Question 1

When outsourcing, managers can minimize the risk of creating employee tension by ________.

Accepted Answer

A) increasing the number of junior managers for foreign assignments 
B) increasing the annual training budget 
C) sending domestic managers to foreign countries for training 
D) reaching a consensus of managers and labor 
A) increasing the number of junior managers for foreign assignments 
B) increasing the annual training budget 
C) sending domestic managers to foreign countries for training 
D) reaching a consensus of managers and labor D

Question 2

All business activities and processes lend themselves to global sourcing.

Accepted Answer

A) True 
 B)False  False

Question 3

Global sourcing eliminates the possibility of new rivals being created in a country.

Accepted Answer

A) True 
 B)False  False

Question 4

Which of the following is true with regard to strategies for minimizing the risks of global sourcing?

Accepted Answer

A) To ensure the success of sourcing ventures, the focal firm must exercise great care to identify and screen potential suppliers and then monitor the activities of those suppliers from which it sources. 
B) To maximize returns and minimize risks, management should outsource core business operations. 
C) Because production quality in an emerging market rarely varies over time, managers at the focal firm are not obliged to closely monitor manufacturing processes. 
D) Firms must refrain from maintaining their own sourcing operations abroad in order to trim costs and minimize risks stemming from frequent currency fluctuations. 
A) To ensure the success of sourcing ventures, the focal firm must exercise great care to identify and screen potential suppliers and then monitor the activities of those suppliers from which it sources. 
B) To maximize returns and minimize risks, management should outsource core business operations. 
C) Because production quality in an emerging market rarely varies over time, managers at the focal firm are not obliged to closely monitor manufacturing processes. 
D) Firms must refrain from maintaining their own sourcing operations abroad in order to trim costs and minimize risks stemming from frequent currency fluctuations.

Question 5

Indirect exporting is exporting that is accomplished by contracting with intermediaries located in the foreign market.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following propositions would most likely be presented by Group B?

Accepted Answer

A) Global sourcing adversely affects national competitiveness. 
B) Global sourcing improves the efficiency of manufacturing firms. 
C) Global sourcing empowers workers in general. 
D) Global sourcing is usually undertaken by focal firms to increase efficiency. 
A) Global sourcing adversely affects national competitiveness. 
B) Global sourcing improves the efficiency of manufacturing firms. 
C) Global sourcing empowers workers in general. 
D) Global sourcing is usually undertaken by focal firms to increase efficiency.

Question 7

Global sourcing has gained momentum in the current phase of globalization.

Accepted Answer

A) True 
 B)False

Question 8

What are the potential problems that critics point to with regard to global sourcing? Why is offshoring often referred to as a process of "creative destruction"?

Accepted Answer

Critics of global sourcing point to thre

Question 9

Environmental challenges of global sourcing include currency fluctuations, tariffs and other trade barriers, and adverse macroeconomic events.

Accepted Answer

A) True 
 B)False

Question 10

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 11

If Fun Play decides to source from its own wholly owned subsidiary, it would be engaging in ________.

Accepted Answer

A) offshoring 
B) contract manufacturing 
C) cause marketing 
D) captive sourcing 
A) offshoring 
B) contract manufacturing 
C) cause marketing 
D) captive sourcing

Question 12

What is offshoring? Describe the types of industries that tend to offshore.

Accepted Answer

Offshoring is the relocation of a busine

Question 13

The procurement of selected value-adding activities, including production of intermediate goods or finished products, from independent suppliers is known as ________.

Accepted Answer

A) outsourcing 
B) franchising 
C) offshoring 
D) licensing 
A) outsourcing 
B) franchising 
C) offshoring 
D) licensing

Question 14

Typically, firms tend to concentrate research and development activities abroad rather than in their home countries.

Accepted Answer

A) True 
 B)False

Question 15

The bill of lading is the "birth certificate" of the goods being shipped and indicates the country where they originate.

Accepted Answer

A) True 
 B)False

Question 16

To maximize returns, management should outsource those activities ________.

Accepted Answer

A) that offer great value to the bottom line 
B) in which it is relatively weak 
C) that are critical to the firm's core competencies 
D) in which it has the greatest expertise and knowledge 
A) that offer great value to the bottom line 
B) in which it is relatively weak 
C) that are critical to the firm's core competencies 
D) in which it has the greatest expertise and knowledge

Question 17

The growth of global sourcing has been driven by ________.

Accepted Answer

A) the declining demand for highly skilled workers 
B) the rapidly aging population in advanced economies 
C) technological advances in communications 
D) the rising costs of international business 
A) the declining demand for highly skilled workers 
B) the rapidly aging population in advanced economies 
C) technological advances in communications 
D) the rising costs of international business

Question 18

Offshoring is a process of creative destruction; according to this view, firms' innovative activities tend to make mature products obsolete over time.

Accepted Answer

A) True 
 B)False

Question 19

Distinguish between captive sourcing and contract manufacturing.

Accepted Answer

Captive sourcing refers to sourcing from

Question 20

In the decision about whether to outsource, research and development is considered of low importance to a firm.

Accepted Answer

A) True 
 B)False

When outsourcing, managers can minimize the risk of creating employee tension by ________.

All business activities and processes lend themselves to global sourcing.

Global sourcing eliminates the possibility of new rivals being created in a country.

Which of the following is true with regard to strategies for minimizing the risks of global sourcing?

Indirect exporting is exporting that is accomplished by contracting with intermediaries located in the foreign market.

Which of the following propositions would most likely be presented by Group B?

Global sourcing has gained momentum in the current phase of globalization.

What are the potential problems that critics point to with regard to global sourcing? Why is offshoring often referred to as a process of "creative destruction"?

Environmental challenges of global sourcing include currency fluctuations, tariffs and other trade barriers, and adverse macroeconomic events.

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.

If Fun Play decides to source from its own wholly owned subsidiary, it would be engaging in ________.

What is offshoring? Describe the types of industries that tend to offshore.

The procurement of selected value-adding activities, including production of intermediate goods or finished products, from independent suppliers is known as ________.

Typically, firms tend to concentrate research and development activities abroad rather than in their home countries.

The bill of lading is the "birth certificate" of the goods being shipped and indicates the country where they originate.

To maximize returns, management should outsource those activities ________.

The growth of global sourcing has been driven by ________.

Offshoring is a process of creative destruction; according to this view, firms' innovative activities tend to make mature products obsolete over time.

Distinguish between captive sourcing and contract manufacturing.

In the decision about whether to outsource, research and development is considered of low importance to a firm.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention and Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

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: Exporting and Global Sourcing

When outsourcing, managers can minimize the risk of creating employee tension by ________.

All business activities and processes lend themselves to global sourcing.

Global sourcing eliminates the possibility of new rivals being created in a country.

Which of the following is true with regard to strategies for minimizing the risks of global sourcing?

Indirect exporting is exporting that is accomplished by contracting with intermediaries located in the foreign market.

Which of the following propositions would most likely be presented by Group B?

Global sourcing has gained momentum in the current phase of globalization.

What are the potential problems that critics point to with regard to global sourcing? Why is offshoring often referred to as a process of "creative destruction"?

Environmental challenges of global sourcing include currency fluctuations, tariffs and other trade barriers, and adverse macroeconomic events.

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.

If Fun Play decides to source from its own wholly owned subsidiary, it would be engaging in ________.

What is offshoring? Describe the types of industries that tend to offshore.

The procurement of selected value-adding activities, including production of intermediate goods or finished products, from independent suppliers is known as ________.

Typically, firms tend to concentrate research and development activities abroad rather than in their home countries.

The bill of lading is the "birth certificate" of the goods being shipped and indicates the country where they originate.

To maximize returns, management should outsource those activities ________.

The growth of global sourcing has been driven by ________.

Offshoring is a process of creative destruction; according to this view, firms' innovative activities tend to make mature products obsolete over time.

Distinguish between captive sourcing and contract manufacturing.

In the decision about whether to outsource, research and development is considered of low importance to a firm.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention and Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Strategy and Organization in the International Firm

Global Market Opportunity Assessment

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