Question 1

The need for coordination between units is greatest in firms pursuing a localization strategy.

Accepted Answer

A) True 
 B)False

Question 2

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 3

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

Accepted Answer

A) True 
 B)False

Question 4

Centralization and decentralization differ because:

Accepted Answer

A)  centralization hinders coordination, while decentralization facilitates coordination. 
B)  centralization prevents top-level managers from making required organizational changes, while decentralization gives top-level managers greater power to make organizational changes. 
C)  centralization ensures that decisions are consistent with organizational objectives, while decentralization can result in decisions at variance with organizational goals. 
D)  centralization promotes flexibility, while decentralization reduces flexibility. 
A)  centralization hinders coordination, while decentralization facilitates coordination. 
B)  centralization prevents top-level managers from making required organizational changes, while decentralization gives top-level managers greater power to make organizational changes. 
C)  centralization ensures that decisions are consistent with organizational objectives, while decentralization can result in decisions at variance with organizational goals. 
D)  centralization promotes flexibility, while decentralization reduces flexibility.

Question 5

Refreezing an organization should happen quickly.

Accepted Answer

A) True 
 B)False

Question 6

The manner in which decisions are made and work is performed within the organization is known as the firm's:

Accepted Answer

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

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

In a classic matrix structure, individual managers belong to two hierarchies (a divisional hierarchy and an area hierarchy) and have two bosses (a divisional boss and an area boss).

Accepted Answer

A) True 
 B)False

Question 9

Consider the use of personal controls in international firms. In which type of firm is this control most common?

Accepted Answer

Personal control is control by personal

Question 10

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 11

The worldwide product division structure:

Accepted Answer

A)  is weak in local responsiveness. 
B)  inhibits the realization of location economies. 
C)  inhibits the realization of experience curve economies. 
D)  limits the transfer of core competencies between areas. 
A)  is weak in local responsiveness. 
B)  inhibits the realization of location economies. 
C)  inhibits the realization of experience curve economies. 
D)  limits the transfer of core competencies between areas.

Question 12

_____ 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 13

What are the main strengths and weaknesses of the worldwide product division structure?

Accepted Answer

The primary strength of the worldwide pr

Question 14

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 15

In a matrix structure all roles are viewed as integrating roles.

Accepted Answer

A) True 
 B)False

Question 16

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 17

In firms pursuing a transnational strategy, some operating decisions are relatively centralized, while others are relatively decentralized.

Accepted Answer

A) True 
 B)False

Question 18

Explain the five reasons why a firm should decentralize its decision-making.

Accepted Answer

Firms should decentralize their decision

Question 19

Which of the following is NOT 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 having a certain way of doing things. 
D)  A strong culture can be a bad 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 having a certain way of doing things. 
D)  A strong culture can be a bad culture.

Question 20

Discuss the issues involved in unfreezing an organization.

Accepted Answer

Because of inertia forces, incremental c

The need for coordination between units is greatest in firms pursuing a localization strategy.

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

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

Centralization and decentralization differ because:

Refreezing an organization should happen quickly.

The manner in which decisions are made and work is performed within the organization is known as the firm's:

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

In a classic matrix structure, individual managers belong to two hierarchies (a divisional hierarchy and an area hierarchy) and have two bosses (a divisional boss and an area boss).

Consider the use of personal controls in international firms. In which type of firm is this control most common?

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.

The worldwide product division structure:

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

What are the main strengths and weaknesses of the worldwide product division structure?

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

In a matrix structure all roles are viewed as integrating roles.

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

In firms pursuing a transnational strategy, some operating decisions are relatively centralized, while others are relatively decentralized.

Explain the five reasons why a firm should decentralize its decision-making.

Which of the following is NOT true of a strong corporate culture?

Discuss the issues involved in unfreezing an organization.

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

The need for coordination between units is greatest in firms pursuing a localization strategy.

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

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

Centralization and decentralization differ because:

Refreezing an organization should happen quickly.

The manner in which decisions are made and work is performed within the organization is known as the firm's:

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

In a classic matrix structure, individual managers belong to two hierarchies (a divisional hierarchy and an area hierarchy) and have two bosses (a divisional boss and an area boss).

Consider the use of personal controls in international firms. In which type of firm is this control most common?

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.

The worldwide product division structure:

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

What are the main strengths and weaknesses of the worldwide product division structure?

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

In a matrix structure all roles are viewed as integrating roles.

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

In firms pursuing a transnational strategy, some operating decisions are relatively centralized, while others are relatively decentralized.

Explain the five reasons why a firm should decentralize its decision-making.

Which of the following is NOT true of a strong corporate culture?

Discuss the issues involved in unfreezing an organization.

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