Question 1

Integration mechanisms are the:

Accepted Answer

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

Question 2

Which of the following statements is true about a product divisional structure?

Accepted Answer

A)  In a product divisional structure, the responsibility for the financial control of the firm is typically decentralized. 
B)  A product divisional structure tends to be organized on geography. 
C)  In a product divisional structure, each product division is set up as a self-contained, largely autonomous entity with its own functions. 
D)  In a product divisional structure, the responsibility for operating decisions is typically centralized. 
A)  In a product divisional structure, the responsibility for the financial control of the firm is typically decentralized. 
B)  A product divisional structure tends to be organized on geography. 
C)  In a product divisional structure, each product division is set up as a self-contained, largely autonomous entity with its own functions. 
D)  In a product divisional structure, the responsibility for operating decisions is typically centralized.

Question 3

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 4

In a worldwide product divisional structure, each division is a self-contained, largely autonomous entity with full responsibility for its own value creation activities.

Accepted Answer

A) True 
 B)False

Question 5

Regardless of a firm's domestic structure, its international division tends to be:

Accepted Answer

A)  organized on economy. 
B)  decentralized. 
C)  organized on geography. 
D)  centralized. 
A)  organized on economy. 
B)  decentralized. 
C)  organized on geography. 
D)  centralized.

Question 6

A firm that needs greater flexibility should choose _____ for its decision-making.

Accepted Answer

A)  horizontal differentiation 
B)  decentralization 
C)  localization strategy 
D)  control systems 
A)  horizontal differentiation 
B)  decentralization 
C)  localization strategy 
D)  control systems

Question 7

Which of the following is more difficult for a leader?

Accepted Answer

A)  To change an established organizational culture 
B)  To import an organizational culture 
C)  To create an organizational culture from scratch in a new venture 
D)  To export an organizational culture 
A)  To change an established organizational culture 
B)  To import an organizational culture 
C)  To create an organizational culture from scratch in a new venture 
D)  To export an organizational culture

Question 8

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 9

There is low interdependence, performance ambiguity, and costs of control in firms pursuing a(n) _____.

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 10

Firms pursuing a transnational strategy:

Accepted Answer

A)  have a low need for coordination. 
B)  require very few integrating mechanisms. 
C)  have a very high need for cultural controls. 
D)  operate with a worldwide product division structure. 
A)  have a low need for coordination. 
B)  require very few integrating mechanisms. 
C)  have a very high need for cultural controls. 
D)  operate with a worldwide product division structure.

Question 11

Organizational structure refers to the totality of a firm's organization.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

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

Question 13

Firms pursuing a global standardization strategy must cope with a higher level of _____, and this raises their costs of control.

Accepted Answer

A)  vertical differentiation 
B)  cultural division 
C)  horizontal differentiation 
D)  performance ambiguity 
A)  vertical differentiation 
B)  cultural division 
C)  horizontal differentiation 
D)  performance ambiguity

Question 14

A firm pursuing a(n) _____ will have a strong incentive to decentralize decision-making.

Accepted Answer

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

Question 15

New processes that might lead to a competitive advantage can be developed anywhere within the organization's global network of operations.

Accepted Answer

A) True 
 B)False

Question 16

In firms pursuing a(n) _____, some operating decisions are relatively centralized, while others are relatively decentralized.

Accepted Answer

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

Question 17

Which control system is most widely used by small firms?

Accepted Answer

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

Question 18

Explain organizational structure.

Accepted Answer

A firm's organizational structure refers

Question 19

What type of control system uses 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 20

What are the basic principles for successful organizational change?

Accepted Answer

There are three basic principles for org

Integration mechanisms are the:

Which of the following statements is true about a product divisional structure?

By centralizing decision making, a firm:

In a worldwide product divisional structure, each division is a self-contained, largely autonomous entity with full responsibility for its own value creation activities.

Regardless of a firm's domestic structure, its international division tends to be:

A firm that needs greater flexibility should choose _____ for its decision-making.

Which of the following is more difficult for a leader?

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

There is low interdependence, performance ambiguity, and costs of control in firms pursuing a(n) _____.

Firms pursuing a transnational strategy:

Organizational structure refers to the totality of a firm's organization.

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

Firms pursuing a global standardization strategy must cope with a higher level of _____, and this raises their costs of control.

A firm pursuing a(n) _____ will have a strong incentive to decentralize decision-making.

New processes that might lead to a competitive advantage can be developed anywhere within the organization's global network of operations.

In firms pursuing a(n) _____, some operating decisions are relatively centralized, while others are relatively decentralized.

Which control system is most widely used by small firms?

Explain organizational structure.

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

What are the basic principles for successful organizational change?

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

Integration mechanisms are the:

Which of the following statements is true about a product divisional structure?

By centralizing decision making, a firm:

In a worldwide product divisional structure, each division is a self-contained, largely autonomous entity with full responsibility for its own value creation activities.

Regardless of a firm's domestic structure, its international division tends to be:

A firm that needs greater flexibility should choose _____ for its decision-making.

Which of the following is more difficult for a leader?

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

There is low interdependence, performance ambiguity, and costs of control in firms pursuing a(n) _____.

Firms pursuing a transnational strategy:

Organizational structure refers to the totality of a firm's organization.

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

Firms pursuing a global standardization strategy must cope with a higher level of _____, and this raises their costs of control.

A firm pursuing a(n) _____ will have a strong incentive to decentralize decision-making.

New processes that might lead to a competitive advantage can be developed anywhere within the organization's global network of operations.

In firms pursuing a(n) _____, some operating decisions are relatively centralized, while others are relatively decentralized.

Which control system is most widely used by small firms?

Explain organizational structure.

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

What are the basic principles for successful organizational change?

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