Question 1

A(n) _____ is valuable because it can be used as a nonbureaucratic conduit for information flows within a multinational enterprise.

Accepted Answer

A)  liaison network 
B)  matrix structure 
C)  organizational structure 
D)  knowledge network 
A)  liaison network 
B)  matrix structure 
C)  organizational structure 
D)  knowledge network

Question 2

A(n) _____ tends to be adopted by firms that are reasonably diversified.

Accepted Answer

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

Question 3

Why should a firm centralize its decision-making?

Accepted Answer

Firms should centralize their decision-m

Question 4

In a worldwide area structure, each area tends to be a self-contained, largely autonomous entity with its own set of value creation activities.

Accepted Answer

A) True 
 B)False

Question 5

An organizational culture can be strong but bad.

Accepted Answer

A) True 
 B)False

Question 6

A manager receives a bonus because the national operating subsidiary, that she is in charge of, exceeds its performance target. This is an example of an incentive.

Accepted Answer

A) True 
 B)False

Question 7

Firms pursuing a(n) _____ attempt to create value by transferring core competencies from home to foreign subsidiaries.

Accepted Answer

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

Question 8

_____ is achieved by comparing actual performance against targets and intervening selectively to take corrective action.

Accepted Answer

A)  Personal control 
B)  Cultural control 
C)  Bureaucratic control 
D)  Output control 
A)  Personal control 
B)  Cultural control 
C)  Bureaucratic control 
D)  Output control

Question 9

Which of the following is true regarding a worldwide area structure?

Accepted Answer

A)  It tends to be favored by firms with a high degree of diversification. 
B)  It inhibits local responsiveness. 
C)  It tends to be favored by firms with a domestic structure based on functions. 
D)  Decision-making responsibilities are centralized. 
A)  It tends to be favored by firms with a high degree of diversification. 
B)  It inhibits local responsiveness. 
C)  It tends to be favored by firms with a domestic structure based on functions. 
D)  Decision-making responsibilities are centralized.

Question 10

It is important to realize that organizational change will occur regardless of the commitment of senior managers to it.

Accepted Answer

A) True 
 B)False

Question 11

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 assignments 
A)  Key processes 
B)  Control systems 
C)  Knowledge networks 
D)  Job assignments

Question 12

Bureaucratic control involves personal contact with subordinates.

Accepted Answer

A) True 
 B)False

Question 13

In Firm A, each division is a self-contained, largely autonomous entity with full responsibility for its own value creation activities. What type of structure does Firm A employ?

Accepted Answer

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

Question 14

The basic principle behind incentive systems is to ensure that the incentive scheme for an individual employee is linked to an output target that he or she has some control over and can influence.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is an argument favoring decentralization?

Accepted Answer

A)  It can facilitate coordination. 
B)  It can help ensure that decisions are consistent with organizational objectives. 
C)  It can give top-level managers the means to bring about needed major organizational changes. 
D)  It permits greater flexibility. 
A)  It can facilitate coordination. 
B)  It can help ensure that decisions are consistent with organizational objectives. 
C)  It can give top-level managers the means to bring about needed major organizational changes. 
D)  It permits greater flexibility.

Question 16

Which of the following is a potential drawback of the worldwide area structure?

Accepted Answer

A)  This structure discourages division of the organization into autonomous entities. 
B)  This structure makes it difficult to decentralize decisions regarding operations authority. 
C)  This structure makes it difficult to realize location and experience curve economies. 
D)  This structure reduced local responsiveness. 
A)  This structure discourages division of the organization into autonomous entities. 
B)  This structure makes it difficult to decentralize decisions regarding operations authority. 
C)  This structure makes it difficult to realize location and experience curve economies. 
D)  This structure reduced local responsiveness.

Question 17

A firm that operates with matrix-type structures in which both product divisions and geographic areas have significant influence would use which of the following strategies?

Accepted Answer

A)  International strategy 
B)  Transnational strategy 
C)  Global strategy 
D)  Localization strategy 
A)  International strategy 
B)  Transnational strategy 
C)  Global strategy 
D)  Localization strategy

Question 18

A firm's organizational culture refers to the:

Accepted Answer

A)  norms and value systems that are shared among the employees of an organization. 
B)  formal organizational structure of the company. 
C)  control systems and incentives in place. 
D)  human resources component. 
A)  norms and value systems that are shared among the employees of an organization. 
B)  formal organizational structure of the company. 
C)  control systems and incentives in place. 
D)  human resources component.

Question 19

_____ refers to the location of decision-making responsibilities within a structure.

Accepted Answer

A)  Vertical differentiation 
B)  Integrating mechanisms 
C)  Horizontal integration 
D)  Horizontal differentiation 
A)  Vertical differentiation 
B)  Integrating mechanisms 
C)  Horizontal integration 
D)  Horizontal differentiation

Question 20

_____ can be defined as the amount of time top management must devote to monitoring and evaluating subunits' performance.

Accepted Answer

A)  Performance ambiguity 
B)  The formal matrix 
C)  The costs of control 
D)  Differentiation 
A)  Performance ambiguity 
B)  The formal matrix 
C)  The costs of control 
D)  Differentiation

A(n) _____ is valuable because it can be used as a nonbureaucratic conduit for information flows within a multinational enterprise.

A(n) _____ tends to be adopted by firms that are reasonably diversified.

Why should a firm centralize its decision-making?

In a worldwide area structure, each area tends to be a self-contained, largely autonomous entity with its own set of value creation activities.

An organizational culture can be strong but bad.

A manager receives a bonus because the national operating subsidiary, that she is in charge of, exceeds its performance target. This is an example of an incentive.

Firms pursuing a(n) _____ attempt to create value by transferring core competencies from home to foreign subsidiaries.

_____ is achieved by comparing actual performance against targets and intervening selectively to take corrective action.

Which of the following is true regarding a worldwide area structure?

It is important to realize that organizational change will occur regardless of the commitment of senior managers to it.

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?

Bureaucratic control involves personal contact with subordinates.

In Firm A, each division is a self-contained, largely autonomous entity with full responsibility for its own value creation activities. What type of structure does Firm A employ?

The basic principle behind incentive systems is to ensure that the incentive scheme for an individual employee is linked to an output target that he or she has some control over and can influence.

Which of the following is an argument favoring decentralization?

Which of the following is a potential drawback of the worldwide area structure?

A firm that operates with matrix-type structures in which both product divisions and geographic areas have significant influence would use which of the following strategies?

A firm's organizational culture refers to the:

_____ refers to the location of decision-making responsibilities within a structure.

_____ can be defined as the amount of time top management must devote to monitoring and evaluating subunits' performance.

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

A(n) _____ is valuable because it can be used as a nonbureaucratic conduit for information flows within a multinational enterprise.

A(n) _____ tends to be adopted by firms that are reasonably diversified.

Why should a firm centralize its decision-making?

In a worldwide area structure, each area tends to be a self-contained, largely autonomous entity with its own set of value creation activities.

An organizational culture can be strong but bad.

A manager receives a bonus because the national operating subsidiary, that she is in charge of, exceeds its performance target. This is an example of an incentive.

Firms pursuing a(n) _____ attempt to create value by transferring core competencies from home to foreign subsidiaries.

_____ is achieved by comparing actual performance against targets and intervening selectively to take corrective action.

Which of the following is true regarding a worldwide area structure?

It is important to realize that organizational change will occur regardless of the commitment of senior managers to it.

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?

Bureaucratic control involves personal contact with subordinates.

In Firm A, each division is a self-contained, largely autonomous entity with full responsibility for its own value creation activities. What type of structure does Firm A employ?

The basic principle behind incentive systems is to ensure that the incentive scheme for an individual employee is linked to an output target that he or she has some control over and can influence.

Which of the following is an argument favoring decentralization?

Which of the following is a potential drawback of the worldwide area structure?

A firm that operates with matrix-type structures in which both product divisions and geographic areas have significant influence would use which of the following strategies?

A firm's organizational culture refers to the:

_____ refers to the location of decision-making responsibilities within a structure.

_____ can be defined as the amount of time top management must devote to monitoring and evaluating subunits' performance.

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