Question 1

Which of the following reasons encourages companies to make a product rather than buy it?

Accepted Answer

A)   Making a product gives managers greater control over the production process.
B)   Making a product lowers the risk associated with the production process.
C)   Making a product increases the company's flexibility to respond to market conditions.
D)   Making a product gives companies a great deal of power in their relationships with suppliers. A

Question 2

Which of the following types of money adds to the volatility of emerging markets because it can be quickly withdrawn from its investment?

Accepted Answer

A)   hot money
B)   patient money
C)   key money
D)   fiat money A

Question 3

Money earned from the sale of goods and services is known as ________.

Accepted Answer

A)   revenue
B)   dividend
C)   depreciation
D)   book value A

Question 4

Which of the following is established by a company that has the option of either (1)acquiring or modifying existing factories or (2)building entirely new facilities?

Accepted Answer

A)   a divestiture
B)   a shadow economy
C)   a greenfield investment
D)   a shell corporation

Question 5

Scenario: Hafstrom Motors
Based in Kentucky, Hafstrom Motors has always used spare parts made in America for its automobiles. However, sales and profits have slumped over the past three years. A senior manager at the company comes up with new strategies for improving the firm's production activities.
-The top management of the company contends that Hafstrom would benefit most from manufacturing its own parts,rather than sourcing it from elsewhere,even if they are made at another location overseas.Which of the following is being recommended in this approach?

Accepted Answer

A)   just-in-time manufacturing
B)   location economies
C)   vertical integration
D)   outsourcing

Question 6

The suppliers used by Thanos Industries deliver components directly to Thanos manufacturing center as the inputs are needed for production to minimize Thanos inventory costs.Thanos most likely uses ________.

Accepted Answer

A)   one-stop shipping
B)   just-in-time systems
C)   materials management
D)   customized logistics processes

Question 7

Describe the production managers' decision regarding whether to centralize or decentralize production facilities,and explain the benefits of vertical integration.

Accepted Answer

The answer of Describe the production managers' decision regarding whether...

Question 8

What role does flexibility play in the make-or-buy decision?

Accepted Answer

The answer of What role does flexibility play in the...

Question 9

The particular process to be used to create products is typically determined by a firm's corporate-level strategy.

Accepted Answer

A) True 
 B)False

Question 10

Deciding the sequence of operations a company will use to create its product is called ________.

Accepted Answer

A)   product planning
B)   capacity planning
C)   location economies
D)   process planning

Question 11

Which of the following terms refers to the decision of whether to produce a component internally or to outsource it from another company?

Accepted Answer

A)   buyer decision process
B)   decision problem
C)   per curiam decision
D)   make-or-buy decision

Question 12

What are the advantages of American Depository Receipts (ADRs)?

Accepted Answer

The answer of What are the advantages of American Depository...

Question 13

An Asian jewelry company maintains production facilities in South Korea,Vietnam,and Malaysia.Which of the following is the company exemplifying?

Accepted Answer

A)   lean production
B)   decentralized production
C)   vertical integration
D)   continuous production

Question 14

________ is the term used to refer to a production technique in which inventory is kept to a minimum and inputs to the production process arrive exactly when they are needed.

Accepted Answer

A)   Just-in-time manufacturing
B)   Lean manufacturing
C)   Continuous production
D)   Flow production

Question 15

Scenario: Verandas International
Verandas International is expanding its operations in North America. The Dutch company supplies customized furniture to five-star hotels. Verandas International is a leader in this industry, but the company believes it must increase its geographic reach to maintain that position.
-If Verandas International chooses to pursue equity financing,but wants to avoid the time and money required to comply with stock exchange regulations,the company would most likely issue ________.

Accepted Answer

A)   American Depository Receipts
B)   bills of lading
C)   equity shares
D)   irrevocable letters of credit

Question 16

Which of the following will a company that is pursuing a low-cost leadership strategy most likely use for creating its product?

Accepted Answer

A)   implement handcrafted artisanship
B)   manufacture in large production batches
C)   manufacture components in-house
D)   customize products for each customer

Question 17

Just-in-time manufacturing drastically increases the costs associated with large inventories in the production process.

Accepted Answer

A) True 
 B)False

Question 18

Kathleen,a manager at Parker Airline,has the responsibility of deciding how many passengers Parker Airline can serve at a given time.Kathleen is most likely involved with ________.

Accepted Answer

A)   operations management
B)   services production planning
C)   capacity planning
D)   service operations management

Question 19

________ are traded in Luxembourg and London and represent a specific number of shares in an outside company.

Accepted Answer

A)   Common stock
B)   Bills of lading
C)   Revocable letters of credit
D)   Global Depository Receipts

Question 20

Which of the following is a barrier to buying products from international suppliers?

Accepted Answer

A)   extremely low tariffs
B)   additional transportation costs
C)   lower flexibility to respond to market conditions
D)   high political risk

Exam 15: Managing International Operations