Busi 3250 final

Jenna reported to the management team that their proposed investment in Great Britain could be affected by the Brexit announcement. Which aspect of strategic planning does this demonstrate?

Analyze the company's external environments

(T/F)The International Monetary Fund is a source of economic data that analysts can access to assess economic conditions.

Answer: True

With respect to the current state of global problems, Mark Malloch Brown, former deputy secretary general of the United Nations, suggests that

As the world becomes more closely connected, it becomes less governable at the national level

The output of a synchronized manufacturing system is set

At the output of the slowest operation that is working at full capacity

At the end of World War II, the UN called for the conference that set up the World Bank and the IMF. This conference was held in

Bretton Woods, New Hampshire

Why is scenario analyses an important tool for managers?

By anticipating the future and recognizing the warning signs of turbulence ahead, managers can develop more effective strategies

What is a downside of flexible manufacturing?

Changes in the production line cost money

Using cross-functional and customer participation in the design stage is a type of ________ engineering.

Concurrent

To set corporate objectives, management must first

Define the firm's mission

Once a firm has determined there is a need for the firm's products in a foreign market, the next step is to

Draft the export marketing plan

T/F ASEAN, whose initial, political goal was to foster peaceful relations among members, includes China as its core member.

False

T/F In a currency board arrangement, a country's government commits to adopt the currency of another.

False

T/F Logistics refers to managerial functions associated with the movement of raw materials and work in progress, but not finished goods.

False

T/F On an open account, the buyer assumes all of the payment risk.

False

T/F Permanent members of the UN Security Council vote on Security Council measures and only the Secretary General of the UN has veto power.

False

T/F The Bretton Woods system led to minimal growth in international trade but helped to reduce inflation levels.

False

T/F The EU is administered by the European Commission, a group composed of six commissioners, elected at the EU level.

False

T/F The International Monetary Fund uses the U.S. dollar as its unit of account.

False

T/F The United States in recent years has had a significant deficit in its current account. This means that the U.S. citizens are exporting more than they are importing.

False

T/F The World Bank is made up of one large institution, the International Development Association, and three smaller institutions.

False

T/F The balance of payments (BOPs) is a record of a country's transactions with its major trading partners.

False

T/F The law of one price states that in an efficient market, like products will never have like prices.

False

T/F When production equipment is similar, home office control of quality in foreign affiliates is more difficult because management must ensure that all plants adhere to the same standard.

False

The international environment includes all the uncontrollable forces originating outside the home country that surround and influence the firm.

False

In synchronous manufacturing, a production increase at the bottleneck means an increase

For the entire production system

The World Bank categorizes countries based on GNI per capita, using the following categories:

High income economies, middle income economies, low income economies

Performance measures are done to assess

If the strategy and its implementation are proceeding successfully

GNI/capita, a crude estimate of purchasing power, must be further refined by

Incorporating data on how the national income is distributed

Unrecorded transactions in an economy, such as goods and services that are bartered, are said to be part of which economy?

Informal

A company would rely on triple bottom-line accounting to

Measure the company's strategic performance

A broad statement that defines the purpose for a company's existence, including its business, objectives, and approach for reaching those objectives is known as a ________ statement.

Mission

Who took the United States off the gold system?

Nixon

Which of these measures would typically be used in measuring supply chain performance?

Orders delivered on time

Managers generally mention three areas in which they lack knowledge related to exporting, including identification of foreign markets, export procedures, and

Payment and financing procedures

Which aspect of strategic planning helps a company maintain itself within the boundaries of the mission and vision statements?

Setting corporate objectives

A company would create procedures in order to

Specify how certain activities will be carried out

Problems of the gold standard include

Storage cost, weight, doesn't earn interest

Knowledge that an individual has but that is difficult to express clearly in words, pictures, or formulas and is therefore difficult to transmit to others is known as ________ knowledge.

Tacit

The International Monetary Fund would characterize a developing economy as one in which

Technology is not as developed

A measure of the degree to which family income within a country is distributed equally is called

The GINI index

Which organization offers a matching service, bringing potential exporters together with business partners in specific markets?

The U.S. Dept of Commerce

A business would rely on the GINI Index to understand

The degree to which family income is distributed equally within a country

Bretton Woods led to an exchange rate agreement known as the Bretton Woods System or

The gold exchange standard

When an international manager is considering where to do business, one of the first considerations is

The size of the economy

International economic analyses should provide economic data on both actual and prospective markets.

True

T/F A disadvantage for companies that insist on less risky transactions, such as a letter of credit, is that they may be losing business to competitors who sell on open accounts.

True

T/F A straight bill of lading is nonnegotiable.

True

T/F CIBER is an international business research and education program located at U.S. universities.

True

T/F Countries put limitations on the convertibility of their currencies when they are concerned that their foreign reserves could be depleted.

True

T/F Free trade zones are areas designated by the government of a country for duty free entry of imported goods.

True

T/F It has been argued that the ultimate goal of effective supply chain management systems is to reduce inventory.

True

T/F Often new exporters think that they won't have to localize their approach, assuming that a marketing technique or distribution system that works in one country will work in another.

True

T/F One of the significant differences between formal and informal institutions is how they gain compliance.

True

T/F Outsourcing is hiring others to do noncore activities.

True

T/F Strategic plans promote consistency of action among the firm's managers worldwide and encourage them to consider the ramifications of their actions in the firm's other geographic and functional areas.

True

T/F The "over-the-wall" approach to product design involves an initial step in which the designers prepare the product's design, followed by sending the newly created design to the company's manufacturing engineers.

True

T/F The International Finance Corporation (IFC) invests in companies and financial institutions in developing countries.

True

T/F The United Nations operates with voluntary agreements, so it is essentially an informal institution.

True

T/F The WTO has negotiated a TRIPS agreement whereby property rights do not take precedence over public health.

True

T/F The sales agreement should specify as simply as possible the duties of the buyer and the firm.

True