1) When labor productivity increases a) individuals learn the most efficient ways to perform particular tasks b) Establish an incentive system that encourages local employees to acquire new skills c) force the firm to lower unit costs d) the firm to adapt its product to meet local demands in each market—a strategy that raises costs 2) Localization  a) there are substantial differences across nations with regard to consumer tastes and preferences and when cost pressures are not too intense b) strong pressures for cost reductions and demands for local responsiveness are minimal c) when cost pressures are intense and pressures for local responsiveness are intense 3) To increase profitability and profit growth , firms can a) reduce value b) add value c) increase cost d) reduce sell 4) Rate of return on invested capital refers to a) profit growth b) profitability c) net profit d) value created 5) R&D, production, marketing and sales, customer service, are all activities of ____________ in operation. a) secondary b) primary c) support d) increase 6) Location economies a) leverage skills developed in foreign operations and transfer them elsewhere in the firm b) sell in international markets c) disperse individual value creation activities to locations where they can be performed most efficiently and effectively d) leverage skills developed in foreign operations and transfer them elsewhere in the firm

Chapter 7

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