In a short essay, explain what the world would be like without international trade.
What will be an ideal response?
Question 2In a short essay, discuss five methods managers can employ to protect the interests of the focal firm in relationships with foreign suppliers.
What will be an ideal response?
Question 3A focal firm's heavy reliance on foreign suppliers may lead to which of the following?
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 4In order to maximize returns, firms should outsource tasks which ________.
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 5Which of the following represents the best reason for companies to go offshore?
A) strategic motives
B) cost cutting
C) organizational restructuring
D) managerial improvement
Question 6Managers can minimize the risk of creating employee tension when outsourcing by ________.
A) paying domestic employees the same wages as foreign suppliers
B) requiring foreign employees to work four-day work weeks
C) sending domestic managers to foreign countries for training
D) seeking the opinion of labor groups when choosing foreign partners
Question 7The main purpose of a global supply-chain network is to ________.
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
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