Question 1

Decentralization has the key advantage of letting decisions be made by those who directly deal with customers, competitors, and markets.

Accepted Answer

A) True 
 B)False

Question 2

Current approaches to designing an organization see the task of building knowledge-generating and decision-making relationships as less important than specifying the best structural arrangement.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is the LEAST likely reason that global firms are shifting away from formal organizational structures?

Accepted Answer

A) advancements in communication systems 
B) changes in managerial standards 
C) opportunities in new markets 
D) demands of stockholders 
A) advancements in communication systems 
B) changes in managerial standards 
C) opportunities in new markets 
D) demands of stockholders

Question 4

MNEs use different report formats and schedules for foreign operations according to local customs.

Accepted Answer

A) True 
 B)False

Question 5

Whereas executives specify roles and relationships in a functional structure in terms of ________, they use the divisional structure format to specify them according to ________.

Accepted Answer

A) inputs; outputs 
B) buyers; suppliers 
C) markets; countries 
D) politics; economics 
A) inputs; outputs 
B) buyers; suppliers 
C) markets; countries 
D) politics; economics

Question 6

Coordination by plan deals with exact rules and procedures that spell out what needs to be done and how.

Accepted Answer

A) True 
 B)False

Question 7

Chapman Enterprises is an MNE that markets a diverse portfolio of products including jewelry, luggage, and furniture.Which structure would most likely be used by Chapman?

Accepted Answer

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

Question 8

A matrix organization is a hybrid of the functional and geographic organizations.

Accepted Answer

A) True 
 B)False

Question 9

Falcon Enterprises is an MNE that uses price competition and relative market share to establish internal performance benchmarks and standards.The firm is most likely applying a system of ________.

Accepted Answer

A) bureaucratic control 
B) market control 
C) standardization control 
D) clan control 
A) bureaucratic control 
B) market control 
C) standardization control 
D) clan control

Question 10

Three types of control systems are used in MNEs.These are ________.

Accepted Answer

A) market control, bureaucratic control, and clan control 
B) standardization control, adjustment control, and clan control 
C) market control, adjustment control, and clan control 
D) planning control, market control, and clan control 
A) market control, bureaucratic control, and clan control 
B) standardization control, adjustment control, and clan control 
C) market control, adjustment control, and clan control 
D) planning control, market control, and clan control

Question 11

The open source model is a hyperarchy that involves giving source code to volunteers who fix software bugs.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is most likely a true statement about organization culture?

Accepted Answer

A) Many organizations use a robust organization culture to create consistently high performance. 
B) Fewer and fewer companies allow an organization's culture to emerge naturally. 
C) Typically, managers from different countries have values similar to those endorsed by the company. 
D) Divergent values among managers and employees ease the exchange of ideas between people from different countries. 
A) Many organizations use a robust organization culture to create consistently high performance. 
B) Fewer and fewer companies allow an organization's culture to emerge naturally. 
C) Typically, managers from different countries have values similar to those endorsed by the company. 
D) Divergent values among managers and employees ease the exchange of ideas between people from different countries.

Question 13

The concept of organization includes how a company does all of the following EXCEPT ________.

Accepted Answer

A) specifies the framework for work 
B) develops systems that coordinate and control tasks 
C) cultivates a common workplace culture among employees 
D) plans leadership and training programs to develop the managerial staff 
A) specifies the framework for work 
B) develops systems that coordinate and control tasks 
C) cultivates a common workplace culture among employees 
D) plans leadership and training programs to develop the managerial staff

Question 14

Functional structures for international operations are most likely found among those companies that ________.

Accepted Answer

A) have a narrow range of products that rely on economies of scale 
B) have multiple products that share few common technologies 
C) rely on differentiated marketing methods 
D) compete in unstable industries 
A) have a narrow range of products that rely on economies of scale 
B) have multiple products that share few common technologies 
C) rely on differentiated marketing methods 
D) compete in unstable industries

Question 15

In general terms, we see the principles of horizontal differentiation in the design logic of ________.

Accepted Answer

A) vertical differentiation 
B) decentralization 
C) the value chain 
D) the unity-of-command principle 
A) vertical differentiation 
B) decentralization 
C) the value chain 
D) the unity-of-command principle

Question 16

In a matrix structure, product, functional, or geographic groups compete for resources.

Accepted Answer

A) True 
 B)False

Question 17

Decision making in a functional structure tends to be ________.

Accepted Answer

A) decentralized 
B) centralized 
C) horizontal 
D) collaborative 
A) decentralized 
B) centralized 
C) horizontal 
D) collaborative

Question 18

Which of the following statements is most likely true regarding vertical differentiation?

Accepted Answer

A) MNEs with decentralized structures are more appealing to foreign workers. 
B) Most MNEs balance authority between headquarters and subsidiaries because of globality. 
C) MNEs with many organizational levels are less likely to perform well in emerging markets. 
D) Most MNEs implement centralized authority structures due to the complexity of globalization. 
A) MNEs with decentralized structures are more appealing to foreign workers. 
B) Most MNEs balance authority between headquarters and subsidiaries because of globality. 
C) MNEs with many organizational levels are less likely to perform well in emerging markets. 
D) Most MNEs implement centralized authority structures due to the complexity of globalization.

Question 19

Johnson & Johnson embodies its organizational culture in "The Credo," which is the firm's ________.

Accepted Answer

A) code of conduct 
B) vision statement 
C) strategic plan 
D) mission statement 
A) code of conduct 
B) vision statement 
C) strategic plan 
D) mission statement

Question 20

The notion of boundaries, within the context of neoclassical structures, refers to those limitations that interfere with communication and collaboration between the firm and its suppliers, distributors, allies, competitive rivals, and customers.

Accepted Answer

A) True 
 B)False

Decentralization has the key advantage of letting decisions be made by those who directly deal with customers, competitors, and markets.

Current approaches to designing an organization see the task of building knowledge-generating and decision-making relationships as less important than specifying the best structural arrangement.

Which of the following is the LEAST likely reason that global firms are shifting away from formal organizational structures?

MNEs use different report formats and schedules for foreign operations according to local customs.

Whereas executives specify roles and relationships in a functional structure in terms of , they use the divisional structure format to specify them according to .

Coordination by plan deals with exact rules and procedures that spell out what needs to be done and how.

Chapman Enterprises is an MNE that markets a diverse portfolio of products including jewelry, luggage, and furniture.Which structure would most likely be used by Chapman?

A matrix organization is a hybrid of the functional and geographic organizations.

Falcon Enterprises is an MNE that uses price competition and relative market share to establish internal performance benchmarks and standards.The firm is most likely applying a system of ________.

Three types of control systems are used in MNEs.These are ________.

The open source model is a hyperarchy that involves giving source code to volunteers who fix software bugs.

Which of the following is most likely a true statement about organization culture?

The concept of organization includes how a company does all of the following EXCEPT ________.

Functional structures for international operations are most likely found among those companies that ________.

In general terms, we see the principles of horizontal differentiation in the design logic of ________.

In a matrix structure, product, functional, or geographic groups compete for resources.

Decision making in a functional structure tends to be ________.

Which of the following statements is most likely true regarding vertical differentiation?

Johnson & Johnson embodies its organizational culture in "The Credo," which is the firm's ________.

The notion of boundaries, within the context of neoclassical structures, refers to those limitations that interfere with communication and collaboration between the firm and its suppliers, distributors, allies, competitive rivals, and customers.

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor-Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters

Exam 16: The Organization of International Business

Decentralization has the key advantage of letting decisions be made by those who directly deal with customers, competitors, and markets.

Current approaches to designing an organization see the task of building knowledge-generating and decision-making relationships as less important than specifying the best structural arrangement.

Which of the following is the LEAST likely reason that global firms are shifting away from formal organizational structures?

MNEs use different report formats and schedules for foreign operations according to local customs.

Whereas executives specify roles and relationships in a functional structure in terms of ________, they use the divisional structure format to specify them according to ________.

Coordination by plan deals with exact rules and procedures that spell out what needs to be done and how.

Chapman Enterprises is an MNE that markets a diverse portfolio of products including jewelry, luggage, and furniture.Which structure would most likely be used by Chapman?

A matrix organization is a hybrid of the functional and geographic organizations.

Falcon Enterprises is an MNE that uses price competition and relative market share to establish internal performance benchmarks and standards.The firm is most likely applying a system of ________.

Three types of control systems are used in MNEs.These are ________.

The open source model is a hyperarchy that involves giving source code to volunteers who fix software bugs.

Which of the following is most likely a true statement about organization culture?

The concept of organization includes how a company does all of the following EXCEPT ________.

Functional structures for international operations are most likely found among those companies that ________.

In general terms, we see the principles of horizontal differentiation in the design logic of ________.

In a matrix structure, product, functional, or geographic groups compete for resources.

Decision making in a functional structure tends to be ________.

Which of the following statements is most likely true regarding vertical differentiation?

Johnson & Johnson embodies its organizational culture in "The Credo," which is the firm's ________.

The notion of boundaries, within the context of neoclassical structures, refers to those limitations that interfere with communication and collaboration between the firm and its suppliers, distributors, allies, competitive rivals, and customers.

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

Globalization and Society

International Trade and Factor-Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

Marketing Globally

Global Manufacturing and Supply Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters

Whereas executives specify roles and relationships in a functional structure in terms of , they use the divisional structure format to specify them according to .