ISDS 3115 CHAPTER 2 EXAM
QUESTIONS WITH 100% CORRECT
ANSWERS | LATEST VERSION 2025/2026.
Boeing's development of the 787 Dreamliner is an example of a company obtaining a
competitive advantage through product differentiation/innovation. - ANS True
NAFTA seeks to phase out all trade and tariff barriers among Canada, Mexico, and the United
States. - ANS True
The World Trade Organization has helped to significantly reduce tariffs around the world. -
ANS True
Production processes are being dispersed to take advantage of national differences in labor
costs. - ANS True
NAFTA seeks to phase out all trade and tariff barriers between the United States and Asia. -
ANS False
One reason for global operations is to gain improvements in the supply chain. - ANS True
One reason to globalize is to learn to improve operations. - ANS True
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,To attract and retain global talent, and to expand a product's life cycle, are both reasons to
globalize. - ANS True
A product will always be in the same stage of its product life cycle regardless of the country. -
ANS False
The World Trade Organization helps provide governments and industries around the world with
protection from firms that engage in unethical conduct. - ANS 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. - ANS 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. - ANS 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. - ANS E
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, 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 - ANS 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. - ANS 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. -
ANS 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 - ANS B
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QUESTIONS WITH 100% CORRECT
ANSWERS | LATEST VERSION 2025/2026.
Boeing's development of the 787 Dreamliner is an example of a company obtaining a
competitive advantage through product differentiation/innovation. - ANS True
NAFTA seeks to phase out all trade and tariff barriers among Canada, Mexico, and the United
States. - ANS True
The World Trade Organization has helped to significantly reduce tariffs around the world. -
ANS True
Production processes are being dispersed to take advantage of national differences in labor
costs. - ANS True
NAFTA seeks to phase out all trade and tariff barriers between the United States and Asia. -
ANS False
One reason for global operations is to gain improvements in the supply chain. - ANS True
One reason to globalize is to learn to improve operations. - ANS True
1 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
,To attract and retain global talent, and to expand a product's life cycle, are both reasons to
globalize. - ANS True
A product will always be in the same stage of its product life cycle regardless of the country. -
ANS False
The World Trade Organization helps provide governments and industries around the world with
protection from firms that engage in unethical conduct. - ANS 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. - ANS 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. - ANS 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. - ANS E
2 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, 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 - ANS 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. - ANS 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. -
ANS 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 - ANS B
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