Question 1

Decentralization of production is appropriate when:

Accepted Answer

A)  the product's value-to-weight ratio is high. 
B)  location externalities are important. 
C)  the product serves universal needs. 
D)  volatility in important exchange rates is expected. 
A)  the product's value-to-weight ratio is high. 
B)  location externalities are important. 
C)  the product serves universal needs. 
D)  volatility in important exchange rates is expected.

Question 2

Make-or-buy decisions are decisions that concern the components to be used in a production process.

Accepted Answer

A) True 
 B)False

Question 3

Buying a product from external vendors is highly appropriate when a firm intends to protect proprietary technology.

Accepted Answer

A) True 
 B)False

Question 4

A(n) _____ is often placed near a competitor's headquarters or main operations, near the most demanding customers, or near key suppliers of unique and critically important parts.

Accepted Answer

A)  outpost factory 
B)  source factory 
C)  contributor factory 
D)  lead factory 
A)  outpost factory 
B)  source factory 
C)  contributor factory 
D)  lead factory

Question 5

What are the three main factors that affect the decision of locating production?

Accepted Answer

The decision of where to locate producti

Question 6

The minimum efficient scale of production is:

Accepted Answer

A)  low when fixed costs are high. 
B)  low when production is centralized. 
C)  high when fixed costs are low. 
D)  high when production is decentralized. 
A)  low when fixed costs are high. 
B)  low when production is centralized. 
C)  high when fixed costs are low. 
D)  high when production is decentralized.

Question 7

Which of the following products will most likely have high value-to-weight ratios?

Accepted Answer

A)  Pharmaceuticals 
B)  Refined sugar 
C)  Bulk chemicals 
D)  Petroleum products 
A)  Pharmaceuticals 
B)  Refined sugar 
C)  Bulk chemicals 
D)  Petroleum products

Question 8

An advantage of buying component parts, or even an entire product, from independent suppliers is that:

Accepted Answer

A)  it can make planning, coordination, and scheduling of adjacent processes easier for the firm. 
B)  the firm can maintain its flexibility by switching orders according to circumstances. 
C)  the firm will be able to maintain strict control over its proprietary technology. 
D)  the firm will have access to superior quality raw materials and will deliver high quality products. 
A)  it can make planning, coordination, and scheduling of adjacent processes easier for the firm. 
B)  the firm can maintain its flexibility by switching orders according to circumstances. 
C)  the firm will be able to maintain strict control over its proprietary technology. 
D)  the firm will have access to superior quality raw materials and will deliver high quality products.

Question 9

The major cost saving associated with JIT systems comes from:

Accepted Answer

A)  early delivery of raw materials to production. 
B)  decentralization of manufacturing. 
C)  speeding up inventory turnover. 
D)  reduced spending on CRM activities. 
A)  early delivery of raw materials to production. 
B)  decentralization of manufacturing. 
C)  speeding up inventory turnover. 
D)  reduced spending on CRM activities.

Question 10

_____ is the outer packaging envelope that allows for easier handling or product transfer among international suppliers, manufacturers, distribution centers, retailers, and any other intermediaries in the global supply chain.

Accepted Answer

A)  Primary packaging 
B)  Performance packaging 
C)  Secondary packaging 
D)  Unit-load packaging 
A)  Primary packaging 
B)  Performance packaging 
C)  Secondary packaging 
D)  Unit-load packaging

Question 11

Making all or part of a product in-house is most beneficial when a firm wants to:

Accepted Answer

A)  build valuable capabilities over time. 
B)  labor costs are more at the firm's location. 
C)  increase strategic flexibility. 
D)  start business in more geographical locations. 
A)  build valuable capabilities over time. 
B)  labor costs are more at the firm's location. 
C)  increase strategic flexibility. 
D)  start business in more geographical locations.

Question 12

Concentration of production is not favored when important exchange rates are expected to remain relatively stable.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements is true of the country factors that govern international business?

Accepted Answer

A)  Relative factor costs should be considered when selecting a country for production. 
B)  Centralized production is the most suitable method of doing international business. 
C)  Exchange rates are not a significant factor that determines the selection of a country. 
D)  Decentralized manufacturing is the most suitable method of doing international business. 
A)  Relative factor costs should be considered when selecting a country for production. 
B)  Centralized production is the most suitable method of doing international business. 
C)  Exchange rates are not a significant factor that determines the selection of a country. 
D)  Decentralized manufacturing is the most suitable method of doing international business.

Question 14

Explain how the concept of production efficiency has changed with the rise of flexible manufacturing technologies.

Accepted Answer

Flexible technology, also known as lean

Question 15

Which of the following would lead a firm to choose a concentration of production?

Accepted Answer

A)  Trade barriers are high. 
B)  Location externalities are not important. 
C)  Important exchange rates are expected to remain relatively stable. 
D)  The product's value-to-weight ratio is low. 
A)  Trade barriers are high. 
B)  Location externalities are not important. 
C)  Important exchange rates are expected to remain relatively stable. 
D)  The product's value-to-weight ratio is low.

Question 16

The firm that sources from independent suppliers has fewer subunits to control.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following makes being dependent on one location particularly risky?

Accepted Answer

A)  Governmental intervention in exchange rates 
B)  Floating exchange rates 
C)  Fixed exchange rates 
D)  Preferential treatment of domestic industries 
A)  Governmental intervention in exchange rates 
B)  Floating exchange rates 
C)  Fixed exchange rates 
D)  Preferential treatment of domestic industries

Question 18

How do product factors affect the decision of where to locate production? Where will you locate your firm's production plant if your firm produces refined sugar?

Accepted Answer

There are two product factors that affec

Question 19

_____ refers to the movement of raw material, component parts, and finished goods throughout the global supply chain.

Accepted Answer

A)  Distribution 
B)  Transportation 
C)  Sourcing 
D)  Logistics 
A)  Distribution 
B)  Transportation 
C)  Sourcing 
D)  Logistics

Question 20

Firms can increase flexibility by producing all parts of a product in-house.

Accepted Answer

A) True 
 B)False

Decentralization of production is appropriate when:

Make-or-buy decisions are decisions that concern the components to be used in a production process.

Buying a product from external vendors is highly appropriate when a firm intends to protect proprietary technology.

A(n) _____ is often placed near a competitor's headquarters or main operations, near the most demanding customers, or near key suppliers of unique and critically important parts.

What are the three main factors that affect the decision of locating production?

The minimum efficient scale of production is:

Which of the following products will most likely have high value-to-weight ratios?

An advantage of buying component parts, or even an entire product, from independent suppliers is that:

The major cost saving associated with JIT systems comes from:

_____ is the outer packaging envelope that allows for easier handling or product transfer among international suppliers, manufacturers, distribution centers, retailers, and any other intermediaries in the global supply chain.

Making all or part of a product in-house is most beneficial when a firm wants to:

Concentration of production is not favored when important exchange rates are expected to remain relatively stable.

Which of the following statements is true of the country factors that govern international business?

Explain how the concept of production efficiency has changed with the rise of flexible manufacturing technologies.

Which of the following would lead a firm to choose a concentration of production?

The firm that sources from independent suppliers has fewer subunits to control.

Which of the following makes being dependent on one location particularly risky?

How do product factors affect the decision of where to locate production? Where will you locate your firm's production plant if your firm produces refined sugar?

_____ refers to the movement of raw material, component parts, and finished goods throughout the global supply chain.

Firms can increase flexibility by producing all parts of a product in-house.

Globalization

National Differences in Political Economy, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Trade Pacts Give the Mexican Auto Industry an Edge

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 17: Global Production and Supply Chain Management

Decentralization of production is appropriate when:

Make-or-buy decisions are decisions that concern the components to be used in a production process.

Buying a product from external vendors is highly appropriate when a firm intends to protect proprietary technology.

A(n) _____ is often placed near a competitor's headquarters or main operations, near the most demanding customers, or near key suppliers of unique and critically important parts.

What are the three main factors that affect the decision of locating production?

The minimum efficient scale of production is:

Which of the following products will most likely have high value-to-weight ratios?

An advantage of buying component parts, or even an entire product, from independent suppliers is that:

The major cost saving associated with JIT systems comes from:

_____ is the outer packaging envelope that allows for easier handling or product transfer among international suppliers, manufacturers, distribution centers, retailers, and any other intermediaries in the global supply chain.

Making all or part of a product in-house is most beneficial when a firm wants to:

Concentration of production is not favored when important exchange rates are expected to remain relatively stable.

Which of the following statements is true of the country factors that govern international business?

Explain how the concept of production efficiency has changed with the rise of flexible manufacturing technologies.

Which of the following would lead a firm to choose a concentration of production?

The firm that sources from independent suppliers has fewer subunits to control.

Which of the following makes being dependent on one location particularly risky?

How do product factors affect the decision of where to locate production? Where will you locate your firm's production plant if your firm produces refined sugar?

_____ refers to the movement of raw material, component parts, and finished goods throughout the global supply chain.

Firms can increase flexibility by producing all parts of a product in-house.

Globalization

National Differences in Political Economy, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Trade Pacts Give the Mexican Auto Industry an Edge

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

The Organization of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters