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Important
Important
* c. capital intensive.
(p. 750)
2. The competitive strategy that focuses on the reduction of manufacturing costs is known
as
* a. efficiency.
b. dependability.
c. quality.
d. flexibility.
(p. 751)
3. The competitive strategy that focuses on the degree of trust in a companys products and
its delivery and price promises is known as
a. efficiency.
* b. dependability.
c. quality.
d. flexibility.
(p. 751)
4. The competitive strategy that focuses on performance reliability, speed of delivery, etc. is
known as
a. efficiency.
b. dependability.
* c. quality.
d. flexibility.
(p. 751)
5. The competitive strategy that focuses on the ability of the production process to adjust the
volume of output is known as
a. efficiency.
b. dependability.
c. quality.
* d. flexibility.
(p. 751)
6. The competitive strategy that focuses on the ability to develop new products and ideas is
known as
a. efficiency.
b. dependability.
c. quality.
* d. innovation.
(p. 751)
* a. efficiency.
b. dependability.
c. quality.
d. flexibility.
(p. 751)
b. the degree of trust in a companys products and its delivery and price promises.
d. the ability of the production process to make different kinds of products and/or to
adjust the volume of output.
(p. 751)
* b. the degree of trust in a companys products and its delivery and price promises.
d. the ability of the production process to make different kinds of products and/or to
adjust the volume of output.
(p. 751)
b. the degree of trust in a companys products and its delivery and price promises.
d. the ability of the production process to make different kinds of products and/or to
adjust the volume of output.
(p. 751)
b. the degree of trust in a companys products and its delivery and price promises.
* d. the ability of the production process to make different kinds of products and/or to
adjust the volume of output.
(p. 751)
b. the degree of trust in a companys products and its delivery and price promises.
(p. 751)
(p. 751)
14. The manufacturing philosophy that manufactures products close to their customers, using
country-specific manufacturing facilities to meet local needs is known as
* a. multidomestic.
b. regional.
c. global.
(p. 752)
15. The manufacturing philosophy that centralizes manufacturing and offers a selection of
standard, lower priced products to their markets is known as
a. multidomestic.
b. regional.
* c. global.
(p. 752)
16. The international manufacturing configuration that involves the international dispersal of
stages of the production process to low-cost regions, with final assembly taking place at different
locations is known as
a. autonomous regional
b. regional/global.
* c. coordinated global.
d. multidomestic.
(p. 752)
17. The international manufacturing configuration that involves local or regional assembly of
globally produced parts and components is known as
a. autonomous regional
* b. regional/global.
c. coordinated global.
d. multidomestic.
(p. 752)
18. The product strategy that would result in having several manufacturing facilities located
close to local markets and controlled by local management would most likely be
a. technology driven.
* b. marketing intensive.
c. low cost.
d. economies of scale.
(pp. 752-753)
19. The product strategy that would result in using large-scale manufacturing and/or
manufacturing in low-wage countries would most likely be
a. technology driven.
b. marketing intensive.
* c. low cost.
d. skimming.
(pp. 752-753)
a. manufacturing interchange.
* b. rationalization.
c. regional.
d. centralized.
(p. 753)
21. A manufacturing system that involves plants producing a range of components and
moving them around so that all plants assemble the finished product for the local market is
known as
* a. manufacturing interchange.
b. rationalization.
c. regional.
d. centralized.
(p. 753)
22. Which manufacturing strategy most closely describes setting up a plant in a low-cost
foreign country followed by importation back into the home country?
a. Manufacturing interchange.
b. Offset.
c. Rationalization.
* d. Offshore manufacturing.
(p. 753)
a. Manufacturing interchange.
b. Offset.
c. Rationalization.
* d. Offshore manufacturing.
(p. 753)
24. A manufacturing operation established outside of the United States, primarily in Mexico
to which components are shipped from the United states duty free for assembly is known as
* a. maquiladora.
b. manufacturing interchange.
c. duty drawback.
d. sonora.
(p. 754)
a. They are established to reduce growing pollution along the Mexico-U.S. border.
* b. They are able to export products to the United States and duties only apply on the
value added in Mexico.
c. They are declining in importance since Mexican wages along the border are now
nearly equal to those of U.S. workers along the border.
(p. 754)
a. transportation costs.
b. duties on components.
(p. 754)
a. Companies will generally only invest in countries where they can use exactly the
same layout.
b. Plants that use a product layout that facilitates repetitive or continuous production
must use a flat plant layout.
* c. Production technology and location can affect plant layout.
d. Multi-ethnic work forces typically work better in high rise plants rather than work
together in the same assembly line.
(p. 755)
28. A quality system that deals with defects through repair facilities and service warranties is
known as
c. just-in-time.
d. ISO 9000.
(p. 756)
29. A quality system that is designed to eliminate all defects and ensure customer satisfaction
is known as
c. just-in-time.
d. ISO 9000.
(p. 756)
30. Which of the following accurately reflects the philosophy of zero defects?
a. The United States has adopted this philosophy because of the attitude in the
United States that a product must be so good that the customer wouldnt think of buying from
anyone else.
d. It does not deal with capital-equipment purchase decisions since those are
primarily long-term finance decisions.
(p. 756)
31. The process of continuous improvement at every level of the organization is an essential
part of
c. benchmarking.
d. plant design.
(p. 756)
32. The strategy that focuses on the percentage of production that gets through the whole
production process without rework is known as
c. just-in-time.
(p. 757)
33. A quality standard intended to promote quality at every level of the organization is
known as
c. just-in-time.
* d. ISO 9000.
(p. 757)
* c. European Union.
(p. 758)
* b. Companies must document how workers perform every function that affects
quality and install mechanisms to ensure that they follow through on a documented routine.
d. Once a company achieves ISO 9000 certification, it can adopt that certification at
all of its facilities.
(p. 758)
36. Non-European companies do not have to be concerned about ISO 9000 certification
(p. 759)
37. Which of the following is true in sourcing and manufacturing strategies for companies
that are considered to be MNEs?
* c. They can manufacture in either the local market or another country and then
import it into the market.
d. None of these.
(p. 759)
38. The strategy in which a firm needs to determine where parts and components will be
manufactured and where final products will be assembled is known as
* a. global sourcing.
b. outsourcing.
c. manufacturing interchange.
d. rationalization.
(p. 759)
39. Which of the following qualifies as a global sourcing and production strategy?
a. Ford assembles cars in Mexico and ships them into the United States.
c. Ford assembles cars in the United States (the parent country) and exports them to
Mexico.
* d. All of these.
(p. 759)
40. Which of the following is not a major problem with global sourcing?
a. language differences.
b. distance.
c. currency.
* d. lower costs.
(p. 760)
b. political stability.
* d. to improve quality.
(p. 760)
42. Why is global sourcing more expensive than domestic sourcing?
(p. 762)
* a. outsourcing.
b. global sourcing.
c. transfer sourcing.
d. domestic sourcing.
(p. 762)
(p. 762)
45. The sourcing model where the company owns different stages in the production process
is known as
* a. vertical integration.
d. horizontal integration.
(p. 762)
46. The sourcing model where the company decides not to manufacture components itself
due to its lack of competitive advantage is known as
* a. vertical integration.
c. chaebol arrangements.
d. horizontal integration.
(p. 762)
(p. 763)
48. Which of the following reflects supplier relations for U.S. and Japanese companies?
d. U. S. suppliers prefer the input from GMs manufacturing teams to those of the
Japanese teams due to the language barriers.
(p. 763)
49. The link between the outsourcing decision and supplier relations is performed by the
a. sales staff.
* b. purchasing agent.
c. customs agent.
d. distributor.
(p. 765)
50. What is a key commodity for which it makes sense to centralize the purchasing decision?
(p. 766)
51. An inventory system that delivers inputs to production as they are needed is known as
d. ISO 9000.
(p. 768)
52. A special area designated by a government where tariffs can be delayed or avoided is
known as
a. a tariff zone.
c. a manufacturing interchange.
d. a flexibility zone.
(p. 769)
53. A free trade zone usually established near a port of entry and usually consisting of a
distribution facility or an industrial park is known as
b. a subzone.
c. an exporting zone.
(p. 770)
(p. 770)
55. Which of the following is not an activity permitted by a free trade zone?
* c. Domestic goods are moved into a U.S. zone to achieve import status prior to their
actual importation.
d. Goods are produced wholly of foreign content in U.S. zones and then exported.
(p. 770)
56. Which of the following is true concerning global research and development (R&D)?
a. There is a growing trend among U.S. but not non-U.S. MNEs to engage in
foreign-based R&D.
(p. 771)
57. Companies with a strong home-market orientation tend to follow which R&D strategy?
* a. Centralized.
b. Decentralized.
c. Multidomestic.
d. Idea interchange.
(p. 771)
58. Which of the following accurately reflects Hondas product design and engineering
strategy for the new Honda Accord introduced in 1993?
a. It used design teams from Japan, Brazil and the United States to design the new
car.
d. All of these.
(p. 771