Question 1

Vertical integration refers to _____.

Accepted Answer

A)  outsourcing production to a low-cost based company 
B)  making all or part of a product in-house 
C)  using multiple suppliers to procure raw materials 
D)  procuring raw materials or products from a single supplier 
A)  outsourcing production to a low-cost based company 
B)  making all or part of a product in-house 
C)  using multiple suppliers to procure raw materials 
D)  procuring raw materials or products from a single supplier B

Question 2

Dynamic capabilities describe skills that become more valuable over time through learning.

Accepted Answer

A) True 
 B)False  True

Question 3

Products such as refined sugar, certain bulk chemicals, paint, and petroleum products have low value-to-weight ratios.

Accepted Answer

A) True 
 B)False  True

Question 4

Just-in-time inventory systems _____.

Accepted Answer

A)  are used when procurement is not organized 
B)  require large warehouses for storage 
C)  economize on inventory holding costs 
D)  maintain large buffer for inventory 
A)  are used when procurement is not organized 
B)  require large warehouses for storage 
C)  economize on inventory holding costs 
D)  maintain large buffer for inventory

Question 5

When a company's product has a low value-to-weight ratio, the company should _____.

Accepted Answer

A)  produce the product from two or three optimal locations and ship products from there 
B)  manufacture products from a centralized location 
C)  ignore transportation costs as they would only be a minor part 
D)  produce the product in multiple locations close to major markets 
A)  produce the product from two or three optimal locations and ship products from there 
B)  manufacture products from a centralized location 
C)  ignore transportation costs as they would only be a minor part 
D)  produce the product in multiple locations close to major markets

Question 6

Explain specialized assets with an example.

Accepted Answer

A specialized asset is an asset whose va

Question 7

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 8

Decentralized production is favored if differences between countries in factor costs have a substantial impact on the costs of manufacturing in various countries.

Accepted Answer

A) True 
 B)False

Question 9

A specialized asset is an asset that is used to perform day-to-day activities.

Accepted Answer

A) True 
 B)False

Question 10

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 11

An advantage of engaging in in-house production of products and components is that _____.

Accepted Answer

A)  the firm will have fewer subunits to control by making products in-house 
B)  it will help the firm capture more orders from other countries 
C)  it enables a firm to protect the proprietary technologies that it has 
D)  firms can make better use of the location advantages of certain countries 
A)  the firm will have fewer subunits to control by making products in-house 
B)  it will help the firm capture more orders from other countries 
C)  it enables a firm to protect the proprietary technologies that it has 
D)  firms can make better use of the location advantages of certain countries

Question 12

One disadvantage of a foreign production site is that the production factors typically lag behind the production factors of other countries.

Accepted Answer

A) True 
 B)False

Question 13

Mass customization facilitates product customization at low costs.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a desired outcome of flexible manufacturing technology?

Accepted Answer

A)  Minimizing the utilization of individual machines 
B)  Reducing setup times for complex equipments 
C)  Standardizing the output of a system 
D)  Implementing specialized equipments in production 
A)  Minimizing the utilization of individual machines 
B)  Reducing setup times for complex equipments 
C)  Standardizing the output of a system 
D)  Implementing specialized equipments in production

Question 16

Deming, the proponent of total quality management, argued that _____.

Accepted Answer

A)  work standards should be defined only as quotas and numbers 
B)  supervision is not essential for quality improvements 
C)  management should train employees in new skills 
D)  products should be certified with standards such as ISO 9000 
A)  work standards should be defined only as quotas and numbers 
B)  supervision is not essential for quality improvements 
C)  management should train employees in new skills 
D)  products should be certified with standards such as ISO 9000

Question 17

Dynamic capabilities describe skills that _____.

Accepted Answer

A)  are used to perform the day-to-day activities in a firm 
B)  refer to extrinsic capabilities of an employee 
C)  become more valuable over time through learning 
D)  are used by managers to make transactional decisions 
A)  are used to perform the day-to-day activities in a firm 
B)  refer to extrinsic capabilities of an employee 
C)  become more valuable over time through learning 
D)  are used by managers to make transactional decisions

Question 18

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 19

The benefits of making all or part of a product in-house is minimal when highly specialized assets are involved.

Accepted Answer

A) True 
 B)False

Question 20

Discuss the effect of country factors on the decision of where to locate production?

Accepted Answer

All other things being equal, a firm sho

Vertical integration refers to _____.

Dynamic capabilities describe skills that become more valuable over time through learning.

Products such as refined sugar, certain bulk chemicals, paint, and petroleum products have low value-to-weight ratios.

Just-in-time inventory systems _____.

When a company's product has a low value-to-weight ratio, the company should _____.

Explain specialized assets with an example.

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

Decentralized production is favored if differences between countries in factor costs have a substantial impact on the costs of manufacturing in various countries.

A specialized asset is an asset that is used to perform day-to-day activities.

Decentralization of production is appropriate when _____.

An advantage of engaging in in-house production of products and components is that _____.

One disadvantage of a foreign production site is that the production factors typically lag behind the production factors of other countries.

Mass customization facilitates product customization at low costs.

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

Which of the following is a desired outcome of flexible manufacturing technology?

Deming, the proponent of total quality management, argued that _____.

Dynamic capabilities describe skills that _____.

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

The benefits of making all or part of a product in-house is minimal when highly specialized assets are involved.

Discuss the effect of country factors on the decision of where to locate production?

Globalization

National Differences in Political Economy

Political Economy and Economic Development

Differences in Culture

Ethics in International Business

International Trade Theory

The Political Economy of International Trade

Foreign Direct Investment

Regional Economic Integration

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, Outsourcing, and Logistics

Vertical integration refers to _____.

Dynamic capabilities describe skills that become more valuable over time through learning.

Products such as refined sugar, certain bulk chemicals, paint, and petroleum products have low value-to-weight ratios.

Just-in-time inventory systems _____.

When a company's product has a low value-to-weight ratio, the company should _____.

Explain specialized assets with an example.

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

Decentralized production is favored if differences between countries in factor costs have a substantial impact on the costs of manufacturing in various countries.

A specialized asset is an asset that is used to perform day-to-day activities.

Decentralization of production is appropriate when _____.

An advantage of engaging in in-house production of products and components is that _____.

One disadvantage of a foreign production site is that the production factors typically lag behind the production factors of other countries.

Mass customization facilitates product customization at low costs.

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

Which of the following is a desired outcome of flexible manufacturing technology?

Deming, the proponent of total quality management, argued that _____.

Dynamic capabilities describe skills that _____.

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

The benefits of making all or part of a product in-house is minimal when highly specialized assets are involved.

Discuss the effect of country factors on the decision of where to locate production?

Globalization

National Differences in Political Economy

Political Economy and Economic Development

Differences in Culture

Ethics in International Business

International Trade Theory

The Political Economy of International Trade

Foreign Direct Investment

Regional Economic Integration

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