Question 1

Which of the following is a disadvantage of a multidomestic strategy?

Accepted Answer

A)  lack of opportunities to delegate tasks 
B)  high pressure on headquarters staff 
C)  inefficient manufacturing 
D)  standardized products in culturally different markets 
A)  lack of opportunities to delegate tasks 
B)  high pressure on headquarters staff 
C)  inefficient manufacturing 
D)  standardized products in culturally different markets

Question 2

One of the advantages of a global matrix structure is that it provides better management of subsidiaries or products, or operations in many foreign markets.

Accepted Answer

A) True 
 B)False

Question 3

CEO Hiring Interview (Scenario)
The Ace Children's Clothing Company is a mature MNE that has been manufacturing and selling children's clothing in Ace stores around the world for 30 years. Ace has seen a downturn in global sales recently due to trendy adult clothing companies branching out into children's clothing. The Ace board of directors is interviewing candidates to replace the outgoing CEO. The board wants a CEO who will take Ace into the future and pull customers back into Ace stores. Two candidates are being interviewed for the position: Dan Elizarde and Tanya Carson. Tanya and Dan have comparable executive experience with retail clothing companies. Therefore, the board will be basing its final decision on visionary leadership skills.
-During the interview, Dan states that he expects Ace to surpass the competition in two years if he becomes CEO. Which of the following traits does Dan most likely exhibit with his statement that might appeal to the board of directors?

Accepted Answer

A)  commitment to the success of Ace 
B)  arrogance about his abilities to help Ace 
C)  recognition of the homogeneity across communities 
D)  subjective ethical standards 
A)  commitment to the success of Ace 
B)  arrogance about his abilities to help Ace 
C)  recognition of the homogeneity across communities 
D)  subjective ethical standards

Question 4

Which of the following best characterizes the concept of global integration?

Accepted Answer

A)  Effective global competition requires that products be specialized based on the market. 
B)  Making adjustments for unique markets is an essential element of international business. 
C)  Creating variations of the same product for different markets is an unnecessary expense. 
D)  The differences in market-to-market distribution channels must be accommodated. 
A)  Effective global competition requires that products be specialized based on the market. 
B)  Making adjustments for unique markets is an essential element of international business. 
C)  Creating variations of the same product for different markets is an unnecessary expense. 
D)  The differences in market-to-market distribution channels must be accommodated.

Question 5

Which of the following is necessary for local responsiveness to effectively increase a firm's competitiveness?

Accepted Answer

A)  Local managers need to be able to make decisions based on local needs. 
B)  Corporate executives must standardize marketing and merchandising. 
C)  Employees must be hired and trained only within a local region. 
D)  A firm's bankers and financial managers must be locally based. 
A)  Local managers need to be able to make decisions based on local needs. 
B)  Corporate executives must standardize marketing and merchandising. 
C)  Employees must be hired and trained only within a local region. 
D)  A firm's bankers and financial managers must be locally based.

Question 6

Graham Technologies is a U.K.-based consumer electronics manufacturer. The company markets netbooks, smartphones, laptops, and desktops in the international market and each product division operates as a stand-alone profit center with substantial autonomy. This is an example of a ________.

Accepted Answer

A)  global matrix structure 
B)  functional structure 
C)  product structure 
D)  geographic area structure 
A)  global matrix structure 
B)  functional structure 
C)  product structure 
D)  geographic area structure

Question 7

An export department rarely requires much organizational structure until export sales reach a critical point.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following would exert pressure on a U.S.-based clothing company, ZSource Ltd., to become locally responsive?

Accepted Answer

A)  to seek cost reduction through scale economies 
B)  to conduct global sourcing of raw materials, components, energy, and labor 
C)  to monitor and respond to global competitors 
D)  to meet host government requirements and regulations 
A)  to seek cost reduction through scale economies 
B)  to conduct global sourcing of raw materials, components, energy, and labor 
C)  to monitor and respond to global competitors 
D)  to meet host government requirements and regulations

Question 9

To establish positive relationships with country managers, senior corporate managers should ________.

Accepted Answer

A)  transfer employees to different countries to maintain a centralized power structure 
B)  encourage subjective ethical and moral standards across different countries 
C)  invite local managers to discuss their experiences at regional and global conferences 
D)  minimize decision making at the local level 
A)  transfer employees to different countries to maintain a centralized power structure 
B)  encourage subjective ethical and moral standards across different countries 
C)  invite local managers to discuss their experiences at regional and global conferences 
D)  minimize decision making at the local level

Question 10

In which of the following types of organizational arrangements would a firm most likely have a division that focused solely on management of an international organization?

Accepted Answer

A)  product structure 
B)  functional structure 
C)  geographic area structure 
D)  international division 
A)  product structure 
B)  functional structure 
C)  geographic area structure 
D)  international division

Question 11

GramTech Solutions is a software development firm based in the United States. The firm's CEO, David Ghaster, wants to open an outlet in India. Being a visionary leader, he would ________.

Accepted Answer

A)  require employees to discover a strategic vision for the firm 
B)  acquire managers with an international mind-set, showing an openness to and awareness of diversity across cultures. 
C)  commit minimum resources for international ventures because of the currency risk involved 
D)  cut down on employees' cross-cultural training to save capital to open a firm in India 
A)  require employees to discover a strategic vision for the firm 
B)  acquire managers with an international mind-set, showing an openness to and awareness of diversity across cultures. 
C)  commit minimum resources for international ventures because of the currency risk involved 
D)  cut down on employees' cross-cultural training to save capital to open a firm in India

Question 12

Organizational culture is ________.

Accepted Answer

A)  the pattern of shared values, behavioral norms, systems, policies, and procedures that employees learn and adopt 
B)  an approach in which a firm views international business as separate from, and secondary to, its domestic business 
C)  a reporting structure inside the firm that specifies the links between people, functions, and processes 
D)  an organizational design in which all international activities are centralized within one division in the firm, separate from domestic units 
A)  the pattern of shared values, behavioral norms, systems, policies, and procedures that employees learn and adopt 
B)  an approach in which a firm views international business as separate from, and secondary to, its domestic business 
C)  a reporting structure inside the firm that specifies the links between people, functions, and processes 
D)  an organizational design in which all international activities are centralized within one division in the firm, separate from domestic units

Question 13

In order to facilitate shared decision making between headquarters and country managers, corporate representatives should often visit subsidiary locations.

Accepted Answer

A) True 
 B)False

Question 14

________ refers to using the resources of the firm, without wasting any of them.

Accepted Answer

A)  Efficiency 
B)  Protectionism 
C)  Flexibility 
D)  Currency control 
A)  Efficiency 
B)  Protectionism 
C)  Flexibility 
D)  Currency control

Question 15

Describe the three strategic objectives for creating a competitive advantage in international business as proposed by Bartlett and Ghoshal. Provide an example to illustrate each objective.

Accepted Answer

a. Efficiency-The firm must build effici

Question 16

Global strategy is an approach to internationalization in which headquarters seeks substantial control over its country operations to minimize redundancy and achieve maximum efficiency, learning, and integration worldwide.

Accepted Answer

A) True 
 B)False

Question 17

Organizational culture refers to managerial routines, behaviors, and mechanisms that allow the firm to function as intended.

Accepted Answer

A) True 
 B)False

Question 18

Discuss the advantages and implementation of a transnational strategy, and explain why this strategy is closely associated with a global matrix structure.

Accepted Answer

A transnational strategy is a coordinate

Question 19

The home replication strategy is often employed as a means of extending a product's life cycle in a foreign market and to replicate home-market success, as it views expansion abroad as an opportunity to generate additional sales for domestic product lines.

Accepted Answer

A) True 
 B)False

Question 20

A firm's headquarters is the primary contributor to ________.

Accepted Answer

A)  local market research 
B)  capital planning 
C)  human resource management 
D)  compliance with local laws and regulations 
A)  local market research 
B)  capital planning 
C)  human resource management 
D)  compliance with local laws and regulations

Which of the following is a disadvantage of a multidomestic strategy?

One of the advantages of a global matrix structure is that it provides better management of subsidiaries or products, or operations in many foreign markets.

Which of the following best characterizes the concept of global integration?

Which of the following is necessary for local responsiveness to effectively increase a firm's competitiveness?

Graham Technologies is a U.K.-based consumer electronics manufacturer. The company markets netbooks, smartphones, laptops, and desktops in the international market and each product division operates as a stand-alone profit center with substantial autonomy. This is an example of a ________.

An export department rarely requires much organizational structure until export sales reach a critical point.

Which of the following would exert pressure on a U.S.-based clothing company, ZSource Ltd., to become locally responsive?

To establish positive relationships with country managers, senior corporate managers should ________.

In which of the following types of organizational arrangements would a firm most likely have a division that focused solely on management of an international organization?

GramTech Solutions is a software development firm based in the United States. The firm's CEO, David Ghaster, wants to open an outlet in India. Being a visionary leader, he would ________.

Organizational culture is ________.

In order to facilitate shared decision making between headquarters and country managers, corporate representatives should often visit subsidiary locations.

________ refers to using the resources of the firm, without wasting any of them.

Describe the three strategic objectives for creating a competitive advantage in international business as proposed by Bartlett and Ghoshal. Provide an example to illustrate each objective.

Global strategy is an approach to internationalization in which headquarters seeks substantial control over its country operations to minimize redundancy and achieve maximum efficiency, learning, and integration worldwide.

Organizational culture refers to managerial routines, behaviors, and mechanisms that allow the firm to function as intended.

Discuss the advantages and implementation of a transnational strategy, and explain why this strategy is closely associated with a global matrix structure.

The home replication strategy is often employed as a means of extending a product's life cycle in a foreign market and to replicate home-market success, as it views expansion abroad as an opportunity to generate additional sales for domestic product lines.

A firm's headquarters is the primary contributor to ________.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance in International Business

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention and Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Global Market Opportunity Assessment

Exporting and Global Sourcing

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters

Exam 11: Strategy and Organization in the International Firm

Which of the following is a disadvantage of a multidomestic strategy?

One of the advantages of a global matrix structure is that it provides better management of subsidiaries or products, or operations in many foreign markets.

Which of the following best characterizes the concept of global integration?

Which of the following is necessary for local responsiveness to effectively increase a firm's competitiveness?

Graham Technologies is a U.K.-based consumer electronics manufacturer. The company markets netbooks, smartphones, laptops, and desktops in the international market and each product division operates as a stand-alone profit center with substantial autonomy. This is an example of a ________.

An export department rarely requires much organizational structure until export sales reach a critical point.

Which of the following would exert pressure on a U.S.-based clothing company, ZSource Ltd., to become locally responsive?

To establish positive relationships with country managers, senior corporate managers should ________.

In which of the following types of organizational arrangements would a firm most likely have a division that focused solely on management of an international organization?

GramTech Solutions is a software development firm based in the United States. The firm's CEO, David Ghaster, wants to open an outlet in India. Being a visionary leader, he would ________.

Organizational culture is ________.

In order to facilitate shared decision making between headquarters and country managers, corporate representatives should often visit subsidiary locations.

________ refers to using the resources of the firm, without wasting any of them.

Describe the three strategic objectives for creating a competitive advantage in international business as proposed by Bartlett and Ghoshal. Provide an example to illustrate each objective.

Global strategy is an approach to internationalization in which headquarters seeks substantial control over its country operations to minimize redundancy and achieve maximum efficiency, learning, and integration worldwide.

Organizational culture refers to managerial routines, behaviors, and mechanisms that allow the firm to function as intended.

Discuss the advantages and implementation of a transnational strategy, and explain why this strategy is closely associated with a global matrix structure.

The home replication strategy is often employed as a means of extending a product's life cycle in a foreign market and to replicate home-market success, as it views expansion abroad as an opportunity to generate additional sales for domestic product lines.

A firm's headquarters is the primary contributor to ________.

Introduction: What Is International Business

Globalization of Markets and the Internationalization of the Firm

The Cultural Environment of International Business

Ethics, Corporate Social Responsibility, Sustainability and Corporate Governance in International Business

Theories of International Trade and Investment

Political and Legal Systems in National Environments

Government Intervention and Regional Economic Integration

Understanding Emerging Markets

The International Monetary and Financial Environment

Financial Management and Accounting in the Global Firm

Global Market Opportunity Assessment

Exporting and Global Sourcing

Foreign Direct Investment and Collaborative Ventures

Licensing, Franchising, and Other Contractual Strategies

Marketing in the Global Firm

Human Resource Management in the Global Firm

Filters