Question 1

When is a subsidiary board beneficial to an international firm? Why would an MNC appoint prominent local citizens to a subsidiary board?

Accepted Answer

A subsidiary board is most useful when t

Question 2

Which of the following is one of the managerial philosophies that guide the approach to functions like organizational design and marketing?

Accepted Answer

A)  ethnocentric approach 
B)  transnational approach 
C)  supranational approach 
D)  intranational approach 
A)  ethnocentric approach 
B)  transnational approach 
C)  supranational approach 
D)  intranational approach

Question 3

Tasks are assigned, resources are allocated and performance expectations are established through ________.

Accepted Answer

A)  training objectives. 
B)  organizational design 
C)  strategic hierarchy 
D)  intuitive leadership 
A)  training objectives. 
B)  organizational design 
C)  strategic hierarchy 
D)  intuitive leadership

Question 4

What is the first step in establishing an international control system?

Accepted Answer

A)  Set control standards for performance. 
B)  Measure actual performance. 
C)  Compare performance against standards. 
D)  Discuss deviations with employees. 
A)  Set control standards for performance. 
B)  Measure actual performance. 
C)  Compare performance against standards. 
D)  Discuss deviations with employees.

Question 5

What is the meaning of area knowledge?

Accepted Answer

Area knowledge means that mana

Question 6

The ________ allows a firm to concentrate resources and create specialized programs targeted on international business activity while simultaneously keeping that activity segregated from the firm's ongoing domestic activities.

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 7

The ________ is used when a firm serves different customers or customer groups, each with specific needs calling for special expertise or attention.

Accepted Answer

A)  global area design 
B)  global functional design 
C)  global matrix design 
D)  global customer design 
A)  global area design 
B)  global functional design 
C)  global matrix design 
D)  global customer design

Question 8

What are the disadvantages of the global product design? Why is coordination especially problematic?

Accepted Answer

The global product design also has disad

Question 9

Active subsidiary boards are most useful in which type of organization?

Accepted Answer

A)  an M-form 
B)  a U-form 
C)  an H-form 
D)  an S-form 
A)  an M-form 
B)  a U-form 
C)  an H-form 
D)  an S-form

Question 10

Resistance to control varies across cultures.

Accepted Answer

A) True 
 B)False

Question 11

Functional 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 12

Which term refers to the process of linking and integrating functions and activities of different groups, units, or divisions?

Accepted Answer

A)  decentralization 
B)  coordination 
C)  subsidizing 
D)  channeling 
A)  decentralization 
B)  coordination 
C)  subsidizing 
D)  channeling

Question 13

What is organizational design? What are the different types of organizational design? Describe each one briefly.

Accepted Answer

Organizational design (sometimes called

Question 14

A common performance ratio used by many firms is ________.

Accepted Answer

A)  breakeven point 
B)  inventory turnover 
C)  cost of goods sold 
D)  earnings per share 
A)  breakeven point 
B)  inventory turnover 
C)  cost of goods sold 
D)  earnings per share

Question 15

What elements of performance are relatively easy to measure?

Accepted Answer

Actual output, worker producti

Question 16

Scale Systems, an MNE, analyzes the needs of its customers worldwide and then adopts standardized operations for all markets that the firm serves. Which of the following is most likely used by Scale Systems?

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 17

What is an informal management network? How are they established? Do you think they are useful to an international business? Why or why not?

Accepted Answer

An informal management network is a grou

Question 18

Area 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 19

Usually, during the implementation of planning process control, whenever a unit fails to meet its goals ________.

Accepted Answer

A)  the head of the unit is terminated 
B)  the head of the unit meets with the firm's executive committee 
C)  the unit is absorbed into the parent entity 
D)  the unit is liberally granted an extension of time 
A)  the head of the unit is terminated 
B)  the head of the unit meets with the firm's executive committee 
C)  the unit is absorbed into the parent entity 
D)  the unit is liberally granted an extension of time

Question 20

A(n) ________ calls for a firm to concentrate its organizational control system on the actual mechanics the firm uses to develop strategic plans.

Accepted Answer

A)  responsibility center control 
B)  generic organizational control 
C)  planning process control 
D)  operations control 
A)  responsibility center control 
B)  generic organizational control 
C)  planning process control 
D)  operations control

When is a subsidiary board beneficial to an international firm? Why would an MNC appoint prominent local citizens to a subsidiary board?

Which of the following is one of the managerial philosophies that guide the approach to functions like organizational design and marketing?

Tasks are assigned, resources are allocated and performance expectations are established through ________.

What is the first step in establishing an international control system?

What is the meaning of area knowledge?

The ________ allows a firm to concentrate resources and create specialized programs targeted on international business activity while simultaneously keeping that activity segregated from the firm's ongoing domestic activities.

The ________ is used when a firm serves different customers or customer groups, each with specific needs calling for special expertise or attention.

What are the disadvantages of the global product design? Why is coordination especially problematic?

Active subsidiary boards are most useful in which type of organization?

Resistance to control varies across cultures.

Functional knowledge refers to the idea that managers must ________.

Which term refers to the process of linking and integrating functions and activities of different groups, units, or divisions?

What is organizational design? What are the different types of organizational design? Describe each one briefly.

A common performance ratio used by many firms is ________.

What elements of performance are relatively easy to measure?

Scale Systems, an MNE, analyzes the needs of its customers worldwide and then adopts standardized operations for all markets that the firm serves. Which of the following is most likely used by Scale Systems?

What is an informal management network? How are they established? Do you think they are useful to an international business? Why or why not?

Area knowledge refers to the idea that managers must ________.

Usually, during the implementation of planning process control, whenever a unit fails to meet its goals ________.

A(n) ________ calls for a firm to concentrate its organizational control system on the actual mechanics the firm uses to develop strategic plans.

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

When is a subsidiary board beneficial to an international firm? Why would an MNC appoint prominent local citizens to a subsidiary board?

Which of the following is one of the managerial philosophies that guide the approach to functions like organizational design and marketing?

Tasks are assigned, resources are allocated and performance expectations are established through ________.

What is the first step in establishing an international control system?

What is the meaning of area knowledge?

The ________ allows a firm to concentrate resources and create specialized programs targeted on international business activity while simultaneously keeping that activity segregated from the firm's ongoing domestic activities.

The ________ is used when a firm serves different customers or customer groups, each with specific needs calling for special expertise or attention.

What are the disadvantages of the global product design? Why is coordination especially problematic?

Active subsidiary boards are most useful in which type of organization?

Resistance to control varies across cultures.

Functional knowledge refers to the idea that managers must ________.

Which term refers to the process of linking and integrating functions and activities of different groups, units, or divisions?

What is organizational design? What are the different types of organizational design? Describe each one briefly.

A common performance ratio used by many firms is ________.

What elements of performance are relatively easy to measure?

Scale Systems, an MNE, analyzes the needs of its customers worldwide and then adopts standardized operations for all markets that the firm serves. Which of the following is most likely used by Scale Systems?

What is an informal management network? How are they established? Do you think they are useful to an international business? Why or why not?

Area knowledge refers to the idea that managers must ________.

Usually, during the implementation of planning process control, whenever a unit fails to meet its goals ________.

A(n) ________ calls for a firm to concentrate its organizational control system on the actual mechanics the firm uses to develop strategic plans.

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