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D. factor costs; exchange rates. 9. The growth of international ______________ has focused greater attention on the importance of product quality. A. manufacturing B. standards C. laws D. policy Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon 5 10. One of the most difficult decisions an international business will face is whether to perform value-creation activities itself or outsource them to another entity. This is called a _-_______________ decision. A. make-or-break B. convergent-or-divergent C. make-or-buy D. divest-or-expropriate 11. The lower the minimum efficient scale of a plant relative to total global demand, the greater the argument for: A. decentralising production in multiple locations. B. centralising production in a single location or in a limited number of locations. C. decentralising production in a single location or in a limited number of locations. D. centralising production in multiple locations. 12. The key factors influencing the decision as to where an international firm locates its manufacturing facilities can be grouped under which three broad headings? A. Political, economic and legal factors B. Country, technological and product factors C. Product, service and labour factors D. Language, cultural and transport factors 13. Six Sigma is a statistically based philosophy that aims to _________ defects, boost productivity, __________ waste and cut costs throughout a company. A. eliminate; recycle B. identify; remove C. reduce; eliminate D. minimise; re-use 14. The benefits of manufacturing components in-house seem to be greatest when all except with one of the following factors are involved? A. Highly specialised assets are involved. B. The firm is simply more efficient than external suppliers at performing a particular activity. C. Maximum flexibility is necessary. D. Vertical integration is necessary for protecting proprietary technology. 15. Within the context of materials management, JIT stands for: A. jobber-in-training. B. job-in-transit. C. joint-in-transpiration. D. just-in-time. 16. If a car manufacturer were to develop a high-performance, high-quality fuel-injection system that no other competitor in the industry could match, what would be the best strategy for Ford? A. Strategic alliance B. Vertical integration C. Patenting, then outsourcing of the technology D. Selling the technology to competitors Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon 6 17. Buying component parts from independent suppliers gives the firm which of the following advantages? A. It may help the firm to capture orders from international customers, and facilitates the scheduling of adjacent processes and greater flexibility. B. It facilitates greater flexibility and the scheduling of adjacent processes, and protects proprietary production technology. C. It facilitates investments in highly specialised assets and the scheduling of adjacent processes, and protects proprietary product technology. D. It facilitates greater flexibility, it can help drive down the firm's cost structure and it may help the firm to capture orders from international customers. 18. Which of the following sets of four arguments supports making component parts in-house (i.e. vertical integration)? A. It lowers costs, facilitates investments in highly specialised assets, protects proprietary product technology and facilitates the scheduling of adjacent processes. B. It facilitates greater flexibility, helps the firm to capture orders from international customers, facilitates investments in highly standardised assets and facilitates the scheduling of adjacent processes. C. It helps the firm to capture orders from international customers, lowers costs, facilitates investments in highly standardised assets and facilitates the scheduling of adjacent processes. D. It lowers costs, and it facilitates greater flexibility, the scheduling of adjacent customers and investments in highly specialised assets. 19. The two basic strategies for locating manufacturing facilities are: A. to concentrate them in the optimal location and serve the world market from there, and to concentrate them in markets that are parts of major trade blocks. B. to locate at least one manufacturing facility in each continent in which the firm is active, and to concentrate manufacturing at an optimal location. C. to concentrate them in the optimal location and serve the world market from there, and to decentralise them in various regional or national locations that are close to major markets. D. to concentrate them in markets that are part of major trade blocks, and to centralise them at a single location. Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon Shannon
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