OPM530 CHAPTER 2

Which of the following does NOT represent a valid reason for globalizing operations?

• reduce costs

• improve the supply chain

• reduce responsiveness

• attract and retain global talent

One of the reasons to globalize operations is to ____________ . For example, foreign businesses use cricket stars in promoting their products in India because it is the most popular game in that country.

• Understand markets

• Improve the supply chain

• Improve operations

• Reduce costs (labor, taxes, tariffs, etc.)

Which of the following is an example of competing on the basis of differentiation?

• A firm manufactures its product with less raw material waste than its competitors do.

• A firm offers more durable products than its competitors do.

• A firm's distribution network routinely delivers its product on time.

• A firm's products are introduced into the market faster than its competitors' products are.

Which of the following is the best example of competing on low-cost leadership?

• A firm manufactures its product with less raw material waste than its competitors do.

• A firm offers more durable products than its competitors do.

• A firm's distribution network routinely delivers its product on time.

• A firm's products are introduced into the market faster than its competitors' products are.

Which of the following is the best example of competing on quick response?

• A firm manufactures its product with less raw material waste than its competitors do.

• A firm offers more durable products than its competitors do.

• A firm's products are introduced into the market faster than its competitors' products.

• A firm utilizes its capacity more effectively than its competitors do.

What is the practice of transferring a firm's activities that have traditionally been internal to external suppliers?

• nearshoring

• farshoring

• offshoring

• outsourcing

Which of the following is NOT an advantage of outsourcing?

• cost savings

• gaining outside expertise

• improving operations and service

• outsourcing core competencies

What theory implies that you should allow another firm to perform work activities for your company if that company can do it more productively than you can?

• theory of competitive advantage

• theory of core competencies

• theory of comparative advantage

• theory of outsourcing

Which of the international operations strategies involves high cost reductions and high local responsiveness?

• international strategy

• global strategy

• transnational strategy

• multidomestic strategy

Which of the international operations strategies uses import/export or licensing of existing products?

• international strategy

• global strategy

• transnational strategy

• multidomestic strategy