Exam 15: Managing International Operations

A firm that buys from another company a good or service that is part of the firm's value-added activities is practicing ________.

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

Deciding the spatial arrangement of production processes within production units is called ________.

Patient money is the cash that can be quickly withdrawn from a market in times of crisis.

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

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

Which of the following is established by a company that builds an entirely new facility?

________ is the financing obtained from investors who believe the borrower will experience rapid growth and who receive equity in return for their investment.

Describe the production managers' decision regarding whether to centralize or decentralize production facilities,and explain the benefits of vertical integration.

________ will enable a company to reduce the degree to which it is vertically integrated and the overall amount of specialized skills and knowledge that it would have to possess.

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

Companies strive toward quality improvements for attaining economies of scale.

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

Transportation costs are a driving force behind the globalization of the steel industry.

The just-in-time (JIT)manufacturing technique was originally developed in ________.

Companies make products rather than buy them in order to reduce total costs.

Availability of energy is an important aspect of the business environment necessary for facilities location planning.

Money earned from the sale of goods and services is known as ________.

Outsourcing refers to the practice of buying from another company a good or a service that is part of a company's value-added activities.

Companies with centralized production facilities are often pursuing ________ strategies.