ISDS 3115 CH2

Boeing's development of the 787 Dreamliner is an example of a company obtaining a competitive advantage through product differentiation/innovation.

True

NAFTA seeks to phase out all trade and tariff barriers among Canada, Mexico, and the United States

True

Production processes are being dispersed to take advantage of national differences in labor costs

True

The World Trade Organization has helped to significantly reduce tariffs around the world.

True

The term maquiladora is most synonymous with: A) free trade zones in Mexico. B) Chinese forced labor camps. C) home-based or cottage industry. D) areas that do not meet U.S. standards for workplace safety and pollution. E) tax breaks provided by some South American countries to other South American countries.

A) free trade zones in Mexico

Which of the following is true of maquiladoras? A) They discourage foreign businesses from outsourcing. B) They assess tariffs only on the value-added work done. C) They originated in China. D) None of the above E) All of the above

B) They assess tariffs only on the value-added work done.

The fundamental purpose of an organization's mission statement is to: A) create a good human relations climate in the organization. B) define the organization's purpose in society. C) define the operational structure of the organization. D) generate good public relations for the organization. E) define the functional areas required by the organization

B) define the organization's purpose in society.

According to the authors, which of the following strategic concepts allow firms to achieve their missions? A) productivity, efficiency, and quality leadership According to the authors, which of the following strategic concepts allow firms to achieve their missions? A) productivity, efficiency, and quality leadership B) differentiation, cost leadership, and response C) differentiation, quality leadership, and response D) distinctive competency, cost leadership, and experience E) differentiation, distinctive competency, quality leadership, and capacity

B) differentiation, cost leadership, and response

With reference to cultural and ethical issues, the World Trade Organization has: A) eliminated bribery. B) made progress in providing equal protection of intellectual property among nations. C) phased out all trade and tariff barriers between the United States and Mexico. D) eliminated slave labor and child labor. E) played little role in addressing cultural and ethical issues among nations

B) made progress in providing equal protection of intellectual property among nations.

A firm can effectively use its operations function to yield competitive advantage through all of the following EXCEPT: A) customization of the product. B) setting equipment utilization goals below the industry average. C) speed of delivery. D) constant innovation of new products. E) maintaining a variety of product options

B) setting equipment utilization goals below the industry average

Which of the following statements is true? A) Corporate mission is shaped by functional strategies. B) Corporate strategy is shaped by functional strategies. C) Functional strategies are shaped by corporate strategy. D) External conditions are shaped by corporate mission. E) Functional area missions are merged to become the organizational mission.

C) Functional strategies are shaped by corporate strategy.

Which of the following activities takes place most immediately once the mission has been developed? A) The firm develops alternative or back-up missions in case the original mission fails. B) The functional areas develop their functional area strategies. C) The functional areas develop their supporting missions. D) The ten OM decision areas are prioritized. E) Operational tactics are developed.

C) The functional areas develop their supporting missions.

Which of the following statements about organizational missions is FALSE? A) They reflect a company's purpose. B) They indicate what a company intends to contribute to society. C) They are formulated after strategies are known. D) They define a company's reason for existence. E) They provide guidance for functional area missions

C) They are formulated after strategies are known.

Which of the following did the authors NOT suggest as a reason for globalizing operations? A) reduce costs B) improve the supply chain C) pursue stockholder approval ratings D) understand markets E) attract and retain global talent

C) pursue stockholder approval ratings

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 E) understand markets

C) reduce responsiveness

Which of the following is LEAST likely to be a low-cost leadership competitive advantage? A) low overhead B) effective capacity use C) inventory management D) broad product line E) mass production

D) broad product line

Boeing's new 787 Dreamliner: A) is assembled in Washington, D.C. B) uses engines from Japan. C) has its fuselage sections built in Australia. D) has increased efficiency from new engine technology. E) results from a partnership of about a dozen companies.

D) has increased efficiency from new engine technology.

The purpose of NAFTA is to: A) substitute cheap labor in Mexico for expensive labor in the United States. B) curb illegal immigration from Mexico to the United States. C) phase out all trade and tariff barriers between North America and South America. D) phase out all trade and tariff barriers between the United States, Canada, and Mexico. E) provide fair and equitable tariff rates for trade between the United States, Canada, and Mexico.

D) phase out all trade and tariff barriers between the United States, Canada, and Mexico.

Which of the following statements regarding the Dreamliner 787 is true? A) Boeing has found partners in over a dozen countries. B) The new aircraft incorporates a wide range of aerospace technologies. C) The new aircraft uses engines from not one, but two manufacturers. D) Boeing will add only 20 to 30 percent of the aircraft's value. E) All of the above are true.

E) All of the above are true.

A strategy is a(n): A) set of opportunities in the marketplace. B) broad statement of purpose. C) simulation used to test various product line options. D) plan for cost reduction. E) action plan to achieve the mission.

E) action plan to achieve the mission.

Cost cutting in international operations can take place because of: A) lower taxes and tariffs. B) lower wage scales. C) lower indirect costs. D) less stringent regulations. E) all of the above.

E) all of the above

Which of the following represents a reason for globalizing operations? A) to improve the supply chain B) to improve operations C) to expand a product's life cycle D) to attract and retain global talent E) all of the above

E) all of the above

Multinational organizations can shop from country to country and cut costs through: A) lower wage scales. B) lower indirect costs. C) less stringent regulations. D) lower taxes and tariffs. E) all of the above.

E) all of the above.

The ability of an organization to produce goods or services that have some uniqueness in their characteristics is: A) mass production. B) time-based competition. C) competing on productivity. D) competing on quality. The ability of an organization to produce goods or services that have some uniqueness in their characteristics is: A) mass production. B) time-based competition. C) competing on productivity. D) competing on quality. E) competing on differentiation

E) competing on differentiation

A product will always be in the same stage of its product life cycle regardless of the country

false

An organization's strategy is the purpose or rationale for its existence

false

Low-cost leadership is the ability to distinguish the offerings of the organization in a way that the customer perceives as adding value.

false

NAFTA seeks to phase out all trade and tariff barriers between the United States and Asia.

false

) Experience differentiation is an extension of product differentiation, accomplished by using people's five senses to create an experience rather than simply providing a service

true

One reason for global operations is to gain improvements in the supply chain.

true

One reason to globalize is to learn to improve operations.

true

The World Trade Organization helps provide governments and industries around the world with protection from firms that engage in unethical conduct.

true

To attract and retain global talent, and to expand a product's life cycle, are both reasons to globalize

true