Lenovo's ThinkPad Laptop Computers Is Designed in the United States

question 102

Multiple Choice

Lenovo's ThinkPad laptop computers is designed in the United States, the case, keyboard, and hard drive are made in Thailand; the display screen and memory in South Korea; the built-in wireless card in Malaysia; and the microprocessor in the United States. In each case, these components are manufactured and sourced from the optimal location given current factor costs. In this example, Lenovo has:

• A) vertical integration advantages.
• B) a global web of value creation activities.
• C) learning effects.
• D) high local responsiveness.

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Definitions:

Journal Entry

The basic record of a financial transaction in an accounting system, noted by debits and credits to various accounts.

Tangible Frauds

Deceptive acts involving the manipulation or misuse of physical assets or goods for illegal gain.

Asset Misappropriation

The theft or misuse of an organization's assets by employees or others with access.

Counterfeiting

The fraudulent manufacturing or creation of imitation products, currency, or documents with the intent to deceive.