Question 1

By centralizing decision making, a firm

Accepted Answer

A)  allows managers to respond to environmental changes more quickly. 
B)  runs the risk of not being able to respond to environmental changes quickly. 
C)  can avoid the duplication of activities that occurs when similar activities are carried on by various subunits within the organization. 
D)  often has issues with duplication of activities that occurs when similar activities are carried on by various subunits within the organization. 
A)  allows managers to respond to environmental changes more quickly. 
B)  runs the risk of not being able to respond to environmental changes quickly. 
C)  can avoid the duplication of activities that occurs when similar activities are carried on by various subunits within the organization. 
D)  often has issues with duplication of activities that occurs when similar activities are carried on by various subunits within the organization.

Question 2

What type of control system achieves control through a system of rules and procedures that directs the actions of subunits?

Accepted Answer

A)  personal controls 
B)  bureaucratic controls 
C)  cultural controls 
D)  output controls 
A)  personal controls 
B)  bureaucratic controls 
C)  cultural controls 
D)  output controls

Question 3

In a ________, individual managers belong to two hierarchies (a divisional hierarchy and an area hierarchy) and have two bosses (a divisional boss and an area boss).

Accepted Answer

A)  worldwide product division structure 
B)  classic matrix structure 
C)  worldwide area structure 
D)  performance structure 
A)  worldwide product division structure 
B)  classic matrix structure 
C)  worldwide area structure 
D)  performance structure

Question 4

Firms pursuing a transnational strategy

Accepted Answer

A)  have a low need for coordination. 
B)  require very few integrating mechanisms. 
C)  cultivate a strong culture. 
D)  operate with a worldwide product division structure. 
A)  have a low need for coordination. 
B)  require very few integrating mechanisms. 
C)  cultivate a strong culture. 
D)  operate with a worldwide product division structure.

Question 5

Which of the following would be a typical responsibility of a product division in a worldwide product divisional structure?

Accepted Answer

A)  operating decisions 
B)  overall strategic development of the firm 
C)  financial control of the various divisions 
D)  decisions regarding legal issues 
A)  operating decisions 
B)  overall strategic development of the firm 
C)  financial control of the various divisions 
D)  decisions regarding legal issues

Question 6

Which of the following terms refers to the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits?

Accepted Answer

A)  key processes 
B)  control systems 
C)  knowledge networks 
D)  job evaluations 
A)  key processes 
B)  control systems 
C)  knowledge networks 
D)  job evaluations

Question 7

Which of the following is a disadvantage of a worldwide area structure?

Accepted Answer

A)  Firms that use this structure tend to have a high degree of diversification. 
B)  Decision making is centralized and subsidiaries cannot customize to local marketing needs. 
C)  The structure encourages fragmentation of the organization into highly autonomous entities. 
D)  It does not facilitate local responsiveness. 
A)  Firms that use this structure tend to have a high degree of diversification. 
B)  Decision making is centralized and subsidiaries cannot customize to local marketing needs. 
C)  The structure encourages fragmentation of the organization into highly autonomous entities. 
D)  It does not facilitate local responsiveness.

Question 8

In a ________, all roles are viewed as integrating roles.

Accepted Answer

A)  worldwide area structure 
B)  process structure 
C)  worldwide product division structure 
D)  global matrix structure 
A)  worldwide area structure 
B)  process structure 
C)  worldwide product division structure 
D)  global matrix structure

Question 9

To unfreeze the established culture of an organization, the company

Accepted Answer

A)  must take bold steps such as shaking up the management structure in order to implement change. 
B)  is best served by taking incremental steps. 
C)  should employ the existing structural organization to integrate changes. 
D)  implement a rewards or incentive program. 
A)  must take bold steps such as shaking up the management structure in order to implement change. 
B)  is best served by taking incremental steps. 
C)  should employ the existing structural organization to integrate changes. 
D)  implement a rewards or incentive program.

Question 10

Centralization

Accepted Answer

A)  gives top management time to focus on critical issues by delegating more routine issues to lower-level managers. 
B)  can give top-level managers the means to bring about needed major organizational changes by concentrating power and authority in one individual or a management team. 
C)  permits greater flexibility because decisions do not have to be "referred up the hierarchy" unless they are exceptional in nature. 
D)  can be used to establish relatively autonomous, self-contained subunits within an organization. 
A)  gives top management time to focus on critical issues by delegating more routine issues to lower-level managers. 
B)  can give top-level managers the means to bring about needed major organizational changes by concentrating power and authority in one individual or a management team. 
C)  permits greater flexibility because decisions do not have to be "referred up the hierarchy" unless they are exceptional in nature. 
D)  can be used to establish relatively autonomous, self-contained subunits within an organization.

Question 11

Global learning based on the multidirectional transfer of skills between subsidiaries and the corporate center is a central feature of a firm pursuing ________ strategy.

Accepted Answer

A)  a localization 
B)  a global standardization 
C)  a transnational 
D)  an international 
A)  a localization 
B)  a global standardization 
C)  a transnational 
D)  an international

Question 12

Describe the situation where an international division makes sense. How common is this structure? What are the disadvantages of the structure?

Accepted Answer

When firms initially expand abroad, they

Question 13

In the ________, the philosophy is that responsibility for operating decisions pertaining to a particular product should be shared by the product division and the various areas of the firm.

Accepted Answer

A)  worldwide product division structure 
B)  classic global matrix structure 
C)  worldwide area structure 
D)  knowledge network structure 
A)  worldwide product division structure 
B)  classic global matrix structure 
C)  worldwide area structure 
D)  knowledge network structure

Question 14

A ________ encourages fragmentation of the organization into highly autonomous entities.

Accepted Answer

A)  worldwide area structure 
B)  global matrix structure 
C)  worldwide product structure 
D)  global network structure 
A)  worldwide area structure 
B)  global matrix structure 
C)  worldwide product structure 
D)  global network structure

Question 15

________ exists when the causes of a subunit's poor performance are not clear.

Accepted Answer

A)  Performance ambiguity 
B)  Vertical differentiation 
C)  Output controls 
D)  Horizontal differentiation 
A)  Performance ambiguity 
B)  Vertical differentiation 
C)  Output controls 
D)  Horizontal differentiation

Question 16

A firm's ________ determines where in its hierarchy the decision-making power is concentrated.

Accepted Answer

A)  integrating mechanism 
B)  vertical differentiation 
C)  knowledge network 
D)  horizontal differentiation 
A)  integrating mechanism 
B)  vertical differentiation 
C)  knowledge network 
D)  horizontal differentiation

Question 17

Firms pursuing ________ attempt to create value by transferring core competencies from home to foreign subsidiaries.

Accepted Answer

A)  a localization strategy 
B)  an international strategy 
C)  a transnational strategy 
D)  a global strategy 
A)  a localization strategy 
B)  an international strategy 
C)  a transnational strategy 
D)  a global strategy

Question 18

Discuss the sources of inertia in organizations. Is it easy to make organizational changes?

Accepted Answer

Organizations are difficult to change. W

Question 19

Performance ambiguity lowers the cost of control.

Accepted Answer

A) True 
 B)False

Question 20

Centralization and decentralization differ because centralization

Accepted Answer

A)  hinders coordination, while decentralization facilitates coordination. 
B)  prevents top-level managers from making required organizational changes, while decentralization gives top-level managers greater power to make organizational changes. 
C)  ensures that decisions are consistent with organizational objectives, while decentralization can result in decisions at variance with organizational goals. 
D)  promotes flexibility, while decentralization reduces flexibility. 
A)  hinders coordination, while decentralization facilitates coordination. 
B)  prevents top-level managers from making required organizational changes, while decentralization gives top-level managers greater power to make organizational changes. 
C)  ensures that decisions are consistent with organizational objectives, while decentralization can result in decisions at variance with organizational goals. 
D)  promotes flexibility, while decentralization reduces flexibility.

By centralizing decision making, a firm

What type of control system achieves control through a system of rules and procedures that directs the actions of subunits?

In a ________, individual managers belong to two hierarchies (a divisional hierarchy and an area hierarchy) and have two bosses (a divisional boss and an area boss).

Firms pursuing a transnational strategy

Which of the following would be a typical responsibility of a product division in a worldwide product divisional structure?

Which of the following terms refers to the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits?

Which of the following is a disadvantage of a worldwide area structure?

In a ________, all roles are viewed as integrating roles.

To unfreeze the established culture of an organization, the company

Centralization

Global learning based on the multidirectional transfer of skills between subsidiaries and the corporate center is a central feature of a firm pursuing ________ strategy.

Describe the situation where an international division makes sense. How common is this structure? What are the disadvantages of the structure?

In the ________, the philosophy is that responsibility for operating decisions pertaining to a particular product should be shared by the product division and the various areas of the firm.

A ________ encourages fragmentation of the organization into highly autonomous entities.

________ exists when the causes of a subunit's poor performance are not clear.

A firm's ________ determines where in its hierarchy the decision-making power is concentrated.

Firms pursuing ________ attempt to create value by transferring core competencies from home to foreign subsidiaries.

Discuss the sources of inertia in organizations. Is it easy to make organizational changes?

Performance ambiguity lowers the cost of control.

Centralization and decentralization differ because centralization

Globalization

National Differences in Political, Economic, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and R&D

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 14: The Organization of International Business

By centralizing decision making, a firm

What type of control system achieves control through a system of rules and procedures that directs the actions of subunits?

In a ________, individual managers belong to two hierarchies (a divisional hierarchy and an area hierarchy) and have two bosses (a divisional boss and an area boss).

Firms pursuing a transnational strategy

Which of the following would be a typical responsibility of a product division in a worldwide product divisional structure?

Which of the following terms refers to the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits?

Which of the following is a disadvantage of a worldwide area structure?

In a ________, all roles are viewed as integrating roles.

To unfreeze the established culture of an organization, the company

Centralization

Global learning based on the multidirectional transfer of skills between subsidiaries and the corporate center is a central feature of a firm pursuing ________ strategy.

Describe the situation where an international division makes sense. How common is this structure? What are the disadvantages of the structure?

In the ________, the philosophy is that responsibility for operating decisions pertaining to a particular product should be shared by the product division and the various areas of the firm.

A ________ encourages fragmentation of the organization into highly autonomous entities.

________ exists when the causes of a subunit's poor performance are not clear.

A firm's ________ determines where in its hierarchy the decision-making power is concentrated.

Firms pursuing ________ attempt to create value by transferring core competencies from home to foreign subsidiaries.

Discuss the sources of inertia in organizations. Is it easy to make organizational changes?

Performance ambiguity lowers the cost of control.

Centralization and decentralization differ because centralization

Globalization

National Differences in Political, Economic, and Legal Systems

National Differences in Economic Development

Differences in Culture

Ethics, Corporate Social Responsibility, and Sustainability

International Trade Theory

Government Policy and International Trade

Foreign Direct Investment

Regional Economic Integration

The Foreign Exchange Market

The International Monetary System

The Global Capital Market

The Strategy of International Business

Entry Strategy and Strategic Alliances

Exporting, Importing, and Countertrade

Global Production and Supply Chain Management

Global Marketing and R&D

Global Human Resource Management

Accounting and Finance in the International Business

Filters