8/18/2019 Location Stratergy

1/4

1.

One factor affecting the country location decision is exchange rates.

Your Answer: False

Correct Answer: True

  INCORRECT. Exchange rates do impact the country location decision.

2.

Intangible costs can be measured with precision.

Your Answer: True

Correct Answer: False

  INCORRECT. Tangible cost can be measured with precision.

3.

anufacturing firms find it useful to be close to customers whentransportation of finished goods is expensi!e.

Your Answer: False

Correct Answer: True

  INCORRECT. This is true.

4.

anufacturing firms li"e to locate close to their suppliers when theirproduction process reduces the bul" during production.

8/18/2019 Location Stratergy

2/4

Your Answer: False

Correct Answer: True

  INCORRECT. This is one reason to locate close to your suppliers.

5.

Clustering is when competing companies locate close to each other.

Your Answer: False

Correct Answer: True

  INCORRECT. This is the definition of clustering.

6.

One of the greatest challenges in a global operations decision is dealingwith another country#s culture.

Your Answer: False

Correct Answer: True

  INCORRECT. Cultural !ariations change the way supply chains must bemanaged.

7.

$roximity to suppliers is crucial for a pure ser!ice.

Your Answer: True

Correct Answer: False

8/18/2019 Location Stratergy

3/4

  INCORRECT. $roximity to mar"ets is more important.

8.

The factor rating method is used to determine which location will result inthe lowest transportation costs.

Your Answer: True

Correct Answer: False

  INCORRECT. The factor rating method can consider many factors% both&ualitati!e and &uantitati!e.

9.

For the center of gra!ity method to wor" properly% the shipping cost mustbe directly proportional to both distance and !olume shipped.

Your Answer: False

Correct Answer: True

  INCORRECT. This techni&ue assumes that all routes are e&ual cost 'no tollroads or price brea"s for bul" shipment(.

10

.

) geographic information system has both demographic and topographic

information in its database.

Your Answer: False

Correct Answer: True

8/18/2019 Location Stratergy

4/4

  INCORRECT. *I+s ha!e this data a!ailable as well as infrastructure andother information.

11

.

,y definition% a country with low wage rates must ha!e higher producti!itythan a country with high wage rates.

Your Answer: True

Correct Answer: False

  INCORRECT. The low wage rates may be offset by the need for manyadditional labor hours to accomplish a similar tas"% resulting in lower

producti!ity for the low wage country.