U3 AOS 3 Bus Man Section 8 Quiz

What is global sourcing?

• a business often needs to look internationally to find the right suppliers

• a business will often need to outsource its entire operations process to another country

What is one reason why materials from other countries may be less expensive?

• other countries may have lower taxes or wages

• other countries value business activity more highly

• some resources are only available overseas

Which of the following is NOT a strength of global sourcing?

• increases total capcity to supply needed goods

• decreases costs

• accesses new markets

• can be difficult ot monitor the quality of the inputs

Another word for global manufacturing is (a)   .

A business may choose to manufacture overseas to reduce (a)   , overhead and component costs, while keeping research and development, design and short-run manufacturing in Australia.

With outsourcing, the Australian business owns factories overseas.

• Yes, they are manufacturing overseas

• Yes, they have moved overseas to save money

• No, outsourcing involves paying other businesses to manufacture the goods overseas

• No, outsourcing is local, not global

Why does Toyota manufacture cars in many different countries?

• to save money, it only manufactures in countries with low costs

• it manufactures in the market it sells too, in order to better meet customer needs

Can a service related company also outsource and offshore production?

• Yes, departments such as customer service are often outsourced

• No, it only applies to manufacturing companies who produce goods

If one part of the chain breaks down, the ability of the business to deliver products to customers may be (a)   impacted

In supply chain management, companies must consider the _______ between suppliers and warehousers or retailers.

• distance

• efficiency

• effectiveness

• problems