94. Which of the following is the initial reason for the establishment of a foreign production
facility?
95. Which of the following is a result of pressure from the headquarters of a company to
customize a product to the demands of consumers in a particular nation at a foreign production
site?
96. Which of the following is a source of improvement in the capabilities of foreign
factories?
97. Which of the following is true according to the transnational strategy?
98. The flow of skills and product offerings from foreign subsidiary to home country and from
foreign subsidiary to foreign subsidiary is known as _____.
99. Due to the upward migration in the strategic role of foreign production sites, they are now
viewed as:
100. Which of the following statements is true about make–or-buy decisions?
101. The Maroon Apparel company controls the weaving, dyeing, cutting, and sewing of its
merchandise. Apart from these activities, it also manufactures buttons, zips, buckles, and other
accessories for its apparel. This is done in order to exercise tight control over its manufacturing
processes and to reduce production costs. This strategy of the company is known as _____.
102. Which of the following is a recent trend among international businesses regarding make–
or-buy decisions?
103. A(n) _____ refers to an asset designed to perform a specific task, whose value is
significantly reduced in its next-best use.
104. Which of the following statements is true about specialized assets?
105. Which of the following is an argument that supports vertical integration?
106. A firm should make a component internally rather than contracting it out to a supplier
when:
107. If a firm possesses proprietary product technology, the best option for that firm would be
to:
108. Which of the following refer(s) to skills of a corporation that become more valuable over
time through learning?
109. Which of the following is an advantage for a firm that buys component parts from
independent suppliers?
110. Which of the following is a disadvantage of vertical integration?
111. Which of the following can a vertically integrated firm that buys its components from
independent suppliers avoid?
112. Which of the following is true of vertical integration?
113. Which of the following is a disadvantage of outsourcing production to independent
suppliers?