Question 1

In a short essay, explain how global sourcing can contribute significantly to a firm's ability to achieve its strategic goals. Why is "achievement of strategic goals" actually the best rationale for global sourcing?

Accepted Answer

The answer of In a short essay, explain how global...

Question 2

Industries that benefit the most from global sourcing are characterized by low labor intensity in product and service production.

Accepted Answer

A) True 
 B)False

Question 3

In the decision about whether to outsource, manufacturing of products is considered of high importance to a firm.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following most likely supports OTC exporting their towels to Earth Waves?

Accepted Answer

A) Domestic sales of OTC towels have dwindled, and a new market is needed. 
B) Earth Waves is located in an excellent location in central Toronto. 
C) OTC is an SME that can readily adapt to the demands of the Canadian market. 
D) The founder of OTC has numerous contacts in Canada.

Question 5

Incoterms were developed by the International Chamber of Commerce in order to ________.

Accepted Answer

A) provide permission to export 
B) standardize the cost of shipping and insuring exported items 
C) define how the buyer and seller share freight and insurance costs 
D) reduce the costs of shipping and insuring exported products

Question 6

Which of the following activities is applicable to the final stage of exporting?

Accepted Answer

A) The firm engages appropriate bankers and international trade attorneys. 
B) The firm screens the most attractive export markets. 
C) The firm modifies advertising and public relations to suit individual markets. 
D) The firm acquires product development and foreign language skills.

Question 7

________ is the primary rationale for sourcing abroad.

Accepted Answer

A) Superior quality control 
B) Centralized management of work teams 
C) Cost efficiency 
D) Uninterrupted innovation

Question 8

What are the benefits of global sourcing?

Accepted Answer

The answer of What are the benefits of global sourcing?...

Question 9

Which of the following is a major challenge often faced by focal firms that engage in global sourcing?

Accepted Answer

A) no control over the quality of outputs 
B) domestic management of local distribution 
C) increased costs of business travel 
D) lower-than-expected cost savings

Question 10

National governments require exporters to obtain a license to protect the exported goods against damage, loss, pilferage, and delay.

Accepted Answer

A) True 
 B)False

Question 11

What role do logistics play in global sourcing? In a short essay, discuss how logistics relates to cost. Provide an example of a firm that lost money as a result of inadequate logistics.

Accepted Answer

The answer of What role do logistics play in global...

Question 12

The Internet facilitates international trade in the service sector by ________.

Accepted Answer

A) providing the means to export some types of services to foreign markets 
B) providing the means to avoid taxes in the foreign market 
C) allowing firms to attain maximum control by establishing ownership of key assets 
D) eliminating the need to deal with foreign currency exchange rates

Question 13

Which of the following refers to a risk, stemming from environmental factors, that is closely associated with global sourcing?

Accepted Answer

A) weak intellectual property laws 
B) overreliance on suppliers 
C) high energy costs 
D) rapid turnover of skilled employees

Question 14

A global supply chain is the compilation of business activities intended to create, produce, advertise, deliver, and support a focal firm's product or service.

Accepted Answer

A) True 
 B)False

Question 15

In advanced economies, firms generally do not outsource value-chain activities because they fear the loss of proprietary knowledge and trade secrets.

Accepted Answer

A) True 
 B)False

Question 16

Incoterms are universally accepted terms of sale that specify how the buyer and the seller share the cost of freight and insurance in an international transaction and at which point the buyer takes title to the goods.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following questions must be evaluated by OTC managers as a first step to exporting?

Accepted Answer

A) What are the risks involved in exporting OTC towels to Earth Waves? 
B) Do Canadian towel companies have a high success rate when they export? 
C) Will OTC save money on domestic marketing by exporting? 
D) How can OTC adapt its distribution strategy in Canada?

Question 18

Firms often establish their own sourcing operations abroad to maintain control of outsourced activities and technologies.

Accepted Answer

A) True 
 B)False

Question 19

The concept of creative destruction can be reasonably used by Group A to support the view that ________.

Accepted Answer

A) firms that engage in offshoring are more likely than not to fail in the long run 
B) offshoring forces unskilled workers to seek additional education 
C) global sourcing creates opportunities and stimulates innovation 
D) outsourcing technical jobs leads to brain drain

Question 20

The relocation of a business process or entire manufacturing facility to a foreign country is known as ________.

Accepted Answer

A) offshoring 
B) captive sourcing 
C) outsourcing 
D) subsidizing

Exam 13: Exporting and Global Sourcing

In a short essay, explain how global sourcing can contribute significantly to a firm's ability to achieve its strategic goals. Why is "achievement of strategic goals" actually the best rationale for global sourcing?

Industries that benefit the most from global sourcing are characterized by low labor intensity in product and service production.

In the decision about whether to outsource, manufacturing of products is considered of high importance to a firm.

Which of the following most likely supports OTC exporting their towels to Earth Waves?

Incoterms were developed by the International Chamber of Commerce in order to ________.

Which of the following activities is applicable to the final stage of exporting?

________ is the primary rationale for sourcing abroad.

What are the benefits of global sourcing?

Which of the following is a major challenge often faced by focal firms that engage in global sourcing?

National governments require exporters to obtain a license to protect the exported goods against damage, loss, pilferage, and delay.

What role do logistics play in global sourcing? In a short essay, discuss how logistics relates to cost. Provide an example of a firm that lost money as a result of inadequate logistics.

The Internet facilitates international trade in the service sector by ________.

Which of the following refers to a risk, stemming from environmental factors, that is closely associated with global sourcing?

A global supply chain is the compilation of business activities intended to create, produce, advertise, deliver, and support a focal firm's product or service.

In advanced economies, firms generally do not outsource value-chain activities because they fear the loss of proprietary knowledge and trade secrets.

Incoterms are universally accepted terms of sale that specify how the buyer and the seller share the cost of freight and insurance in an international transaction and at which point the buyer takes title to the goods.

Which of the following questions must be evaluated by OTC managers as a first step to exporting?

Firms often establish their own sourcing operations abroad to maintain control of outsourced activities and technologies.

The concept of creative destruction can be reasonably used by Group A to support the view that ________.

The relocation of a business process or entire manufacturing facility to a foreign country is known as ________.