Exam 11: Global Location Decisions

Organizations that primarily compete on speed of delivery, such as FedEx and UPS, utilize which of the following approaches for location determination:

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):

Use the breakeven model to determine which of the statements below is TRUE according to the information provided in the table relating to two different locations considered for a new manufacturing facility.LOCATION ANNUAL FIXED COSTS UNIT VARIABLE COSTS Site A $50,000 $10 Site B $20,000 $30

Which of the following is a factor in choosing a location?

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?

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.

According to the text, with increasing globalization the access to global markets and corporate networks makes the role of location less important as a source of competitive advantage.

A country that imposes high tariffs encourages foreign-based companies to import goods.

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.

Which of the following strategic foreign facilities is set-up primarily produce products at a low cost with minimal technical and managerial resources? The items produced at these factories are often exported to countries where costs to produce similar items would be higher.

Regional trade agreements and the World Trade Organization provide a framework for managers in terms of investigating important facility location elements like tariffs, costs, and the free flow of goods and services in different regions of the world.

Some companies import components, use them in the production of their end items, and ultimately export them to other countries.If a company wanted to import the components duty-free, use those components in the production of their end items, and then export them to other countries, they would most likely utilize a(n):

When an organization is considering future facilities locations, provide 3 human resource related issues that the organization would need to consider.

The WTO is the only global international organization dealing with the rules of trade between nations.

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.

All of the following are considered components of fixed costs EXCEPT:

The type of factory which is the source of product and process innovation and competitive advantage for the entire organization is referred to as a(n):

Which of the following issues is (are) important to consider when trying to determine the location of a firm's facilities?

A lead factory is set up in a location with an abundance of advanced suppliers, competitors, research facilities and knowledge centers in order to have access to the most current information on materials, components, technologies and products.

According to the text, global location decisions are made to optimize the performance of the supply chain and be consistent with the firm's competitive strategy.