INTB Chapter 15-17 Final Exam

Supply chain management refers to the integration and coordination of what three activities from raw material to the end-customer? (Check all that apply.) - Arbitration - Purchasing - Logistics - Operations - Hiring

- Purchasing - Operations - Hiring

What are the considerations that help determine where an international firm will locate its production facilities? Ability to use implement tariffs to limit competition Ability to minimize costs and improve quality Ability to circumnavigate environmental rules Ability to maximize costs and improve quality

Ability to minimize costs and improve quality

Refer to Table 16.1. Which element of the marketing mix addresses the question of the role of social media in getting in touch with customers? Values strategy Financial strategy Pricing strategy Communication strategy

Communication strategy

What are the four elements that make up a firm's marketing mix? (Check all that apply.) Global scale Economic advantage Communication strategy Distribution strategy Product attributes Pricing strategy

Communication strategy Distribution strategy Product attributes Pricing strategy

What two factors are critically important to the success of global supply chain coordination? (Check all that apply.) Coordination Internationalization Commercialization Integration

Coordination Integration

What are the three broad groups of factors that a company should consider when making decisions on where to produce its products? (Check all that apply.) Country factors Social media factors Production factors Survey factors Technological factors

Country factors Production factors Technological factors

Given equivalent factor costs, which three conditions should have the most influence on a firm's decision on where to develop a production site? (Check all that apply.) Marketing Social media Economic Political Cultural

Economic Political Cultural

Select all that apply High failure rates of new product development projects are linked to which two reasons? (Check all that apply.) Failure to adequately commercialize new technology. Development of technology for which demand is limited. Time to market is minimized. Development costs are kept in check.

Failure to adequately commercialize new technology. Development of technology for which demand is limited.

True or false: Refer to Figure 17.1. Within the organizational architecture of a firm, human resources is responsible for both structure and processes. True False

False

True or false: The term production is only used to denote a physical product. True False

False

Of the types of international staffing policies identified by research, which one tends to be the most attractive to companies? Ethnocentric Polycentric Global centric Geocentric

Geocentric

_____ coordination refers to the integrated and coordinated decisions of key global supply chain activities. Total quality management Integrated supply chain Global supply chain Inventory turnover

Global supply chain

According to the text, what three things help managers develop a global mindset? (Check all that apply.) Grow up in a bicultural family Major in anthropology Live in a foreign country Communicate in the home country language Learn foreign languages as a part of family life

Grow up in a bicultural family Live in a foreign country Learn foreign languages as a part of family life

What are two potential "hidden" costs of outsourcing production to a foreign location? (Check all that apply.) High government regulations on labor High employee turnover Poor product quality Lack of tax base

High employee turnover Poor product quality

What two factors would lead a firm to choose a concentrated production configuration? (Check all that apply.) High fixed costs Low value-to-weight ratio Minimum efficient scale of production is high Substantial trade barriers

High fixed costs Minimum efficient scale of production is high

What are three factors that would lead a company to adopt a decentralized production configuration strategy? (Check all that apply.) High minimum efficient scale High trade barriers Stability of exchange rates Lower fixed costs Low value-to-weight ratio

High trade barriers Lower fixed costs Low value-to-weight ratio

Why is it especially important to integrate R&D and marketing when involved in international business? Marketing is only important in Western cultures. Marketing is not traditionally found outside of the United States. It costs less money to do research via an international affiliate. It may be necessary to create different versions of a product for various countries.

It may be necessary to create different versions of a product for various countries.

______ is an inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process, thereby reducing inventory costs. This method requires producers to forecast demand accurately. ISO JIT IMF CRM

JIT

A company that engages in international purchasing, but does so in a reactive and uncoordinated way, is at which level of global purchasing? Level I Level II Level III Level IV

Level II

A company that engages in global purchasing activities that are integrated across worldwide locations and functional groups is at which level of global purchasing? Level IV Level V Level III Level II

Level V

Kalee works for Wolf Furniture Corp. and it is her job to control the inventory of raw materials, component parts, and products used in the manufacturing of the company's office furniture line. Kalee works in _____. marketing manufacturing offshoring logistics

Logisitcs

What term is given to the activities that encompass the movement of physical materials through the supply chain? Production Productivity Logistics Manufacturing

Logistics

In which type of distribution channel is it more likely for the consumer to end up paying a higher price for the final product? Short Constant Long Simple

Long

What are three arguments in support of global advertising? (Check all that apply.) Many brand names are global One large advertising effort will produce better results Significant economic advantages Government regulations will not interfere

Many brand names are global One large advertising effort will produce better results Significant economic advantages

What are three strategic roles a foreign factory might have? Domestic factory Outpost factory Server factory Offshore factory Expatriate factory

Outpost factory Server factory Offshore factory

Which dimension identified by Mendenhall and Oddou refers to understanding why people of other countries behave the way they do? Perceptual ability Self-orientation Others-orientation Cultural toughness

Perceptual ability

Jose's company decided to implement a push strategy for its new line of health care products. Based on this, what strategy will the company most likely use? Newspaper advertisements Personal selling Infomercials Television product placement

Personal selling

What are three factors that would lead a company to establish a concentrated production configuration? Choose all that apply. Product serves universal needs High fixed costs Value-to-weight ratio is high Trade barriers are high

Product serves universal needs High fixed costs Value-to-weight ratio is high

Refer to Table 16.1 Which element of the marketing mix addresses the question of whether customers have similar product needs across international markets segments? Product strategy Distribution strategy Pricing strategy Communication strategy

Product strategy

All the activities involved in creating a product are known as _____. transportation information systems R&D production

Production

A business uses the _____ function to obtain raw materials it needs to manufacture goods. price purchasing marketing personnel

Purchasing

Expatriates with high self-esteem, self-confidence, and mental well-being are more likely to succeed in a foreign posting. Which of Mendenhall and Oddou's dimensions does this represent? Cultural toughness Others-orientation Perceptual ability Self-orientation

Self-orientation

Human resource management includes which three activities? (Check all that apply.) Sales forecasting Staffing Product marketing Labor relations Performance evaluation

Staffing Labor relations Performance evalutation

Which company function involves selecting individuals to do certain jobs, as well as, promoting the desired culture of the firm? Compensation Staffing policy Training Performance evaluation

Staffing policy

What is an argument in favor of standardized advertising? Standardized advertising lowers the cost of value creation by spreading the costs of ad development over many countries. Standardized advertising increases the cost of value creation since several countries must approve the final ad. Standardized advertising is based primarily on government regulations. Standardized advertising has no effect on the cost of developing advertisements since the value of a dollar is inconsistent in many countries.

Standardized advertising lowers the cost of value creation by spreading the costs of ad development over many countries.

What is the most important aspect of cultural differences that companies need to recognize when marketing to another country? Government Tradition Cost Education

Tradition

True or false: A global distribution center is used to store quantities and assortments of products and allow for customization of those products. True False

True

True or false: Japanese firms have historically used an ethnocentric staffing policy. True False

True

What two factors are particularly important in the others-orientation dimension identified by Mendenhall and Oddou? (Check all that apply.) Willingness to communicate Relationship development Consistency of decisions Distance between users

Willingness to communicate Relationship development

Lisbeth's company has grown quickly internationally and she needs to hire someone who can help her assess all the data of the current business operation and use it to create strategies to help the company continue to grow in the future. Lisbeth needs to hire an individual who has experience in _____. greenfield ventures foreign direct investment business analytics the marketing mix

business analytics

The knowledge, skills, and technology that allow for the exploration of a company's international business strategies to gain insight and affect future strategies is called _____. business analytics the marketing mix supply chain management the mission statement

business analytics

According to the text, the two keys to interorganizational relationships are: (check all that apply.) logistics. commitment. trust. technology.

commitment. trust.

A company relies on a ______ to advise prospective customers about the attributes of a product. retail concentration distribution channel cultural barrier communication strategy

communication strategy

Scientific research, demand conditions and ______ conditions all contribute to stimulating ideas for new products. trade competitive logistic

competitive

When flexible manufacturing technologies are available, this bolsters the argument for _____ production configurations. concentrated decentralized

concentrated

Your Answer incorrect A(n) ______ factory has its own infrastructure when it comes to development, engineering, and production, and often competes with the firm's home factories for testing new ideas and products. source server offshore contributor

contributor

The replacement of the transistor by the microprocessor is an example of ______. tragedy of the commons creative destruction economy of scale factor endowments

creative destruction

The frozen food division of Nestlé markets fish cakes and fish fingers in Great Britain, but focuses on marketing beef bourguignon and coq au vin in France. This reflects how Nestlé is taking ______ into account when selling products in each country. shipping arrangements cultural differences first-mover advantages strategic pricing

cultural differences

When trade barriers are high, fixed costs are low, important exchange rates are unstable, and the value-to-weight ratio is low, a ______ production configuration is preferred. decentralized concentrated

decentralized

A(n) ______ strategy, created by the management of a manufacturing business, specifies how the firm intends to transfer its products to intermediaries, retailers and end consumers. distribution technical production marketing

distribution

Marshall Marine delivers its products to retail stores which then sells the products to consumers. In this scenario, delivering products to the retail stores represents the company's _____ strategy. manufacturing distribution marketing production

distribution

The portion of the supply chain from the production facility to the end-consumer is the ______ supply chain. downstream upstream

downstream

When Margo learned that the inventory levels were still at 90%, she instructed the sales team to sell the product 35% lower than production costs to bring the inventory down to acceptable levels. This demonstrates the idea of dumping. price elasticity. predatory pricing. arbitrage.

dumping

Members of a product development team should be comprised of individuals from each key function in the company. the affiliate companies. each company location. the marketing and production departments.

each key function in the company.

Shiver Refrigerators Inc. manufacturers a line of refrigerators with no extra features like an ice-maker or a deli drawer. These units are sold in less developed nations where a consumer has less income to spend on a high-end appliance.This scenario demonstrates how _____ can influence consumer behavior. economic development location economies technical standards factors of endowment

economic development

As defined in the text, perceptual ability is synonymous with the ability to ______. empathize minimize engage control

empathize

Trisha's firm has filled all of its key management positions with parent-country nationals. What kind of staffing policy is this company using? polycentric ethnocentric narrow domestic

ethnocentric

The three types of staffing policies in international business are: (Check all that apply.) ethnocentric geocentric global centric polycentric transcentric

ethnocentric geocentric polycentric

John Smith is a Seattle, Washington native who works for Microsoft. The company sent him to manage a branch of the company in China, but he was homesick and returned home in six months. This is an example of inpatriate return. expatriation. expatriate failure. repatriation.

expatriate failure.

True or false: When considering the building blocks for global supply chains, all relationships between vendors, suppliers, and partners are equally valuable. True False

false

Artisan Inc. needs to find a company that will store its products and when requested provide customization -- then ship the products to the final customer. What type of facility can help Artisan Inc. with this? lead factory global distribution center JIT warehouse center offshore factory

global distribution center

The concept that valuable knowledge does not just reside in a firm's domestic operations but can be found in foreign subsidiaries is known as ______. factor endowments total quality management global learning cross-cultural literacy

global learning

Levitt promoted the idea that the success of companies like McDonald's and Coca-Cola that sell essentially the same products everywhere reflects the lack of vision among consumers. traditional regional preferences. globalization of markets and brands. rebellion against health-conscious advertising.

globalization of markets and brands.

A source factory ______ than an offshore factory. has a more significant strategic role has less input in product customization has less input in purchasing decisions is less cost effective

has a more significant strategic role

One drawback to basing production in a foreign location is the potential for poor product quality. This is an example of a(n) ____ cost of foreign production.

hidden

In order for predatory pricing to work, a firm should be the last to enter the market. vested in warehouses in all existing markets. without other international affiliates. in a profitable position in another national market.

in a profitable position in another national market.

When all other factors are equal, what two conditions foster a greater rate of new-product development in a country? less money spent on R&D weak demand intense competition affluent consumers

intense competition affluent consumers

Flexible manufacturing technology is also referred to as ______ production. lean minimalist streamlined transparent

lean

When a firm takes advantage of favorable economic, political, and cultural conditions when identifying a site for manufacturing activities, the benefits it can receive are called ______ economies. marketing location secondary singular

location

Web-based information systems can improve the ______ function by better tracking component parts, optimizing production schedules, and by providing good information about the company's supply chain. logistics offshoring marketing manufacturing

logistics

When a company makes a make-or-buy decision, the strategic level is typically focused on the ______-term while the operational level is more focused on the ______-term. short; long long; short

long; short

Whether a firm should perform a value creation activity themselves or outsource it is called the _____ decision. global learning mass customization cross-cultural make-or-buy

make-or-buy

The systematic collection, recording, analysis, and interpretation of data to provide knowledge for decision-making in a company is the definition of international _____. customization market research internalization production standards

market research

Rasheed's report outlined that consumers living on the West Coast had purchased 80% more of the company's line of "green" products as compared to consumers living in the southeastern part of the country. His report identifying specific groups is an example of globalization. product placement. product distribution. market segmentation.

market segmentation.

Ryan's department is responsible for assessing the distribution and pricing strategies for the company's main product lines. This department is responsible for two elements of the ______. marketing mix licensing process mission statement supply chain

marketing mix

When a company uses flexible manufacturing technology to develop a low cost, customized product, it is using the process of acquisition. mass customization. economies of scale. a greenfield venture.

mass customization

Since unit costs decrease as plant output increases, a ______ of output is necessary for a plant to realize all major plant-level scale economies. minimum systematic scale minimum evolving scale minimum efficient scale maximum efficient scale

minimum efficient scale

The ______ is the smallest amount of production a company can achieve while still taking full advantage of economies of scale with regards to supplies and costs. TQM approach JIT approach economies of scale minimum efficient scale

minimum efficient scale

A(n) _______ factory is developed and set up to assemble or manufacture products in a country where labor and/or raw materials are cheaper, for export and/or eventual import into the manufacturer's home country. lead server offshore contributor

offshore

Manuel works on the assembly line at a factory in Mexico that produces component parts for a Japanese automaker. The factory is not involved in any decisions on the automobiles but is simply designed for parts production. This is an example of a(n) _____ factory. lead contributor JIT offshore

offshore

Based on Mendenhall and Oddou's dimension known as _____ the more effectively an expatriate can interact with host-country nationals, the more likely he or she is to succeed. self-orientation cultural toughness others-orientation perceptual ability

others-orientation

What is considered to be the linchpin that holds a firm's organizational architecture together? culture processes structure people

people

After the company lowered the cost of its men's suits, sales increased by 30%. This demonstrates the concept of exclusive distribution channels. price elasticity of demand. price discrimination. pull strategies.

price elasticity of demand

According to the text, a(n) ______ can be viewed as a cluster of attributes. client supply chain product department

product

When discussing global supply chains, _____ is/are sometimes referred to as manufacturing or operations. marketing human resources production information systems

production

For most companies, there is a critical link among channel length, the final selling price, and the company's retail markup. profit margin. sales forecasts. marketing mix.

profit margin

The process of a business or organization attempting to acquire goods or services to accomplish the goals of its enterprise is called operations. supply chain management. purchasing. logistics.

purchasing

Flexible manufacturing involves a range of manufacturing technologies designed to do what three things? reduce setup times improve quality control reduce customization efforts increase utilization of machines minimize time management

reduce setup times improve quality control increase utilization of machines

Market ______ is a tool companies use when trying to identify distinct groups of consumers whose purchasing behaviors differ from that of other consumers. objectives JIT segmentation mix

segmentation

A factory established to overcome tangible and intangible barriers in the global market place which supplies specific country or regional markets around the world is a(n) ______ factory. lead source server offshore

server

One reason a company would use a(n) _____ factory is that it can minimize the costs that would be necessary if the production facility were further away from its customers. source outpost server lead

server

The main difference between a contributor factory and a(n) ______ factory is that a contributor factory has responsibilities for product and process engineering and development. server lead outpost offshore

server

Since the Industrial Revolution, product life cycles have shortened dramatically. lengthened somewhat. lengthened considerably. remained about the same.

shortened dramatically.

Which type of factory is used and treated the same as any factory in a global firm's home country? offshore lead outpost source

source

Following a month-long social media attack on German imports, German electronic manufacturers decided to implement an advertising campaign to negate the attack and reassure US consumers that German-made electronics were of the highest quality and relied on US parts to complete the product. Which international communication barrier did the German electronic manufacturers address? Cultural differences Source effects Channel length Noise levels

source effects

When a consumer reads an advertisement and evaluates the content of the ad on the basis of the image of the company that placed the ad, he or she is being influenced by channel length. source effects. a push strategy. noise effects.

source effects

While no longer an area of concern now that most people stream music, originally DVD equipment made in the US would not play DVDs recorded on equipment made in Germany. This shows how _____ can influence consumer behavior. ethical requirements retail systems price points technical standards

technical standards

Theodore Levitt believed that _____ was driving the world toward a converging commonalty. logistics competition education technology

technology

Once an expatriate manager has been selected, what is the next step in the management development process? marketing training relocation production

training

The portion of the supply chain from raw materials to the production facility is the ______ supply chain. upstream downstream

upstream