Question 1

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

Question 2

Describe the issues involved in the decision of how a company acquires raw materials and fixed assets.

Accepted Answer

Raw Materials-Decisions about the select...

Question 3

A company that sells differentiated products may maintain the ability to respond quickly to changing buyer preferences by utilizing ________.

Accepted Answer

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

Question 4

A British toy company manufactures all of its product lines in a single facility in Europe.Which of the following is the company demonstrating?

Accepted Answer

A)  continuous production
B)  lean production
C)  centralized production
D)  horizontal integration

Question 5

Scenario: Audio Component Outsourcing
Echo Corporation manufactures high-quality audio components,such as speakers,amplifiers,and receivers,for home entertainment systems.Echo has been losing market share in recent years due to the competitive pricing of other audio component manufacturers that engage in outsourcing.Echo managers are attempting to convince Nathan Douglas,the firm's founder and CEO,that outsourcing would enable the firm to be more competitive without sacrificing quality.
-Which of the following most likely supports the argument of Echo managers to outsource some of the firm's manufacturing activities?

Accepted Answer

A)  Echo managers could reduce the wages of U.S.based employees and sub-contractors.
B)  Echo could save money by reducing the costs incurred in manufacturing the component parts.
C)  Echo managers could implement a marketing campaign for foreign markets that is identical to the outsourced firm's marketing campaign.
D)  Echo could merge with one of its U.S.-based competitors to gain a larger market share.

Question 6

What are the options available to companies seeking financial resources?

Accepted Answer

Companies need financial resources to pa...

Question 7

It is important for low-cost competitors to locate near their markets in order to keep track of buyer preferences.

Accepted Answer

A) True 
 B)False

Question 8

American Depository Receipts (ADRs) are ________.

Accepted Answer

A)  certificates that represent shares of stock in American companies
B)  dollar deposits made by foreign firms conducting business in the U.S.
C)  certificates that trade in the U.S.and represent shares of stock in a non-U.S.company
D)  currency deposits made in the United States by firms based in other countries

Question 9

Discuss why companies strive toward quality improvement and the two methods of doing so.

Accepted Answer

Companies strive toward quality improvem...

Question 10

The ________ of a company is the mix of equity,debt,and internally generated funds that it uses to finance its activities.

Accepted Answer

A)  enterprise value
B)  stock value
C)  capital structure
D)  corporate structure

Question 11

________ 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 12

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 13

The process of assessing a company's ability to produce enough output to satisfy market demand is called process planning.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements is true regarding location economies?

Accepted Answer

A)  The demand and supply factors heavily influence the productivity of a location.
B)  They apply only to service providers.
C)  Each production activity generates more value in a particular location than elsewhere.
D)  They are restricted to business activities that involve product manufacturing.

Question 15

Companies selling differentiated products find centralized production most effective.

Accepted Answer

A) True 
 B)False

Question 16

A back-to-back loan is one in which a subsidiary acquires a loan from the same bank where its parent secured the first loan.

Accepted Answer

A) True 
 B)False

Question 17

________ refers to the concentration of production facilities in one location.

Accepted Answer

A)  Lean production
B)  Continuous production
C)  Centralized production
D)  Horizontal integration

Question 18

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

Accepted Answer

Companies gain several important advanta...

Question 19

Which of the following is true of American Depository Receipts (ADRs) ?

Accepted Answer

A)  Investors who buy ADRs have to pay a currency-conversion fee.
B)  There is a minimum purchase requirement for ADRs.
C)  Companies offer ADRs in the U.S.to appeal to mutual funds.
D)  ADRs are listed and traded in London and Luxembourg.

Question 20

Which of the following determines the process that a company will use to create its product?

Accepted Answer

A)  a firm's multinational strategy
B)  a firm's global strategy
C)  a firm's corporate-level strategy
D)  a firm's business-level strategy

Exam 15: Managing International Operations

A back-to-back loan is one in which a subsidiary acquires a loan from the same bank where its parent secured the first loan.

Correct Answer
verified

What are the options available to companies seeking financial resources?

Correct Answer
verified
Companies need financial resources to pa...
View Answer

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

Correct Answer
verified

Which of the following statements is true regarding location economies?

Correct Answer
verified

It is important for low-cost competitors to locate near their markets in order to keep track of buyer preferences.

Correct Answer
verified

A company that sells differentiated products may maintain the ability to respond quickly to changing buyer preferences by utilizing ________.

Correct Answer
verified

American Depository Receipts (ADRs) are ________.

Correct Answer
verified

Correct Answer
verified

Discuss why companies strive toward quality improvement and the two methods of doing so.

Correct Answer
verified
Companies strive toward quality improvem...
View Answer

The process of assessing a company's ability to produce enough output to satisfy market demand is called process planning.

Correct Answer
verified

The ________ of a company is the mix of equity,debt,and internally generated funds that it uses to finance its activities.

Correct Answer
verified

Which of the following is true of American Depository Receipts (ADRs) ?

Correct Answer
verified

Describe the issues involved in the decision of how a company acquires raw materials and fixed assets.

Correct Answer
verified
Raw Materials-Decisions about the select...
View Answer

Companies selling differentiated products find centralized production most effective.

Correct Answer
verified

________ refers to the concentration of production facilities in one location.

Correct Answer
verified

A British toy company manufactures all of its product lines in a single facility in Europe.Which of the following is the company demonstrating?

Correct Answer
verified

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

Correct Answer
verified
Companies gain several important advanta...
View Answer

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

Correct Answer
verified

Correct Answer
verified

Which of the following determines the process that a company will use to create its product?

Correct Answer
verified

Exam 15: Managing International Operations

A back-to-back loan is one in which a subsidiary acquires a loan from the same bank where its parent secured the first loan.

Correct AnswerverifiedShow Answer

What are the options available to companies seeking financial resources?

Correct AnswerverifiedCompanies need financial resources to pa...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements is true regarding location economies?

Correct AnswerverifiedShow Answer

It is important for low-cost competitors to locate near their markets in order to keep track of buyer preferences.

Correct AnswerverifiedShow Answer

A company that sells differentiated products may maintain the ability to respond quickly to changing buyer preferences by utilizing ________.

Correct AnswerverifiedShow Answer

American Depository Receipts (ADRs) are ________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Discuss why companies strive toward quality improvement and the two methods of doing so.

Correct AnswerverifiedCompanies strive toward quality improvem...View AnswerShow Answer

The process of assessing a company's ability to produce enough output to satisfy market demand is called process planning.

Correct AnswerverifiedShow Answer

The ________ of a company is the mix of equity,debt,and internally generated funds that it uses to finance its activities.

Correct AnswerverifiedShow Answer

Which of the following is true of American Depository Receipts (ADRs) ?

Correct AnswerverifiedShow Answer

Describe the issues involved in the decision of how a company acquires raw materials and fixed assets.

Correct AnswerverifiedRaw Materials-Decisions about the select...View AnswerShow Answer

Companies selling differentiated products find centralized production most effective.

Correct AnswerverifiedShow Answer

________ refers to the concentration of production facilities in one location.

Correct AnswerverifiedShow Answer

A British toy company manufactures all of its product lines in a single facility in Europe.Which of the following is the company demonstrating?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedCompanies gain several important advanta...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following determines the process that a company will use to create its product?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
verified
Companies need financial resources to pa...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Companies strive toward quality improvem...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Raw Materials-Decisions about the select...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Companies gain several important advanta...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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