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OPM530 CHAPTER 2

Total questions: 10

Worksheet time: 20mins

Name
Class
Date
1.

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

a)

reduce costs

b)

improve the supply chain

c)

reduce responsiveness

d)

attract and retain global talent

2.

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.

a)

Understand markets

b)

Improve the supply chain

c)

Improve operations

d)

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

3.

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

a)

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

b)

A firm offers more durable products than its competitors do.

c)

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

d)

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

4.

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

a)

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

b)

A firm offers more durable products than its competitors do.

c)

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

d)

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

5.

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

a)

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

b)

A firm offers more durable products than its competitors do.

c)

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

d)

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

6.

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

a)

nearshoring

b)

farshoring

c)

offshoring

d)

outsourcing

7.

Which of the following is NOT an advantage of outsourcing?

a)

cost savings

b)

gaining outside expertise

c)

improving operations and service

d)

outsourcing core competencies

8.

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?

a)

theory of competitive advantage

b)

theory of core competencies

c)

theory of comparative advantage

d)

theory of outsourcing

9.

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

a)

international strategy

b)

global strategy

c)

transnational strategy

d)

multidomestic strategy

10.

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

a)

international strategy

b)

global strategy

c)

transnational strategy

d)

multidomestic strategy