Exam 13: Global Sourcing

The Austrian economist Joseph Scumpeter called offshoring a process of ________.

Offshoring is a more robust form of outsourcing in that the firm moves an entire sector of its business overseas.

Which of the following value-chain activities would most likely be internalized by a focal firm that makes printers and copiers?

Which of the following characterizes the types of industries that are most likely to offshore?

Offshoring is particularly common for focal firm business functions, such as accounting, customer service, and legal service activities.

In a short essay, discuss the three key factors that managers must consider when determining the most appropriate transportation mode. Compare two and discuss their advantages and trade-offs.

Which of the following is the traditional rationale for sourcing abroad?

Which of the following nations is an rising destination for offshoring?

Managers can minimize the risk of creating employee tension when outsourcing by ________.

Contract manufacturing can best be defined as which of the following?

Which of the following is a key driver behind the increase of global procurement?

Discuss two ways in which labor can be a risk factor for a focal firm sourcing abroad: the potentially devastating effect of job losses in the home nation, and the risk of inadequate workers in the source nation. Provide an example of each risk in your answer.

In a short essay, explain the risk of creating competitors through the process of global sourcing and give an example. Describe how safeguarding interests works to minimize this risk.

Focal firms most likely global source in India for which of the following reasons?

Fun Play Global Sourcing The Fun Play Toy Company has decided to outsource some of its value-chain activities. However, the firm has no experience with global sourcing and has hired a consulting firm to assist Fun Play managers. The consulting firm has been assigned the task of determining which activities should be outsourced and where the activities should be located. -Which of the following questions would be more important for the consultants to evaluate when determining if the clothing for Fun Play dolls should be outsourced?

What are the logistics involved in global sourcing? In a short essay, discuss how logistics relates to cost. Provide one or more examples of risks that can disrupt logistics.

In a short essay, discuss five methods managers can employ to protect the interests of the focal firm in relationships with foreign suppliers.

The primary rationale for global sourcing is to minimize domestic legal responsibilities such as environmental laws.

Global sourcing first began in the 1990s when numerous U.S. manufacturers took advantage of NAFTA and shifted their facilities to Mexico.

The 2011 earthquake that struck Japan revealed what can happen when a major industry, automobiles, relies too exclusively on suppliers in one geographic location.