Question 1

While the development and proliferation of the Internet and web-based commerce has not completely eliminated the relevancy of facilities location,because of the Internet,the speed of delivery and cost in serving the customer are no longer factors in determining the strategic location of an organization's facilities.

Accepted Answer

A) True 
 B)False

Question 2

Using the weighted-factor rating model,the location with the lowest total weighted score is the recommended location.

Accepted Answer

A) True 
 B)False

Question 3

China's economy is shifting from labor-intensive industries to areas like marketing and the production of high technology products that typically provide higher levels of value.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is NOT a reason for locating in a business cluster?

Accepted Answer

A) ​Technology sharing 
B) ​Supply chain improvements 
C) ​Sophisticated retailers 
D) ​Competition

Question 5

Many multinational corporations are moving their facilities and headquarters out of Taiwan and some Southeast Asian countries in order to take advantage of the proximity to customers.The more attractive customer markets are developing in China.

Accepted Answer

A) True 
 B)False

Question 6

Regional trade agreements and the World Trade Organization provide a framework for managers in terms of investigating important facility location elements like tariffs,costs,and the free flow of goods and services in different regions of the world.

Accepted Answer

A) True 
 B)False

Question 7

While business clusters seem logical in well-established areas with developed economies like Silicon Valley and Hollywood,California,because companies can easily collaborate,compete,and share knowledge,some high-tech clusters have developed in areas with emerging economies such as Costa Rica,the Philippines,and Uganda.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following strategic foreign facilities is set-up primarily produce products at a low cost with minimal technical and managerial resources? The items produced at these factories are often exported to countries where costs to produce similar items would be higher.

Accepted Answer

A) ​Offshore factory 
B) ​Server factory 
C) ​Source factory 
D) ​Outpost factory

Question 9

Facility location is a business decision that will ultimately impact issues like project cost,shareholder and customer reaction,as well as lead times and customer service levels.

Accepted Answer

A) True 
 B)False

Question 10

While many developing countries are attractive to companies seeking out low labor costs,there are other important factors such as productivity levels,employee skill and education levels,turnover rates,and employment trends that certain industries find just as important,if not more important,in determining facilities' location.

Accepted Answer

A) True 
 B)False

Question 11

Some companies import components,use them in the production of their end items,and ultimately export them to other countries.If a company wanted to import the components duty-free,use those components in the production of their end items,and then export them to other countries,they would most likely utilize a(n):

Accepted Answer

A) ​Duty-free Territory 
B) ​Foreign Trade Zone 
C) ​International Cross Docking Zone 
D) ​International Processing Center

Question 12

The European Union (EU)created the world's largest free trade area.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following strategic foreign facilities is set-up primarily to avoid tariff barriers,minimize exchange risk,and/or take advantage of government incentives? Ultimately the factory operates as most normal factories making only minor improvements in either the products or processes.

Accepted Answer

A) ​Offshore factory​ 
B) ​Server factory 
C) ​Source factory 
D) ​Outpost factory

Question 14

According to the text,when the location of a factory is dictated by low production costs,fairly developed infrastructure and availability of skilled workers the factory is referred to as a(n):

Accepted Answer

A) ​Offshore factory 
B) ​Source factory 
C) ​Server factory 
D) ​Lead factory

Question 15

The critical issues in sustainable development are energy consumption/production,air pollution and climate change.

Accepted Answer

A) True 
 B)False

Question 16

The Americas have two primary regional trade agreements,NAFTA,an agreement between the United States,Canada,and Mexico,and COMESA,an agreement between all of the South American countries.

Accepted Answer

A) True 
 B)False

Question 17

The Brundtland Commission defines ____ as the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs.

Accepted Answer

A) ​Lean manufacturing 
B) ​Sustainable development 
C) ​Six Sigma manufacturing 
D) ​Progressive design

Question 18

Which of the following is a project that has environmental implications concerning public health and climate change?

Accepted Answer

A) ​MERCOSUR 
B) ​Development Alliance 
C) ​Microsoft Project 
D) ​Keystone XL pipeline

Question 19

Which of the following is a critical issue in sustainable development?

Accepted Answer

A) ​Labor and legal problems 
B) ​Energy consumption/production 
C) ​Countertrade 
D) ​Supply base optimization

Question 20

Which of the following secures the right of employees to decide whether or not to join or financially support a union?

Accepted Answer

A) ​Union shop laws 
B) ​Union planning forums 
C) ​Ethical union initiatives 
D) ​Right-to-work laws

Exam 11: Global Location Decisions

Using the weighted-factor rating model,the location with the lowest total weighted score is the recommended location.

China's economy is shifting from labor-intensive industries to areas like marketing and the production of high technology products that typically provide higher levels of value.

Which of the following is NOT a reason for locating in a business cluster?

Many multinational corporations are moving their facilities and headquarters out of Taiwan and some Southeast Asian countries in order to take advantage of the proximity to customers.The more attractive customer markets are developing in China.

Regional trade agreements and the World Trade Organization provide a framework for managers in terms of investigating important facility location elements like tariffs,costs,and the free flow of goods and services in different regions of the world.

Which of the following strategic foreign facilities is set-up primarily produce products at a low cost with minimal technical and managerial resources? The items produced at these factories are often exported to countries where costs to produce similar items would be higher.

Facility location is a business decision that will ultimately impact issues like project cost,shareholder and customer reaction,as well as lead times and customer service levels.

The European Union (EU)created the world's largest free trade area.

Which of the following strategic foreign facilities is set-up primarily to avoid tariff barriers,minimize exchange risk,and/or take advantage of government incentives? Ultimately the factory operates as most normal factories making only minor improvements in either the products or processes.

According to the text,when the location of a factory is dictated by low production costs,fairly developed infrastructure and availability of skilled workers the factory is referred to as a(n) :

The critical issues in sustainable development are energy consumption/production,air pollution and climate change.

The Americas have two primary regional trade agreements,NAFTA,an agreement between the United States,Canada,and Mexico,and COMESA,an agreement between all of the South American countries.

The Brundtland Commission defines ____ as the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs.

Which of the following is a project that has environmental implications concerning public health and climate change?

Which of the following is a critical issue in sustainable development?

Which of the following secures the right of employees to decide whether or not to join or financially support a union?