Question 1

_____ refers to giving a person in each subunit responsibility for coordinating with another subunit on a regular basis.

Accepted Answer

A)  Global learning 
B)  Liaison roles 
C)  Knowledge network 
D)  Matrix Structures 
A)  Global learning 
B)  Liaison roles 
C)  Knowledge network 
D)  Matrix Structures

Question 2

The need for coordination between subunits is lowest 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

Question 3

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 4

Which of the following is an argument favoring centralization?

Accepted Answer

A)  It permits greater flexibility. 
B)  Motivational research favors it. 
C)  It can avoid the duplication of activities. 
D)  It gives top management time to focus on critical issues by delegating routine issues to lower-level managers. 
A)  It permits greater flexibility. 
B)  Motivational research favors it. 
C)  It can avoid the duplication of activities. 
D)  It gives top management time to focus on critical issues by delegating routine issues to lower-level managers.

Question 5

Historically, Unilever measured the performance of national operating subsidiary companies according to profitability. In this example, profitability is a(n) _____.

Accepted Answer

A)  control system 
B)  process 
C)  integrating mechanism 
D)  incentive 
A)  control system 
B)  process 
C)  integrating mechanism 
D)  incentive

Question 6

It is difficult to ascertain accountability in the global matrix structure.

Accepted Answer

A) True 
 B)False

Question 7

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 8

Which of the following is a problem that arises due to an international division structure?

Accepted Answer

A)  In an international division structure, a firm's international division tends to be organized on products. 
B)  The heads of domestic functions are presumed to be able to represent the interests of all countries to headquarters. 
C)  The heads of foreign subsidiaries are not given as much voice in the organization as the heads of domestic functions or divisions. 
D)  The dual-hierarchy structure can lead to conflict and perpetual power struggles between the areas and the product divisions. 
A)  In an international division structure, a firm's international division tends to be organized on products. 
B)  The heads of domestic functions are presumed to be able to represent the interests of all countries to headquarters. 
C)  The heads of foreign subsidiaries are not given as much voice in the organization as the heads of domestic functions or divisions. 
D)  The dual-hierarchy structure can lead to conflict and perpetual power struggles between the areas and the product divisions.

Question 9

Refreezing an organization should happen quickly.

Accepted Answer

A) True 
 B)False

Question 10

A decentralized organization allows managers to respond to environmental changes more quickly than in a centralized organization.

Accepted Answer

A) True 
 B)False

Question 11

Discuss the characteristics of a firm that is pursuing an international strategy.

Accepted Answer

Firms pursuing an international strategy

Question 12

The norms and values systems that are shared among the employees of a company are referred to as _____.

Accepted Answer

A)  processes 
B)  control systems 
C)  incentives 
D)  organizational culture 
A)  processes 
B)  control systems 
C)  incentives 
D)  organizational culture

Question 13

Which of the following is true of a strong corporate culture?

Accepted Answer

A)  Almost all managers share a relatively consistent set of values and norms that have a clear impact on the way work is performed. 
B)  A strong culture leads to high performance. 
C)  Outsiders see firms with a strong culture as being autocratic and inflexible. 
D)  A strong culture is always a good culture. 
A)  Almost all managers share a relatively consistent set of values and norms that have a clear impact on the way work is performed. 
B)  A strong culture leads to high performance. 
C)  Outsiders see firms with a strong culture as being autocratic and inflexible. 
D)  A strong culture is always a good culture.

Question 14

Norms are abstract ideas about what a group believes to be good, right, and desirable.

Accepted Answer

A) True 
 B)False

Question 15

Beyond the initial functional division of the organization, further horizontal differentiation may be required if the firm significantly diversifies its product offering, which takes the firm into different business areas.

Accepted Answer

A) True 
 B)False

Question 16

_____ are the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits.

Accepted Answer

A)  Cultural controls 
B)  Control systems 
C)  Output controls 
D)  Incentives 
A)  Cultural controls 
B)  Control systems 
C)  Output controls 
D)  Incentives

Question 17

A _____ tends to be adopted by firms that are reasonably diversified and originally had domestic structures based on product divisions.

Accepted Answer

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

Question 18

Firms pursuing a localization strategy tend to operate with an array of formal and informal integrating mechanisms.

Accepted Answer

A) True 
 B)False

Question 19

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 20

The worldwide product division structure facilitates local responsiveness.

Accepted Answer

A) True 
 B)False

_____ refers to giving a person in each subunit responsibility for coordinating with another subunit on a regular basis.

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

In a _____ all roles are viewed as integrating roles.

Which of the following is an argument favoring centralization?

Historically, Unilever measured the performance of national operating subsidiary companies according to profitability. In this example, profitability is a(n) _____.

It is difficult to ascertain accountability in the global matrix structure.

To unfreeze the established culture of an organization, the company:

Which of the following is a problem that arises due to an international division structure?

Refreezing an organization should happen quickly.

A decentralized organization allows managers to respond to environmental changes more quickly than in a centralized organization.

Discuss the characteristics of a firm that is pursuing an international strategy.

The norms and values systems that are shared among the employees of a company are referred to as _____.

Which of the following is true of a strong corporate culture?

Norms are abstract ideas about what a group believes to be good, right, and desirable.

Beyond the initial functional division of the organization, further horizontal differentiation may be required if the firm significantly diversifies its product offering, which takes the firm into different business areas.

_____ are the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits.

A _____ tends to be adopted by firms that are reasonably diversified and originally had domestic structures based on product divisions.

Firms pursuing a localization strategy tend to operate with an array of formal and informal integrating mechanisms.

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

The worldwide product division structure facilitates local responsiveness.

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

_____ refers to giving a person in each subunit responsibility for coordinating with another subunit on a regular basis.

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

In a _____ all roles are viewed as integrating roles.

Which of the following is an argument favoring centralization?

Historically, Unilever measured the performance of national operating subsidiary companies according to profitability. In this example, profitability is a(n) _____.

It is difficult to ascertain accountability in the global matrix structure.

To unfreeze the established culture of an organization, the company:

Which of the following is a problem that arises due to an international division structure?

Refreezing an organization should happen quickly.

A decentralized organization allows managers to respond to environmental changes more quickly than in a centralized organization.

Discuss the characteristics of a firm that is pursuing an international strategy.

The norms and values systems that are shared among the employees of a company are referred to as _____.

Which of the following is true of a strong corporate culture?

Norms are abstract ideas about what a group believes to be good, right, and desirable.

Beyond the initial functional division of the organization, further horizontal differentiation may be required if the firm significantly diversifies its product offering, which takes the firm into different business areas.

_____ are the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits.

A _____ tends to be adopted by firms that are reasonably diversified and originally had domestic structures based on product divisions.

Firms pursuing a localization strategy tend to operate with an array of formal and informal integrating mechanisms.

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

The worldwide product division structure facilitates local responsiveness.

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