40 muultiple choice Ch. 4-8
Topin; Resources and capability, and others 11
Topic; Foregin Exchange 9
Topic; Global and Regional Integration 9
Areas to focus on-
Tangible and intangible assets
-Tangible Resources & Capabilities: assets that are observable and easily quantified as
Financial, Physical, Technological, & Organizational
-Intangible Resources & Capabilities: assets that are harder to observe & more difficult to
quantify like Innovation, Human, & Reputation that provide more competitive advantage.
1. Choke points, know what, where they are
2. Know difference between in house inshoring, off shoring and
-Outsourcing: Turning over an organizational activity to an outside supplier that will perform it on
behalf of the focal firm
-Offshoring: Outsourcing to an international or foreign firm.
-Inshoring: Outsourcing to a domestic firm.
-Captive Sourcing: Setting up subsidiaries abroad so work done inhouse but location is
3. OEM-produce according to your design, OBM, ODM
-OEM, Original Equipment Manufacturers: a firm that executes design blueprints provided by
other firms and manufactures such as products.
-ODM, Original Design Manufacturer: a firm that both designs and manufactures products.
-OBM, Original Brand Manufacturer: a firm that designs, manufactures, and markets branded
4. String of Pearls (on blackboard)
Groups of regions where choke points are located
5. Terms-band wagon, crawling band, free floating, dirty floating,
-Bandwagon, effects of investors moving in same direction at same time
-Crawling band(target ER), specific upper/lower bound where exchange rate is allowed to
-Free(Clean) Float, pure market solution to determine ER.
Dirty(Managed) float, selective gov’t intervention to determine ER.
-Currency Hedging, transaction that protects traders and investors from exposure to fluctuations