Question 1

A focal firm's heavy reliance on foreign suppliers may lead to which of the following?

Accepted Answer

A)   a firm's lack of control over value-chain tasks
B)   a competitive advantage for the focal firm
C)   an excessive burden on home-country suppliers
D)   improved relations with home-country workers

Question 2

The European Union facilitates supply chains by directly managing them in the member countries.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is an environmental risk associated with establishing a foreign outsourcing facility?

Accepted Answer

A)   slow turnaround time due to weak laws
B)   low morale from domestic employees
C)   high costs due to inadequate infrastructures
D)   high foreign employee retention rate

Question 4

Transformational outsourcing can best be described as which of the following?

Accepted Answer

A)   outsourcing expensive business activities to expedite internationalization
B)   the use of global sourcing to enable a firm to achieve strategic goals
C)   sourcing the production of component parts to reduce manufacturing
D)   global sourcing intended to eliminate redundancy and protect assets

Question 5

In a short essay, describe three challenges faced by firms that engage in global sourcing and are not directly related to suppliers.

Accepted Answer

Global sourcing introduces the following...

Question 6

Which of the following is a major concern for opponents of global sourcing?

Accepted Answer

A)   employment losses
B)   environmental harm
C)   minimum wage laws
D)   government support

Question 7

If a U.S. firm outsources to a Japanese company, and the Japanese yen increases in value against the dollar, which of the following is most likely to occur?

Accepted Answer

A)   The Japanese outsourcing services will become more expensive for Japanese companies to utilize.
B)   The U.S. company will experience additional cost savings in using the Japanese company.
C)   The Japanese outsourcing services will become less expensive for other foreign companies to utilize.
D)   The U.S. company will experience higher costs in using the Japanese company.

Question 8

Global procurement is characterized by which of the following?

Accepted Answer

A)   a short-term agreement between a freight forwarder and foreign intermediaries
B)   a contract between a focal firm and a foreign supplier for components or services
C)   access to a variety of independent suppliers and firms within an economic bloc
D)   subcontracting the assembly of products before importing them to the home country

Question 9

The attractiveness of a nation for global sourcing relates to factors such as political environment, physical infrastructures, and the education level of its workforce.

Accepted Answer

A) True 
 B)False

Question 10

Global Sourcing Debate 
Professor Agrawal's international business class has been studying the controversies related to global sourcing. Today, Professor Agrawal divides the class in half and assigns Group A the task of defending global sourcing. Group B is to argue against global sourcing.
-Group A uses the concept of creative destruction to most likely support which of the following statements?

Accepted Answer

A)   Firms that engage in offshoring require government oversight.
B)   Offshoring forces unskilled workers to seek additional education.
C)   Global sourcing creates opportunities and stimulates innovation.
D)   Outsourcing technical jobs leads to the creation of competitive firms.

Question 11

In order to maximize returns, firms should outsource tasks which ________.

Accepted Answer

A)   are strategically important to the firm's value-chain
B)   can be efficiently accomplished by foreign suppliers
C)   will impact the foreign supplier's distribution area
D)   are critical to the focal firm's annual profit margin

Question 12

Firms often establish their own sourcing operations abroad to maintain control of outsourced value-chain activities and technologies.

Accepted Answer

A) True 
 B)False

Question 13

The main purpose of a global supply-chain network is to ________.

Accepted Answer

A)   eliminate the need for distribution intermediaries
B)   consolidate the number of freight forwarders
C)   maximize a firm's competitive advantage
D)   re-organize a firm's corporate structure

Question 14

Global Sourcing Debate 
Professor Agrawal's international business class has been studying the controversies related to global sourcing. Today, Professor Agrawal divides the class in half and assigns Group A the task of defending global sourcing. Group B is to argue against global sourcing.
-Which of the following arguments would most likely be presented by Group B?

Accepted Answer

A)   Global sourcing decreases a nation's ability to be competitive.
B)   Global sourcing improves the efficiency of manufacturing firms.
C)   Global sourcing empowers labor unions and instigates strikes.
D)   Global sourcing lowers the legal minimum wage in foreign nations.

Question 15

Focal firms use global sourcing as an opportunity to transfer employees, renegotiate business contracts, and expand training programs.

Accepted Answer

A) True 
 B)False

Question 16

In a short essay, describe three nations and the specific attributes that make them popular for focal firms.

Accepted Answer

Singapore and Dubai assert that their sa...

Question 17

Which of the following represents the best reason for companies to go offshore?

Accepted Answer

A)   strategic motives
B)   cost cutting
C)   organizational restructuring
D)   managerial improvement

Question 18

All of the following are typical activities performed by suppliers as part of a global supply-chain network except ________.

Accepted Answer

A)   generate sales
B)   maintain inventory
C)   transport goods
D)   process orders

Question 19

Proponents of global sourcing admit that nations risk a drain on knowledge and valuable skills that keep an economy competitive.

Accepted Answer

A) True 
 B)False

Question 20

A company that planned to outsource IT development would be most likely to save in salary costs by hiring professionals from which of the following countries?

Accepted Answer

A)   Hong Kong
B)   Philippines
C)   Singapore
D)   Germany

Exam 13: Global Sourcing

Transformational outsourcing can best be described as which of the following?

Correct Answer
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Correct Answer
verified

The main purpose of a global supply-chain network is to ________.

Correct Answer
verified

Which of the following is a major concern for opponents of global sourcing?

Correct Answer
verified

Focal firms use global sourcing as an opportunity to transfer employees, renegotiate business contracts, and expand training programs.

Correct Answer
verified

Correct Answer
verified

A company that planned to outsource IT development would be most likely to save in salary costs by hiring professionals from which of the following countries?

Correct Answer
verified

Global procurement is characterized by which of the following?

Correct Answer
verified

In a short essay, describe three nations and the specific attributes that make them popular for focal firms.

Correct Answer
verified
Singapore and Dubai assert that their sa...
View Answer

Firms often establish their own sourcing operations abroad to maintain control of outsourced value-chain activities and technologies.

Correct Answer
verified

The European Union facilitates supply chains by directly managing them in the member countries.

Correct Answer
verified

A focal firm's heavy reliance on foreign suppliers may lead to which of the following?

Correct Answer
verified

The attractiveness of a nation for global sourcing relates to factors such as political environment, physical infrastructures, and the education level of its workforce.

Correct Answer
verified

Which of the following represents the best reason for companies to go offshore?

Correct Answer
verified

In a short essay, describe three challenges faced by firms that engage in global sourcing and are not directly related to suppliers.

Correct Answer
verified
Global sourcing introduces the following...
View Answer

All of the following are typical activities performed by suppliers as part of a global supply-chain network except ________.

Correct Answer
verified

If a U.S. firm outsources to a Japanese company, and the Japanese yen increases in value against the dollar, which of the following is most likely to occur?

Correct Answer
verified

Which of the following is an environmental risk associated with establishing a foreign outsourcing facility?

Correct Answer
verified

In order to maximize returns, firms should outsource tasks which ________.

Correct Answer
verified

Proponents of global sourcing admit that nations risk a drain on knowledge and valuable skills that keep an economy competitive.

Correct Answer
verified

Exam 13: Global Sourcing

Transformational outsourcing can best be described as which of the following?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The main purpose of a global supply-chain network is to ________.

Correct AnswerverifiedShow Answer

Which of the following is a major concern for opponents of global sourcing?

Correct AnswerverifiedShow Answer

Focal firms use global sourcing as an opportunity to transfer employees, renegotiate business contracts, and expand training programs.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A company that planned to outsource IT development would be most likely to save in salary costs by hiring professionals from which of the following countries?

Correct AnswerverifiedShow Answer

Global procurement is characterized by which of the following?

Correct AnswerverifiedShow Answer

In a short essay, describe three nations and the specific attributes that make them popular for focal firms.

Correct AnswerverifiedSingapore and Dubai assert that their sa...View AnswerShow Answer

Firms often establish their own sourcing operations abroad to maintain control of outsourced value-chain activities and technologies.

Correct AnswerverifiedShow Answer

The European Union facilitates supply chains by directly managing them in the member countries.

Correct AnswerverifiedShow Answer

A focal firm's heavy reliance on foreign suppliers may lead to which of the following?

Correct AnswerverifiedShow Answer

The attractiveness of a nation for global sourcing relates to factors such as political environment, physical infrastructures, and the education level of its workforce.

Correct AnswerverifiedShow Answer

Which of the following represents the best reason for companies to go offshore?

Correct AnswerverifiedShow Answer

In a short essay, describe three challenges faced by firms that engage in global sourcing and are not directly related to suppliers.

Correct AnswerverifiedGlobal sourcing introduces the following...View AnswerShow Answer

All of the following are typical activities performed by suppliers as part of a global supply-chain network except ________.

Correct AnswerverifiedShow Answer

If a U.S. firm outsources to a Japanese company, and the Japanese yen increases in value against the dollar, which of the following is most likely to occur?

Correct AnswerverifiedShow Answer

Which of the following is an environmental risk associated with establishing a foreign outsourcing facility?

Correct AnswerverifiedShow Answer

In order to maximize returns, firms should outsource tasks which ________.

Correct AnswerverifiedShow Answer

Proponents of global sourcing admit that nations risk a drain on knowledge and valuable skills that keep an economy competitive.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified
Singapore and Dubai assert that their sa...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Global sourcing introduces the following...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified