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| 1 | |
TQM is a direct descendent of the Six Sigma methodology that was developed by W. Edward Deming. |
| | A) | True |
| | B) | False |
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| 2 | |
Management decisions on where to locate an operation or facility can include considerations in political economy and national culture, but international trade theory is usually beside the point. |
| | A) | True |
| | B) | False |
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| 3 | |
In order to realize all major plant-level scale economies, a plant must operate at the minimum efficient scale of output. |
| | A) | True |
| | B) | False |
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| 4 | |
The strategic role of foreign factories evolves over time. |
| | A) | True |
| | B) | False |
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| 5 | |
Logistics should create value and create competitive advantages for the firm by reducing costs and serving customer needs. |
| | A) | True |
| | B) | False |
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| 6 | |
The process that controls the movement of physical materials through the value chain, from procurement through production and into distribution is known as |
| | A) | materials administration |
| | B) | materials management |
| | C) | logistics |
| | D) | operations |
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| 7 | |
Before a firm is permitted to enter the EU marketplace, the firm must meet |
| | A) | Six Sigma quality |
| | B) | ISO 9000 standards |
| | C) | PRC (Process Quality Realized) standards |
| | D) | CQC levels |
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| 8 | |
Currency depreciation can transform a country from a _____ to a ______. |
| | A) | low cost manufacturing location, high cost manufacturing location |
| | B) | high cost manufacturing location, low cost manufacturing location |
| | C) | highly attractive location, unattractive location |
| | D) | protected environment, unprotected environment |
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| 9 | |
Fixed costs can affect production plant locations. ______ fixed costs suggest the need for a single location, while ____________ fixed costs suggest several locations might be used. |
| | A) | Low; high |
| | B) | Low; rapidly changing |
| | C) | High; rapidly changing |
| | D) | High; low |
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| 10 | |
____________________ covers a range of technologies to reduce set-up time for complex equipment, increase utilization through better scheduling and improve quality. |
| | A) | Lean manufacturing |
| | B) | Quality circles |
| | C) | TQM |
| | D) | logistics |
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| 11 | |
Which of the following is not true about flexible machine cells? |
| | A) | Use of flexible machine cells can dramatically reduce costs. |
| | B) | Flexible machine cells can enable companies to customize products. |
| | C) | Flexible machine cells have been effective at bending rules, which makes them attractive to workers. |
| | D) | Flexible machine cells can greatly increase efficiency. |
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| 12 | |
The arguments for _________________ production at a few choice locations are strong when fixed costs are substantial, the minimum efficient scale of production is high and flexible technologies are not available. |
| | A) | distributing |
| | B) | flexible |
| | C) | intermittent |
| | D) | concentrating |
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| 13 | |
A product's value-to-weight ratio affects ____________ costs, and is a major product factor in considering where to locate production facilities. |
| | A) | fixed |
| | B) | packaging |
| | C) | transportation |
| | D) | variable |
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| 14 | |
A company will favor concentrated production when |
| | A) | trade barriers are substantial |
| | B) | there are few differences in factor costs |
| | C) | location externalities are not important |
| | D) | minimum efficient scale is low |
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| 15 | |
A company might consider decentralizing production when |
| | A) | fixed costs are high |
| | B) | there are few differences in factor costs |
| | C) | volatility in important exchange rates is expected |
| | D) | trade barriers are low |
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| 16 | |
Many international businesses are moving toward seeing factories as potential centers of excellence where design and advanced manufacturing can take place. This part of a transnational strategy is known as |
| | A) | learning by doing |
| | B) | global learning |
| | C) | strategic R&D |
| | D) | transnational product development |
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| 17 | |
Which of the following is not true about make-or-buy decisions? |
| | A) | While these decisions are often difficult for purely domestic businesses, they are even more so for international businesses. |
| | B) | These decisions are now being extended beyond products to service offerings. |
| | C) | International businesses need to consider whether to perform value creation activities on their own or outsource it to another entity. |
| | D) | These decisions are usually tactical rather than strategic in nature. |
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| 18 | |
When a firm must invest in specialized assets to supply another, the firm will probably |
| | A) | outsource production |
| | B) | have high bargaining power |
| | C) | avoid vertical integration |
| | D) | make the product in-house |
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| 19 | |
A firm will choose to _______ when proprietary product technology gives the firm a competitive advantage. |
| | A) | contract production of the product to outside suppliers |
| | B) | vertically integrate |
| | C) | form a joint venture will a firm in the same industry |
| | D) | develop an alternative manufacturing technique |
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| 20 | |
A firm that sources the same products from suppliers based in two countries is probably trying to |
| | A) | lower costs |
| | B) | capture more orders from a country |
| | C) | maintain strategic flexibility |
| | D) | trick its suppliers |
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| 21 | |
If the optimal location for the production of a particular product is in a location that is highly volatile politically, a firm will probably choose to |
| | A) | outsource production |
| | B) | vertically integrate |
| | C) | form a joint venture to limit risks |
| | D) | make the product in-house |
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| 22 | |
As an example of how countertrade works, some manufacturers might decide to outsource needs to independent suppliers in a country where it is locating a facility. This is an example of: |
| | A) | counterpurchase |
| | B) | offsets |
| | C) | buy-backs |
| | D) | switch trading. |
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| 23 | |
The advantages of outsourcing for an international business include all of the following except: |
| | A) | Outsourcing in the form of offsets might help a firm gain larger orders in the future. |
| | B) | Outsourcing helps when a firm needs to use specialized assets. |
| | C) | Outsourcing may help an organization secure strategic flexibility. |
| | D) | Vertical integration carries special risks when there are a number of component parts. |
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| 24 | |
Strategic alliances with suppliers: |
| | A) | can cause additional distrust with suppliers. |
| | B) | maximized short-term advantages for both since long-term commitments are not necessary. |
| | C) | are no longer important with advances in JIT, CAD and CAM. |
| | D) | remain market-mediated, and they can be terminated if the supplier does not perform up to expectations. |
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| 25 | |
For many firms that used JIT systems, the September 11 attacks on the World Trade Centers |
| | A) | forced firms to access their buffer stocks |
| | B) | caused temporary shutdowns in production |
| | C) | had little effect on those firms with large warehouse stores |
| | D) | saw increased demand |
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