Question 1

Focal firms that internationalize through exporting will most likely perform ________ in the home market.

Accepted Answer

A)  sales
B)  distribution
C)  marketing
D)  manufacturingE) None of the above
F) A) and B)

Question 2

As a strategic asset, ________ is of the lowest importance to a firm.

Accepted Answer

A)  customer service
B)  R&D, design
C)  manufacturing of parts
D)  marketing and brandingE) A) and C)
F) A) and B)

Question 3

Most companies cite cost cutting as the main reason for global sourcing.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following documents is the contract between the shipping company and the exporter?

Accepted Answer

A)  pro forma invoice
B)  bill of lading
C)  export declaration
D)  commercial invoiceE) A) and B)
F) All of the above

Question 5

The likelihood of internalizing ________ rather than outsourcing it is considerably high.

Accepted Answer

A)  R&D
B)  manufacturing of parts
C)  sales and distribution
D)  customer serviceE) B) and D)
F) A) and B)

Question 6

Which of the following should be considered first in making the decision to export OTC towels to Canada?

Accepted Answer

A)  What is the probability of OTC and Earth Waves entering into a joint venture?
B)  How much fluctuation occurs in the exchange rate between the Canadian dollar and the British pound?
C)  What is the likelihood of Earth Waves opening a subsidiary in Canada?
D)  What documentation would be required for OTC to export towels to Asia?E) B) and D)
F) A) and C)

Question 7

The exporter usually first issues a quotation or pro forma invoice upon request by potential customers.

Accepted Answer

A) True 
 B)False

Question 8

A focal firm's overreliance on suppliers can potentially lead to ________.

Accepted Answer

A)  reduced control over important value-chain tasks
B)  added competitive advantage for the focal firm
C)  an excessive burden on home-country suppliers
D)  consolidation of the focal firm's network of intermediariesE) A) and B)
F) C) and D)

Question 9

Contract manufacturing can best be defined as ________.

Accepted Answer

A)  the outsourcing to independent suppliers of business service functions such as accounting, payroll, human resource functions, travel services, IT services, customer service, or technical support
B)  the relocation of a business process or entire manufacturing facility to a foreign country
C)  sourcing from the firm's own production facilities
D)  an arrangement in which the focal firm contracts with an independent supplier to manufacture products according to well-defined specificationsE) A) and B)
F) A) and C)

Question 10

Which of the following is true with regard to offshoring?

Accepted Answer

A)  Offshoring is common in the service sector, including banking, software code writing, legal services, and customer-service activities.
B)  Russia is the current leader in the processing of advanced economies' relocated business services.
C)  Offshoring substantially reduces the overall efficiency of MNEs.
D)  With rapid globalization and internationalization of businesses, offshoring is a visibly declining trend.E) A) and D)
F) B) and C)

Question 11

________ will internationalize via FDI because they require direct contact with customers.

Accepted Answer

A)  Insurance firms
B)  Accountants
C)  Construction firms
D)  Retailing firmsE) None of the above
F) All of the above

Question 12

Offshoring is common in the service sector, including banking, software code writing, legal services, and customer-service activities.

Accepted Answer

A) True 
 B)False

Question 13

The more diverse the firm's global supply chain, the lesser the cost of logistics.

Accepted Answer

A) True 
 B)False

Question 14

Given the complexities of international business, manufacturing is generally the only value-chain activity that firms outsource abroad.

Accepted Answer

A) True 
 B)False

Question 15

Captive sourcing is an arrangement in which the focal firm contracts with an independent supplier to manufacture products according to well-defined specifications.

Accepted Answer

A) True 
 B)False

Question 16

In a short essay, describe how cost efficiencies are a benefit to sourcing abroad, and explain how information and communications technology can help reduce costs for an international firm.

Accepted Answer

The primary rationale for global sourcin...

Question 17

Prox Inc. is a U.S.-based manufacturer of consumer electronics. It decides to export to Mexico and wants to protect its goods against damage, loss, and pilferage. Which of the following documents is applicable here?

Accepted Answer

A)  insurance certificate
B)  bill of lading
C)  pro forma invoice
D)  licenseE) All of the above
F) A) and B)

Question 18

Which of the following statements is true with regard to the R&D activities of a firm?

Accepted Answer

A)  As a strategic asset, R&D activities are of moderate importance to the firm.
B)  R&D activities are usually concentrated at home.
C)  R&D activities have a low likelihood of being internalized.
D)  R&D activities have a high likelihood of being outsourced.E) B) and C)
F) A) and D)

Question 19

Countries with weak legal environments can erode key strategic assets of firms.

Accepted Answer

A) True 
 B)False

Question 20

The Internet provides the means to export pure services.

Accepted Answer

A) True 
 B)False

Exam 13: Exporting and Global Sourcing

Which of the following is true with regard to offshoring?

Correct AnswerverifiedShow Answer

Given the complexities of international business, manufacturing is generally the only value-chain activity that firms outsource abroad.

Correct AnswerverifiedShow Answer

The likelihood of internalizing ________ rather than outsourcing it is considerably high.

Correct AnswerverifiedShow Answer

The exporter usually first issues a quotation or pro forma invoice upon request by potential customers.

Correct AnswerverifiedShow Answer

Which of the following statements is true with regard to the R&D activities of a firm?

Correct AnswerverifiedShow Answer

Offshoring is common in the service sector, including banking, software code writing, legal services, and customer-service activities.

Correct AnswerverifiedShow Answer

Which of the following should be considered first in making the decision to export OTC towels to Canada?

Correct AnswerverifiedShow Answer

A focal firm's overreliance on suppliers can potentially lead to ________.

Correct AnswerverifiedShow Answer

Most companies cite cost cutting as the main reason for global sourcing.

Correct AnswerverifiedShow Answer

Prox Inc. is a U.S.-based manufacturer of consumer electronics. It decides to export to Mexico and wants to protect its goods against damage, loss, and pilferage. Which of the following documents is applicable here?

Correct AnswerverifiedShow Answer

In a short essay, describe how cost efficiencies are a benefit to sourcing abroad, and explain how information and communications technology can help reduce costs for an international firm.

Correct AnswerverifiedThe primary rationale for global sourcin...View AnswerShow Answer

Countries with weak legal environments can erode key strategic assets of firms.

Correct AnswerverifiedShow Answer

The Internet provides the means to export pure services.

Correct AnswerverifiedShow Answer

Focal firms that internationalize through exporting will most likely perform ________ in the home market.

Correct AnswerverifiedShow Answer

Which of the following documents is the contract between the shipping company and the exporter?

Correct AnswerverifiedShow Answer

________ will internationalize via FDI because they require direct contact with customers.

Correct AnswerverifiedShow Answer

Contract manufacturing can best be defined as ________.

Correct AnswerverifiedShow Answer

As a strategic asset, ________ is of the lowest importance to a firm.

Correct AnswerverifiedShow Answer

Captive sourcing is an arrangement in which the focal firm contracts with an independent supplier to manufacture products according to well-defined specifications.

Correct AnswerverifiedShow Answer

The more diverse the firm's global supply chain, the lesser the cost of logistics.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The primary rationale for global sourcin...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified