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Multiple Choice


1) 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.


2) 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


3) Examples of response to the global environment include

A) Boeing’s worldwide sales and production

B) Benneton’s flexibility in design, production, and distribution

C) a Chinese manufacturer, Haier, opening plants in the United States

D) Ford’s partnerships with Volvo and Mazda

E) all of the above


4) Which of the following is an example of globalization of operations strategy?

A) Boeing’s Dreamliner has engines with higher fuel/payload efficiency.

B) Ford’s new auto models have dent-resistant panels.

C) A Chinese manufacturer, Haier, now operates plants in the United States.

D) Hard Rock Café provides an “experience differentiation” at its restaurants.

E) All of the above are examples.

5) 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


6) Which of the following did the authors not suggest as a reason for globalizing operations?

A) reduce costs

B) improve the supply chain

C) stockholder approval ratings

D) understand markets

E) None of the above were suggested.

7) 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


8) 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) none of the above

9) 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


10) Which of the following represent reasons for globalizing operations?

A) to gain improvements in 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
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