Exam 10: The Organization of Global Business

Of the following, which is NOT a disadvantage of an international division?

A market structure is one where an organization:

Scenario - Mirkhani Mining Supplies Mirkhani Mining Supplies is the industry leader in the production of underground mining equipment.  The company has its headquarters in South Africa and has been in operation there since its inception in 1987.  Mirkhani is known worldwide for the safety features it incorporates in its equipment.  This company conducts its operations with the safety of the underground miner as its guiding objective. Mirkhani Mining was recently called in to respond to the latest mine accident in China.  Mirkhani not only provides safe mining equipment, it also makes superior mine rescue equipment.  The company will be receiving a global award for freely rendering the use of its rescue equipment to China during a mine collapse.  Mirkhani Mining Supplies will be recognized around the globe as saving the lives of forty underground miners in China.  The company states, "Saving those lives is better than receiving a billion dollars for mining machinery." All of the following characteristics would be seen if Mirkhani Mining Supplies was considered a stateless corporation except which one?  

CEMEX has three divisions: (1)North America; (2)South America and the Caribbean; and (3)Europe, Asia, and the Middle East. CEMEX has a _____ structure.

The first step a domestic firm takes when entering an international arena is usually to create an international division.

Global businesses that use a functional structure usually have a narrow product line.