Professional Documents
Culture Documents
2-2
Copyright © 2014 Pearson Education, Inc.
6) One reason for global operations is to gain improvements in the supply chain.
Answer: TRUE
Diff: 1
AACSB: Dynamics of the global economy
Learning Outcome: Discuss the influences of the global competitive environment on operations
management
8) To attract and retain global talent, and to expand a product's life cycle, are both reasons to globalize.
Answer: TRUE
Diff: 2
AACSB: Dynamics of the global economy
Learning Outcome: Discuss the influences of the global competitive environment on operations
management
9) A product will always be in the same stage of its product life cycle regardless of the country.
Answer: FALSE
Diff: 2
AACSB: Dynamics of the global economy
Learning Outcome: Discuss the influences of the global competitive environment on operations
management
10) The World Trade Organization helps provide governments and industries around the world with
protection from firms that engage in unethical conduct.
Answer: TRUE
Diff: 2
Key Term: World Trade Organization (WTO)
AACSB: Ethical understanding and reasoning abilities
Learning Outcome: Discuss the role of operations management in corporate social responsibility and
sustainability
11) Which of the following statements regarding the Dreamliner 787 is true?
A) Boeing has found partners in over a dozen countries.
B) The new aircraft incorporates a wide range of aerospace technologies.
C) The new aircraft uses engines from not one, but two manufacturers.
D) Boeing will add only 20 to 30 percent of the aircraft's value.
E) All of the above are true.
Answer: E
Diff: 2
AACSB: Dynamics of the global economy
Learning Outcome: Discuss the influences of the global competitive environment on operations
management
2-3
Copyright © 2014 Pearson Education, Inc.
12) Boeing's new 787 Dreamliner:
A) is assembled in Washington, D.C.
B) uses engines from Japan.
C) has its fuselage sections built in Australia.
D) has increased efficiency from new engine technology.
E) results from a partnership of about a dozen companies.
Answer: D
Diff: 2
13) Cost cutting in international operations can take place because of:
A) lower taxes and tariffs.
B) lower wage scales.
C) lower indirect costs.
D) less stringent regulations.
E) all of the above.
Answer: E
Diff: 1
AACSB: Dynamics of the global economy
Learning Outcome: Discuss the influences of the global competitive environment on operations
management
14) Which of the following did the authors NOT suggest as a reason for globalizing operations?
A) reduce costs
B) improve the supply chain
C) pursue stockholder approval ratings
D) understand markets
E) attract and retain global talent
Answer: C
Diff: 2
AACSB: Dynamics of the global economy
Learning Outcome: Discuss the influences of the global competitive environment on operations
management
15) Multinational organizations can shop from country to country and cut costs through:
A) lower wage scales.
B) lower indirect costs.
C) less stringent regulations.
D) lower taxes and tariffs.
E) all of the above.
Answer: E
Diff: 2
AACSB: Dynamics of the global economy
Learning Outcome: Discuss the influences of the global competitive environment on operations
management
2-4
Copyright © 2014 Pearson Education, Inc.
16) The term maquiladora is most synonymous with:
A) free trade zones in Mexico.
B) Chinese forced labor camps.
C) home-based or cottage industry.
D) areas that do not meet U.S. standards for workplace safety and pollution.
E) tax breaks provided by some South American countries to other South American countries.
Answer: A
Diff: 2
Key Term: Maquiladoras
AACSB: Dynamics of the global economy
Learning Outcome: Discuss the influences of the global competitive environment on operations
management
2-5
Copyright © 2014 Pearson Education, Inc.
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