Exam 13: Exporting and Global Sourcing

In a short essay, explain how global sourcing can contribute significantly to a firm's ability to achieve its strategic goals. Why is "achievement of strategic goals" actually the best rationale for global sourcing?

Industries that benefit the most from global sourcing are characterized by low labor intensity in product and service production.

In the decision about whether to outsource, manufacturing of products is considered of high importance to a firm.

Which of the following most likely supports OTC exporting their towels to Earth Waves?

Incoterms were developed by the International Chamber of Commerce in order to ________.

Which of the following activities is applicable to the final stage of exporting?

________ is the primary rationale for sourcing abroad.

What are the benefits of global sourcing?

Which of the following is a major challenge often faced by focal firms that engage in global sourcing?

National governments require exporters to obtain a license to protect the exported goods against damage, loss, pilferage, and delay.

What role do logistics play in global sourcing? In a short essay, discuss how logistics relates to cost. Provide an example of a firm that lost money as a result of inadequate logistics.

The Internet facilitates international trade in the service sector by ________.

Which of the following refers to a risk, stemming from environmental factors, that is closely associated with global sourcing?

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.

In advanced economies, firms generally do not outsource value-chain activities because they fear the loss of proprietary knowledge and trade secrets.

Incoterms are universally accepted terms of sale that specify how the buyer and the seller share the cost of freight and insurance in an international transaction and at which point the buyer takes title to the goods.

Which of the following questions must be evaluated by OTC managers as a first step to exporting?

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

The concept of creative destruction can be reasonably used by Group A to support the view that ________.

The relocation of a business process or entire manufacturing facility to a foreign country is known as ________.