Exam 15: Managing International Operations

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?

A company using just-in-time (JIT)manufacturing involves ________.

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

Capacity planning applies only to manufacturing companies.

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 ________.

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

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 ________.

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

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

Companies strive toward quality improvements for attaining economies of scale.

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

Just-in-time manufacturing drastically reduces the costs associated with large inventories in the production process.

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

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

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

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

Explain the concept of capital structure as it applies to a company with international operations.

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

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