# Which of the international operations strategies involves low cost reductions and low local responsiveness?

Identify five main advantages of outsourcing.

22) Identify five main disadvantages of outsourcing.

23) A company is choosing an outside firm to provide its

payroll services. It has chosen four comparative categories of interest: client

reviews, financial condition, IT capabilities, and government stability. These

categories have been assigned weights of 30%, 10%, 20%, and 40%, respectively.

Three potential providers were scored on each of those factors (see table

below) using a scale of 1-10, with a score of 1 meaning worst possible and 10

meaning best possible. Using the factor-rating method, which provider should be

chosen?

Provider A

Provider B

Provider C

Client reviews

2

6

10

Financial condition

8

4

2

IT capabilities

5

8

2

Government stability

3

1

2

24) A company is deciding between 2 foreign firms to

provide its call center services. A factor-rating method is used. Factors are

rated on a scale of 1-10, with 10 being the best score.

A: If the factors are weighted equally (respective weights

of .3333), which firm is preferred?

B: Suppose a consultant recommended that Factor 2 be twice

as important as Factor 1, while Factor 3 should be four times as important as

Factor 1. Which firm is best now using a weighted method? (Round your weights

to the nearest four decimal places.)

Firm

Factor 1

Factor 2

Factor 3

A

10

7

4

B

5

8

6

Section 7 Global Operations Strategy Options

1) A multinational corporation is a firm with extensive

international business involvement.

2) The multidomestic OM

strategy maximizes local responsiveness while achieving a significant cost

advantage.

3) Firms using the global strategy can be thought of as

“world companies.”

4) Which of the international operations strategies

involves high cost reductions and high local responsiveness?

A) international strategy

B) global strategy

C) transnational strategy

D) multidomestic strategy

E) worldwide strategy

5) Which of the international operations strategies

involves low cost reductions and low local responsiveness?

A) international strategy

B) global strategy

C) transnational strategy

D) multidomestic strategy

E) worldwide strategy21) Identify five main advantages of outsourcing.22) Identify five main disadvantages of outsourcing.23) A company is choosing an outside firm to provide its

payroll services. It has chosen four comparative categories of interest: client

reviews, financial condition, IT capabilities, and government stability. These

categories have been assigned weights of 30%, 10%, 20%, and 40%, respectively.

Three potential providers were scored on each of those factors (see table

below) using a scale of 1-10, with a score of 1 meaning worst possible and 10

meaning best possible. Using the factor-rating method, which provider should be

chosen?Provider AProvider BProvider CClient reviews2610Financial condition842IT capabilities582Government stability31224) A company is deciding between 2 foreign firms to

provide its call center services. A factor-rating method is used. Factors are

rated on a scale of 1-10, with 10 being the best score.A: If the factors are weighted equally (respective weights

of .3333), which firm is preferred?B: Suppose a consultant recommended that Factor 2 be twice

as important as Factor 1, while Factor 3 should be four times as important as

Factor 1. Which firm is best now using a weighted method? (Round your weights

to the nearest four decimal places.)FirmFactor 1Factor 2Factor 3A1074B586Section 7 Global Operations Strategy Options1) A multinational corporation is a firm with extensive

international business involvement.2) The multidomestic OM

strategy maximizes local responsiveness while achieving a significant cost

advantage.3) Firms using the global strategy can be thought of as

“world companies.”4) Which of the international operations strategies

involves high cost reductions and high local responsiveness?A) international strategyB) global strategyC) transnational strategyD) multidomestic strategyE) worldwide strategy5) Which of the international operations strategies

involves low cost reductions and low local responsiveness?A) international strategyB) global strategyC) transnational strategyD) multidomestic strategyE) worldwide strategy