Question : 91.Which of the following firms should concentrate its production in a decentralized : 1299487

 

91.Which of the following firms should concentrate its production in a decentralized location?  

A. Univion Inc. operates in an industry where national differences in political economy and culture have a substantial impact on its cost of production.

B. Saturn Inc. operates in an industry where volatile fluctuations in important exchange rates are expected.

C. Brew Technology manufactures industrial machines and equipment that serve universal needs.

D. Gold Dreams Inc. customizes jewelry in precious metal and stones with the aid of flexible manufacturing technologies.

E. Uniton Inc. uses a production technology that has high fixed costs and high minimum efficient scale.

92.Which of the following is a step taken by automobile companies in situations where either centralization or decentralization of production is not feasible?  

A. Outsourcing production to developing countries

B. Inshoring production into the home country

C. Selling product patents and technology to competitors

D. Refraining from international trade

E. Establishing top-to-bottom manufacturing operations

93.Which of the following is a hidden cost to basing production in a foreign location?  

A. Low employee turnover

B. Low labor costs

C. Poor product quality

D. Expensive higher education system

E. Low inventory turnover

94.Which of the following is the initial reason for the establishment of a foreign production facility?   

A. Employee turnover is high.

B. Product quality is low.

C. Inventory turnover is low.

D. Exchange rate fluctuations are high.

E. Labor costs are low.

95.Which of the following is a result of pressure from the headquarters of a company to customize a product to the demands of consumers in a particular nation at a foreign production site?  

A. Development of additional capabilities

B. Centralization of production activities

C. Long production runs of standardized output

D. Low demand for local responsiveness.

E. Basing production facilities in a single location.

96.Which of the following is a source of improvement in the capabilities of foreign factories?  

A. The need to manufacture a product that serves universal needs

B. Market stagnation in the country in which the factory is located

C. Apathy of the headquarters of a company toward the foreign production facility

D. Abundance of advanced factors of production in the nation in which the factory is located

E. Decline in the education level of the country’s population where the factory is located

97.Which of the following is true according to the transnational strategy?   

A. Foreign facilities are viewed as nothing more than low-cost production facilities.

B. Valuable knowledge resides only in a firm’s domestic operations.

C. Foreign sites can take the lead role for the design of products to serve important regional markets.

D. Local managers should not be empowered to enhance their factories strategic standing within the corporation.

E. The strategy opposes the empowerment of local managers to enhance their factories strategic standing within the corporation.

98.The flow of skills and product offerings from foreign subsidiary to home country and from foreign subsidiary to foreign subsidiary is known as _____.  

A. dumping

B. reverse mentoring

C. cultural relativism

D. global learning

E. learning effects

99.Due to the upward migration in the strategic role of foreign production sites, they are now viewed as:

A. centers that do not generate valuable knowledge.

B. globally dispersed centers of excellence.

C. liabilities that add to the cost structure of the company.

D. sweatshops where unskilled labor churns out low-cost goods.

E. low quality manufacturing centers.

100.Which of the following statements is true about make-or-buy decisions?  

A. Make-or-buy decisions are applicable only to physical products and not service activities.

B. Historically, most outsourcing decisions have involved the manufacture of physical products.

C. Information technology companies in the United States are testing code in-house and outsourcing the code writing process.

D. Domestic businesses do not suffer from problems regarding outsourcing decisions.

E. Volatile exchange rate movements complicate outsourcing decisions.

 

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