Question 1

Decentralization of production is appropriate when location externalities are important.

Accepted Answer

A) True 
 B)False

Question 2

What is logistics? Discuss the relationship between production and logistics.

Accepted Answer

Logistics is the activity that controls

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

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 5

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

Accepted Answer

A) True 
 B)False

Question 6

The benefits of making all or part of a product in-house seem to be greatest when the firm _____.

Accepted Answer

A)  wants to accumulate dynamic capabilities 
B)  has highly specialized assets 
C)  lacks efficiency in some processes 
D)  faces the risk of strategic inflexibility 
A)  wants to accumulate dynamic capabilities 
B)  has highly specialized assets 
C)  lacks efficiency in some processes 
D)  faces the risk of strategic inflexibility

Question 7

Describe the concept of minimum efficient scale.Discuss the implications of minimum efficient scale.

Accepted Answer

Minimum efficient scale of output refers

Question 8

The argument for centralizing production will be greater if the minimum efficient scale of a plant relative to total global demand is low.

Accepted Answer

A) True 
 B)False

Question 9

According to the concept of economies of scale,as plant output expands,_____.

Accepted Answer

A)  productivity decline 
B)  total costs decrease 
C)  unit costs decrease 
D)  utilization of capital decline 
A)  productivity decline 
B)  total costs decrease 
C)  unit costs decrease 
D)  utilization of capital decline

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

The objectives of logistics are to manage a firm's global supply chain at the lowest possible cost and in a way that best serves customer needs.

Accepted Answer

A) True 
 B)False

Question 13

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 14

Flexible manufacturing technologies enable companies to customize products to the demands of small consumer groups.

Accepted Answer

A) True 
 B)False

Question 15

How does the type of technology a firm uses affect its decision of where to locate production?

Accepted Answer

The type of technology a firm uses to pe

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Discuss the strategic objectives of the production and logistics functions of an international firm.

Accepted Answer

The production and logistics functions o

Question 18

Upward migration in the strategic role of foreign production sites arises when they upgrade their own capabilities.

Accepted Answer

A) True 
 B)False

Question 19

Deming,the proponent of total quality management,suggested that management shouldn't attempt to train employees in new skills.

Accepted Answer

A) True 
 B)False

Question 20

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

Decentralization of production is appropriate when location externalities are important.

What is logistics? Discuss the relationship between production and logistics.

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

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?

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

The benefits of making all or part of a product in-house seem to be greatest when the firm _____.

Describe the concept of minimum efficient scale.Discuss the implications of minimum efficient scale.

The argument for centralizing production will be greater if the minimum efficient scale of a plant relative to total global demand is low.

According to the concept of economies of scale,as plant output expands,_____.

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

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

The objectives of logistics are to manage a firm's global supply chain at the lowest possible cost and in a way that best serves customer needs.

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

Flexible manufacturing technologies enable companies to customize products to the demands of small consumer groups.

How does the type of technology a firm uses affect its decision of where to locate production?

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

Discuss the strategic objectives of the production and logistics functions of an international firm.

Upward migration in the strategic role of foreign production sites arises when they upgrade their own capabilities.

Deming,the proponent of total quality management,suggested that management shouldn't attempt to train employees in new skills.

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

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

Decentralization of production is appropriate when location externalities are important.

What is logistics? Discuss the relationship between production and logistics.

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

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?

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

The benefits of making all or part of a product in-house seem to be greatest when the firm _____.

Describe the concept of minimum efficient scale.Discuss the implications of minimum efficient scale.

The argument for centralizing production will be greater if the minimum efficient scale of a plant relative to total global demand is low.

According to the concept of economies of scale,as plant output expands,_____.

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

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

The objectives of logistics are to manage a firm's global supply chain at the lowest possible cost and in a way that best serves customer needs.

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

Flexible manufacturing technologies enable companies to customize products to the demands of small consumer groups.

How does the type of technology a firm uses affect its decision of where to locate production?

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

Discuss the strategic objectives of the production and logistics functions of an international firm.

Upward migration in the strategic role of foreign production sites arises when they upgrade their own capabilities.

Deming,the proponent of total quality management,suggested that management shouldn't attempt to train employees in new skills.

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

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