The term _____ is commonly used for a company's decision to relocate activities to foreign locations.

Offshoring

Production methods that are between capital-intensive and labour intensive-methods are known as ________.

Intermediate technology

Production methods between capital-and-labor-intensive methods are known as intermediate technology.

TRUE

Which of the following is the best definition of outsourcing?

Hiring others to perform some of the non core activities in a company's value chain, rather than having the company and its employees continue to perform those activities.

While logistics and distribution can be outsourced, it is not possible to outsource activities such as product design or marketing.

FALSE

An arrangement in which facilities are established to manufacture inputs used in the production of a firm's final products is known as forward integration.

FALSE

A branded garment firm with no production facilities enters into a contract with foreign manufacturers to make clothing to its specification with is labels. What type of global sourcing arrangement will this be classified as?

Overseas independent contractor

For manufacturing rationalization to be possible, the firm must elect to produce products that are different worldwide or region wide.

FALSE

An importing company can protect itself from exchange rate risk by using _______ techniques.

Hedging

________ refers to managerial functions associated with the movement of materials such as raw materials, work in progress, or finished goods.

Logistics

Many US organizations buying capital goods such as manufacturing equipment use ______ costing to analyze purchasing decisions from the time or purchase to the time the goods are scrapped.

Life-cycle

An automobile company purchasing a tire company would be an example of ________.

Backward vertical integration

The purchasing of goods and services that are not part of finished goods is termed indirect procurement.

TRUE

_______ are documented agreements containing technical specifications or other precise criteria that will be used consistently as guidelines, rules, or definitions of the characteristics of a product, process, or service.

Standards

_______ is not a viable strategy when consumers' tastes and preferences differ markedly among markets.

Manufacturing rationalization