Exam 14: The Organization of International Business

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

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

In a company using cultural controls,employees' behavior is closely monitored and controlled through direct supervision.

Firms pursuing a localization strategy have a high need for coordination between subunits.

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

Which of the following decisions is typically centralized at a firm's headquarters?

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

Direct contact between subunit managers is the simplest integrating mechanism.

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

The worldwide area structure tends to be adopted by firms with a low level of diversification whose domestic structures are based on functions.

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

Discuss the issues involved in refreezing an organization.

It is important to realize that organizational change will occur regardless of the commitment of senior managers to it.

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

A worldwide product division structure tends to be adopted by firms that are reasonably diversified and originally had domestic structures based on product divisions.

The worldwide product division structure facilitates local responsiveness.

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

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

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

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