Question 1

Tax-related issues are seldom a reason for globalization.

Accepted Answer

Tax-related issues, such as tax breaks and incentives, can play a role in attracting businesses to certain countries or regions and can therefore be a driver of globalization.

Question 2

According to the Foreign Policy Magazine Globalization Index,Mexico is considered one of the most global countries.

Accepted Answer

The Foreign Policy Magazine Globalization Index does not specifically list Mexico as one of the most global countries. The index typically highlights countries with high levels of economic, social, and political globalization, which may not include Mexico as a top contender.

Question 3

Which of the following is not a "flattener" identified by Thomas Friedman in his book,The World is Flat: A Brief History of the Twenty-First Century?
A)Collapse of the Berlin Wall
B)Rise of the Web browser
C)Open source collaboration
D)Outsourcing
E)Higher education levels

Accepted Answer

Higher education levels are not identified as a flattener by Thomas Friedman in his book, The World is Flat. The other options, such as the Rise of the Web browser and Outsourcing, are included as key factors that have flattened the world in terms of global commerce and communication.

Question 4

The adaptation approach to globalization achieves economies of scale by creating global operations.

Accepted Answer

The adaptation approach to globalization focuses on tailoring products and services to fit local markets and cultures, rather than achieving economies of scale through uniform global operations.

Question 5

An operations strategy in which a distribution company performs a variety of services on behalf of another company is identified by what term by Thomas Friedman?
A)Outsourcing
B)Offshoring
C)Insourcing
D)In-forming
E)Open-sourcing

Accepted Answer

The term identified by Thomas Friedman for an operations strategy in which a distribution company performs a variety of services on behalf of another company is "insourcing." Outsourcing involves contracting services out to a third-party provider, offshoring involves relocating business processes to a different country, in-forming refers to the process of acquiring information from a variety of sources, and open-sourcing involves sharing information and resources with a larger community.

Question 6

Which of the following is not a reason for outsourcing?
A)Reduce costs
B)Gain access to needed skills
C)Focus on core business
D)Better quality control
E)Flexibility

Accepted Answer

Better quality control is not a reason for outsourcing. In fact, outsourcing may lead to a decrease in quality control as the company may have less direct oversight and control over the outsourced work. The other options (A, B, C, and E) are commonly cited reasons for outsourcing.

Question 7

When McDonald's restaurants open in a foreign country and serve products similar to domestic products,it is an example of
A)A horizontally integrated MNC
B)A vertically integrated MNC
C)A diversified MNC
D)A virtually integrated MNC
E)A modernized MNC

Accepted Answer

This is an example of a horizontally integrated MNC because McDonald's is expanding into foreign markets by replicating its domestic products and services without significantly altering its business model or supply chain.

Question 8

The arbitrage approach to globalization exploits the differences among national markets by locating separate parts of supply chains in different places.

Accepted Answer

The statement correctly describes the arbitrage approach to globalization. This approach takes advantage of varying market conditions and regulations in different countries by splitting supply chains across multiple locations to optimize costs and maximize profits.

Question 9

What type of factory is one established to produce specific items at low cost known as?
A)Offshore
B)Source
C)Server
D)Contributor
E)Outpost

Accepted Answer

Offshore factories are established in countries with lower production costs to manufacture specific items more cheaply.

Question 10

What is one benefit of outsourcing?
A)Converts fixed costs into variable costs
B)Increase costs
C)Increases control
D)Reduced transportation costs
E)Decreased responsibility

Accepted Answer

By outsourcing, a firm can convert fixed costs (such as salaries and benefits for in-house employees) into variable costs, which are dependent on the level of production or services being outsourced. This allows the firm to better manage its costs and potentially increase profitability.

Question 11

Which is not an example of business process outsourcing?
A)Payroll services
B)Accounts payable
C)Insurance
D)Property accounting
E)Quality audits

Accepted Answer

The answer of Which is not an example of business...

Question 12

Manufacturing products at locations far from the home country is one of the most common functions of a global firm.

Accepted Answer

This statement is true. Many global firms manufacture their products in locations outside their home country to take advantage of lower labor and production costs, access new markets, and optimize their supply chain.

Question 13

A company explores global production for all the following reasons except when
A)Accessing cheaper labor costs.
B)Accessing new markets.
C)Accessing knowledge or skills.
D)Accessing resources.
E)All of these options are reasons.

Accepted Answer

All the options provided (A, B, C, D) are common reasons why a company might explore global production. Accessing cheaper labor costs, new markets, knowledge or skills, and resources are all valid motivations for a company to expand its production on a global scale.

Question 14

New product innovation is a business function that is difficult to globalize.

Accepted Answer

The answer of New product innovation is a business function...

Question 15

The United States is considered to be a highly globalized country.

Accepted Answer

The United States is considered to be a highly globalized country due to its significant involvement in international trade, cross-border investments, and cultural exchange. The country is host to numerous multinational corporations, international organizations, and global conferences, making it a hub for global business and collaboration.

Question 16

Which of the following is not a typical function that can easily be globalized?
A)Manufacturing
B)Procurement
C)Maintenance and monitoring of equipment
D)Customer support
E)Inspections

Accepted Answer

Inspections are typically not a function that can easily be globalized because they often require physical presence on-site.

Question 17

As long as the new firm has a good track record,creating appropriate performance measures at the onset of a new relationship is not important.

Accepted Answer

It is important to create appropriate performance measures at the onset of a new relationship, regardless of the track record of the new firm, in order to ensure clear expectations, goals, and accountability for both parties.

Question 18

Technology is increasingly allowing maintenance and monitoring of equipment from remote locations.

Accepted Answer

Technology such as sensors, Internet of Things (IoT), and remote monitoring systems allow equipment maintenance and monitoring from remote locations.

Question 19

Current employees should not be involved or told about efforts to outsource.

Accepted Answer

It is important to communicate with employees and involve them in the process when considering outsourcing. This can help minimize uncertainty and resistance within the organization. Lack of transparency can also negatively impact morale and trust in management.

Question 20

What type of factory can individual international production facilities eventually become as they gain additional competence?
A)Server
B)Outpost
C)Lead
D)Contributor
E)Source

Accepted Answer

As international production facilities gain additional competence, they can eventually become a lead factory. This means they would take on increased responsibility for developing new products and processes, and have a high degree of autonomy in decision-making within the global production network.

Quiz 14: Global Supply Chain and Service Integration

Tax-related issues are seldom a reason for globalization.

According to the Foreign Policy Magazine Globalization Index,Mexico is considered one of the most global countries.

Which of the following is not a "flattener" identified by Thomas Friedman in his book,The World is Flat: A Brief History of the Twenty-First Century?

The adaptation approach to globalization achieves economies of scale by creating global operations.

An operations strategy in which a distribution company performs a variety of services on behalf of another company is identified by what term by Thomas Friedman?

Which of the following is not a reason for outsourcing?

When McDonald's restaurants open in a foreign country and serve products similar to domestic products,it is an example of

The arbitrage approach to globalization exploits the differences among national markets by locating separate parts of supply chains in different places.

What type of factory is one established to produce specific items at low cost known as?

What is one benefit of outsourcing?

Which is not an example of business process outsourcing?

Manufacturing products at locations far from the home country is one of the most common functions of a global firm.

A company explores global production for all the following reasons except when

New product innovation is a business function that is difficult to globalize.

The United States is considered to be a highly globalized country.

Which of the following is not a typical function that can easily be globalized?

As long as the new firm has a good track record,creating appropriate performance measures at the onset of a new relationship is not important.

Technology is increasingly allowing maintenance and monitoring of equipment from remote locations.

Current employees should not be involved or told about efforts to outsource.

What type of factory can individual international production facilities eventually become as they gain additional competence?