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33:799:301 Study Guide - Quiz Guide: Foreign-Trade Zones Of The United States, Business Cluster, World Trade OrganizationExam

Supply Chain Management
Course Code
A Taitt
Study Guide

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Chapter 10 quiz
1. If a company wanted to import materials duty-free, for use in the production of their end
items, and then export them to other countries, they would most likely utilize?
a. Foreign trade zone
2. Two models that utilize quantitative data, to help determine the attractiveness of one
location versus another, are the Break-Even Model and the Extrapolated Average Cost
a. False
3. Which global facility type describes a factory set-up primarily to produce products at a
low cost with minimal technical and managerial resources?
a. Offshore factory
4. When a number of interconnected companies and institutions from a particular industry
are located in a single geographic location; that location is referred to as?
a. Business cluster
5. A right-to-work law allows employees to decide for themselves whether or not they want
to join or financially support a union.
a. True
6. Which of the following would be considered a “quality-of-life” issue in making a global
location decision?
a. Community safety
7. An import can only occur inside the borders of your home country and an export can only
occur outside the borders of your home country.
a. False
8. The WTO is the only global international organization dealing with the rules of trade
between nations.
a. True
9. A country that imposes high tariffs encourages foreign-based companies to import goods.
a. False
10. Which global facility type describes a factory set up in an area with an abundance of
advance suppliers, competitors, and research facilities?
a. Outpost factory
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