Exam 15: Managing International Operations

Shipping costs are affected by which of the following?

A company that succeeds in combining a low-cost position with a high-quality product can gain a tremendous competitive advantage in its market.

Capacity planning applies only to manufacturing companies and not service companies.

The process of assessing a company's ability to produce enough output to satisfy market demand is called ________.

The process by which a company extends its control over additional stages of production is called ________.

One way a company can eliminate the exposure of assets to political risk in other countries is by refusing to invest in plants and equipment abroad.

Selecting highly favorable production locations often allows a company to achieve ________.

The ISO 9000 standards ________.

Scenario: Wilson Industries, Inc. Wilson Industries, Inc. is a multinational firm that designs and produces tourist nik-naks for major destinations worldwide. The company's board of directors is meeting to discuss changes that might be needed in the company's operations. -One key issue the board is to examine is Wilson's ability to produce enough output to satisfy market demand, otherwise known as ________.

Explain how a back-to-back loan works. Why would a company use this technique?

Explain the notion of location economies. How can companies take advantage of the economic benefits derived from establishing production activities in particular locations?

Scenario: Verandas International Verandas International is expanding its operations in North America. The Dutch company supplies products needed by restaurants with outdoor tables. Verandas International is a leader in this industry, but the company believes it must increase its geographic reach to maintain that position. -Verandas International will need additional capital if it is to expand its operations. Lars Van der Schuyler, vice president of international operations, knows that potential sources of new financing include all of the following EXCEPT ________.

________ are economic benefits derived from locating production activities in optimal locations.

By buying from multiple suppliers located in several countries, a company can maintain the flexibility needed to change sources and reduce the risk associated with sudden swings in exchange rates.

What roles do shipping and inventory costs play in a company's international logistics strategy?

A practice in the computer industry known as ________ calls for the outsourcing of the actual assembly of computers, plus the job of shipping them to distributors and other intermediaries.

Describe the issues involved in the decision of how a company acquires raw materials and fixed assets.

The process by which a company extends its control over additional stages of production is called vertical integration.

Companies with differentiated products often have decentralized facilities designed to improve local responsiveness.

A loan in which a parent deposits money with a host-country bank, which then lends the money to a subsidiary located in the host country is known as a(n) ________.