Question 1

Discuss the issues involved in unfreezing an organization.

Accepted Answer

Because of inertia forces, incremental change is often no change. Those whose power is threatened by change can too easily resist incremental change. This leads to the big bang theory of change, which maintains that effective change requires taking bold action early to "unfreeze" the established culture of an organization and to change the distribution of power and influence. Shock therapy to unfreeze the organization might include the closure of plants deemed uneconomic or the announcement of a dramatic structural reorganization. It is also important to realize that change will not occur unless senior managers are committed to it. Senior managers must clearly articulate the need for change so employees understand both why it is being pursued and the benefits that will flow from successful change. Senior managers must also practice what they preach and take the necessary bold steps.

Question 2

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

Accepted Answer

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

Question 3

Firms pursuing a(n) _____ have a low need for coordination between subunits.

Accepted Answer

A)  global standardization strategy 
B)  localization strategy 
C)  transnational strategy 
D)  international strategy 
A)  global standardization strategy 
B)  localization strategy 
C)  transnational strategy 
D)  international strategy B

Question 4

In practice, the dual-hierarchy in a global matrix structure:

Accepted Answer

A)  lessens all forms of conflict. 
B)  makes it easy to ascertain accountability. 
C)  results in extremely quick decision making. 
D)  can lead to perpetual power struggles. 
A)  lessens all forms of conflict. 
B)  makes it easy to ascertain accountability. 
C)  results in extremely quick decision making. 
D)  can lead to perpetual power struggles.

Question 5

Firms pursuing a(n) _____ are more centralized than enterprises pursuing a localization or international strategy.

Accepted Answer

A)  localization strategy 
B)  international strategy 
C)  global standardization strategy 
D)  transnational strategy 
A)  localization strategy 
B)  international strategy 
C)  global standardization strategy 
D)  transnational strategy

Question 6

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

Accepted Answer

A)  organizational architecture 
B)  vertical differentiation 
C)  organizational structure 
D)  horizontal differentiation 
A)  organizational architecture 
B)  vertical differentiation 
C)  organizational structure 
D)  horizontal differentiation

Question 7

_____ 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 8

Discuss the location of decision-making in a firm that is following a transnational strategy.

Accepted Answer

Decision-making in a firm pursuing a tra

Question 9

_____ gives top-level managers the power and authority to be able to bring about needed major organizational changes.

Accepted Answer

A)  Personal control 
B)  Decentralization 
C)  Bureaucratic control 
D)  Centralization 
A)  Personal control 
B)  Decentralization 
C)  Bureaucratic control 
D)  Centralization

Question 10

The need for coordination between units is greatest in firms pursuing a localization strategy.

Accepted Answer

A) True 
 B)False

Question 11

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 12

A knowledge network is a network for transmitting information within an organization that is based on formal organizational structure.

Accepted Answer

A) True 
 B)False

Question 13

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 14

What are the main strengths and weaknesses of the worldwide product division structure?

Accepted Answer

The primary strength of the worldwide pr

Question 15

Direct contact between subunit managers is the simplest integrating mechanism.

Accepted Answer

A) True 
 B)False

Question 16

When the need for integration is very high, firms may:

Accepted Answer

A)  use direct contact between subunit managers. 
B)  give a person in each subunit responsibility for coordinating with another subunit on a regular basis. 
C)  institute a matrix structure, in which all roles are viewed as integrating roles. 
D)  use temporary or permanent teams composed of individuals from the subunits that need to achieve coordination. 
A)  use direct contact between subunit managers. 
B)  give a person in each subunit responsibility for coordinating with another subunit on a regular basis. 
C)  institute a matrix structure, in which all roles are viewed as integrating roles. 
D)  use temporary or permanent teams composed of individuals from the subunits that need to achieve coordination.

Question 17

Which of the following is an effective strategy for implementing organizational change?

Accepted Answer

A)  Physically move the organization to a new state. 
B)  Keep the organizational structure. 
C)  Refreeze the organizational structure. 
D)  Slowly, through incremental changes, rearrange the organizational structure. 
A)  Physically move the organization to a new state. 
B)  Keep the organizational structure. 
C)  Refreeze the organizational structure. 
D)  Slowly, through incremental changes, rearrange the organizational structure.

Question 18

In which of the following organizational structures are the domestic operations and foreign operations isolated from each other leading to coordination problems?

Accepted Answer

A)  Global matrix structure 
B)  International division structure 
C)  Worldwide product division structure 
D)  Worldwide area structure 
A)  Global matrix structure 
B)  International division structure 
C)  Worldwide product division structure 
D)  Worldwide area structure

Question 19

What is horizontal differentiation?

Accepted Answer

A)  The mechanisms that enable each subunit to operate independently 
B)  The formal division of the organization into subunits 
C)  The location of decision-making responsibilities within a structure 
D)  The mechanisms for coordinating subunits 
A)  The mechanisms that enable each subunit to operate independently 
B)  The formal division of the organization into subunits 
C)  The location of decision-making responsibilities within a structure 
D)  The mechanisms for coordinating subunits

Question 20

The need for coordination between subunits is highest in firms pursuing a(n) _____.

Accepted Answer

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

Discuss the issues involved in unfreezing an organization.

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

Firms pursuing a(n) _____ have a low need for coordination between subunits.

In practice, the dual-hierarchy in a global matrix structure:

Firms pursuing a(n) _____ are more centralized than enterprises pursuing a localization or international strategy.

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

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

Discuss the location of decision-making in a firm that is following a transnational strategy.

_____ gives top-level managers the power and authority to be able to bring about needed major organizational changes.

The need for coordination between units is greatest in firms pursuing a localization strategy.

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

A knowledge network is a network for transmitting information within an organization that is based on formal organizational structure.

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).

What are the main strengths and weaknesses of the worldwide product division structure?

Direct contact between subunit managers is the simplest integrating mechanism.

When the need for integration is very high, firms may:

Which of the following is an effective strategy for implementing organizational change?

In which of the following organizational structures are the domestic operations and foreign operations isolated from each other leading to coordination problems?

What is horizontal differentiation?

The need for coordination between subunits is highest in firms pursuing a(n) _____.

Globalization

National Differences in Political Economy, 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 Trade Pacts Give the Mexican Auto Industry an Edge

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 RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 14: The Organization of International Business

Discuss the issues involved in unfreezing an organization.

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

Firms pursuing a(n) _____ have a low need for coordination between subunits.

In practice, the dual-hierarchy in a global matrix structure:

Firms pursuing a(n) _____ are more centralized than enterprises pursuing a localization or international strategy.

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

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

Discuss the location of decision-making in a firm that is following a transnational strategy.

_____ gives top-level managers the power and authority to be able to bring about needed major organizational changes.

The need for coordination between units is greatest in firms pursuing a localization strategy.

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

A knowledge network is a network for transmitting information within an organization that is based on formal organizational structure.

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).

What are the main strengths and weaknesses of the worldwide product division structure?

Direct contact between subunit managers is the simplest integrating mechanism.

When the need for integration is very high, firms may:

Which of the following is an effective strategy for implementing organizational change?

In which of the following organizational structures are the domestic operations and foreign operations isolated from each other leading to coordination problems?

What is horizontal differentiation?

The need for coordination between subunits is highest in firms pursuing a(n) _____.

Globalization

National Differences in Political Economy, 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 Trade Pacts Give the Mexican Auto Industry an Edge

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 RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters