Question 1

Decentralization of production is appropriate when:

Accepted Answer

A)  a product's value-to-weight ratio is high. 
B)  the product serves universal needs. 
C)  barriers to trade are low. 
D)  volatility in key exchange rates is expected. 
A)  a product's value-to-weight ratio is high. 
B)  the product serves universal needs. 
C)  barriers to trade are low. 
D)  volatility in key exchange rates is expected.

Question 2

A(n) _____ is a grouping of various types of machinery, a common materials handler, and a centralized cell controller.

Accepted Answer

A)  flexible machine cell 
B)  Six Sigma 
C)  assembly line 
D)  minimum efficient scale 
A)  flexible machine cell 
B)  Six Sigma 
C)  assembly line 
D)  minimum efficient scale

Question 3

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

Accepted Answer

A)  The product serves universal needs. 
B)  The production technology has high fixed costs and high minimum efficient scale relative to global demand or flexible manufacturing technology exists. 
C)  Trade barriers are low. 
D)  The production technology has low fixed costs and low minimum efficient scale, and flexible manufacturing technology is not available. 
A)  The product serves universal needs. 
B)  The production technology has high fixed costs and high minimum efficient scale relative to global demand or flexible manufacturing technology exists. 
C)  Trade barriers are low. 
D)  The production technology has low fixed costs and low minimum efficient scale, and flexible manufacturing technology is not available.

Question 4

The idea that valuable knowledge does not reside just in a firm's domestic operations but can also be found in its foreign subsidiaries is called _____.

Accepted Answer

A)  global learning 
B)  global production processes 
C)  global economics 
D)  global factors 
A)  global learning 
B)  global production processes 
C)  global economics 
D)  global factors

Question 5

Which of the following statements is true of products with high value-to-weight ratios?

Accepted Answer

A)  Transportation costs usually account for a large percentage of their total costs. 
B)  They are relatively inexpensive and weigh a lot. 
C)  They are usually produced in multiple locations close to major markets. 
D)  Their transportation account for a very small percentage of the total costs. 
A)  Transportation costs usually account for a large percentage of their total costs. 
B)  They are relatively inexpensive and weigh a lot. 
C)  They are usually produced in multiple locations close to major markets. 
D)  Their transportation account for a very small percentage of the total costs.

Question 6

Explain why a firm might adopt the just-in-time system. Why might a firm choose a different inventory system?

Accepted Answer

The JIT system was developed by Japanese

Question 7

Maintaining _____ allows a firm to hedge against currency risks.

Accepted Answer

A)  low TQM 
B)  low minimum efficient scale 
C)  high TQM 
D)  high minimum efficient scale 
A)  low TQM 
B)  low minimum efficient scale 
C)  high TQM 
D)  high minimum efficient scale

Question 8

The Six Sigma methodology:

Accepted Answer

A)  is used to compare and benchmark the performances of competing firms. 
B)  gives more importance to productivity than product quality. 
C)  is a direct descendant of the total quality management philosophy. 
D)  recommends that only one product should be defective in a thousand products. 
A)  is used to compare and benchmark the performances of competing firms. 
B)  gives more importance to productivity than product quality. 
C)  is a direct descendant of the total quality management philosophy. 
D)  recommends that only one product should be defective in a thousand products.

Decentralization of production is appropriate when:

A(n) _____ is a grouping of various types of machinery, a common materials handler, and a centralized cell controller.

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

The idea that valuable knowledge does not reside just in a firm's domestic operations but can also be found in its foreign subsidiaries is called _____.

Which of the following statements is true of products with high value-to-weight ratios?

Explain why a firm might adopt the just-in-time system. Why might a firm choose a different inventory system?

Maintaining _____ allows a firm to hedge against currency risks.

The Six Sigma methodology:

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:

A(n) _____ is a grouping of various types of machinery, a common materials handler, and a centralized cell controller.

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

The idea that valuable knowledge does not reside just in a firm's domestic operations but can also be found in its foreign subsidiaries is called _____.

Which of the following statements is true of products with high value-to-weight ratios?

Explain why a firm might adopt the just-in-time system. Why might a firm choose a different inventory system?

Maintaining _____ allows a firm to hedge against currency risks.

The Six Sigma methodology:

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