International Business Exam 2

Front 1

Define Production?

Define Logostics?

Back 1

The activities involved in creating a product

The activity that controls the transmission of physical materials through the value chain. From obtaining to distribution (developing material)

Front 2

What are the the strategic onjectives of of the production and logostics functions of a firm?

Back 2

-lower costs (production location and supply chain mgmt)
-Increase quality (get rid of defects in supply chain)
-accommodate demands for local responsiveness
-respond quickly to customer demand

Front 3

Three ways that increasing quality of goods can reduce costs

Back 3

1. increase productivity because time is not wasted on defective products
2. Lower scrap costs
3. reduce warranty costs

Front 4

What is total quality management?
What is Six Sigma?
ISO 9000?

Back 4

TQM- largly adpoted theory to increase liability
SS- new version of TQM. aimed to reduce defects, boost productivity, eleminate waste, and cut costs
ISO- European Quality standard

Front 5

What are three factors that can a firm contemplating international production must be considered

Back 5

-Country factors
-Technological Factors
-Product Factors

Front 6

What is the minimum effect scale?

Back 6

The smallest amount of production a company can achieve while still taking full advantage of economies of scale with regards to supplies and costs

Front 7

What is flexable manufacturing technology?

Back 7

Range of manufacturing technologies that aim to reduce set-up costs, improve quality control, and increase machine utilization (wide variety of products at the cost of standardized products)

Front 8

What is Mass customization?

Back 8

A firms ability to utilize flexable manufacturing to customize products at a low cost.

Front 9

Two product features that effect location decisions

Back 9

Value-to-weight

if the product meets universal needs

Front 10

Centralization of production is makes most sense when: (6)

Back 10

1. differences in countries have impact on costs
2. trade barriers are low
3. exchange rates are stable
4. technology has high FC and high minimum efficient scale, or flexable manufacturing exists
5. value-to weight ratio is high
6. serves universal needs

Front 11

Decentralization of products makes most sense when: (6)

Back 11

1. differences in countries have no effect on costs
2. trade barriers are high
3. exchange rates vary
4. Technology have low FC, low minimum efficient scale, and flexable manufacturing doesnt exist
5. value-to weight is low
6. not serve universal needs

Front 12

What are some hidden costs of basing production over seas

Back 12

employee turnover
shoddy workmanship
poor product quality

Front 13

define global learning

Back 13

The idea that valuable information does not reside just in the firms domestic operations, but also in foregin subsaries

Front 14

What are four main production issues for firms?

Back 14

-production location
-logostics management
-supply chain managment
-to buy or own production functions

Front 15

four technology factors that a firm must consider when choosing production location?

Back 15

fixed costs
minimum efficient scale
flexable manufacturing
lean manufacturing

Front 16

Improvement in a foreign facility comes from??

Back 16

1. pressue to lower costs or respond to local markets
2. increase in availadibily of advance production factors

Front 17

advantages of make

Back 17

low costs, protect technology, accumulate dynamic capabilities, improve scheduling

Front 18

Advantages of buy

Back 18

strategic flexability, low costs, offsets

Front 19

Four main attributes of the Marketing Mix

Back 19

-pricing strategy
-Distribution Strategy
-communication strategy
-product attribute

Front 20

What is Levitt's theory?

Back 20

advances in technology is creating a global marketplace which demands standardized products and rids multinational companies

Front 21

What is Market Segmentation? Ways consumers are segmented?

Back 21

identifying groups of consumers whose purchasing behavior differs from others in important ways
-geographical
-demographical
-psychological
-sociocultural

Front 22

Product attributes are determined by three main things

Back 22

product and technical standards
economical development
cultural differences

Front 23

Four main differences in distribution strategies

Back 23

- channel length
-concentration (fragmented and concentrated)
-channel quality
-channel exclussiveness

Front 24

Three variables that jeapordize the communication strategy

Back 24

cultural barriers
source and country of origin effects
Noise

Front 25

Push vs. Pull
3 things that effect which method is choosen

Back 25

Push- personal selling with a lot of work force and money. Pull- mass media

Product type and consumer satisfaction
media available
channel length

Front 26

Push should be used when?

Back 26

-short channels
-complex products
-few electronic media available

Front 27

Pull should be used when?

Back 27

-long channels
-universal products
-electronic media available

Front 28

What is pricing discrimination?

Back 28

when consumers in one country pay a different amount in consumers in another

Front 29

Three aspects of strategic pricing

Back 29

- expereince curve pricing
-multipoint pricing
-predatory pricing

Front 30

What is the ethnocentric staffing policy? Advantages and disadvantages?

Back 30

key managements positions are held by home-nationals.
A- unified culture/ brings core competencies
D-resentment in host country

Front 31

What is Polycentric staffing approach? advantages and disadvantages?

Back 31

Host country nationals manage subsidiaries while home country nationals have key corporate jobs.
A-inexpensive, no mytopia
D-isolates headquarters, limist mobility

Front 32

What is a geocentric approach to hiring? advantages and disadvantages?

Back 32

Picks the best person for the job without considering nationality.
A-uses HR right/strong culture
D-expensive

Front 33

Four things that create success in foreign postings

Back 33

self-orientation
Others-orientation
Perceptual ability
Cultural toughness

Front 34

Three ways employees get trained

Back 34

Cultural, practical, and language

Front 35

What are two things Human Resources does for an international business?

Back 35

Reduces costs of value creation and decides when to use expatriate employees (employees from home countries who go over seas)

Front 36

What is expatriate failure?

Back 36

The premature return of expratriate managers back home

Front 37

Why do expatriate managers fail?

Back 37

1. spouse cant adapt
2. managers inability to adapt
3. Family-related reasons
4. personal maturity
5. Unability to handle large responsibilities

Front 38

What is the fundamental attribute of a global manager?

Back 38

A global mindset

Front 39

How do most companies pay expatriates?

Back 39

Balance sheet approach : they recieve the same standard of living no matter where they live

Front 40

what are labor unions concerns when it comes to a global strategy?

Back 40

-multinationals will use the threat of production location movement to decrease union effect
-multinationals will move low-paying jobs overseas
-multinationals will import contractual agreements from home country lessening union importance