ISDS 3115 Chapter 2 Exam Questions and Answers Already Passed Latest Update 2025-2026
Boeing's development of the 787 Dreamliner is an example of a company obtaining a
competitive advantage through product differentiation/innovation. - Answers True
NAFTA seeks to phase out all trade and tariff barriers among Canada, Mexico, and the United
States. - Answers True
The World Trade Organization has helped to significantly reduce tariffs around the world. -
Answers True
Production processes are being dispersed to take advantage of national differences in labor
costs. - Answers True
NAFTA seeks to phase out all trade and tariff barriers between the United States and Asia. -
Answers False
One reason for global operations is to gain improvements in the supply chain. - Answers True
One reason to globalize is to learn to improve operations. - Answers True
To attract and retain global talent, and to expand a product's life cycle, are both reasons to
globalize. - Answers True
A product will always be in the same stage of its product life cycle regardless of the country. -
Answers False
The World Trade Organization helps provide governments and industries around the world with
protection from firms that engage in unethical conduct. - Answers True
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. - Answers E
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.
E) results from a partnership of about a dozen companies. - Answers D
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. - Answers E
Which of the following did the authors NOT suggest as a reason for globalizing operations?
A) reduce costs
B) improve the supply chain
C) pursue stockholder approval ratings
D) understand markets
E) attract and retain global talent - Answers C
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. - Answers E
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.
, E) tax breaks provided by some South American countries to other South American countries. -
Answers A
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 - Answers B
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 - Answers E
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 - Answers C
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.
E) provide fair and equitable tariff rates for trade between the United States, Canada, and
Boeing's development of the 787 Dreamliner is an example of a company obtaining a
competitive advantage through product differentiation/innovation. - Answers True
NAFTA seeks to phase out all trade and tariff barriers among Canada, Mexico, and the United
States. - Answers True
The World Trade Organization has helped to significantly reduce tariffs around the world. -
Answers True
Production processes are being dispersed to take advantage of national differences in labor
costs. - Answers True
NAFTA seeks to phase out all trade and tariff barriers between the United States and Asia. -
Answers False
One reason for global operations is to gain improvements in the supply chain. - Answers True
One reason to globalize is to learn to improve operations. - Answers True
To attract and retain global talent, and to expand a product's life cycle, are both reasons to
globalize. - Answers True
A product will always be in the same stage of its product life cycle regardless of the country. -
Answers False
The World Trade Organization helps provide governments and industries around the world with
protection from firms that engage in unethical conduct. - Answers True
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. - Answers E
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.
E) results from a partnership of about a dozen companies. - Answers D
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. - Answers E
Which of the following did the authors NOT suggest as a reason for globalizing operations?
A) reduce costs
B) improve the supply chain
C) pursue stockholder approval ratings
D) understand markets
E) attract and retain global talent - Answers C
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. - Answers E
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.
, E) tax breaks provided by some South American countries to other South American countries. -
Answers A
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 - Answers B
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 - Answers E
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 - Answers C
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.
E) provide fair and equitable tariff rates for trade between the United States, Canada, and
