Question 1

Which of the following statements is true about vertical specialization?

Accepted Answer

A)  Examples of vertical specialization include jobs in areas such as customer service, sales, recruiting, training, purchasing, and marketing research. 
B)  It is characterized by distinct differences between the levels in hierarchy such that those higher up are accorded much more status than those farther down. 
C)  When there is a great deal of vertical specialization, personnel will develop functional expertise in one particular area. 
D)  It assigns jobs so that individuals are given a particular function to perform, and people tend to stay within the confines of this area. 
A)  Examples of vertical specialization include jobs in areas such as customer service, sales, recruiting, training, purchasing, and marketing research. 
B)  It is characterized by distinct differences between the levels in hierarchy such that those higher up are accorded much more status than those farther down. 
C)  When there is a great deal of vertical specialization, personnel will develop functional expertise in one particular area. 
D)  It assigns jobs so that individuals are given a particular function to perform, and people tend to stay within the confines of this area.

Question 2

Global structures of multinational companies (MNCs)come in three common types:

Accepted Answer

A)  vertical, horizontal, and flat. 
B)  product, area, and functional. 
C)  mixed, transnational, and nontraditional. 
D)  authoritarian, democratic, and socialist. 
A)  vertical, horizontal, and flat. 
B)  product, area, and functional. 
C)  mixed, transnational, and nontraditional. 
D)  authoritarian, democratic, and socialist.

Question 3

Firms that pursue a global product division structure typically have products that are in the maturity stage of the product life cycle.

Accepted Answer

A) True 
 B)False

Question 4

An international division structure of an organization puts a great deal of burden on the CEO for monitoring the operations of a series of overseas subsidiaries as well as domestic operations.

Accepted Answer

A) True 
 B)False

Question 5

The output control in which profit responsibility is shared with product and geographic units is characteristic of a(n)_____.

Accepted Answer

A)  global area division structure 
B)  international division structure 
C)  matrix structure 
D)  transnational network structure 
A)  global area division structure 
B)  international division structure 
C)  matrix structure 
D)  transnational network structure

Question 6

Some countries make greater use of formalization than others; in turn,this affects _____.

Accepted Answer

A)  the day-to-day organizational functioning 
B)  specialization 
C)  the differences between the levels in hierarchy 
D)  quality circles 
A)  the day-to-day organizational functioning 
B)  specialization 
C)  the differences between the levels in hierarchy 
D)  quality circles

Question 7

An important feature of wholly owned subsidiaries is that:

Accepted Answer

A)  they face a low risk with large investments in one area. 
B)  they are very efficient with entering multiple countries or markets. 
C)  they offer higher profits, clearer communications, and shared visions to a multinational company (MN
C) . 
D)  they involve reduced risk and involvement for a multinational company (MN
C) . 
A)  they face a low risk with large investments in one area. 
B)  they are very efficient with entering multiple countries or markets. 
C)  they offer higher profits, clearer communications, and shared visions to a multinational company (MN
C) . 
D)  they involve reduced risk and involvement for a multinational company (MN
C) .

Question 8

An advantage of a global area division structure is that it allows the division manager to cater to the tastes of the local market and make rapid decisions to accommodate environmental changes.

Accepted Answer

A) True 
 B)False

Question 9

Explain alliances and joint ventures.

Accepted Answer

An alliance is any type of cooperative r

Question 10

Advantages of alliances and joint ventures include all of the following except _____.

Accepted Answer

A)  improvement of efficiency 
B)  collusion or restriction in competition 
C)  access to knowledge 
D)  mitigation of political factors 
A)  improvement of efficiency 
B)  collusion or restriction in competition 
C)  access to knowledge 
D)  mitigation of political factors

Question 11

In which of the following multinational company (MNC)structures is tight process bureaucratic control used to maintain product quality and consistency?

Accepted Answer

A)  Transnational network structure 
B)  Global area division 
C)  Matrix structure 
D)  Global product division 
A)  Transnational network structure 
B)  Global area division 
C)  Matrix structure 
D)  Global product division

Question 12

Which of the following provides the most benefits when the need for product specification or differentiation is high?

Accepted Answer

A)  International division 
B)  Global product division 
C)  Global area division 
D)  Global functional division 
A)  International division 
B)  Global product division 
C)  Global area division 
D)  Global functional division

Question 13

An important feature of the global area division structure approach is that:

Accepted Answer

A)  it is generally used by companies that are growing businesses and have broad product lines. 
B)  it prevents division managers from catering to the tastes of the local market and making rapid decisions to accommodate environmental changes. 
C)  it often signals a major change in company strategy because now international operations are put on the same level as domestic operations. 
D)  it focuses on a product set and discovers where it can survive and subsequently distributes it to that region. 
A)  it is generally used by companies that are growing businesses and have broad product lines. 
B)  it prevents division managers from catering to the tastes of the local market and making rapid decisions to accommodate environmental changes. 
C)  it often signals a major change in company strategy because now international operations are put on the same level as domestic operations. 
D)  it focuses on a product set and discovers where it can survive and subsequently distributes it to that region.

Question 14

Identify a true statement about export arrangements in the context of initial division structure.

Accepted Answer

A)  Manufacturing firms with technologically advanced products usually avoid an export arrangement as a first choice. 
B)  Firms can reduce the risk and size of investment in establishing significant international operations using an export arrangement. 
C)  If a company has a broad product line, the export manager usually reports directly to the head of marketing and international operations are coordinated by this department. 
D)  If a company has a narrow product line, the export manager will head a separate department and often report directly to the president. 
A)  Manufacturing firms with technologically advanced products usually avoid an export arrangement as a first choice. 
B)  Firms can reduce the risk and size of investment in establishing significant international operations using an export arrangement. 
C)  If a company has a broad product line, the export manager usually reports directly to the head of marketing and international operations are coordinated by this department. 
D)  If a company has a narrow product line, the export manager will head a separate department and often report directly to the president.

Question 15

Which of the following routes is a multinational company (MNC)likely to choose in order to quickly expand resources or construct high-profit products in a new market?

Accepted Answer

A)  Franchising 
B)  Licensing agreements 
C)  Mergers and acquisitions 
D)  Basic export and import operations 
A)  Franchising 
B)  Licensing agreements 
C)  Mergers and acquisitions 
D)  Basic export and import operations

Question 16

In an international context,the value of centralization will vary according to:

Accepted Answer

A)  the local environment and the goals of an organization. 
B)  the global market and the universal values. 
C)  the job routinization in a host country. 
D)  the vertical specialization and flatter designs. 
A)  the local environment and the goals of an organization. 
B)  the global market and the universal values. 
C)  the job routinization in a host country. 
D)  the vertical specialization and flatter designs.

Question 17

Wholly owned subsidiaries face a low risk with large investments in one area.

Accepted Answer

A) True 
 B)False

Question 18

An advantage of a global functional division structure is that only the CEO can be held accountable for the profits.

Accepted Answer

A) True 
 B)False

Question 19

Multinational companies (MNCs)realize there are two dimensions of formality-informality that must be considered:

Accepted Answer

A)  internal and external. 
B)  international and national. 
C)  horizontal and vertical. 
D)  functionality and centralization. 
A)  internal and external. 
B)  international and national. 
C)  horizontal and vertical. 
D)  functionality and centralization.

Question 20

At the center of a _____ are nodes,which are units charged with coordinating product,functional,and geographic information.

Accepted Answer

A)  cross-cultural matrix structure 
B)  worldwide divisional structure 
C)  transnational network structure 
D)  global product division structure 
A)  cross-cultural matrix structure 
B)  worldwide divisional structure 
C)  transnational network structure 
D)  global product division structure

Which of the following statements is true about vertical specialization?

Global structures of multinational companies (MNCs)come in three common types:

Firms that pursue a global product division structure typically have products that are in the maturity stage of the product life cycle.

An international division structure of an organization puts a great deal of burden on the CEO for monitoring the operations of a series of overseas subsidiaries as well as domestic operations.

The output control in which profit responsibility is shared with product and geographic units is characteristic of a(n)_____.

Some countries make greater use of formalization than others; in turn,this affects _____.

An important feature of wholly owned subsidiaries is that:

An advantage of a global area division structure is that it allows the division manager to cater to the tastes of the local market and make rapid decisions to accommodate environmental changes.

Explain alliances and joint ventures.

Advantages of alliances and joint ventures include all of the following except _____.

In which of the following multinational company (MNC)structures is tight process bureaucratic control used to maintain product quality and consistency?

Which of the following provides the most benefits when the need for product specification or differentiation is high?

An important feature of the global area division structure approach is that:

Identify a true statement about export arrangements in the context of initial division structure.

Which of the following routes is a multinational company (MNC)likely to choose in order to quickly expand resources or construct high-profit products in a new market?

In an international context,the value of centralization will vary according to:

Wholly owned subsidiaries face a low risk with large investments in one area.

An advantage of a global functional division structure is that only the CEO can be held accountable for the profits.

Multinational companies (MNCs)realize there are two dimensions of formality-informality that must be considered:

At the center of a _____ are nodes,which are units charged with coordinating product,functional,and geographic information.

Globalization and International Linkages

The Political, Legal, and Technological Environment

Ethics, Social Responsibility, and Sustainability

The Meanings and Dimensions of Culture

Managing Across Cultures

Organizational Cultures and Diversity

Cross-Cultural Communication and Negotiation

Strategy Formulation and Implementation

Managing Political Risk, Government Relations, and Alliances

Management Decision and Control

Motivation Across Cultures

Leadership Across Cultures

Human Resource Selection and Development Across Cultures

Filters

Exam 9: Entry Strategies and Organizational Structures

Which of the following statements is true about vertical specialization?

Global structures of multinational companies (MNCs)come in three common types:

Firms that pursue a global product division structure typically have products that are in the maturity stage of the product life cycle.

An international division structure of an organization puts a great deal of burden on the CEO for monitoring the operations of a series of overseas subsidiaries as well as domestic operations.

The output control in which profit responsibility is shared with product and geographic units is characteristic of a(n)_____.

Some countries make greater use of formalization than others; in turn,this affects _____.

An important feature of wholly owned subsidiaries is that:

An advantage of a global area division structure is that it allows the division manager to cater to the tastes of the local market and make rapid decisions to accommodate environmental changes.

Explain alliances and joint ventures.

Advantages of alliances and joint ventures include all of the following except _____.

In which of the following multinational company (MNC)structures is tight process bureaucratic control used to maintain product quality and consistency?

Which of the following provides the most benefits when the need for product specification or differentiation is high?

An important feature of the global area division structure approach is that:

Identify a true statement about export arrangements in the context of initial division structure.

Which of the following routes is a multinational company (MNC)likely to choose in order to quickly expand resources or construct high-profit products in a new market?

In an international context,the value of centralization will vary according to:

Wholly owned subsidiaries face a low risk with large investments in one area.

An advantage of a global functional division structure is that only the CEO can be held accountable for the profits.

Multinational companies (MNCs)realize there are two dimensions of formality-informality that must be considered:

At the center of a _____ are nodes,which are units charged with coordinating product,functional,and geographic information.

Globalization and International Linkages

The Political, Legal, and Technological Environment

Ethics, Social Responsibility, and Sustainability

The Meanings and Dimensions of Culture

Managing Across Cultures

Organizational Cultures and Diversity

Cross-Cultural Communication and Negotiation

Strategy Formulation and Implementation

Managing Political Risk, Government Relations, and Alliances

Management Decision and Control

Motivation Across Cultures

Leadership Across Cultures

Human Resource Selection and Development Across Cultures

Filters