MGSC EXAM 2 ACTUAL SCRIPT 2026
COMPLETE QUESTIONS AND ANSWERS
GRADED A+
◉ Strategic importance of location planning.
Answer: • Location decisions:
- Are closely tied to an organization's strategies
• Low-cost
• Convenience to attract market share
- Effect capacity and flexibility
- Represent a long-term commitment of resources
- Effect investment requirements, operating costs,
revenues, and operations
- Impact competitive advantage
- Importance to supply chains
◉ Objectives of locations decisions.
Answer: • Location decisions are based on:
- Profit potential or cost and customer service
- Finding a number of acceptable locations from which
to choose
,- Position in the supply chain
• End: accessibility, consumer demographics, traffic
patterns, and local customs are important
• Middle: locate near suppliers or markets
• Beginning: locate near the source of raw materials
- Web-based retail organizations are effectively location
independent
◉ Supply chain considerations.
Answer: • Supply chain management must address supply chain
configuration:
- Number and location of suppliers, production
facilities, warehouses and distribution centers
- Centralized vs. decentralized distribution
• The importance of such decisions is underscored by
their reflection of the basic strategy for accessing
customer markets
◉ Location: Options.
Answer: • Existing companies generally have four options available
in location planning:
1. Expand an existing facility
,2. Add new locations while retaining existing facilities
3. Shut down one location and move to another
4. Do nothing
◉ Global Locations: Facilitates Factors.
Answer: • Two key factors have contributed to the attractiveness of
globalization:
- Trade Agreements such as
• North American Free Trade Agreement (NAFTA)
• General Agreement on Tariffs and Trade (GATT)
• U.S.-China Trade Relations Act
• EU and WTO efforts to facilitate trade
- Technology
• Advances in communication and information
technology
◉ Global locations: Benefits.
Answer: • A wide range of benefits have accrued to
organizations that have globalized
operations:
- Markets
- Cost savings
, - Legal and regulatory
- Financial
- Other
◉ Global locations: disadvantages.
Answer: • There are a number of disadvantages that
may arise when locating globally:
- Transportation costs
- Security costs
- Unskilled labor
- Import restrictions
- Criticism for locating out-of-country
◉ Global locations: risks.
Answer: • Organizations locating globally should be
aware of potential risk factors related to:
- Political instability and unrest
- Terrorism
- Economic instability
- Legal regulation
- Ethical considerations
- Cultural differences
COMPLETE QUESTIONS AND ANSWERS
GRADED A+
◉ Strategic importance of location planning.
Answer: • Location decisions:
- Are closely tied to an organization's strategies
• Low-cost
• Convenience to attract market share
- Effect capacity and flexibility
- Represent a long-term commitment of resources
- Effect investment requirements, operating costs,
revenues, and operations
- Impact competitive advantage
- Importance to supply chains
◉ Objectives of locations decisions.
Answer: • Location decisions are based on:
- Profit potential or cost and customer service
- Finding a number of acceptable locations from which
to choose
,- Position in the supply chain
• End: accessibility, consumer demographics, traffic
patterns, and local customs are important
• Middle: locate near suppliers or markets
• Beginning: locate near the source of raw materials
- Web-based retail organizations are effectively location
independent
◉ Supply chain considerations.
Answer: • Supply chain management must address supply chain
configuration:
- Number and location of suppliers, production
facilities, warehouses and distribution centers
- Centralized vs. decentralized distribution
• The importance of such decisions is underscored by
their reflection of the basic strategy for accessing
customer markets
◉ Location: Options.
Answer: • Existing companies generally have four options available
in location planning:
1. Expand an existing facility
,2. Add new locations while retaining existing facilities
3. Shut down one location and move to another
4. Do nothing
◉ Global Locations: Facilitates Factors.
Answer: • Two key factors have contributed to the attractiveness of
globalization:
- Trade Agreements such as
• North American Free Trade Agreement (NAFTA)
• General Agreement on Tariffs and Trade (GATT)
• U.S.-China Trade Relations Act
• EU and WTO efforts to facilitate trade
- Technology
• Advances in communication and information
technology
◉ Global locations: Benefits.
Answer: • A wide range of benefits have accrued to
organizations that have globalized
operations:
- Markets
- Cost savings
, - Legal and regulatory
- Financial
- Other
◉ Global locations: disadvantages.
Answer: • There are a number of disadvantages that
may arise when locating globally:
- Transportation costs
- Security costs
- Unskilled labor
- Import restrictions
- Criticism for locating out-of-country
◉ Global locations: risks.
Answer: • Organizations locating globally should be
aware of potential risk factors related to:
- Political instability and unrest
- Terrorism
- Economic instability
- Legal regulation
- Ethical considerations
- Cultural differences
