MGT 430 Quiz #4 Chapter 16,17,18

Which of the following statements is true of EMCs?

EMCs are export specialists that act on behalf of their client firms

Before a firm is allowed access to the European marketplace, the European Union requires that the quality of the firm's manufacturing processes and products be certified under a quality standard known as

ISO 9000

All of the following are key factors that influence the decision of where to produce EXCEPT

a competitor factors

Which of the following is NOT a common pitfall of exporting?

a product offering that is customized to the local market

_____ is the most restrictive counter-trade arrangement.

barter

In a letter of credit transaction, the importer secures the letter of credit ______.

before product shipment

A _____ is an order written by an exporter instructing an importer to pay a specified amount of money at a specified time.

draft

Which of the following is a common difficulty that traders face when exporting goods or services to other countries?

exporters often face voluminous paperwork and complex formalities

Firms should produce in multiple locations when

fixed cost are low

What allows firms to increase efficiency by improving capacity utilization and reducing work-in-progress?

flexible machine cells

The Six Sigma methodology _______

is a direct descendant of the total quality management philosophy

Which of the following is NOT a purpose of the bill of lading?

it is form of payment

Counter-trade is attractive for all of the following reasons EXCEPT

it may involve the exchange of unusable or poor-quality goods that the firm cannot dispose of profitably

Which of the following is NOT an advantage of buying from independent suppliers?

it protects proprietary propety

The great premise of exporting is that ______

large revenue opportunities are often found in foreign markets

Concentrated production makes sense when

minimum efficient scale is high

Which of the following is a desired outcome of flexible manufacturing technology?

reducing setup times for complex equipments

Which type of counter-trade arrangement involves the use of a specialized third-party trading house?

switch trading

Logistics is the activity that controls the _______.

transmission of physical materials through the value chanin