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International Business : The Challenge of Global Competition, 8/e

Donald Ball
Wendell H. McCulloch, California State University Long Beach
Paul L. Frantz, California State University Long Beach
Michael Geringer, California Polytechnic State University
Michael S. Minor, University of Texas Pan American

Global Operations Management: The Third Industrial Revolution

Multiple Choice Quiz


1	The most important reason for sourcing globally is:
		A)	to obtain foreign products that are not available locally.
		B)	the firm's worldwide operation and attitude.
		C)	to obtain advanced technology from foreign sources.
		D)	to obtain lower prices from foreign sources.


2	Which of the following arrangements can provide a firm with foreign products?
		A)	Wholly owned subsidiary.
		B)	Overseas venture.
		C)	In-bond plant contractor.
		D)	all of the above.


3	There is a strong relationship between global sourcing and:
		A)	ownership of foreign sources.
		B)	a firm's total profit.
		C)	a firm's global success.
		D)	none of the above.


4	____________ is an integrated auto-parts supplier exchange developed by Ford, DaimlerChrysler and General Motors.
		A)	Exostar.
		B)	Covisint.
		C)	AutoConnect.
		D)	Ehitex.


5	Among the most basic transactions that can occur over electronic purchasing exchanges are:
		A)	book purchases.
		B)	catalog purchases.
		C)	music purchases.
		D)	software purchases.


6	International freight, insurance and packing can add as much as __________ to the quoted price of an imported product.
		A)	6 to 8 percent
		B)	8 to 10 percent
		C)	10 to 12 percent
		D)	12 to 14 percent


7	Immediately after World War II, General Douglas MacArthur sent two:
		A)	American engineers to Japan to give a seminar teaching that quality inspections are essential to product quality.
		B)	American engineers to Japan to give a seminar teaching that quality inspections are expensive and wasteful.
		C)	Japanese engineers to America to give a seminar teaching that quality inspections are essential to product quality.
		D)	Japanese engineers to America to give a seminar teaching that quality inspections are expensive and wasteful.


8	To lower manufacturing costs, the principal goal of Japanese firms is to:
		A)	eliminate inventories.
		B)	reduce the process time.
		C)	lower labor costs.
		D)	reduce inventory costs.


9	Managing the entire organization so that it excels on all dimensions of product and services that are important to the customer is known as:
		A)	quality circles.
		B)	quality control circles.
		C)	total quality management.
		D)	just-in-time.


10	_____________ scientific management system is a system based on scientific measurements that prescribes a division of work whereby planning is done by managers and plan execution is left to supervisors and workers.
		A)	Johnson's
		B)	Kawasaki's
		C)	Komatsu's
		D)	Taylor's


11	_______________ manufacturing is entire manufacturing system with unbalanced operations that emphasizes total system performance.
		A)	System
		B)	Synchronous
		C)	Bottleneck
		D)	Asynchronous


12	A radical redesign of business processes to achieve dramatic improvements in critical measures of performance is referred to as:
		A)	redesign.
		B)	delayering.
		C)	reengineering.
		D)	TQM.


13	In 1988, Corning, the glass manufacturer, copied Japan's extensive automation. However, management soon found that heavy automation:
		A)	cost more than was achieved in savings.
		B)	undermined the motivation of US employees.
		C)	was not appropriate for Corning's production processes.
		D)	all of the above.


14	__________ has become a global center for high-technology businesses in recent years.
		A)	China
		B)	Indonesia
		C)	Vietnam
		D)	India


15	__________, the most comprehensive of standards applies to industries involved in the design, development, manufacturing, installation and servicing of products and services:
		A)	ISO 9001
		B)	ANSI/AQC90
		C)	ISO 9000.
		D)	ISO 14000.


16	Manufacturing rationalization is the:
		A)	concentration of production at one central location.
		B)	division of production among a number of producing units.
		C)	allocation of labor costs based on product quality.
		D)	location of production facilities in countries that have the most favorable export laws.


17	Generally, it is easier for international corporations to standardize the concepts of total quality management and synchronous manufacturing in their overseas affiliates than it is to standardize the actual manufacturing facilities. Environmental forces that contribute to this include:
		A)	legal forces.
		B)	financial forces.
		C)	political forces.
		D)	all of the above.


18	Backward vertical integration refers to establishing facilities to manufacture:
		A)	products that are complementary to the firm's main product line.
		B)	inputs used in the production of the firm's final products.
		C)	products that are best capable of competing in the global marketplace.
		D)	outputs from the firm's main source of raw materials.


19	Production methods that are between capital-intensive and labor-intensive methods are called:
		A)	mid-range technologies.
		B)	appropriate technologies.
		C)	intermediate technologies.
		D)	none of the above.


20	Firms that have come to a country to take advantage of low labor costs and export their production often have a limited selection of plant locations. They must locate in:
		A)	government controlled zones.
		B)	export controlled zones.
		C)	government processing zones.
		D)	export processing zones.

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