Chapter 15 Flashcards
Which of the following terms refers to the decision of whether to produce a component
internally or to outsource it from another company?
buyer decision process
decision problem
per curiam decision
make-or-buy decision
make-or-buy decision
The process of assessing a company's ability to produce enough output to satisfy market demand is called \_\_\_\_\_\_\_\_. capacity planning lean production process management product structure modeling
capacity planning
\_\_\_\_\_\_\_\_ refers to the concentration of production facilities in one location. lean production Continuous production Centralized production Horizontal integration
Centralized production
________ refers to a situation in which facilities are spread over several locations, with one
facility for each national business environment in which the company markets its products.
Continuous production
Decentralized production
Vertical integration
Lean production
Decentralized production
The decentralization of production facilities is a typical policy for companies that pursue \_\_. a multinational strategy a global strategy mass customization vertical integration
a multinational strategy
The centralization of production facilities is a typical policy for companies that pursue \_\_\_\_\_\_\_\_. horizontal integration product differentiation a global strategy a multinational strategy
a global strategy
Companies with decentralized production facilities are often pursuing \_\_\_\_\_\_\_\_ strategies low-cost differentiation retrenchment combination
differentiation
Deciding the spatial arrangement of production processes within production units is called \_\_\_\_\_\_\_\_. facilities layout planning capacity planning process planning location economies
facilities layout planning
Which of the following factors has the least effect on facilities layout planning? supply of land in a nation cost of land in a nation a firms production process age of the company
age of the company
The process by which a company extends its control over additional stages of production is called \_\_\_\_\_\_\_\_. a push strategy a pull strategy vertical integration horizontal integration
vertical integration
Which of the following reasons encourages companies to make a product rather than buy it?
Making a product gives managers greater control over the production process.
Making a product lowers the risk associated with the production process.
Making a product increases the company’s flexibility to respond to market conditions.
Making a product gives companies a great deal of power in their relationships with suppliers.
Making a product gives managers greater control over the production process.
Which of the following reasons encourages companies to buy a product rather than make it?
Buying a product gives managers greater control over the production process.
Buying a product increases the company’s total costs significantly compared to making the product
in-house.
Buying a product ensures non-flexibility to local market conditions.
Buying a product enables a company to gain a great deal of power in their relationships with
suppliers.
Buying a product enables a company to gain a great deal of power in their relationships with
suppliers.
A firm that buys from another company a good or service that is part of the firm's value-added activities is practicing \_\_\_\_\_\_\_\_. outsourcing vertical integration horizontal integration lean production
outsourcing
\_\_\_\_\_\_\_\_ manufacturing is any manufacturing that takes place in a country different from the home country. offshore multidomestic cost minimization outsourcing
offshore
________ in the computer industry is the outsourcing of the actual assembly of computers plus the job
of shipping them to distributors and other intermediaries.
Agile manufacturing
Just in time manufacturing
Lean manufacturing
Stealth manufacturing
Stealth manufacturing
Storage facilities, retail outlets, and production equipment in the host country are examples of \_\_\_\_\_\_\_\_. liquid assets current assets fixed assets intangible assets
fixed assets
Which of the following is a barrier to buying products from international suppliers?
extremely low tariffs
additional transportation costs
lower flexibility to respond to market conditions
high political risk
additional transportation costs
What are the guidelines that provide the basis for quality certification called? WTO standards ISO 1000 ISO 9000 TQM standards
ISO 9000
________ is the term used to refer to a production technique in which inventory is kept to a
minimum and inputs to the production process arrive exactly when they are needed.
Just-in-time manufacturing
Lean manufacturing
Continuous production
Flow production
Just-in-time manufacturing
\_\_\_\_\_\_\_\_ is an integrated effort to systematically and continuously improve the quality of an organization's products and/or services. Total quality management Quality-of-life index Integrated business planning Organizational restructuring
Total quality management
When a market is experiencing rapid growth, a company will \_\_\_\_\_\_\_\_. emphasize on decruitment divest its operations reinvest in its operations implement retrenchment strategies
reinvest in its operations
American Depository Receipts (ADRs) are ________.
certificates that represent shares of stock in American companies
dollar deposits made by foreign firms conducting business in the U.S.
certificates that trade in the U.S. and represent shares of stock in a non-U.S. company
currency deposits made in the U.S. by firms based in other countries
certificates that trade in the U.S. and represent shares of stock in a non-U.S. company
\_\_\_\_\_\_\_\_ are traded in Luxembourg and London and represent a specific number of shares in an outside company common stock bills of lading revocable letters of credit global depository receipts
global depository receipts
________ is the financing obtained from investors who believe the borrower will experience
rapid growth and who receive equity in return for their investment.
internal funding
venture capital
credit derivative
mortage loan
venture capital
Which of the following types of money adds to the volatility of emerging markets because it can
be quickly withdrawn from its investment?
hot money
patient money
key money
fiat money
hot money
\_\_\_\_\_\_\_\_ refers to the foreign direct investment in factories, equipment, and land that cannot be pulled out of the market quickly. hot money patient money fiat money key money
patient money
