Global Operations and Outsourcing MCQs in Supply Chain

  1. What is the primary advantage of outsourcing in global operations?A) Increasing the number of employees B) Reducing operational costs and gaining access to specialized expertise C) Expanding physical office space D) Enhancing local market penetration Answer: B) Reducing operational costs and gaining access to specialized expertise
  2. Which of the following is a common risk associated with outsourcing?A) Improved service quality B) Increased control over processes C) Loss of control over quality and potential supply chain disruptions D) Decreased operational complexity Answer: C) Loss of control over quality and potential supply chain disruptions
  3. What does ‘Offshoring’ refer to in the context of global operations?A) Moving business operations to a different region within the same country B) Relocating business processes to a foreign country to take advantage of lower costs C) Partnering with local suppliers for procurement D) Outsourcing customer service to a domestic provider Answer: B) Relocating business processes to a foreign country to take advantage of lower costs
  4. Which strategy involves focusing on core competencies while outsourcing non-core functions?A) Vertical Integration B) Horizontal Integration C) Core Competency Strategy D) Diversification Strategy Answer: C) Core Competency Strategy
  5. What is the purpose of ‘Global Supply Chain Management’?A) To manage supply chains within a single country B) To oversee and coordinate the flow of goods, services, and information across international borders C) To focus solely on domestic logistics D) To increase production speed Answer: B) To oversee and coordinate the flow of goods, services, and information across international borders
  6. Which of the following is a key consideration when selecting an outsourcing partner?A) Partnerā€™s geographical location B) Partnerā€™s expertise, reliability, and ability to meet service level agreements C) Partnerā€™s marketing strategies D) Partnerā€™s office size Answer: B) Partnerā€™s expertise, reliability, and ability to meet service level agreements
  7. What does ‘Global Sourcing’ involve?A) Procuring raw materials only from local suppliers B) Identifying and purchasing goods and services from international suppliers C) Expanding manufacturing facilities within the home country D) Outsourcing customer service to local providers Answer: B) Identifying and purchasing goods and services from international suppliers
  8. What is a major challenge of managing global operations?A) Decreasing supply chain complexity B) Ensuring compliance with diverse regulations and standards across different countries C) Minimizing transportation costs D) Simplifying local supply chains Answer: B) Ensuring compliance with diverse regulations and standards across different countries
  9. Which term describes a strategic approach to managing a network of international suppliers to optimize cost and performance?A) Supplier Relationship Management B) Global Logistics Management C) Strategic Sourcing D) Domestic Sourcing Answer: C) Strategic Sourcing
  10. What is the role of ‘Service Level Agreements (SLAs)’ in outsourcing agreements?A) To define the financial terms of the agreement B) To outline the specific performance metrics and expectations that the outsourcing provider must meet C) To determine the geographic location of operations D) To manage the recruitment process for outsourcing providers Answer: B) To outline the specific performance metrics and expectations that the outsourcing provider must meet
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