It reduces currency risk by allowing the company to invest the home currency on in-house production facilities. 
A) It reduces economic risk by facilitating the purchase of large insurance policies. 
B) It reduces production risk by eliminating delays in the timely receipt of needed parts. 
C) It reduces political risk by enabling the company to avoid investing in plants and equipment abroad. 
D) It reduces currency risk by allowing the company to invest the home currency on in-house production facilities.

Question 16

Which of the following is experienced by a company that outsources its product development?

Accepted Answer

A) reduced investments in research and development 
B) reduced market flexibility 
C) less market influence with suppliers 
D) lower product costs due to the elimination of intermediaries 
A) reduced investments in research and development 
B) reduced market flexibility 
C) less market influence with suppliers 
D) lower product costs due to the elimination of intermediaries

Question 17

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.
-Economic forecasts reveal that the U.S.dollar is expected to decline relative to the Euro.Which of the following is the most advantageous method of obtaining funding for Verandas under these conditions?

Accepted Answer

A) borrowing from U.S.banks 
B) issuing equity in Germany 
C) issuing equity in the U.S. 
D) borrowing from Dutch banks 
A) borrowing from U.S.banks 
B) issuing equity in Germany 
C) issuing equity in the U.S. 
D) borrowing from Dutch banks

Question 18

Which of the following would companies do in markets that require long payback periods?

Accepted Answer

A) divest operations 
B) implement retrenchment strategies 
C) emphasize on decruitment 
D) reinvest profits 
A) divest operations 
B) implement retrenchment strategies 
C) emphasize on decruitment 
D) reinvest profits

Question 19

Worker productivity tends to be lower in most developing nations than in developed nations.

Accepted Answer

A) True 
 B)False

Question 20

When a market is experiencing rapid growth,a company will ________.

Accepted Answer

A) emphasize on decruitment 
B) divest its operations 
C) reinvest in its operations 
D) implement retrenchment strategies 
A) emphasize on decruitment 
B) divest its operations 
C) reinvest in its operations 
D) implement retrenchment strategies

________ requires each individual to be focused on the quality of his or her own output.

The process by which a company extends its control over additional stages of production is called vertical integration.

Which of the following will a company that is pursuing a low-cost leadership strategy most likely use for creating its product?

A fixed asset can also be referred to as a ________ asset.

Which of the following reasons encourages companies to buy a product rather than make it?

Storage facilities,retail outlets,and production equipment are examples of ________.

One reason to buy a product instead of making it in-house is the greater flexibility to respond to market conditions.

Capacity planning applies only to manufacturing companies.

Which of the following statements is true regarding the ISO 9000 standards?

Which of the following statements is true of outsourcing?

Which of the following is experienced by a company that outsources its product development?

Which of the following would companies do in markets that require long payback periods?

Worker productivity tends to be lower in most developing nations than in developed nations.

When a market is experiencing rapid growth,a company will ________.

Globalization

Cross-Cultural Business

Politics, Law, and Business Ethics

Economics and Emerging Markets

International Trade

Business-Government Trade Relations

Foreign Direct Investment

Regional Economic Integration

International Financial Markets

International Money 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

________ requires each individual to be focused on the quality of his or her own output.

The process by which a company extends its control over additional stages of production is called vertical integration.

Which of the following will a company that is pursuing a low-cost leadership strategy most likely use for creating its product?

A fixed asset can also be referred to as a ________ asset.

Which of the following reasons encourages companies to buy a product rather than make it?

Storage facilities,retail outlets,and production equipment are examples of ________.

One reason to buy a product instead of making it in-house is the greater flexibility to respond to market conditions.

Capacity planning applies only to manufacturing companies.

Which of the following statements is true regarding the ISO 9000 standards?

Which of the following statements is true of outsourcing?

Which of the following is experienced by a company that outsources its product development?

Which of the following would companies do in markets that require long payback periods?

Worker productivity tends to be lower in most developing nations than in developed nations.

When a market is experiencing rapid growth,a company will ________.

Globalization

Cross-Cultural Business

Politics, Law, and Business Ethics

Economics and Emerging Markets

International Trade

Business-Government Trade Relations

Foreign Direct Investment

Regional Economic Integration

International Financial Markets

International Money System

International Strategy and Organization

Analyzing International Opportunities

Selecting and Managing Entry Modes

Developing and Marketing Products

Hiring and Managing Employees

Filters