Question 1

The attractiveness of a nation for global sourcing relates to factors such as political environment, physical infrastructures, and the education level of its workforce.

Accepted Answer

A) True 
 B)False

Question 2

Global procurement is characterized by which of the following?

Accepted Answer

A)  a short-term agreement between a freight forwarder and foreign intermediaries 
B)  a contract between a focal firm and a foreign supplier for components or services 
C)  access to a variety of independent suppliers and firms within an economic bloc 
D)  subcontracting the assembly of products before importing them to the home country 
A)  a short-term agreement between a freight forwarder and foreign intermediaries 
B)  a contract between a focal firm and a foreign supplier for components or services 
C)  access to a variety of independent suppliers and firms within an economic bloc 
D)  subcontracting the assembly of products before importing them to the home country

Question 3

In order to maximize returns, firms should outsource tasks which ________.

Accepted Answer

A)  are strategically important to the firm's value-chain 
B)  can be efficiently accomplished by foreign suppliers 
C)  will impact the foreign supplier's distribution area 
D)  are critical to the focal firm's annual profit margin 
A)  are strategically important to the firm's value-chain 
B)  can be efficiently accomplished by foreign suppliers 
C)  will impact the foreign supplier's distribution area 
D)  are critical to the focal firm's annual profit margin

Question 4

Which of the following is a major concern for opponents of global sourcing?

Accepted Answer

A)  employment losses 
B)  environmental harm 
C)  minimum wage laws 
D)  government support 
A)  employment losses 
B)  environmental harm 
C)  minimum wage laws 
D)  government support

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

A focal firm's heavy reliance on foreign suppliers may lead to which of the following?

Accepted Answer

A)  a firm's lack of control over value-chain tasks 
B)  a competitive advantage for the focal firm 
C)  an excessive burden on home-country suppliers 
D)  improved relations with home-country workers 
A)  a firm's lack of control over value-chain tasks 
B)  a competitive advantage for the focal firm 
C)  an excessive burden on home-country suppliers 
D)  improved relations with home-country workers

Question 7

Which of the following is an environmental risk associated with establishing a foreign outsourcing facility?

Accepted Answer

A)  slow turnaround time due to weak laws 
B)  low morale from domestic employees 
C)  high costs due to inadequate infrastructures 
D)  high foreign employee retention rate 
A)  slow turnaround time due to weak laws 
B)  low morale from domestic employees 
C)  high costs due to inadequate infrastructures 
D)  high foreign employee retention rate

Question 8

Focal firms use global sourcing as an opportunity to transfer employees, renegotiate business contracts, and expand training programs.

Accepted Answer

A) True 
 B)False

Question 9

The European Union facilitates supply chains by directly managing them in the member countries.

Accepted Answer

A) True 
 B)False

Question 10

In a short essay, describe three challenges faced by firms that engage in global sourcing and are not directly related to suppliers.

Accepted Answer

Global sourcing introduces the following

Question 11

A company that planned to outsource IT development would be most likely to save in salary costs by hiring professionals from which of the following countries?

Accepted Answer

A)  Hong Kong 
B)  Philippines 
C)  Singapore 
D)  Germany 
A)  Hong Kong 
B)  Philippines 
C)  Singapore 
D)  Germany

Question 12

All of the following are typical activities performed by suppliers as part of a global supply-chain network except ________.

Accepted Answer

A)  generate sales 
B)  maintain inventory 
C)  transport goods 
D)  process orders 
A)  generate sales 
B)  maintain inventory 
C)  transport goods 
D)  process orders

Question 13

Which of the following represents the best reason for companies to go offshore?

Accepted Answer

A)  strategic motives 
B)  cost cutting 
C)  organizational restructuring 
D)  managerial improvement 
A)  strategic motives 
B)  cost cutting 
C)  organizational restructuring 
D)  managerial improvement

Question 14

Proponents of global sourcing admit that nations risk a drain on knowledge and valuable skills that keep an economy competitive.

Accepted Answer

A) True 
 B)False

Question 15

Global Sourcing Debate 
Professor Agrawal's international business class has been studying the controversies related to global sourcing. Today, Professor Agrawal divides the class in half and assigns Group A the task of defending global sourcing. Group B is to argue against global sourcing.
-Group A uses the concept of creative destruction to most likely support which of the following statements?

Accepted Answer

A)  Firms that engage in offshoring require government oversight. 
B)  Offshoring forces unskilled workers to seek additional education. 
C)  Global sourcing creates opportunities and stimulates innovation. 
D)  Outsourcing technical jobs leads to the creation of competitive firms. 
A)  Firms that engage in offshoring require government oversight. 
B)  Offshoring forces unskilled workers to seek additional education. 
C)  Global sourcing creates opportunities and stimulates innovation. 
D)  Outsourcing technical jobs leads to the creation of competitive firms.

Question 16

Global Sourcing Debate 
Professor Agrawal's international business class has been studying the controversies related to global sourcing. Today, Professor Agrawal divides the class in half and assigns Group A the task of defending global sourcing. Group B is to argue against global sourcing.
-Which of the following arguments would most likely be presented by Group B?

Accepted Answer

A)  Global sourcing decreases a nation's ability to be competitive. 
B)  Global sourcing improves the efficiency of manufacturing firms. 
C)  Global sourcing empowers labor unions and instigates strikes. 
D)  Global sourcing lowers the legal minimum wage in foreign nations. 
A)  Global sourcing decreases a nation's ability to be competitive. 
B)  Global sourcing improves the efficiency of manufacturing firms. 
C)  Global sourcing empowers labor unions and instigates strikes. 
D)  Global sourcing lowers the legal minimum wage in foreign nations.

Question 17

In a short essay, describe three nations and the specific attributes that make them popular for focal firms.

Accepted Answer

Singapore and Dubai assert that their sa

Question 18

Transformational outsourcing can best be described as which of the following?

Accepted Answer

A)  outsourcing expensive business activities to expedite internationalization 
B)  the use of global sourcing to enable a firm to achieve strategic goals 
C)  sourcing the production of component parts to reduce manufacturing 
D)  global sourcing intended to eliminate redundancy and protect assets 
A)  outsourcing expensive business activities to expedite internationalization 
B)  the use of global sourcing to enable a firm to achieve strategic goals 
C)  sourcing the production of component parts to reduce manufacturing 
D)  global sourcing intended to eliminate redundancy and protect assets

Question 19

The main purpose of a global supply-chain network is to ________.

Accepted Answer

A)  eliminate the need for distribution intermediaries 
B)  consolidate the number of freight forwarders 
C)  maximize a firm's competitive advantage 
D)  re-organize a firm's corporate structure 
A)  eliminate the need for distribution intermediaries 
B)  consolidate the number of freight forwarders 
C)  maximize a firm's competitive advantage 
D)  re-organize a firm's corporate structure

Question 20

If a U.S. firm outsources to a Japanese company, and the Japanese yen increases in value against the dollar, which of the following is most likely to occur?

Accepted Answer

A)  The Japanese outsourcing services will become more expensive for Japanese companies to utilize. 
B)  The U.S. company will experience additional cost savings in using the Japanese company. 
C)  The Japanese outsourcing services will become less expensive for other foreign companies to utilize. 
D)  The U.S. company will experience higher costs in using the Japanese company. 
A)  The Japanese outsourcing services will become more expensive for Japanese companies to utilize. 
B)  The U.S. company will experience additional cost savings in using the Japanese company. 
C)  The Japanese outsourcing services will become less expensive for other foreign companies to utilize. 
D)  The U.S. company will experience higher costs in using the Japanese company.

The attractiveness of a nation for global sourcing relates to factors such as political environment, physical infrastructures, and the education level of its workforce.

Global procurement is characterized by which of the following?

In order to maximize returns, firms should outsource tasks which ________.

Which of the following is a major concern for opponents of global sourcing?

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

A focal firm's heavy reliance on foreign suppliers may lead to which of the following?

Which of the following is an environmental risk associated with establishing a foreign outsourcing facility?

Focal firms use global sourcing as an opportunity to transfer employees, renegotiate business contracts, and expand training programs.

The European Union facilitates supply chains by directly managing them in the member countries.

In a short essay, describe three challenges faced by firms that engage in global sourcing and are not directly related to suppliers.

A company that planned to outsource IT development would be most likely to save in salary costs by hiring professionals from which of the following countries?

All of the following are typical activities performed by suppliers as part of a global supply-chain network except ________.

Which of the following represents the best reason for companies to go offshore?

Proponents of global sourcing admit that nations risk a drain on knowledge and valuable skills that keep an economy competitive.

In a short essay, describe three nations and the specific attributes that make them popular for focal firms.

Transformational outsourcing can best be described as which of the following?

The main purpose of a global supply-chain network is to ________.

If a U.S. firm outsources to a Japanese company, and the Japanese yen increases in value against the dollar, which of the following is most likely to occur?

What Is International Business

Theories of International Trade and Investment

Organizational Participants That Make International Business Happen

Culture and Ethics in International Business

Political and Legal Systems in International Business

The International Monetary Environment and Financial Management in the Global Firm

Emerging Markets, Developing Economies, and Advanced Economies

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

Filters

Exam 13: Global Sourcing

The attractiveness of a nation for global sourcing relates to factors such as political environment, physical infrastructures, and the education level of its workforce.

Global procurement is characterized by which of the following?

In order to maximize returns, firms should outsource tasks which ________.

Which of the following is a major concern for opponents of global sourcing?

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

A focal firm's heavy reliance on foreign suppliers may lead to which of the following?

Which of the following is an environmental risk associated with establishing a foreign outsourcing facility?

Focal firms use global sourcing as an opportunity to transfer employees, renegotiate business contracts, and expand training programs.

The European Union facilitates supply chains by directly managing them in the member countries.

In a short essay, describe three challenges faced by firms that engage in global sourcing and are not directly related to suppliers.

A company that planned to outsource IT development would be most likely to save in salary costs by hiring professionals from which of the following countries?

All of the following are typical activities performed by suppliers as part of a global supply-chain network except ________.

Which of the following represents the best reason for companies to go offshore?

Proponents of global sourcing admit that nations risk a drain on knowledge and valuable skills that keep an economy competitive.

In a short essay, describe three nations and the specific attributes that make them popular for focal firms.

Transformational outsourcing can best be described as which of the following?

The main purpose of a global supply-chain network is to ________.

If a U.S. firm outsources to a Japanese company, and the Japanese yen increases in value against the dollar, which of the following is most likely to occur?

What Is International Business

Theories of International Trade and Investment

Organizational Participants That Make International Business Happen

Culture and Ethics in International Business

Political and Legal Systems in International Business

The International Monetary Environment and Financial Management in the Global Firm

Emerging Markets, Developing Economies, and Advanced Economies

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

Filters