Question 1

What are the benefits of global sourcing?

Accepted Answer

The twin objectives of cost efficiency a

Question 2

In a short essay, discuss three advantages and three disadvantages of China as a location for global sourcing.

Accepted Answer

China has three major advantages in rela

Question 3

Global sourcing hinders firms from freeing expensive analysts, engineers, and managers from routine tasks.

Accepted Answer

A) True 
 B)False

Question 4

________ is a key player in global sourcing in South Asia.

Accepted Answer

A)  Mongolia 
B)  North Korea 
C)  the Philippines 
D)  Pakistan 
A)  Mongolia 
B)  North Korea 
C)  the Philippines 
D)  Pakistan

Question 5

A global supply chain is the compilation of business activities intended to create, produce, advertise, deliver, and support a focal firm's product or service.

Accepted Answer

A) True 
 B)False

Question 6

Transformational outsourcing suggests that just as the firm achieves gains in efficiency, productivity, quality, and revenues by leveraging offshore talent, it also obtains the means to turn around failing businesses, speed up innovation, restructure operations, and fund otherwise-unaffordable development projects.

Accepted Answer

A) True 
 B)False

Question 7

As a strategic asset, research and development is of low importance to a firm.

Accepted Answer

A) True 
 B)False

Question 8

Discuss the major risks associated with global sourcing.

Accepted Answer

In addition to potential benefits, globa

Question 9

How can managers best resolve tension among employees on account of global sourcing?

Accepted Answer

Global sourcing can invite opposition fr

Question 10

Which of the following is true with regard to global sourcing?

Accepted Answer

A)  Global sourcing has declined significantly in the current phase of globalization. 
B)  Global sourcing is a low-control strategy in which the focal firm sources from independent suppliers through contractual agreements. 
C)  Global sourcing refers to the relocation of a business process or entire manufacturing facility to a foreign country. 
D)  Global sourcing does not represent the firm's initial involvement in international business. 
A)  Global sourcing has declined significantly in the current phase of globalization. 
B)  Global sourcing is a low-control strategy in which the focal firm sources from independent suppliers through contractual agreements. 
C)  Global sourcing refers to the relocation of a business process or entire manufacturing facility to a foreign country. 
D)  Global sourcing does not represent the firm's initial involvement in international business.

Question 11

International logistics usually make use of a single transportation mode.

Accepted Answer

A) True 
 B)False

Question 12

Firms often establish their own sourcing operations abroad to maintain control of outsourced activities and technologies.

Accepted Answer

A) True 
 B)False

Question 13

The recent economic turndown is expected to pressure advanced-economy firms to seek further ways to reduce costs.

Accepted Answer

A) True 
 B)False

Question 14

How can a focal firm protect its interests in the supplier relationship?

Accepted Answer

The focal firm should protect its intere

Question 15

As a strategic asset, manufacturing of products is of high importance to a firm.

Accepted Answer

A) True 
 B)False

Question 16

If a computer contains a microprocessor from Costa Rica and a hard disk drive from the Philippines, the computer manufacturer, who is based in Texas and operates across Europe and West Asia, most likely uses ________ as an entry strategy.

Accepted Answer

A)  exporting 
B)  franchising 
C)  global sourcing 
D)  licensing 
A)  exporting 
B)  franchising 
C)  global sourcing 
D)  licensing

Question 17

Contract manufacturing can best be defined as ________.

Accepted Answer

A)  the outsourcing to independent suppliers of business service functions such as accounting, payroll, human resource functions, travel services, IT services, customer service, or technical support 
B)  the relocation of a business process or entire manufacturing facility to a foreign country 
C)  sourcing from the firm's own production facilities 
D)  an arrangement in which the focal firm contracts with an independent supplier to manufacture products according to well-defined specifications 
A)  the outsourcing to independent suppliers of business service functions such as accounting, payroll, human resource functions, travel services, IT services, customer service, or technical support 
B)  the relocation of a business process or entire manufacturing facility to a foreign country 
C)  sourcing from the firm's own production facilities 
D)  an arrangement in which the focal firm contracts with an independent supplier to manufacture products according to well-defined specifications

Question 18

The strategic view of global sourcing suggests that ________.

Accepted Answer

A)  just as firms achieve gains in efficiency, productivity, quality, and revenues by leveraging offshore talent, they also obtain the means to turn around failing businesses, speed up innovation, restructure operations, and fund otherwise-unaffordable development projects 
B)  firms that procure supplies from foreign subsidiaries are more likely than not to lose ground to competitors who primarily bank on their own resources 
C)  a strong legal environment is not the prerequisite for increasing efficiencies by relocating strategic operations abroad 
D)  the firms' innovative activities tend to make mature products obsolete over time 
A)  just as firms achieve gains in efficiency, productivity, quality, and revenues by leveraging offshore talent, they also obtain the means to turn around failing businesses, speed up innovation, restructure operations, and fund otherwise-unaffordable development projects 
B)  firms that procure supplies from foreign subsidiaries are more likely than not to lose ground to competitors who primarily bank on their own resources 
C)  a strong legal environment is not the prerequisite for increasing efficiencies by relocating strategic operations abroad 
D)  the firms' innovative activities tend to make mature products obsolete over time

Question 19

Countries with weak legal environments can erode key strategic assets of firms.

Accepted Answer

A) True 
 B)False

Question 20

A focal firm's overreliance on suppliers can potentially lead to ________.

Accepted Answer

A)  reduced control over important value-chain tasks 
B)  added competitive advantage for the focal firm 
C)  an excessive burden on home-country suppliers 
D)  consolidation of the focal firm's network of intermediaries 
A)  reduced control over important value-chain tasks 
B)  added competitive advantage for the focal firm 
C)  an excessive burden on home-country suppliers 
D)  consolidation of the focal firm's network of intermediaries

What are the benefits of global sourcing?

In a short essay, discuss three advantages and three disadvantages of China as a location for global sourcing.

Global sourcing hinders firms from freeing expensive analysts, engineers, and managers from routine tasks.

________ is a key player in global sourcing in South Asia.

A global supply chain is the compilation of business activities intended to create, produce, advertise, deliver, and support a focal firm's product or service.

As a strategic asset, research and development is of low importance to a firm.

Discuss the major risks associated with global sourcing.

How can managers best resolve tension among employees on account of global sourcing?

Which of the following is true with regard to global sourcing?

International logistics usually make use of a single transportation mode.

Firms often establish their own sourcing operations abroad to maintain control of outsourced activities and technologies.

The recent economic turndown is expected to pressure advanced-economy firms to seek further ways to reduce costs.

How can a focal firm protect its interests in the supplier relationship?

As a strategic asset, manufacturing of products is of high importance to a firm.

If a computer contains a microprocessor from Costa Rica and a hard disk drive from the Philippines, the computer manufacturer, who is based in Texas and operates across Europe and West Asia, most likely uses ________ as an entry strategy.

Contract manufacturing can best be defined as ________.

The strategic view of global sourcing suggests that ________.

Countries with weak legal environments can erode key strategic assets of firms.

A focal firm's overreliance on suppliers can potentially lead to ________.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

Organizational Participants That Make International Business Happen

The Cultural Environment of International Business

Ethics and International Business

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention in International Business

Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Countertrade

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Financial Management and Accounting in the Global Firm

Filters

Exam 17: Global Sourcing

What are the benefits of global sourcing?

In a short essay, discuss three advantages and three disadvantages of China as a location for global sourcing.

Global sourcing hinders firms from freeing expensive analysts, engineers, and managers from routine tasks.

________ is a key player in global sourcing in South Asia.

A global supply chain is the compilation of business activities intended to create, produce, advertise, deliver, and support a focal firm's product or service.

As a strategic asset, research and development is of low importance to a firm.

Discuss the major risks associated with global sourcing.

How can managers best resolve tension among employees on account of global sourcing?

Which of the following is true with regard to global sourcing?

International logistics usually make use of a single transportation mode.

Firms often establish their own sourcing operations abroad to maintain control of outsourced activities and technologies.

The recent economic turndown is expected to pressure advanced-economy firms to seek further ways to reduce costs.

How can a focal firm protect its interests in the supplier relationship?

As a strategic asset, manufacturing of products is of high importance to a firm.

If a computer contains a microprocessor from Costa Rica and a hard disk drive from the Philippines, the computer manufacturer, who is based in Texas and operates across Europe and West Asia, most likely uses ________ as an entry strategy.

Contract manufacturing can best be defined as ________.

The strategic view of global sourcing suggests that ________.

Countries with weak legal environments can erode key strategic assets of firms.

A focal firm's overreliance on suppliers can potentially lead to ________.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

Organizational Participants That Make International Business Happen

The Cultural Environment of International Business

Ethics and International Business

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention in International Business

Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

Exporting and Countertrade

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Financial Management and Accounting in the Global Firm

Filters