Chap 8 (multiple choice)

The most important reason for sourcing globally is ______________.

• to obtain foreign products that are not available locally

• the firm's worldwide operation and attitude

• to obtain advanced technology from foreign sources

• to obtain lower prices from foreign sources

Which of the following arrangements can provide a firm with foreign products?

• Wholly owned subsidiary

• Overseas venture

• In-bond plant contractor

• All of the above

There is a strong relationship between global sourcing and ______________.

• ownership of foreign sources

• a firm's total profit

• a firm's global success

• none of the above

International freight, insurance and packing can add as much as ______________ to the quoted price of an imported product.

• 6 to 8 percent

• 8 to 10 percent

• 10 to 12 percent

• 12 to 14 percent

To lower manufacturing costs, the principal goal of Japanese firms is to ______________.

• eliminate inventories

• reduce the process time

• lower labor costs

• reduce inventory costs

______________ has become a global center for high-technology businesses in recent years.

• China

• Indonesia

• Vietnam

• India

______________, the most comprehensive of standards applies to industries involved in the design, development, manufacturing, installation and servicing of products and services.

• ISO 9001

• ANSI/AQC90

• ISO 9000

• ISO 14000

Manufacturing rationalization is the ______________.

• concentration of production at one central location

• division of production among a number of producing units

• allocation of labor costs based on product quality

• location of production facilities in countries that have the most favorable export laws

Generally, it is easier for international corporations to standardize the concepts of total quality management and synchronous manufacturing in their overseas affiliates than it is to standardize the actual manufacturing facilities. Environmental forces that contribute to this include ______________.

• legal forces

• financial forces

• political forces

• all of the above

Production methods that are between capital-intensive and labor-intensive methods are called ______________.

• mid-range technologies

• appropriate technologies

• intermediate technologies

• none of the above