SCMA 331 Exam 1 Chap 2
Study online at https://quizlet.com/_hspijt
1. Boeing's development of the 787 Dreamliner is an example of a company
obtaining a competitive advantage through product differentiation/innova-
tion.: True
2. NAFTA seeks to phase out all trade and tariff barriers among Canada, Mexico,
and the United States.: True
3. The World Trade Organization has helped to significantly reduce tariffs
around the world.: True
4. Production processes are being dispersed to take advantage of national
differences in labor costs: True
5. NAFTA seeks to phase out all trade and tariff barriers between the United
States and Asia.: False
6. One reason for global operations is to gain improvements in the supply
chain.: True
7. One reason to globalize is to learn to improve operations.: True
8. To attract and retain global talent, and to expand a product's life cycle, are
both reasons to globalize.: True
9. A product will always be in the same stage of its product life cycle regardless
of the country.: False
10. The World Trade Organization helps provide governments and industries
around the world with protection from firms that engage in unethical conduct.-
: True
11. Which of the following statements regarding the Dreamliner 787 is true?
A) Boeing has found partners in over a dozen countries.
B) The new aircraft incorporates a wide range of aerospace technologies.
C) The new aircraft uses engines from not one, but two manufacturers.
D) Boeing will add only 20 to 30 percent of the aircraft's value.
E) All of the above are true.: E) all of the above are true
12. Boeing's new 787 Dreamliner:
A) is assembled in Washington, D.C.
B) uses engines from Japan.
C) has its fuselage sections built in Australia.
D) has increased efficiency from new engine technology.
, SCMA 331 Exam 1 Chap 2
Study online at https://quizlet.com/_hspijt
E) results from a partnership of about a dozen companies.: D) has increased efficiency
from new engine technology.
13. Cost cutting in international operations can take place because of:
A) lower taxes and tariffs.
B) lower wage scales.
C) lower indirect costs.
D) less stringent regulations.
E) all of the above.: E) all of the above.
14. Which of the following did the authors NOT suggest as a reason for global-
izing operations?
A) reduce costs
B) improve the supply chain
C) pursue stockholder approval ratings
D) understand markets
E) attract and retain global talent: C) pursue stockholder approval ratings
15. Multinational organizations can shop from country to country and cut costs
through:
A) lower wage scales.
B) lower indirect costs.
C) less stringent regulations.
D) lower taxes and tariffs.
E) all of the above.: E) all of the above.
16. The term maquiladora is most synonymous with:
A) free trade zones in Mexico.
B) Chinese forced labor camps.
C) home-based or cottage industry.
D) areas that do not meet U.S. standards for workplace safety and pollution.
, SCMA 331 Exam 1 Chap 2
Study online at https://quizlet.com/_hspijt
E) tax breaks provided by some South American countries to other South
American countries.: A) free trade zones in Mexico.
17. Which of the following is true of maquiladoras?
A) They discourage foreign businesses from outsourcing.
B) They assess tariffs only on the value-added work done.
C) They originated in China.
D) None of the above
E) All of the above: B) They assess tariffs only on the value-added work done.
18. Which of the following represents a reason for globalizing operations?
A) to improve the supply chain
B) to improve operations
C) to expand a product's life cycle
D) to attract and retain global talent
E) all of the above: E) all of the above
19. Which of the following does NOT represent a valid reason for globalizing
operations?
A) reduce costs
B) improve the supply chain
C) reduce responsiveness
D) attract and retain global talent
E) understand markets: C) reduce responsiveness
20. The purpose of NAFTA is to:
A) substitute cheap labor in Mexico for expensive labor in the United States.
B) curb illegal immigration from Mexico to the United States.
C) phase out all trade and tariff barriers between North America and South
America.
D) phase out all trade and tariff barriers between the United States, Canada,
and Mexico.
Study online at https://quizlet.com/_hspijt
1. Boeing's development of the 787 Dreamliner is an example of a company
obtaining a competitive advantage through product differentiation/innova-
tion.: True
2. NAFTA seeks to phase out all trade and tariff barriers among Canada, Mexico,
and the United States.: True
3. The World Trade Organization has helped to significantly reduce tariffs
around the world.: True
4. Production processes are being dispersed to take advantage of national
differences in labor costs: True
5. NAFTA seeks to phase out all trade and tariff barriers between the United
States and Asia.: False
6. One reason for global operations is to gain improvements in the supply
chain.: True
7. One reason to globalize is to learn to improve operations.: True
8. To attract and retain global talent, and to expand a product's life cycle, are
both reasons to globalize.: True
9. A product will always be in the same stage of its product life cycle regardless
of the country.: False
10. The World Trade Organization helps provide governments and industries
around the world with protection from firms that engage in unethical conduct.-
: True
11. Which of the following statements regarding the Dreamliner 787 is true?
A) Boeing has found partners in over a dozen countries.
B) The new aircraft incorporates a wide range of aerospace technologies.
C) The new aircraft uses engines from not one, but two manufacturers.
D) Boeing will add only 20 to 30 percent of the aircraft's value.
E) All of the above are true.: E) all of the above are true
12. Boeing's new 787 Dreamliner:
A) is assembled in Washington, D.C.
B) uses engines from Japan.
C) has its fuselage sections built in Australia.
D) has increased efficiency from new engine technology.
, SCMA 331 Exam 1 Chap 2
Study online at https://quizlet.com/_hspijt
E) results from a partnership of about a dozen companies.: D) has increased efficiency
from new engine technology.
13. Cost cutting in international operations can take place because of:
A) lower taxes and tariffs.
B) lower wage scales.
C) lower indirect costs.
D) less stringent regulations.
E) all of the above.: E) all of the above.
14. Which of the following did the authors NOT suggest as a reason for global-
izing operations?
A) reduce costs
B) improve the supply chain
C) pursue stockholder approval ratings
D) understand markets
E) attract and retain global talent: C) pursue stockholder approval ratings
15. Multinational organizations can shop from country to country and cut costs
through:
A) lower wage scales.
B) lower indirect costs.
C) less stringent regulations.
D) lower taxes and tariffs.
E) all of the above.: E) all of the above.
16. The term maquiladora is most synonymous with:
A) free trade zones in Mexico.
B) Chinese forced labor camps.
C) home-based or cottage industry.
D) areas that do not meet U.S. standards for workplace safety and pollution.
, SCMA 331 Exam 1 Chap 2
Study online at https://quizlet.com/_hspijt
E) tax breaks provided by some South American countries to other South
American countries.: A) free trade zones in Mexico.
17. Which of the following is true of maquiladoras?
A) They discourage foreign businesses from outsourcing.
B) They assess tariffs only on the value-added work done.
C) They originated in China.
D) None of the above
E) All of the above: B) They assess tariffs only on the value-added work done.
18. Which of the following represents a reason for globalizing operations?
A) to improve the supply chain
B) to improve operations
C) to expand a product's life cycle
D) to attract and retain global talent
E) all of the above: E) all of the above
19. Which of the following does NOT represent a valid reason for globalizing
operations?
A) reduce costs
B) improve the supply chain
C) reduce responsiveness
D) attract and retain global talent
E) understand markets: C) reduce responsiveness
20. The purpose of NAFTA is to:
A) substitute cheap labor in Mexico for expensive labor in the United States.
B) curb illegal immigration from Mexico to the United States.
C) phase out all trade and tariff barriers between North America and South
America.
D) phase out all trade and tariff barriers between the United States, Canada,
and Mexico.
