Question :
111.Which of the following can a vertically integrated firm that : 1299489
111.Which of the following can a vertically integrated firm that buys its components from independent suppliers avoid?
A. Problems associated with transfer pricing decisions
B. The risk of losing its proprietary product technology to competitors
C. The risk of losing out on the opportunities to enhance its dynamic capabilities
D. Being dependent on suppliers to invest in specialized assets
E. Responding to changes in exchange rates and trade barriers
112.Which of the following is true of vertical integration?
A. It does not provide long-term competitive advantage.
B. A firm risks losing its proprietary product technology to competitors.
C. A firm can leverage its dynamic capabilities to produce a range of elegantly designed products.
D. Substantial investments in specialized assets are required to manufacture a component.
E. The greater the number of subunits in an organization, the more problems controlling those units.
113.Which of the following is a disadvantage of outsourcing production to independent suppliers?
A. It makes it necessary for firms to invest in specialized assets.
B. It reduces the strategic flexibility of a firm by limiting its ability to adapt during changes in exchange rates.
C. It increases the risk of suppliers expropriating a firm’s proprietary product technology for their own use.
D. It increases the bureaucratic inefficiencies and costs associated with transfer pricing decisions.
E. It makes it difficult to achieve coordination in an organization by increasing the number of subunits in it.
114.The government of Lithaya placed a large order for buses with Blue Ace Inc., a manufacturing company in Lodesia. In return, it asks the company to subcontract some work to Lithayan manufacturers. This is an example of a(n) _____ in international business.
A. consortium agreement
B. cartel arrangement
C. offset agreement
D. monopoly arrangement
E. collective bargaining agreement
115.Which of the following statements is true about strategic alliances with suppliers?
A. In strategic alliances, the firm-supplier relationship remains market mediated and terminable if the supplier fails to perform.
B. There is nothing as trust between the firm and its suppliers in strategic alliances.
C. Strategic alliances are short-term relationships that benefit only the independent suppliers.
D. In a strategic alliance the benefits arising from investments in specialized assets and vertical integration are lost.
E. A firm that enters long-term alliances is expanding its strategic flexibility by committing to its alliance partners.
116.Which of the following is a drawback of entering into strategic alliances with independent suppliers?
A. The firm loses out on many of the benefits arising from investments in specialized assets.
B. The strategic relationship between a firm and each of its essential suppliers is not market-mediated.
C. The firm risks giving away key technological know-how to a potential competitor.
D. It cannot be terminated even if the supplier fails to perform.
E. They are short-term relationships in which firms have stronger bargaining power than their suppliers.
117.The arrangement of strategic alliances with suppliers was pioneered by the:
A. retail industry of America.
B. large auto companies of Japan.
C. large electronics firms of Germany.
D. information technology companies of India.
E. large scale manufacturing units of China.
118.Which of the following is a disadvantage of a firm that enters long-term alliances?
A. It may lose the ability to realize economies of scale.
B. It does not have the authority to terminate the alliance if partners fail to perform.
C. It loses the capability to capture the benefits of vertical integration.
D. It may limit its strategic flexibility by the commitments it makes to its alliance partners.
E. It risks losing opportunities to build on its skills and capabilities.
119.Which of the following is an objective of logistics?
A. Increase the cost of value creation
B. Manage firms global supply chain at a low cost
C. Reduce inventory turnover
D. Reduce a firm’s customer responsiveness
E. Increase inventory holding costs
120.Which of the following was pioneered by Japanese firms during that country’s remarkable economic transformation during the 1960s and 1970s?
A. Lean production
B. Flexible manufacturing technology
C. Dynamic capabilities
D. Just-in-time inventory systems
E. Global learning
