Question 1

The following arrangement can provide a firm with foreign products:

Accepted Answer

C is correct because it includes both a domestic subsidiary (which can import products from the parent company abroad) and an independent overseas manufacturer (which can produce or supply foreign products directly).

Question 2

According to the text, which of the following can be outsourced?

Accepted Answer

The text mentions that "anything from customer service to logistics to application development" can be outsourced, so both product design (A) and human resources (B) fall under this category. Therefore, the correct answer is D, which states that all of the options (A, B, and E) can be outsourced.

Question 3

For purchases of capital goods such as manufacturing equipment, many U.S. buying organizations now use _______________ to analyze purchasing decisions, including trade-in or future estimated salvage value.

Accepted Answer

Life-cycle costing is a method used to analyze purchasing decisions for capital goods such as manufacturing equipment. It takes into account the total cost of ownership over a product's entire lifespan, including factors such as trade-in value and future salvage value. This approach allows organizations to make more informed decisions that consider the long-term costs and benefits of different equipment options. E-procurement refers to the use of online platforms to manage purchasing, while activity-based costing and total costing are more general approaches to cost analysis that do not specifically focus on capital goods purchases.

Question 4

Investigation of export and import data shows:

Accepted Answer

The answer of Investigation of export and import data shows:
...

Question 5

Problems associated with e-procurement include:

Accepted Answer

E-procurement cannot be isolated from the company's overall business system, and it can expose the company to a wide range of potential security issues. However, it does not need to be completed before engaging in other purchasing functions such as supplier determination and analysis.

Question 6

The approach to design that promotes cross-functional participation in the design stage:

Accepted Answer

Cross-functional participation in the design stage allows for various perspectives, including those related to sourcing and manufacturing, to be considered during the design process. It may also involve customers in the design process to ensure their needs are met. This approach is commonly known as concurrent engineering. Therefore, all of the options (A, B, and C) are correct.

Question 7

In the case of the United States, intrafirm trade accounts for ______ percent of exports of goods.

Accepted Answer

Intrafirm trade accounts for 30 to 40 percent of exports of goods in the United States.

Question 8

Reasons for sourcing globally include:

Accepted Answer

Sourcing globally provides lower prices as manufacturers may be able to produce goods at a cheaper cost due to factors such as labor or materials. It allows for access to products not available locally, expanding a firm's offerings. Additionally, global sourcing can contribute to a firm's quality standards as manufacturers may be held to higher quality control standards.

Question 9

In the case of the United States, intrafirm trade accounts for ___ ___ percent of imports of goods.

Accepted Answer

The answer of In the case of the United States,...

Question 10

The following arrangement can provide a firm with foreign products:

Accepted Answer

Both overseas joint venture and overseas independent contractor can involve working with foreign companies to produce or distribute products. Meanwhile, a foreign sales office typically deals with selling products in a foreign country, rather than obtaining them. Therefore, options A and B are the best choices. Option C is not as relevant to obtaining foreign products.

Question 11

The following arrangement can provide a firm with foreign products:

Accepted Answer

The answer of The following arrangement can provide a firm...

Question 12

A reason that outsourcing has become an increasingly common option for companies is:

Accepted Answer

Outsourcing can help companies focus on their core competencies, as they can delegate non-core tasks to external service providers who specialize in those tasks. Outsourcing can also enhance flexibility, as companies can scale up or down their external support as needed. However, outsourcing may not always avoid problems of different languages or cultures, as effective communication and cultural understanding may still be required for successful outsourcing partnerships.

Question 13

A reason that outsourcing has become an increasingly common option for companies is:

Accepted Answer

Outsourcing has become more common due to several factors: the cost of communications has significantly decreased, making it easier and cheaper to manage operations remotely; automation of operational activities allows for easier transfer of tasks to outsourced firms; and the increase in companies offering outsourcing services has created a competitive market, often leading to better services and prices for those looking to outsource.

Question 14

Research found that suppliers cut invoice and ordering errors by an average of ___ percent when using an e-marketplace.

Accepted Answer

The answer of Research found that suppliers cut invoice and...

Question 15

According to the text, the cost of importing a foreign-sourced product, including freight, insurance, and packing:

Accepted Answer

The answer of According to the text, the cost of...

Question 16

Relocating some or all of a business's activities or processes to a foreign location is:

Accepted Answer

Offshoring specifically refers to relocating business activities to a foreign location, whereas outsourcing can refer to contracting out any business function, not just to a foreign location. Supply chain management and subcontracting refer to specific aspects of business operations, but do not necessarily involve relocation to a foreign location.

Question 17

In U.S. industry, the proportion of purchased materials in the overall cost of goods sold has been rising for several decades, to a level of ________ percent today.

Accepted Answer

The proportion of purchased materials in the overall cost of goods sold in U.S. industry has been reported to be between 55 to 79 percent, reflecting the increasing reliance on purchased materials over the decades.

Question 18

Electronic procurement exchanges:

Accepted Answer

Electronic procurement exchanges can permit bid/quote systems for buyers and suppliers and also protect companies from potential loss of proprietary data. However, they do not necessarily facilitate efforts to obtain letters of credit.

Question 19

According to the text, including such items as maintenance, repair, operating supplies, office equipment, and other services and supplies, indirect procurement can account for as much as what percent of the total purchasing expenditures in companies?

Accepted Answer

The text states that indirect procurement can account for as much as 70 percent of the total purchasing expenditures in companies.

Question 20

It has been estimated that at least ____________ percent of products currently on the market were not available five years ago, creating additional pressure to locate suppliers worldwide that can provide inputs at competitive prices and quality and with quick responsiveness to market changes.

Accepted Answer

The blank is filled with the phrase "at least", indicating that the number should be a minimum estimate. Option C, which is 50, is the only choice that matches this criterion. It also makes sense that a large percentage of products on the market would be relatively new, given the constant advancements in technology and changing consumer preferences.

Quiz 16: Global Operations and Supply Chain Management

The following arrangement can provide a firm with foreign products:

According to the text, which of the following can be outsourced?

For purchases of capital goods such as manufacturing equipment, many U.S. buying organizations now use _______________ to analyze purchasing decisions, including trade-in or future estimated salvage value.

Investigation of export and import data shows:

Problems associated with e-procurement include:

The approach to design that promotes cross-functional participation in the design stage:

In the case of the United States, intrafirm trade accounts for ______ percent of exports of goods.

Reasons for sourcing globally include:

In the case of the United States, intrafirm trade accounts for _ _ percent of imports of goods.

The following arrangement can provide a firm with foreign products:

The following arrangement can provide a firm with foreign products:

A reason that outsourcing has become an increasingly common option for companies is:

A reason that outsourcing has become an increasingly common option for companies is:

Research found that suppliers cut invoice and ordering errors by an average of ___ percent when using an e-marketplace.

According to the text, the cost of importing a foreign-sourced product, including freight, insurance, and packing:

Relocating some or all of a business's activities or processes to a foreign location is:

In U.S. industry, the proportion of purchased materials in the overall cost of goods sold has been rising for several decades, to a level of ________ percent today.

Electronic procurement exchanges:

According to the text, including such items as maintenance, repair, operating supplies, office equipment, and other services and supplies, indirect procurement can account for as much as what percent of the total purchasing expenditures in companies?

It has been estimated that at least ____________ percent of products currently on the market were not available five years ago, creating additional pressure to locate suppliers worldwide that can provide inputs at competitive prices and quality and with quick responsiveness to market changes.