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Study Resources (Business Management)

  131.A(n) ____________ is a bill of lading issued by an air carrier.  132.Before opening a letter of credit, a buyer frequently requests a __________________. This is the exporter's formal quotation, a description of the merchandise, price, delivery time, proposed method of shipment, terms of sale, and ports of exit and entry.  133.An.
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  153.What are the reasons for sourcing globally, and what options are available to a firm that wishes to engage in global sourcing?  1. Whollyownedsubsidiary. May be established in a country with low-cost labor to supply components to the home country plant, or the subsidiary may produce a product that either is.
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  61.The Incoterm for the situation where the product is delivered at the specified destination, the seller pays for carriage to the named place, as well as all duties, taxes, and customs charges, and assumes all risk until the goods are delivered to the buyer at the specified destination, is  A.DDP. B.DAT. C.CIF. D.DAP. E.FAS. 62.The Incoterm.
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  41.According to the text, an international business is  A.a company that exports. B.a company that has foreign direct investment. C.a company with both exports and foreign direct investment. D.a company with operations in multiple nations. E.a company from a foreign country. 42.International business differs from domestic business in that a firm operating across borders must deal.
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  Multiple Choice Questions 31.Why do companies not export?  A.They do not wish to increase their sales. B.They do not feel a need for exporting. C.They are preoccupied with the host market. D.They are reluctant to embark on a new and unknown operation. 32.When nonexporting firms are asked why they do not export, they commonly list each.
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  91.An SED includes all of the following except  A.names and addresses of the shipper and consignee. B.U.S. port of exit and foreign port of unloading. C.export license number and bill of lading number. D.description and value of the goods. E.carrier's manifest. 92.An export bill of lading serves as all of the following except a  A.contract for carriage.
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  131.Computer-_______________ uses computers and robots to further improve productivity and quality.  132.A balanced system in which there is little or no delay time and idle in-process and finished inventory is called _________.  133.For JIT to be successful, manufacturers have to have the cooperation of their ______.  134.______ JIT involves a narrow focus on.
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  121.Outsourcing decisions, including the decision to use global sources of supply, are extensions of the ______ decisions of earlier eras.  122.Trade that occurs between a parent company and its foreign affiliates is called ____________.  123.In U.S. industry, the proportion of externally purchased materials in the overall cost of goods sold has been.
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  101.Basic named perils that marine insurance will covers include  A.perils of the sea, fires, jettisons, hurricanes. B.theft and larceny. C.piracy on the seas. D.accidents and storms other than hurricanes. E.flooding, tsunamis, earthquakes. 102.The CE mark in the EU  A.shows that an export license has been issued. B.indicates the electric current, DC or AC. C.shows that the product conforms to.
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  21.According to the text, the level of intracompany trade of multinationals in 1930, as a percentage of world trade, may have exceeded the proportion at the end of the 20th century.   22.Rapid urbanization of populations combined with industrialization in the emerging markets is quickly shifting the world's economic center of.
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  61.According to the text, personnel working in a foreign subsidiary are not working in the international environment  A.if they work and live in the foreign subsidiary's country. B.if they are responsible for the subsidiary's exports. C.if they are the sales manager responsible for selling product in the home country and the foreign subsidiary's.
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  11.In U.S. industry, the proportion of purchased materials in the overall cost of goods sold has been rising for several decades.  12.While indirect production-oriented goods have been the focus of management attention for many years, the purchasing of goods and services that are part of finished goods—termed indirect procurement—is also critical.  13.Emerging.
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  101.Which of the following is not an argument presented in support of opponents of globalization?  A.The promise of export-led growth has failed to materialize in several places. B.Globalization efforts in sub-Saharan Africa have produced only limited benefits, and the number of people there who are living in extreme poverty rose 43 percent.
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  True / False Questions 1.Three-dimensional (3D) printing facilitates just-in-time production close to the place of assembly or sale and reduces the need for large production runs and the time and money required for transporting and warehousing of products.  2.According to the text, outsourcing is hiring others to do noncore activities.  3.According to the.
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  111.International business differs from domestic business in that a firm operating across borders must deal with the forces of three kinds of environments: domestic, ________, and international.  112.As used in the text, the term ____________ means all the forces influencing the life and development of the firm.  113.The external forces are commonly.
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  81.The level of service exports worldwide increased about _______ between 1980 and 2013.  A.fourfold B.sixfold C.tenfold D.twelvefold E.seventeenfold 82.Which of the following are identified in the text as being one of the five major drivers of globalization?  A.Political B.Social C.Cultural D.Economic E.Productive 83.Which of the following are identified in the text as being one of the five major drivers of globalization?  A.Monetary B.Technological C.Cultural D.Market E.Communications 84.The major.
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  Multiple Choice Questions 31.A survey of CEOs of the 162 largest firms on Fortune's list of the 500 largest American corporations found that the CEOs strongly believed that  A.all business students should major in international business. B.an international orientation should be an important part of college business education, but only for those students.
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  81.The sale of an exporter's accounts receivable on ordinary goods, with the balance of the payment due upon delivery or soon after is  A.forfaiting. B.consignment. C.factoring. D.banker's acceptance. E.time draft. 82.The sale of an exporter's accounts receivable on capital goods, commodities, and other high-value goods, with the payment due at least 180 days out is  A.forfaiting. B.consignment. C.factoring. D.banker's acceptance. E.time.
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  41.A traditional approach to product design, which involves a sequential approach to design, has been termed  A.product-based design. B.concurrent engineering. C.over the wall. D.sequenced design. E.participative design. 42.Which of the following is not true regarding the approach to design that promotes cross-functional participation in the design stage?  A.It helps to identify many of the potential sourcing, manufacturing,.
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  11.The domestic environment is all the controllable forces originating in the home country that surround and influence the life and development of the firm.  12.The international environment refers to all the uncontrollable forces originating outside the home country that surround and influence the firm.  13.When an affiliate in one country does business.
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  71.Which of the following is not true regarding transnational corporations?  A.They employ more than 78 million people. B.They account for approximately 50 percent of total global output. C.They account for approximately two-thirds of world trade. D.They have approximately 810,000 foreign affiliates. E.The sales of their foreign affiliates have grown about 700 percent in the past.
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  71.On a consignment sale, the payment risk is  A.assumed by the buyer. B.assumed to be equally shared. C.carried by the seller. D.covered by insurance. E.covered by the bank issuing the L/C. 72.Which of the following is the most risky for an exporter?  A.Open account B.Irrevocable letter of credit C.Bank collection time draft D.Cash in advance E.Revocable letter of credit 73.Which of the.
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  81.Which of the following is not true about Six Sigma?  A.In selecting projects for Six Sigma, managers should look for a clear link between the project and the company's business priorities, as reflected in its strategic and annual operating plans. B.Projects should also be able to be completed within about three to.
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  51.Incoterms are developed and maintained by  A.the U.S. Chamber of Commerce. B.the International Chamber of Commerce. C.the WTO. D.the United Nations. E.a committee of major global companies. 52.Incoterms are divided into two basic categories—  A.open account and L/C. B.general and water transport terms. C.ship and ground transport. D.export and domestic shipments. E.risk and nonrisk terms of sale (buyer's perspective). 53.The total number.
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  141.A production increase at the bottleneck means an increase for the entire production system; an increase in a nonbottleneck operation adds to only that machine's ______ time.   142.The use of flexible, usually computer-aided manufacturing systems to produce and deliver customized products and services for different customers worldwide is known as.
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  91.Quality control in foreign affiliates from the home office is less difficult when  A.the quality inspectors are trained in the home office. B.separate standards are used in each plant. C.production equipment is similar. D.the quality reports are sent to the home office at the same time. 92.Global standardization of operations  A.eliminates the task of maintenance and.
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  41.Once the firm knows that a potential market exists, it needs to do all of the following except  A.choose between exporting directly or indirectly. B.set up a foreign subsidiary. C.consider seeking assistance from a trade specialist if it wishes to engage in indirect exporting. D.find and establish overseas distribution if it decides to set.
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  111.Among the mistakes most commonly made by new exporters, taking insufficient care in selecting overseas sales ______ and distributors is a common one.  112.Among the mistakes most commonly made by new exporters, failing to consider the use of an ____________ company if the company cannot afford its own export department is.
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  91.Which of the following is not linked to the market driver of international business activity?  A.Searching for markets with rising gross domestic product per capita and population growth. B.Identifying economies where one's company is not doing business but which are growing much faster than their own home country. C.A manufacturing company that follows.
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  153.Identify and explain the different Incoterms.  154."Although air freight rates are usually higher than ocean freight rates, it may be less costly for a firm to ship by air." Explain why this statement is correct or incorrect.  1. Totalcostmaydecrease. Getting the product to the buyer more quickly results in a more satisfied.
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  True / False Questions 1.All managers need to have a basic knowledge of international business.  2.International experience is valuable for mid-career individuals who aspire to higher positions and greater responsibility, but not for students seeking their first job beyond university.  3.Only a company that has foreign operations needs to be aware of what.
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  111.It has been argued that the ultimate goal of effective supply chain management systems is to reduce ______, consistent with the prerequisites that the company's products be available when needed and at the desired level of quality and quantity.  112.As highlighted in the IB in Practice box on Zara, global supply.
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  Multiple Choice Questions 31.Which of the following is not true about 3D printing?  A.It is sometimes called additive manufacturing. B.The most common current application of this technology is in producing prototypes. C.It provides the technology for increased use of large production runs when companies need inventory of important parts. D.It may change supply chains toward.
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  71.An entire manufacturing system with unbalanced operations that emphasizes total system performance is  A.JIT. B.quality circles. C.synchronous manufacturing. D.concurrent engineering. 72.Total quality management  A.is the control of quality in all areas of the organization, not just production. B.refers to quality control in not only the production of the firm's products, but also to quality control of all.
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  21.A disadvantage for companies that insist on less risky transactions, such as a letter of credit, is that they may be losing business to competitors who sell on open accounts.  22.A confirmed letter of credit guarantees payment to the seller.   23.The concept of the L/C is a simple one, the bank.
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  101.According to the text, which of the following is true?  A.Zara's competitive advantage comes from its stylish fashion design. B.Zara's supply chain management processes have allowed the company to eliminate inventory. C.Zara removes its product lines, including ones that have been selling well, every two weeks or so. D.Zara is able to locate all.
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  51.The following arrangement is not listed as one of the options for providing a firm with foreign products—  A.domestic subsidiary. B.independent overseas manufacturer. C.in-bond plant contractor. D.overseas joint venture. 52.According to the text, investigation of export and import data shows  A.there is a strong relationship between global sourcing and ownership of the foreign sources. B.there is no.
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  61.Benefits of global electronic purchasing initiatives include  A.increased backward integration. B.exposure to exchange rate fluctuations. C.optimized supply chains across an entire network of organizations. D.increased barriers to entry for international market opportunities. E.elimination of potential security issues. 62.For purchases of capital goods such as manufacturing equipment, many U.S. buying organizations now use _____ to analyze purchasing.
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  11.Sales forecasts and budgets, pricing policies, product characteristics, holiday schedules, and cash flow projections are all part of the export marketing plan.  12.Incoterms are 11 trade terms that describe the responsibilities of the buyer and seller in international trade.  13.In FAS (free alongside ship, named loading port), the seller pays all the.
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  121.A classic example of diametrically opposed ______-force values and the bewilderment they create for multinational managers is the sanctions placed on Russia and selected Russian companies in response to Russia's actions in the Ukraine in 2014.  122.If Xiaomi's China operations export smartphones to another country such as India, then the sales.
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  121.The Incoterm acronym FOB (named loading port), refers to  122.The Incoterm acronym CFR (named destination port), refers to  123.The Incoterm acronym CIF (named destination port) refers to  124.The Incoterm acronym DDP (destination place) refers to  125.Many nations, especially those of Latin America, follow the ______ Doctrine, which holds that contractual dispute cases should be.
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  21.Packaging and transportation requirements for a product can significantly influence logistics costs, and these factors should be addressed during the post-design steps in a company's value chain.  22.According to the text, Zara's strategy of speed and flexibility has enabled the company to eliminate inventory.  23.Standards are documented agreements containing general guidelines, rules,.
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  141.Rebates on customs duties are known as  142._______________________________ act as agents for exporters and prepare documents, book space on carriers, and otherwise act as the exporter's traffic department.  143.The U.S. Department of Commerce form used to control export shipments and record export statistics is the  144.A document issued by the carrier that is.
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  51.Examples of the kinds of internal forces listed in the text are each of the following except  A.raw materials. B.capital. C.finance. D.labor. E.marketing. 52.Examples of the kinds of internal forces listed in the text are each of the following except  A.human resources. B.capital. C.taxation. D.labor. E.production. 53.Examples of the kinds of internal forces listed in the text are each of the following.
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