Exam 11: Global Location Decisions

Use the breakeven model to determine which of the statements below is TRUE according to the information provided in the table relating to two different locations considered for a new manufacturing facility.? LOCATION ANNUAL FIXED COSTS UNIT VARIABLE COSTS Site A \ 50,000 \ 10 Site B \ 20,000 \ 30

While business clusters seem logical in well-established areas with developed economies like Silicon Valley and Hollywood,California,because companies can easily collaborate,compete,and share knowledge,some high-tech clusters have developed in areas with emerging economies such as Costa Rica,the Philippines,and Uganda.

Which of the following is a project that has environmental implications concerning public health and climate change?

What are the three levels of any location decision?

Startup and other smaller firms do not typically benefit from locating in cluster areas.

Which of the following is a critical issue in sustainable development?

Some companies import components,use them in the production of their end items,and ultimately export them to other countries.If a company wanted to import the components duty-free,use those components in the production of their end items,and then export them to other countries,they would most likely utilize a(n):

Which of the following regional trade agreements is paired with the appropriate region of the world?

Which of the following would be considered a quality of life factor?

A "lead factory" is set up in a location with an abundance of advanced suppliers,competitors,research facilities and knowledge centers in order to have access to the most current information on materials,components,technologies and products.

A project with environmental implications is the Keystone XL pipeline.

Which of the following strategic foreign facilities is set-up primarily to avoid tariff barriers,minimize exchange risk,and/or take advantage of government incentives? Ultimately the factory operates as most normal factories making only minor improvements in either the products or processes.

According to the text,when the location of a factory is dictated by low production costs,fairly developed infrastructure and availability of skilled workers the factory is referred to as a(n):

China's economy is shifting from labor-intensive industries to areas like marketing and the production of high technology products that typically provide higher levels of value.

Using the weighted-factor rating model,the location with the lowest total weighted score is the recommended location.

Your company needs to determine the appropriate location of a factory in order to take advantage of government incentives and avoid tariff barriers,the type of factory needed can be referred to as a(n):

Which of the following is NOT a reason for locating in a business cluster?

Which of the following strategic foreign facilities is set-up primarily produce products at a low cost with minimal technical and managerial resources? The items produced at these factories are often exported to countries where costs to produce similar items would be higher.

Your organization is considering building a new automobile manufacturing plant.The company is considering building their facility in either China or Tennessee (USA).​China is a rapidly expanding economic market,Tennessee is situated in a more mature market in which other car manufacturers are already located.​Using this limited information and your knowledge of these two options,China and Tennessee,provide THREE reasonable arguments for each option that relate to supply chain management.

While many developing countries are attractive to companies seeking out low labor costs,there are other important factors such as productivity levels,employee skill and education levels,turnover rates,and employment trends that certain industries find just as important,if not more important,in determining facilities' location.