SCM: Chapter 11

Examples of regional trade agreements include all of the following EXCEPT:

a. Association of Indian Markets (AIM)

Milan, Wall Street, and Detroit are examples of ____________.

a. Business clusters

The World Trade Organization (WTO) is critical to the facility location decision process because of their impact on:

a. Tariffs

According to the text, the development of cleaner, more fuel-efficient affordable energy technologies and renewable energy technologies will:

a. Decrease the costs in the supply chain

The first step in the weighted-factor rating technique is to:

a. Identify all factors considered important to the facility location decision

A certain organization trying to decide where to locate their future factory is considering three locations. They are taking into account three factors: labor costs, currency stability, and proximity to market. Using the weights for each factor listed below and the scores achieved by each of the three considered locations, determine which location should be chosen for the new facility based on the weighted factory location model.

a. Site C

High tariffs encourage multinational corporations to set up factories to produce locally.

a. True

The European Union (EU) is considered a regional trade agreement.

a. True

acility location has ____________on the supply chain.

b. A long-term impact

Interconnected companies and institutions from a particular field which are located in a single geographic location, are referred to is a(n):

b. Business cluster

Check My Work Which of the following is NOT a reason for locating in a business cluster?

b. Sophisticated retailers

________________ is important because what we do today will affect future generations.

b. Sustainable development

Which of the following is a critical issue in sustainable development?

c. Climate change

A firm wanting to import items duty free and then use the component for local production of a product that is then exported would most likely utilize a(n):

c. Foreign Trade Zone

Use the breakeven model to determine which of the statements below is TRUE according to the information provided in the table relating to two different location considered for a new manufacturing facility.

c. The breakeven point for these two locations is 625 units per year

Regional trade agreements assist with which of the following?

d. All of these choices are correct

Check My Work Which of the following issues is (are) important to consider when trying to determine the location of a firm's facilities?

d. All of these choices are correct.

Which of the following strategic foreign facilities is set up in a location with an abundance of advanced suppliers, competitors, research facilities, and knowledge centers to get access to the most current information on materials, components, technologies, and products?

d. Outpost factory

Which of the following secures the right of employees to decide whether to join or financially support a union?

d. Right-to-work laws

According to the text, which of the following would be an example of Coca-Cola's international bottling plants, each serving a small geographic region?

d. Server factory