Focal firms often configure value-adding activities in order to ________.
A) reduce marketing costs
B) take advantage of blocs
C) decrease delivery time
D) avoid exchange rate issues
Question 2Business activities that would most likely be offshored are characterized by which of the following?
A) technical functions that would be too difficult for domestic workers
B) services related to long-term research projects and product development
C) routine tasks that do not relate to the firm's primary service or product
D) functions related to the firm's core competencies and strategic assets
Question 3Which of the following is a key driver behind the increase of global procurement?
A) demand for technically skilled workers
B) increasing transportation costs
C) Internet communication and access
D) abundance of MNEs and born globals
Question 4A focal firm that acquires supplies from its foreign subsidiary is participating in which of the following activities?
A) captive sourcing
B) configuration
C) business process outsourcing
D) externalization
Question 5Which of the following value-chain activities would most likely be internalized by a focal firm that makes printers and copiers?
A) microelectronics
B) accounting
C) customer service
D) travel services
Question 6Contract manufacturing can best be defined as which of the following?
A) A foreign subsidiary produces supplies for a focal firm according to a well-defined contractual agreement.
B) A focal firm outsources the production of supplies to a third-party provider based in the home country.
C) A domestic subsidiary of the focal firm agrees to produce components for a focal firm according to contractual requirements.
D) A foreign-based independent supplier manufactures a product according to a focal firm's specifications.
Question 7Why is a letter of credit most likely a popular method of payment in export transactions?
A) the process is simple and banking officials are in control
B) the method requires a limited amount of documentation
C) the exporter bills customers with strong credit ratings
D) the interests of the seller and buyer are protected simultaneously
Question 8A focal firm's relocation of its manufacturing facility to a foreign country is known by which of the following terms?
A) offshoring
B) captive sourcing
C) outsourcing
D) subsidizing
Question 9Whereas executives specify roles and relationships in a functional structure in terms of ________, they use the divisional structure format to specify them according to ________.
A) inputs; outputs
B) buyers; suppliers
C) markets; countries
D) politics; economics