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46. Uniway Technologies Inc. has based its manufacturing units in the country of Lanthania. The country's
stable economic and political environment has helped the firm gain competitive advantage by lowering its
production costs and improving product quality. Other things being equal, the benefits realized from such a
strategy can be typically referred to as:
47. Which of the following location externalities is favorable for foreign direct investment in a country?
48. Which of the following is a consequence of changes in exchange rates that result in appreciation of the local
currency?
49. Which of the following statements is true about performing a manufacturing activity in several locations at
once?
50. The concept that as plant output expands, unit costs decrease, is known as:
51. The level of output at which most plant-level scale economies are exhausted is known as:
52. Uvicon Inc. and Bionor Inc. are firms that compete against each other in the global market. Uvicon has a
high level of fixed costs and high minimum efficient scale, whereas Bionor has a low level of fixed costs and
low minimum efficient scale. In this scenario, which of the following is true?
53. Which of the following statements is true about minimum efficient scale of output?
54. Which of the following is a consequence of a low minimum efficient scale?
55. A firm with a wide product variety will find it:
56. Producing a standardized product in large volumes will:
57. Adopting flexible manufacturing technology to produce a wide variety of end products results in:
58. Which of the following is an objective of lean production?
59. Mass customization reconciles the two goals of:
60. Which of the following is an implication of a mass production system?
61. Which of the following includes a grouping of various types of machinery, a common materials handler, and
a computer to control the production of a family of parts or products?
62. Which of the following is a consequence of using flexible machine cells?
63. Which of the following increases when a company achieves mass customization via flexible manufacturing
technologies?
64. Amber Engineers Inc. wants to be able to customize products for different national markets and in turn
increase its customer responsiveness. However, the fixed costs associated with its production are high. Hence,
these functions will be performed most efficiently if Amber Engineers:
65. Flexible manufacturing technologies are specially targeted at enabling companies to:
66. Which of the following terms refers to the production of a variety of end products at a unit cost that could
once be achieved only through bulk production of a standardized output?
67. Which of the following statements is true of flexible manufacturing technologies?
68. Technological factors are making it feasible for firms to concentrate manufacturing facilities at optimal
locations. The major brakes on this trend are:
69. A product's value-to-weight ratio affects location decision primarily because of its influence on:
70. Two product features impact location decisions. Which of the two reduces the need for local
responsiveness?
71. Which of the following is true of high value-to-weight ratio products?
72. Which of the following is true of products with high value-to-weight ratios?
73. Which of the following products is best manufactured in multiple locations close to major markets to reduce
transportation costs?
74. Which of the following holds true for products with low value-to-weight ratios?
75. Which of the following statements is true of industrial products such as steel?
76. Which of the following is true of a product that serves universal needs?
77. Concentration of production makes most sense when:
78. When should a firm concentrate its production facilities in a centralized location?
79. Which of the following firms should concentrate its production in a centralized location?
80. When is decentralization of manufacturing facilities most appropriate?
81. Which of the following firms should spread its production over decentralized locations?
82. Which of the following is a step taken by automobile companies in situations where neither centralization
nor decentralization of production is feasible?
83. Which of the following is a hidden cost to basing production in a foreign location?
