Question 1

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 2

The need for coordination is high in firms trying to profit from location and experience curve economies.

Accepted Answer

A) True 
 B)False

Question 3

National regulations including local content rules and policies pertaining to layoffs might act as a source of inertia.

Accepted Answer

A) True 
 B)False

Question 4

Incremental change rarely happens in an organization because of those whose power may be threatened by such a change.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 7

Performance ambiguity lowers the cost of control.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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 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

The emphasis on local responsiveness in firms pursuing a localization strategy creates strong pressures for:

Accepted Answer

A)  centralizing all decisions regarding marketing, R&D, and human resource management. 
B)  decentralizing operating decisions to foreign subsidiaries. 
C)  centralizing all operating decisions. 
D)  global learning. 
A)  centralizing all decisions regarding marketing, R&D, and human resource management. 
B)  decentralizing operating decisions to foreign subsidiaries. 
C)  centralizing all operating decisions. 
D)  global learning.

Question 12

A firm's organizational culture refers to the formal organizational structure of the company, the control systems and incentives in place, and the human resources component.

Accepted Answer

A) True 
 B)False

Question 13

Explain organizational structure.

Accepted Answer

A firm's organizational structure refers

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)  product. 
B)  geography. 
C)  people. 
D)  economy. 
A)  product. 
B)  geography. 
C)  people. 
D)  economy.

Question 16

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 17

A _____ structure encourages fragmentation of the organization into highly autonomous entities.

Accepted Answer

A)  worldwide area 
B)  global matrix 
C)  worldwide product 
D)  global network 
A)  worldwide area 
B)  global matrix 
C)  worldwide product 
D)  global network

Question 18

In the classic global matrix structure, horizontal differentiation proceeds along two dimensions. These dimensions are:

Accepted Answer

A)  hierarchy and overall strategy. 
B)  target returns and sales potential. 
C)  marketing strategy and sales potential. 
D)  product division and geographic area. 
A)  hierarchy and overall strategy. 
B)  target returns and sales potential. 
C)  marketing strategy and sales potential. 
D)  product division and geographic area.

Question 19

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 20

Control through a system of rules and procedures that directs the actions of subunits is:

Accepted Answer

A)  personal control. 
B)  bureaucratic control. 
C)  output control. 
D)  cultural control. 
A)  personal control. 
B)  bureaucratic control. 
C)  output control. 
D)  cultural control.

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

The need for coordination is high in firms trying to profit from location and experience curve economies.

National regulations including local content rules and policies pertaining to layoffs might act as a source of inertia.

Incremental change rarely happens in an organization because of those whose power may be threatened by such a change.

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

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

Performance ambiguity lowers the cost of control.

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.

Firms pursuing a transnational strategy:

The emphasis on local responsiveness in firms pursuing a localization strategy creates strong pressures for:

A firm's organizational culture refers to the formal organizational structure of the company, the control systems and incentives in place, and the human resources component.

Explain organizational structure.

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

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

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

A _____ structure encourages fragmentation of the organization into highly autonomous entities.

In the classic global matrix structure, horizontal differentiation proceeds along two dimensions. These dimensions are:

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

Control through a system of rules and procedures that directs the actions of subunits is:

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

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

The need for coordination is high in firms trying to profit from location and experience curve economies.

National regulations including local content rules and policies pertaining to layoffs might act as a source of inertia.

Incremental change rarely happens in an organization because of those whose power may be threatened by such a change.

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

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

Performance ambiguity lowers the cost of control.

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.

Firms pursuing a transnational strategy:

The emphasis on local responsiveness in firms pursuing a localization strategy creates strong pressures for:

A firm's organizational culture refers to the formal organizational structure of the company, the control systems and incentives in place, and the human resources component.

Explain organizational structure.

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

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

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

A _____ structure encourages fragmentation of the organization into highly autonomous entities.

In the classic global matrix structure, horizontal differentiation proceeds along two dimensions. These dimensions are:

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

Control through a system of rules and procedures that directs the actions of subunits is:

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