Question 1

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

Accepted Answer

A) Common stock 
B) Bills of lading 
C) Revocable letters of credit 
D) Global Depository Receipts 
A) Common stock 
B) Bills of lading 
C) Revocable letters of credit 
D) Global Depository Receipts

Question 2

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

Accepted Answer

A) extremely low tariffs 
B) additional transportation costs 
C) lower flexibility to respond to market conditions 
D) high political risk 
A) extremely low tariffs 
B) additional transportation costs 
C) lower flexibility to respond to market conditions 
D) high political risk

Question 3

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 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) Internal funding 
B) Venture capital 
C) Credit derivative 
D) Mortgage loan 
A) Internal funding 
B) Venture capital 
C) Credit derivative 
D) Mortgage loan

Question 6

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 ________.

Accepted Answer

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

Question 7

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

Accepted Answer

Companies strive toward quality improvem

Question 8

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 9

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.

Accepted Answer

A) True 
 B)False

Question 10

Companies with centralized production facilities are often pursuing ________ strategies.

Accepted Answer

A) low-cost 
B) differentiation 
C) retrenchment 
D) combination 
A) low-cost 
B) differentiation 
C) retrenchment 
D) combination

Question 11

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

Accepted Answer

A) a push strategy 
B) a pull strategy 
C) vertical integration 
D) horizontal integration 
A) a push strategy 
B) a pull strategy 
C) vertical integration 
D) horizontal integration

Question 12

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 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

How can companies use internal funding to finance ongoing international business activities?

Accepted Answer

Ongoing international business activitie

Question 16

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.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) Lean production 
B) Continuous production 
C) Centralized production 
D) Horizontal integration 
A) Lean production 
B) Continuous production 
C) Centralized production 
D) Horizontal integration

Question 18

________ 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 19

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

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) the United States 
B) China 
C) Japan 
D) Germany 
A) the United States 
B) China 
C) Japan 
D) Germany

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

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

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

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

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

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

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.

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

Which of the following statements is true of outsourcing?

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

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

How can companies use internal funding to finance ongoing international business activities?

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.

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

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

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

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

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

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

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

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

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

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

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

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.

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

Which of the following statements is true of outsourcing?

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

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

How can companies use internal funding to finance ongoing international business activities?

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.

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

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

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

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

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