QUESTION Technological factors are making it feasible for firms to concentrate manufacturing facilities at optimal locations. The major brakes on this trend are: A. differences in endowment factors. B. transportation costs and trade barriers. C. rising national differences in consumer tastes and preferences. D. growing free trade areas and democracy. E. declining fluctuations in exchange […]
QUESTION If a firm possesses proprietary product technology, the best option for that firm would be to: A. manufacture the product in-house so that it does not lose its competitive advantage. B. outsource the production activities to independent suppliers in order to realize economies of scale. C. merge with competitors to reduce investments on technology. […]
QUESTION Which of the following holds true for products with low value-to-weight ratios? A. They are relatively expensive. B. They do not weigh very much. C. Their transportation costs account for a very small percentage of total costs. D. It is advisable to manufacture them in multiple locations close to major markets. E. Examples of […]
QUESTION Which of the following refers to a logistics system designed to deliver parts to a production process as they are needed, not before? A. Inventory information system B. Basket trading system C. Buffer stock system D. Just-in-time inventory system E. Real-time processing system ANSWER D
QUESTION Which of the following is true of high value-to-weight ratio products? A. They tend to have greater weight than other products in the segment. B. Their transportation costs account for a very small percentage of total costs. C. They tend to be inexpensive. D. There is great pressure to produce these products in multiple […]
QUESTION Which of the following is true of products with high value-to-weight ratios? A. They are expensive to transport. B. They tend to increase in weight after processing. C. They tend to be restricted under trade barriers. D. They are expensive and do not weigh very much. E. They have a low inventory turnover. […]
QUESTION Which of the following products is best manufactured in multiple locations close to major markets to reduce transportation costs? A. Pharmaceuticals B. Petroleum products C. Books D. Magazines E. Electronics ANSWER B
QUESTION Concentration of production makes most sense when: A. trade barriers are low. B. the product’s value-to-weight ratio is low. C. important exchange rates are volatile. D. flexible manufacturing technology does not exist. E. the production technology has low fixed costs. ANSWER A
QUESTION Which of the following is true of a product that serves universal needs? A. It becomes necessary to customize the product to suit small consumer groups. B. It becomes necessary to accommodate demands for local responsiveness. C. It increases the attractiveness of concentrating production at an optimal location. D. It is difficult to serve […]
QUESTION Which of the following statements is true of industrial products such as steel? A. They serve needs that are the same all over the world. B. They have drastic national differences in consumer taste and preference. C. The need for local responsiveness for these products is more than consumer products. D. It makes sense […]
