Exam 15: Managing International Operations

Those who supply a new venture with the capital it needs are called venture capitalists.

Political instability can cause delays in the timely receipt of needed parts.

Money earned from the sale of goods and services is known as ________.

An emphasis on continuous quality improvement to meet or exceed customer expectations is called ________.

The two external sources through which organizations obtain financial resources are borrowing and issuing equity.

When the value of a local currency has fallen against that of the home country, borrowing locally becomes ________.

Persuading an outside supplier to make significant modifications to quality or features is usually fairly easy in today's competitive environment.

Selecting the location for production facilities is called ________.

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. -Deciding the spatial arrangement of production processes within Wilson's production facilities is called ________.

With centralized production, facilities are spread over several locations and possibly one facility for each national business environment in which the company markets its products.

Explain the concept of capital structure as it applies to a company with international operations.

All of the following are true of location economies EXCEPT ________.

Deciding the process a company will use to create its product is called ________.

Risk can be reduced in markets abroad by ________.

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. -An investor group has approached Verandas International and wants it to issue American Depository Receipts (ADRs) because ________.

What are the issues faced by companies with emerging stock markets?

Why might companies decide to reinvest, scale back, or divest local operations?

What role does flexibility play in the make-or-buy decision?

Financing by investors who believe the borrower will experience rapid growth and who receive equity part ownership in return is known as ________.

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 was turned down when it tried to borrow from a U.S. bank. The bank manager suggested that the parent firm deposit money with the U.S. bank's Dutch branch, and then the U.S. bank's home office would then lend the money to the Dutch company's U.S. subsidiary. This type of arrangement is known as a(n)________.