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Q:
A fixed asset can also be referred to as a ________ asset.
A) liquid
B) current
C) tangible
D) trading account
Q:
Trade agreements allow competitors from other nations to enter the domestic market.
Q:
Storage facilities, retail outlets, and production equipment are examples of ________.
A) liquid assets
B) current assets
C) fixed assets
D) intangible assets
Q:
Which of the following would the government of Zucoland most likely experience as a benefit of joining the trading bloc?
A) increased national sovereignty
B) increased military security
C) trade diversion
D) higher-wage employment
Q:
________ in the computer industry is the outsourcing of the actual assembly of computers plus the job of shipping them to distributors and other intermediaries.
A) Agile manufacturing
B) Just in time manufacturing
C) Lean manufacturing
D) Stealth manufacturing
Q:
Which of the following would the government of Zucoland most likely experience as a benefit of joining the trading bloc?
A) trade diversion
B) increased national sovereignty
C) greater consensus
D) production shifts to low-wage nations
Q:
Which of the following is experienced by a company that outsources its product development?
A) reduced investments in research and development
B) reduced market flexibility
C) less market influence with suppliers
D) lower product costs due to the elimination of intermediaries
Q:
If all countries in the bloc are asked to give up the greatest amount of sovereignty, they would most likely be joining a(n) ________.
A) economic union
B) free trade area
C) customs union
D) political union
Q:
Computer companies buying hardware components from component-makers, assembling them in their own facilities, and selling completed systems to consumers and businesses is an example of ________.
A) telecommuting
B) franchising
C) outsourcing
D) licensing
Q:
The regional trading bloc that Zucoland will be joining is most likely a(n) ________.
A) economic union
B) free trade area
C) customs union
D) political union
Q:
Which of the following statements is true of outsourcing?
A) It reduces economic risk by facilitating the purchase of large insurance policies.
B) It reduces production risk by eliminating delays in the timely receipt of needed parts.
C) It reduces political risk by enabling the company to avoid investing in plants and equipment abroad.
D) It reduces currency risk by allowing the company to invest the home currency on in-house production facilities.
Q:
Country X advocates the greatest level of integration possible for the member nations of the Moonland Union. Which of the following is Country X most likely to support?
A) political union
B) free trade area
C) customs union
D) economic union
Q:
________ will enable a company to reduce the degree to which it is vertically integrated and the overall amount of specialized skills and knowledge that it would have to possess.
A) Outsourcing
B) Skimming
C) Lean production
D) Centralized production
Q:
Country M wants member nations to harmonize their tax, monetary, and fiscal policies and wants to create a common currency. Country M is requesting for the creation of a(n) ________ in the Moonland nations.
A) free trade area
B) economic union
C) customs union
D) common market
Q:
A firm that buys from another company a good or service that is part of the firm's value-added activities is practicing ________.
A) outsourcing
B) vertical integration
C) horizontal integration
D) lean production
Q:
Some countries in Moonland Union are interested not just in free trade among themselves and a common trade policy against nonmembers, but also in removing all barriers to the movement of labor and capital among themselves. This type of integration is best described as a ________.
A) free trade area
B) preferential trading area
C) customs union
D) common market
Q:
If these twenty-six nations continue to eliminate all barriers to trade among themselves and set a common trade policy against nonmembers, they would create a ________.
A) free trade area
B) preferential trading area
C) customs union
D) political union
Q:
Which of the following processes will a computer assembling firm engage in if it decides to manufacture its own monitors and printers?
A) outsourcing
B) vertical integration
C) niche marketing
D) lean production
Q:
As a first stage of cooperation, the countries agree to remove all barriers to trade among themselves. Each country also maintains policies it sees fit against nonmembers. At this stage, Moonland Union can be described as a ________.
A) free trade area
B) political union
C) common market
D) customs union
Q:
Which of the following reasons encourages companies to buy a product rather than make it?
A) Buying a product gives managers greater control over the production process.
B) Buying a product decreases the company's total costs significantly compared to making the product in-house.
C) Buying a product ensures non-flexibility to local market conditions.
D) Buying a product enables a company to gain a great deal of power in their relationships with suppliers.
Q:
The least amount of sovereignty that must be surrendered to a trading bloc occurs in a ________.A) economic unionB) common marketC) free trade areaD) political union
Q:
Which of the following reasons encourages companies to make a product rather than buy it?
A) Making a product gives managers greater control over the production process.
B) Making a product lowers the risk associated with the production process.
C) Making a product increases the company's flexibility to respond to market conditions.
D) Making a product gives companies a great deal of power in their relationships with suppliers.
Q:
The process by which a company extends its control over additional stages of production is called ________.
A) a push strategy
B) a pull strategy
C) vertical integration
D) horizontal integration
Q:
Which of the following is true of trade diversion?
A) It increases the purchasing power of consumers.
B) It increases the level of trade between nonmember nations.
C) It generally increases the prices of products in a nation.
D) It guarantees consumers a wider selection of goods.
Q:
Which of the following terms refers to the decision of whether to produce a component internally or to outsource it from another company?
A) buyer decision process
B) decision problem
C) per curiam decision
D) make-or-buy decision
Q:
Which of the following is a potential drawback of regional economic integration?
A) ethnocentricity
B) trade diversion
C) economic nationalism
D) protectionism
Q:
Which of the following factors has the least effect on facilities layout planning?
A) supply of land in a nation
B) cost of land in a nation
C) a firm's production process
D) age of the company
Q:
Which of the following is a result of trade creation?
A) The demand for goods tends to increase.
B) Purchasing power of consumers decreases.
C) Consumers have a limited choice for selection of goods.
D) Imported goods are seldom available at lower prices.
Q:
An increase in the level of trade among nations that results from regional economic integration is called ________.
A) trade diversion
B) mercantilism
C) trade creation
D) economic nationalism
Q:
Deciding the spatial arrangement of production processes within production units is called ________.
A) facilities layout planning
B) capacity planning
C) process planning
D) location economies
Q:
Higher levels of trade between nations result in ________.
A) higher product prices
B) lesser specialization
C) greater purchasing power
D) trade diversion
Q:
Which of the following will a company that is pursuing a low-cost leadership strategy most likely use for creating its product?
A) implement handcrafted artisanship
B) manufacture in large production batches
C) manufacture components in-house
D) customize products for each customer
Q:
________ require that member countries concede a certain amount of their national autonomy to the supranational union of which they are a part.
A) Free trade areas
B) Customs unions
C) Economic unions
D) Preferential trade areas
Q:
Which of the following determines the process that a company will use to create its product?
A) a firm's multinational strategy
B) a firm's global strategy
C) a firm's corporate-level strategy
D) a firm's business-level strategy
Q:
A(n) ________ requires member nations to harmonize their tax, monetary, and fiscal policies and create a common currency.
A) customs union
B) economic union
C) free trade area
D) common market
Q:
Deciding the sequence of operations a company will use to create its product is called ________.
A) product planning
B) capacity planning
C) location economies
D) process planning
Q:
Economic integration whereby countries remove barriers to trade and the movement of labor and capital among members, set a common trade policy against nonmembers, and coordinate their economic policies is called a(n) ________.
A) customs union
B) common market
C) economic union
D) free trade area
Q:
Companies with centralized production facilities are often pursuing ________ strategies.
A) low-cost
B) differentiation
C) retrenchment
D) combination
Q:
Economic integration whereby countries remove all barriers to trade and the movement of labor and capital between themselves and set a common trade policy against nonmembers is called a ________.
A) free trade area
B) customs union
C) common market
D) preferential trade area
Q:
The centralization of production facilities is a typical policy for companies that pursue ________.
A) horizontal integration
B) product differentiation
C) a global strategy
D) a multinational strategy
Q:
The main difference between a free trade area and a customs union is that the members of a customs union ________.
A) agree to the free movement of all factors of production
B) harmonize their tax, monetary, and fiscal policies and create a common currency
C) agree to treat trade with all nonmember nations in a similar manner
D) accept a common stance on economic and political policies regarding nonmember nations
Q:
The decentralization of production facilities is a typical policy for companies that pursue ________.
A) a multinational strategy
B) a global strategy
C) mass customization
D) vertical integration
Q:
Economic integration whereby countries remove all barriers to trade among themselves, but set a common trade policy against nonmembers is called a(n) ________.
A) preferential trade area
B) customs union
C) economic nationalism
D) free trade area
Q:
A company that sells differentiated products may maintain the ability to respond quickly to changing buyer preferences by utilizing ________.
A) vertical integration
B) decentralized production
C) lean production
D) continuous production
Q:
Countries belonging to a ________ maintain whatever policies they see fit against nonmember countries.
A) economic union
B) customs union
C) common market
D) free trade area
Q:
An Asian jewelry company maintains production facilities in South Korea, Vietnam, and Malaysia. Which of the following is the company exemplifying?
A) lean production
B) decentralized production
C) vertical integration
D) continuous production
Q:
Economic integration whereby countries remove all barriers to trade among themselves, but each country determines its own barriers against nonmembers, is called a(n) ________.
A) economic union
B) customs union
C) common market
D) free trade area
Q:
A British toy company manufactures all of its product lines in a single facility in Europe. Which of the following is the company demonstrating?
A) continuous production
B) lean production
C) centralized production
D) horizontal integration
Q:
Which of the following is the greatest extent of regional economic integration?
A) free trade area
B) political union
C) common market
D) customs union
Q:
________ refers to a situation in which facilities are spread over several locations, with one facility for each national business environment in which the company markets its products.
A) Continuous production
B) Decentralized production
C) Vertical integration
D) Lean production
Q:
Which of the following is the lowest extent of regional economic integration?
A) free trade area
B) political union
C) common market
D) customs union
Q:
________ refers to the concentration of production facilities in one location.
A) Lean production
B) Continuous production
C) Centralized production
D) Horizontal integration
Q:
Which of the following is an important goal of regional economic integration?
A) to increase the selling prices of products
B) to raise the living standards of people
C) to limit the choice of products available to customers
D) to establish a socialist government
Q:
Which of the following statements is true regarding location economies?
A) The demand and supply factors heavily influence the productivity of a location.
B) They apply only to service providers.
C) Each production activity generates more value in a particular location than elsewhere.
D) They are restricted to business activities that involve product manufacturing.
Q:
A group of nations in a geographic area undergoing economic integration is called a ________.
A) born global firm
B) maquiladora
C) regional trading bloc
D) Eurocurrency market
Q:
Transportation costs are one of the driving forces behind the globalization of the ________ industry.
A) health care
B) publishing
C) software
D) steel
Q:
Regional economic integration is also referred to as ________.
A) mercantilism
B) nationalism
C) protectionism
D) regionalism
Q:
The process of assessing a company's ability to produce enough output to satisfy market demand is called ________.
A) capacity planning
B) lean production
C) process management
D) product structure modeling
Q:
The process whereby countries in a geographic area cooperate with one another to reduce or eliminate barriers to the international flow of products, people, or capital is called ________.
A) regional economic integration
B) protectionism
C) mercantilism
D) economic nationalism
Q:
Debt appeals to companies because it lowers the amount of taxes the companies must pay.
Q:
Explain how political cooperation is a benefit of regional integration. How has the Gulf Cooperation Council (GCC) evolved towards political cooperation?
Q:
Patient money is the cash that can be quickly withdrawn from a market in times of crisis.
Q:
Describe some of the cultural challenges of doing business with countries of Central and Eastern Europe. How do these challenges compare with the challenges of doing business with ASEAN countries?
Q:
Venture capital is a source of equity financing for successful multinational companies.
Q:
Describe the Association of Southeast Asian Nations (ASEAN).
Q:
A major disadvantage of American Depository Receipts (ADRs) is that investors who buy them must pay currency-conversion fees.
Q:
The stated aim of Asia Pacific Economic Cooperation (APEC) is to strengthen the multilateral trading system.
Q:
A back-to-back loan is one in which a subsidiary acquires a loan from the same bank where its parent secured the first loan.
Q:
The process undertaken by these twenty-six countries is an example of ________.
A) foreign direct investment
B) protectionism
C) economic nationalism
D) regional economic integration
Q:
Companies usually decide to reinvest when a market is experiencing rapid growth.
Q:
A group of fifty-three nations on the African continent joined forces in 2002 to create the ________.A) Economic Community of West African StatesB) African UnionC) African Unification FrontD) Organisation of the African Unity
Q:
Just-in-time manufacturing drastically reduces the costs associated with large inventories in the production process.
Q:
The primary purpose of the Gulf Cooperation Council at its formation was to ________.
A) cooperate with the increasingly powerful trading blocs in Europe at the time
B) create the largest free trade area on the planet
C) increase members' tariff rates from an average of 7.5 percent to 15 percent
D) introduce barriers to trade and investment
Q:
The ISO 9000 is a production technique in which inputs to the production process arrive exactly when they are needed.
Q:
The stated aim of the organization for Asia Pacific Economic Cooperation (APEC) is to ________.
A) build another trading bloc
B) introduce stringent trade and investment procedures among member countries
C) strengthen the multilateral trading system
D) increase members' tariff rates from an average of 7.5 percent to 15 percent
Q:
Total quality management reduces the responsibility on each individual in the production process.
Q:
The major objective of the Association of Southeast Asian Nations (ASEAN) is to ________.
A) approach the European Union to resolve disputes between member countries
B) safeguard the region's economic and political stability
C) introduce barriers to trade and investment
D) increase members' tariff rates from an average of 7.5 percent to 15 percent
Q:
Companies strive toward quality improvements for attaining economies of scale.
Q:
Compare and contrast the slow progress of the Andean Community and the Economic Community of West African States (ECOWAS). Why have these trade blocs not been more successful?
Q:
One reason to buy a product instead of making it in-house is the greater flexibility to respond to market conditions.