Question 1

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

Accepted Answer

Performance ambiguity exists when the causes of a subunit's poor performance are not clear.In firms pursuing a localization strategy,each national operation is a stand-alone entity and can be judged on its own merits.The level of performance ambiguity is low.In an international firm,the level of interdependence is somewhat higher.In firms pursuing a global standardization strategy,the levels of interdependence and performance ambiguity are high.The level of performance ambiguity is highest of all in transnational firms.

Question 2

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

Accepted Answer

A) True 
 B)False  False

Question 3

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  True

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Which of the following would be a typical responsibility of a product division in a product divisional structure?

Accepted Answer

A)  Operating decisions 
B)  Overall strategic development of the firm 
C)  Financial control of the various divisions 
D)  Decisions regarding legal issues 
A)  Operating decisions 
B)  Overall strategic development of the firm 
C)  Financial control of the various divisions 
D)  Decisions regarding legal issues

Question 6

What are the three dimensions of organizational structure?

Accepted Answer

Organizational structure can be thought

Question 7

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 8

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 9

In which of the following organizational structures are the domestic operations and foreign operations isolated from each other leading to coordination problems?

Accepted Answer

A)  Global matrix structure 
B)  International division structure 
C)  Worldwide product division structure 
D)  Worldwide area structure 
A)  Global matrix structure 
B)  International division structure 
C)  Worldwide product division structure 
D)  Worldwide area structure

Question 10

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 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

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 13

Discuss the sources of inertia in organizations.Is it easy to make organizational changes?

Accepted Answer

Organizations are difficult to change.Wi

Question 14

What are output controls?

Accepted Answer

Output controls involve setting goals fo

Question 15

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 16

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 17

The need for coordination between subunits is highest in firms pursuing a(n):

Accepted Answer

A)  localization strategy. 
B)  international strategy. 
C)  global strategy. 
D)  transnational strategy. 
A)  localization strategy. 
B)  international strategy. 
C)  global strategy. 
D)  transnational strategy.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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 20

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

Accepted Answer

A) True 
 B)False

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

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

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

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

Which of the following would be a typical responsibility of a product division in a product divisional structure?

What are the three dimensions of organizational structure?

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

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?

In which of the following organizational structures are the domestic operations and foreign operations isolated from each other leading to coordination problems?

Which control system is most widely used by small firms?

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

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

Discuss the sources of inertia in organizations.Is it easy to make organizational changes?

What are output controls?

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

What is horizontal differentiation?

The need for coordination between subunits is highest in firms pursuing a(n):

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

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

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

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

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

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

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

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

Which of the following would be a typical responsibility of a product division in a product divisional structure?

What are the three dimensions of organizational structure?

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

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?

In which of the following organizational structures are the domestic operations and foreign operations isolated from each other leading to coordination problems?

Which control system is most widely used by small firms?

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

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

Discuss the sources of inertia in organizations.Is it easy to make organizational changes?

What are output controls?

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

What is horizontal differentiation?

The need for coordination between subunits is highest in firms pursuing a(n):

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

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

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

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