Question 1

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

Accepted Answer

A) True 
 B)False  True

Question 2

Why should a firm centralize its decision-making?

Accepted Answer

Firms should centralize their decision-making for four main reasons. First, centralization can facilitate coordination. Second, centralization can help ensure that decisions are consistent with organizational objectives. Third, by concentrating power and authority in one individual or a management team, centralization can give top-level managers the means to bring about needed major organizational changes. Finally, centralization can avoid the duplication of activities that occurs when similar activities are carried on by various subunits within the organization.

Question 3

Centralization:

Accepted Answer

A)  gives top management time to focus on critical issues by delegating more routine issues to lower-level managers. 
B)  can give top-level managers the means to bring about needed major organizational changes by concentrating power and authority in one individual or a management team. 
C)  permits greater flexibility because decisions do not have to be "referred up the hierarchy" unless they are exceptional in nature. 
D)  can be used to establish relatively autonomous, self-contained subunits within an organization. 
A)  gives top management time to focus on critical issues by delegating more routine issues to lower-level managers. 
B)  can give top-level managers the means to bring about needed major organizational changes by concentrating power and authority in one individual or a management team. 
C)  permits greater flexibility because decisions do not have to be "referred up the hierarchy" unless they are exceptional in nature. 
D)  can be used to establish relatively autonomous, self-contained subunits within an organization. B

Question 4

By centralizing decision making, a firm can avoid the duplication of activities that occurs when similar activities are carried on by various subunits within the organization.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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

Question 7

The worldwide product division structure facilitates local responsiveness.

Accepted Answer

A) True 
 B)False

Question 8

The choice between centralization and decentralization is not absolute.

Accepted Answer

A) True 
 B)False

Question 9

What are output controls?

Accepted Answer

Output controls involve setting goals fo

Question 10

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 11

Firms pursuing a global standardization strategy are more centralized than enterprises pursuing a localization or international strategy.

Accepted Answer

A) True 
 B)False

Question 12

What type of firms favor the worldwide area structure and why? What are the disadvantages of this type of structure?

Accepted Answer

The worldwide area structure tends to be

Question 13

Direct contact between subunit managers is the simplest integrating mechanism.

Accepted Answer

A) True 
 B)False

Question 14

What are the basic principles for successful organizational change?

Accepted Answer

There are three basic principles for org

Question 15

What is a knowledge network? What is the advantage of such a system?

Accepted Answer

A knowledge network is a network for tra

Question 16

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 17

What are the formal integrating mechanisms used to integrate subunits?

Accepted Answer

The formal mechanisms used to integrate

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

A firm pursuing a localization strategy will have a strong incentive to centralize decision-making.

Accepted Answer

A) True 
 B)False

Question 20

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

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

Why should a firm centralize its decision-making?

Centralization:

By centralizing decision making, a firm can avoid the duplication of activities that occurs when similar activities are carried on by various subunits within the organization.

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

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.

The worldwide product division structure facilitates local responsiveness.

The choice between centralization and decentralization is not absolute.

What are output controls?

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?

Firms pursuing a global standardization strategy are more centralized than enterprises pursuing a localization or international strategy.

What type of firms favor the worldwide area structure and why? What are the disadvantages of this type of structure?

Direct contact between subunit managers is the simplest integrating mechanism.

What are the basic principles for successful organizational change?

What is a knowledge network? What is the advantage of such a system?

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

What are the formal integrating mechanisms used to integrate subunits?

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

A firm pursuing a localization strategy will have a strong incentive to centralize decision-making.

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

Globalization

National Differences in Political Economy

Political Economy and Economic Development

Differences in Culture

Ethics in International Business

International Trade Theory

The Political Economy of International Trade

Foreign Direct Investment

Regional Economic Integration

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, Outsourcing, and Logistics

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters

Exam 14: The Organization of International Business

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

Why should a firm centralize its decision-making?

Centralization:

By centralizing decision making, a firm can avoid the duplication of activities that occurs when similar activities are carried on by various subunits within the organization.

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

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.

The worldwide product division structure facilitates local responsiveness.

The choice between centralization and decentralization is not absolute.

What are output controls?

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?

Firms pursuing a global standardization strategy are more centralized than enterprises pursuing a localization or international strategy.

What type of firms favor the worldwide area structure and why? What are the disadvantages of this type of structure?

Direct contact between subunit managers is the simplest integrating mechanism.

What are the basic principles for successful organizational change?

What is a knowledge network? What is the advantage of such a system?

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

What are the formal integrating mechanisms used to integrate subunits?

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

A firm pursuing a localization strategy will have a strong incentive to centralize decision-making.

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

Globalization

National Differences in Political Economy

Political Economy and Economic Development

Differences in Culture

Ethics in International Business

International Trade Theory

The Political Economy of International Trade

Foreign Direct Investment

Regional Economic Integration

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, Outsourcing, and Logistics

Global Marketing and RD

Global Human Resource Management

Accounting and Finance in the International Business

Filters