Deck 12: International Production and Logistics Strategies

Question 1

The defining nature of the global value chain is the strategic coordination of an aggregated value chain.

Answer 1

False
Explanation: It is false because the global factory coordinates a network of value creating business activities across regions and countries and therefore has to coordinate a disaggregated value chain.

Question 2

Motives for internationalising are based on factors that make operating in the firm's home market less appealing and are known as push factors.

Answer 2

True
Explanation: Correct because changes in the home market, such as market saturation and rising cost of production, push firms to internationalisation.

Question 3

Location advantages that cannot be accessed or exploited in the firm's home country are pull factors in the internationalisation decision process.

Answer 3

True
Explanation: The location specific advantages of particular host countries pull firms out of their home countries.

Question 4

The basic supply chain consists of the supplier, the focal firm, and the customer.

Question 5

In international supply chain management there is a trade-off between location advantages and logistics costs.

Question 6

The decision-making authority of offshore factories typically are very low.

Question 7

The typical strategic roles for international production activities linked to the most value adding is to attract global talent.

Question 8

The type of activity that the MNE is investing in is a stronger determinant of the location choice than is the industry in which the firm operates.

Question 9

Cognitive distance refers to the extent to which the organisational and cultural settings differ between the home and host country.

Question 10

International production and logistic is improved by adopting an orientation by paying attention to the total design and configuration of the international production network.

Question 11

In international production and logistics distance refers to _______ Please select all that apply.

A) Geographic distance between origin and host countries
B) Economic distance
C) Institutional distance
D) Cultural distance

Question 12

The primary purpose of a physical efficient process is to _______ Please select all that apply.

A) Supply predictable demand at the lowest possible cost
B) Shorten lead time as long as it does not increase costs
C) Focus on supplier selection based on cost
D) Maximize performance and minimize costs

Question 13

International production involves

A) FDI
B) Outsourcing
C) Global sourcing
D) Nearshoring

Question 14

International production in the global factory is not only about lowering production costs and optimising logistics, but international production units should also be tapped as _______ Please select all that apply.

A) Managing suppliers
B) Sources of competitive advantage
C) Standardizing production
D) Generating process improvements

Question 15

To obtain as much information about the market and how end customers use products, a multinational implements

A) Knowledge adoption mechanisms
B) Information sharing mechanisms
C) Knowledge exploitation mechanisms
D) Knowledge seeking mechanisms

Question 16

The three factors affecting knowledge transfer effectiveness in the global factory are; mode of ownership, location and distance, and _______

A) the use of an intermediary
B) Similarities in industry
C) Degree of internationalisation
D) Similarities in technology

Question 17

Global production networks _______ (select all that apply)

A) Are systems of connecting innovation
B) Create value
C) Are configured in such a manner that their knowledge and value-adding activities are coordinated and complementary.
D) Are single overseas factory

Question 18

Trade imbalance refers to (select all that apply)

A) demand for shipping significant varies across directions of shipping
B) more demand for shipping cargoes from China to Europe, but a lot less demand in the opposite direction.
C) Directional imbalance
D) None of the above

Question 19

In the case of knowledge transfers, the firm's degree of internationalisation has a positive effect on the firm's _______

A) Innovative capacity
B) Economies of scope
C) Ability to reduce distance
D) Ability to reduce costs

Question 20

The nature of 'fine-slicing' the value chain is _______

A) Placing specific productive activities in the most optimal geographical location using the most appropriate ownership structure
B) Outsourcing some value chain activities
C) Offshoring the most value adding activities in the value chain
D) Internalising the most value adding activities in the value chain