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 top management of the company contends that Hafstrom would benefit most from manufacturing its own parts,rather than sourcing it from elsewhere,even if they are made at another location overseas.Which of the following is being recommended in this approach?

American Depository Receipts (ADRs)are ________.

What are the advantages of American Depository Receipts (ADRs)?

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

________ are traded in Luxembourg and London and represent a specific number of shares in an outside company.

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?

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

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

A company that sells differentiated products may maintain the ability to respond quickly to changing buyer preferences by utilizing ________.

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

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

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

Companies selling differentiated products find centralized production most effective.

A British toy company manufactures all of its product lines in a single facility in Europe.Which of the following is the company demonstrating?

What are the options available to companies seeking financial resources?

Which of the following statements is true regarding location economies?

Describe the issues involved in the decision of how a company acquires raw materials and fixed assets.

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

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.

Which of the following is a barrier to buying products from international suppliers?