Exam 15: Managing International Operations

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Companies usually decide to divest when a market is experiencing rapid growth.

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How can companies use internal funding to finance ongoing international business activities?

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Deciding whether to make a component or buy it from a competitor is called the ________.

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Research shows that multinational firms have ________ ratios of debt to equity than domestic firms.

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Selecting the location for production facilities is called facilities location planning.

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Transportation costs are a driving force behind the globalization of the steel industry.

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Facilities spread over several locations are called ________.

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A back-to-back loan is when a subsidiary acquires a loan from the same bank where its parent secured the first loan.

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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. -If Verandas International chooses to pursue equity financing, but wants to avoid the time and money required to comply with stock exchange regulations, the company could issue ________.

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A company might divest or reduce its investment because of ________.

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

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Non-U.S. companies can list shares directly in the United States by issuing American Depository Receipts (ADRs).

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The disadvantage of American Depository Receipts (ADRs) is that investors who buy them must pay currency-conversion fees.

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Which of the following is NOT an issue in facilities layout planning?

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What is venture capital? Why are those who provide it risk-takers?

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Companies selling differentiated products find centralized production the better option.

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Total Quality Management (TQM) places an emphasis on ________.

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Another terms for fixed assets is ________.

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Fixed assets include production facilities, inventory warehouses, computer storage capacity, retail outlets, and production and office equipment.

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Which of these may be a better option for companies selling differentiated products?

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