Question 1

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 2

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 3

The minimum efficient scale of production is high when fixed costs are low.

Accepted Answer

A) True 
 B)False

Question 4

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 5

Which of the following products will have low value-to-weight ratios?

Accepted Answer

A)  Pharmaceuticals 
B)  Refined sugar 
C)  Microprocessor 
D)  Electronic items 
A)  Pharmaceuticals 
B)  Refined sugar 
C)  Microprocessor 
D)  Electronic items

Question 6

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 7

The firm that improves its quality control will also reduce its costs of value creation.

Accepted Answer

A) True 
 B)False

Question 8

Modern consumer products such as personal computers serve universal needs.

Accepted Answer

A) True 
 B)False

Question 9

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

Question 10

Which of the following statements is true of Six Sigma?

Accepted Answer

A)  It is a statistically based philosophy to reduce defects and boost productivity. 
B)  At Six Sigma,a production process will have 6.6 defects per million units. 
C)  At Six Sigma,a production process would be 100 percent accurate. 
D)  A company can achieve Six Sigma perfection by reducing the number of defects to one in six thousand. 
A)  It is a statistically based philosophy to reduce defects and boost productivity. 
B)  At Six Sigma,a production process will have 6.6 defects per million units. 
C)  At Six Sigma,a production process would be 100 percent accurate. 
D)  A company can achieve Six Sigma perfection by reducing the number of defects to one in six thousand.

Question 11

Organizations are under pressure to produce products in the optimal location and to serve the world market from there if their products have low value-to-weight ratios.

Accepted Answer

A) True 
 B)False

Question 12

Make-or-buy decisions are decisions about _____.

Accepted Answer

A)  the components to be used in manufacturing process 
B)  procuring raw materials for a production process 
C)  procuring the capital equipments for production 
D)  whether or not to outsource value creation activities 
A)  the components to be used in manufacturing process 
B)  procuring raw materials for a production process 
C)  procuring the capital equipments for production 
D)  whether or not to outsource value creation activities

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Outsourcing some manufacturing to independent suppliers based in other countries would help firms capture more orders from that country.

Accepted Answer

A) True 
 B)False

Question 15

Just-in-time systems reduce product quality although it brings about huge cost savings.

Accepted Answer

A) True 
 B)False

Question 16

Decentralization of production is appropriate when the product does not serve universal needs.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

Flexible technology,also known as lean p

Question 18

A production process would create just 1 defect per six thousand products at Six Sigma.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is a hidden cost associated with basing production in a foreign location?

Accepted Answer

A)  Cost of labor within the location 
B)  High employee turnover 
C)  Transportation costs 
D)  Differences in the value of currency 
A)  Cost of labor within the location 
B)  High employee turnover 
C)  Transportation costs 
D)  Differences in the value of currency

Question 20

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

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

Dynamic capabilities describe skills that _____.

The minimum efficient scale of production is high when fixed costs are low.

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

Which of the following products will have low value-to-weight ratios?

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

The firm that improves its quality control will also reduce its costs of value creation.

Modern consumer products such as personal computers serve universal needs.

Vertical integration refers to _____.

Which of the following statements is true of Six Sigma?

Organizations are under pressure to produce products in the optimal location and to serve the world market from there if their products have low value-to-weight ratios.

Make-or-buy decisions are decisions about _____.

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

Outsourcing some manufacturing to independent suppliers based in other countries would help firms capture more orders from that country.

Just-in-time systems reduce product quality although it brings about huge cost savings.

Decentralization of production is appropriate when the product does not serve universal needs.

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

A production process would create just 1 defect per six thousand products at Six Sigma.

Which of the following is a hidden cost associated with basing production in a foreign location?

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

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

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

Dynamic capabilities describe skills that _____.

The minimum efficient scale of production is high when fixed costs are low.

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

Which of the following products will have low value-to-weight ratios?

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

The firm that improves its quality control will also reduce its costs of value creation.

Modern consumer products such as personal computers serve universal needs.

Vertical integration refers to _____.

Which of the following statements is true of Six Sigma?

Organizations are under pressure to produce products in the optimal location and to serve the world market from there if their products have low value-to-weight ratios.

Make-or-buy decisions are decisions about _____.

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

Outsourcing some manufacturing to independent suppliers based in other countries would help firms capture more orders from that country.

Just-in-time systems reduce product quality although it brings about huge cost savings.

Decentralization of production is appropriate when the product does not serve universal needs.

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

A production process would create just 1 defect per six thousand products at Six Sigma.

Which of the following is a hidden cost associated with basing production in a foreign location?

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

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