Exam 15: Managing International Operations

Large companies are less likely than small companies to make rather than buy, especially when a product requires a large financial investment in equipment or facilities.

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

American Depository Receipts (ADRs) are ________.

Deciding whether to make a component or buy it from another company is called vertical integration.

It is usually important for low-cost competitors to locate near their markets in order to stay on top of changes in buyer preferences.

TQM principles can be linked to ISO 9000 standards through ________.

________ is foreign direct investment in factories, equipment, and land that cannot be pulled out of the market quickly.

Productivity is a very important factor in determining the value that a location adds to a certain economic activity.

Discuss the concept of just-in-time (JIT) manufacturing. What is its importance to business?

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

Companies can obtain financial resources through which of the following means?

Production facilities, inventory warehouses, computer storage capacity, retail outlets, and production and office equipment are all types of ________.

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

What are American Depository Receipts (ADRs)? Explain how they work.

________ is an international certification that companies get when they meet the highest quality standards in their industries.

Many international subsidiaries obtain financial capital by issuing equity that is purchased solely by the parent and as a rule is not publicly traded.

A decision to reinvest in business operations is likely in the presence of a(n) ________.

Companies may scale back their international investments when it becomes apparent that making operations profitable will take longer than expected.

________ are listed and traded in Luxembourg and London.

________ are company assets such as production facilities, inventory warehouses, retail outlets, and production and office equipment.