Question 1

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.

Question 2

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 3

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 4

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

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 7

Which of the following is NOT true regarding a worldwide area structure?

Accepted Answer

A)  It tends to be favored by firms with a low degree of diversification. 
B)  It facilitates local responsiveness. 
C)  It tends to be favored by firms with a domestic structure based on functions. 
D)  Decision-making responsibilities are centralized. 
A)  It tends to be favored by firms with a low degree of diversification. 
B)  It facilitates local responsiveness. 
C)  It tends to be favored by firms with a domestic structure based on functions. 
D)  Decision-making responsibilities are centralized.

Question 8

What is horizontal differentiation?

Accepted Answer

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

Question 9

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 10

Organizational structure means all of the following,EXCEPT:

Accepted Answer

A)  the establishment of integrating mechanisms to coordinate the activities of subunits. 
B)  the location of decision-making responsibilities with a structure. 
C)  the manner in which decisions are made and work is performed by individuals. 
D)  the formal division of the organization into subunits such as product divisions and functions. 
A)  the establishment of integrating mechanisms to coordinate the activities of subunits. 
B)  the location of decision-making responsibilities with a structure. 
C)  the manner in which decisions are made and work is performed by individuals. 
D)  the formal division of the organization into subunits such as product divisions and functions.

Question 11

What is performance ambiguity? Discuss the relationships between strategy,interdependence,and performance ambiguity.

Accepted Answer

Performance ambiguity exists when the ca

Question 12

Discuss the issues involved in unfreezing an organization.

Accepted Answer

Because of inertia forces,incremental ch

Question 13

Discuss the relationship between a firm's control systems and a firm's incentive system.Why is this relationship important?

Accepted Answer

The relationships between a firm's contr

Question 14

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 15

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

Accepted Answer

A) True 
 B)False

Question 16

Integration mechanisms are:

Accepted Answer

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

Question 17

A(n)_____ tends to be adopted by firms that are reasonably diversified.

Accepted Answer

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

Question 18

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 19

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 20

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.

Centralization:

Centralization and decentralization differ because:

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

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

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

The worldwide product division structure:

Which of the following is NOT true regarding a worldwide area structure?

What is horizontal differentiation?

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

Organizational structure means all of the following,EXCEPT:

What is performance ambiguity? Discuss the relationships between strategy,interdependence,and performance ambiguity.

Discuss the issues involved in unfreezing an organization.

Discuss the relationship between a firm's control systems and a firm's incentive system.Why is this relationship important?

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

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

Integration mechanisms are:

A(n)_____ tends to be adopted by firms that are reasonably diversified.

Which control system is most widely used by small firms?

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

Which of the following is an argument favoring centralization?

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

Centralization:

Centralization and decentralization differ because:

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

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

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

The worldwide product division structure:

Which of the following is NOT true regarding a worldwide area structure?

What is horizontal differentiation?

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

Organizational structure means all of the following,EXCEPT:

What is performance ambiguity? Discuss the relationships between strategy,interdependence,and performance ambiguity.

Discuss the issues involved in unfreezing an organization.

Discuss the relationship between a firm's control systems and a firm's incentive system.Why is this relationship important?

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

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

Integration mechanisms are:

A(n)_____ tends to be adopted by firms that are reasonably diversified.

Which control system is most widely used by small firms?

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

Which of the following is an argument favoring centralization?

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