Exam 11: Global Location Decisions

When a number of interconnected companies and institutions from a particular field are located in a single geographic location,that location is referred to is a(n):

Which of the following secures the right of employees to decide whether or not to join or financially support a union?

While the development and proliferation of the Internet and web-based commerce has not completely eliminated the relevancy of facilities location,because of the Internet,the speed of delivery and cost in serving the customer are no longer factors in determining the strategic location of an organization's facilities.

According to the textbook,two models that utilize quantitative data,which can help determine the attractiveness of one location versus another,are the Break-Even Model and the Extrapolated Average Cost Model.

China's economy is shifting from labor-intensive industries to arrears like marketing and the production of high technology products that typically provide higher levels of value.

Which of the following strategic foreign facilities is set-up primarily to avoid tariff barriers,minimize exchange risk,and/or take advantage of government incentives? Ultimately the factory operates as most normal factories making only minor improvements in either the products or processes.

The European Union (EU)created the world's largest free trade area.

The World Economic Forum creates International Competitive Rankings that are ranked on their Pillars of Competitiveness.How many Pillars of Competitiveness does the World Economic Forum have?

A certain organization trying to decide where to locate their future factory is considering three locations.They are taking into account three factors: labor costs,currency stability,and proximity to market.Using the weights for each factor listed below and the scores achieved by each of the three considered locations,determine which location should be chosen for the new facility based on the weighted factory location model.                                                                                            SCORES(Maximum 100) FACTOR WEIGHT SITE A SITE B SITE C Labor Cost 0.30 90 80 80 Currency Stability 0.40 80 85 80 Proximity to Market 0.30 80 80 80

What are the three levels of any location decision?

The Americas have two primary regional trade agreements,NAFTA,an agreement between the United States,Canada,and Mexico,and COMESA,an agreement between all of the South American countries.

Facility location is a business decision that will ultimately impact issues like the cost of supplies,facilities,and materials,as well as lead times and customer service levels.

Which of the following trade agreements was set up after WWII and originally consisted of six countries?

What specific advantages would a Free Trade Zone offer a manufacturing company? Also,under which circumstances would a company utilize a Free Trade Zone?

If a country is seeking to attract foreign investment in the form of manufacturing related facilities,list 3 things the government might do to increase the chances of this occurring.

While many developing countries are attractive to companies seeking out low labor costs,there are other important factors such as productivity levels,employee skill and education levels,turnover rates,and employment trends that certain industries find just as important,if not more important,in determining facilities' location.

Your organization is considering building a new automobile manufacturing plant.The company is considering building their facility in either China or Tennessee (USA). China is a rapidly expanding economic market,Tennessee is situated in a more mature market in which other car manufacturers are already located. Using this limited information and your knowledge of these two options,China and Tennessee,provide THREE reasonable arguments for each option that relate to supply chain management.

According to the text,the primary objective of an offshore factory is to take advantage of low labor costs.

Certain states in the United States have laws that secure the rights of employees to decide for themselves whether or not to join or financially support a labor union.These laws are called:

Many multinational corporations are moving their facilities and headquarters out of Taiwan and some Southeast Asian countries in order to take advantage of the proximity to customers.The more attractive customer markets are developing in China.