Question 1

What are the three levels of international control?

Accepted Answer

The three levels of control are strategic control, organizational control, and operations control.

Question 2

The higher the level of interdependence among divisions and functions in a firm, the more coordination is required.

Accepted Answer

A) True 
 B)False  True

Question 3

Which of the following is an advantage of using a global area design?

Accepted Answer

A)  eliminating duplication of functional areas 
B)  gaining cost efficiencies in manufacturing 
C)  tailoring the product mix in a region 
D)  encouraging global product planning 
A)  eliminating duplication of functional areas 
B)  gaining cost efficiencies in manufacturing 
C)  tailoring the product mix in a region 
D)  encouraging global product planning C

Question 4

Which element of performance is relatively difficult to measure?

Accepted Answer

A)  actual output 
B)  worker productivity 
C)  product quality 
D)  advertising effectiveness 
A)  actual output 
B)  worker productivity 
C)  product quality 
D)  advertising effectiveness

Question 5

Product knowledge refers to the idea that managers must ________.

Accepted Answer

A)  understand the cultural, commercial, social, and economic conditions in each host country in which the firm does business 
B)  be aware of the competitive forces that have implications for global strategy in each market 
C)  comprehend features such as technological trends, customers needs, and competitive forces affecting the goods the firm produces 
D)  have access to coworkers with expertise in basic business functions such as production, marketing, finance, accounting, human resources management, and information technology 
A)  understand the cultural, commercial, social, and economic conditions in each host country in which the firm does business 
B)  be aware of the competitive forces that have implications for global strategy in each market 
C)  comprehend features such as technological trends, customers needs, and competitive forces affecting the goods the firm produces 
D)  have access to coworkers with expertise in basic business functions such as production, marketing, finance, accounting, human resources management, and information technology

Question 6

The ________ is used by MNCs that have relatively narrow or similar product lines.

Accepted Answer

A)  global product design 
B)  global functional design 
C)  global matrix design 
D)  global hybrid design 
A)  global product design 
B)  global functional design 
C)  global matrix design 
D)  global hybrid design

Question 7

Host governments typically require international firms to develop accounting procedures based on local regulations, which is problematic for firms operating in multiple countries with incompatible accounting standards.

Accepted Answer

A) True 
 B)False

Question 8

British Airways uses the global customer design because it allows the firm to standardize its maintenance and flight procedures regardless of where a flight originates.

Accepted Answer

A) True 
 B)False

Question 9

United Distillers PLC uses the same strategy in every market. Which type of control method should it use?

Accepted Answer

A)  standardized organizational control 
B)  centralized organizational control 
C)  generic organizational control 
D)  responsibility center control 
A)  standardized organizational control 
B)  centralized organizational control 
C)  generic organizational control 
D)  responsibility center control

Question 10

Which of the following is an advantage of global area design?

Accepted Answer

A)  a firm may sacrifice cost efficiencies 
B)  diffusion of technology may be slowed 
C)  there may be a duplication of resources 
D)  firms may develop expertise about the local market 
A)  a firm may sacrifice cost efficiencies 
B)  diffusion of technology may be slowed 
C)  there may be a duplication of resources 
D)  firms may develop expertise about the local market

Question 11

Most companies use a hybrid of the various organizational designs.

Accepted Answer

A) True 
 B)False

Question 12

What corporate philosophy is facilitated by a global product design?

Accepted Answer

A)  ethnocentric approach 
B)  polycentric approach 
C)  geocentric approach 
D)  transnational approach 
A)  ethnocentric approach 
B)  polycentric approach 
C)  geocentric approach 
D)  transnational approach

Question 13

What is the focus of strategic control?

Accepted Answer

Strategic control focuses on h

Question 14

Apex Enterprises has recently started to engage in a small amount of direct exporting. As a result, Apex managers have delegated responsibilities for processing international orders to individuals within the production department. Which of the following is most likely used by Apex?

Accepted Answer

A)  corollary approach 
B)  export department 
C)  international division 
D)  global product design 
A)  corollary approach 
B)  export department 
C)  international division 
D)  global product design

Question 15

Which design assigns worldwide responsibility for specific products or product groups to separate operating divisions within a firm?

Accepted Answer

A)  global area design 
B)  global functional design 
C)  global product design 
D)  global hybrid design 
A)  global area design 
B)  global functional design 
C)  global product design 
D)  global hybrid design

Question 16

The ethnocentric approach to management is most likely used by firms that ________.

Accepted Answer

A)  operate internationally the same way they do domestically 
B)  customize their operations for each foreign market in which they serve 
C)  analyze the needs of their customers worldwide and then adopt standardized operations for all markets they serve 
D)  adapt their marketing strategies for foreign markets, but not their finance strategies 
A)  operate internationally the same way they do domestically 
B)  customize their operations for each foreign market in which they serve 
C)  analyze the needs of their customers worldwide and then adopt standardized operations for all markets they serve 
D)  adapt their marketing strategies for foreign markets, but not their finance strategies

Question 17

The polycentric approach to management is most likely used by firms that ________.

Accepted Answer

A)  operate internationally the same way they do domestically 
B)  customize their operations for each foreign market in which they serve 
C)  analyze the needs of their customers worldwide and then adopt standardized operations for all markets they serve 
D)  adapt their marketing strategies for foreign markets, but not their finance strategies 
A)  operate internationally the same way they do domestically 
B)  customize their operations for each foreign market in which they serve 
C)  analyze the needs of their customers worldwide and then adopt standardized operations for all markets they serve 
D)  adapt their marketing strategies for foreign markets, but not their finance strategies

Question 18

Adecco, a temporary employment agency with worldwide clients, has ten regional divisions. Managers in each division handle recruiting, distribution, promotion, and client services for that region. Adecco is a service firm that focuses on marketing. Which organizational design is most likely used by Adecco?

Accepted Answer

A)  global product design 
B)  global area design 
C)  global functional design 
D)  global hybrid design 
A)  global product design 
B)  global area design 
C)  global functional design 
D)  global hybrid design

Question 19

Operations control systems tend to be less specific and focused than strategic and organizational control systems.

Accepted Answer

A) True 
 B)False

Question 20

What are the steps a firm needs to take when establishing an international control system? How can a firm overcome resistance to control systems?

Accepted Answer

The four steps are to set control standa

What are the three levels of international control?

The higher the level of interdependence among divisions and functions in a firm, the more coordination is required.

Which of the following is an advantage of using a global area design?

Which element of performance is relatively difficult to measure?

Product knowledge refers to the idea that managers must ________.

The ________ is used by MNCs that have relatively narrow or similar product lines.

Host governments typically require international firms to develop accounting procedures based on local regulations, which is problematic for firms operating in multiple countries with incompatible accounting standards.

British Airways uses the global customer design because it allows the firm to standardize its maintenance and flight procedures regardless of where a flight originates.

United Distillers PLC uses the same strategy in every market. Which type of control method should it use?

Which of the following is an advantage of global area design?

Most companies use a hybrid of the various organizational designs.

What corporate philosophy is facilitated by a global product design?

What is the focus of strategic control?

Apex Enterprises has recently started to engage in a small amount of direct exporting. As a result, Apex managers have delegated responsibilities for processing international orders to individuals within the production department. Which of the following is most likely used by Apex?

Which design assigns worldwide responsibility for specific products or product groups to separate operating divisions within a firm?

The ethnocentric approach to management is most likely used by firms that ________.

The polycentric approach to management is most likely used by firms that ________.

Operations control systems tend to be less specific and focused than strategic and organizational control systems.

What are the steps a firm needs to take when establishing an international control system? How can a firm overcome resistance to control systems?

An Overview of International Business

Global Marketplaces and Business Centers

Legal, Technological, and Political Environments

The Role of Culture

Ethics and Social Responsibility in International Business

International Trade and Investment

The International Monetary System and the Balance of Payments

Foreign Exchange and International Financial Markets

Formulation of National Trade Policies

International Cooperation Among Nations

International Strategic Management

Strategies for Analyzing and Entering Foreign Markets

International Strategic Alliances

Leadership and Employee Behavior in International Business

International Marketing

International Operations Management

International Financial Management

International Human Resource Management and Labor Relations

Filters

Exam 14: International Organization Design and Control

What are the three levels of international control?

The higher the level of interdependence among divisions and functions in a firm, the more coordination is required.

Which of the following is an advantage of using a global area design?

Which element of performance is relatively difficult to measure?

Product knowledge refers to the idea that managers must ________.

The ________ is used by MNCs that have relatively narrow or similar product lines.

Host governments typically require international firms to develop accounting procedures based on local regulations, which is problematic for firms operating in multiple countries with incompatible accounting standards.

British Airways uses the global customer design because it allows the firm to standardize its maintenance and flight procedures regardless of where a flight originates.

United Distillers PLC uses the same strategy in every market. Which type of control method should it use?

Which of the following is an advantage of global area design?

Most companies use a hybrid of the various organizational designs.

What corporate philosophy is facilitated by a global product design?

What is the focus of strategic control?

Apex Enterprises has recently started to engage in a small amount of direct exporting. As a result, Apex managers have delegated responsibilities for processing international orders to individuals within the production department. Which of the following is most likely used by Apex?

Which design assigns worldwide responsibility for specific products or product groups to separate operating divisions within a firm?

The ethnocentric approach to management is most likely used by firms that ________.

The polycentric approach to management is most likely used by firms that ________.

Operations control systems tend to be less specific and focused than strategic and organizational control systems.

What are the steps a firm needs to take when establishing an international control system? How can a firm overcome resistance to control systems?

An Overview of International Business

Global Marketplaces and Business Centers

Legal, Technological, and Political Environments

The Role of Culture

Ethics and Social Responsibility in International Business

International Trade and Investment

The International Monetary System and the Balance of Payments

Foreign Exchange and International Financial Markets

Formulation of National Trade Policies

International Cooperation Among Nations

International Strategic Management

Strategies for Analyzing and Entering Foreign Markets

International Strategic Alliances

Leadership and Employee Behavior in International Business

International Marketing

International Operations Management

International Financial Management

International Human Resource Management and Labor Relations

Filters