Question 1

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 2

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

Accepted Answer

A) True 
 B)False

Question 3

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 4

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

Accepted Answer

A) True 
 B)False

Question 5

What are the basic principles for successful organizational change?

Accepted Answer

There are three basic principles for org

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

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.

Question 8

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

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 9

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 10

Which of the following is an argument favoring decentralization?

Accepted Answer

A)  It can facilitate coordination. 
B)  It can help ensure that decisions are consistent with organizational objectives. 
C)  It can give top-level managers the means to bring about needed major organizational changes. 
D)  It permits greater flexibility. 
A)  It can facilitate coordination. 
B)  It can help ensure that decisions are consistent with organizational objectives. 
C)  It can give top-level managers the means to bring about needed major organizational changes. 
D)  It permits greater flexibility.

Question 11

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

Accepted Answer

A)  Personal 
B)  Output 
C)  Bureaucratic 
D)  Cultural 
A)  Personal 
B)  Output 
C)  Bureaucratic 
D)  Cultural

Question 12

Firms pursuing a global standardization strategy:

Accepted Answer

A)  have low performance ambiguity. 
B)  attempt to create value by transferring core competencies from home to foreign subsidiaries. 
C)  are less centralized than enterprises pursuing a localization or international strategy. 
D)  have a high need for coordination and cultural controls. 
A)  have low performance ambiguity. 
B)  attempt to create value by transferring core competencies from home to foreign subsidiaries. 
C)  are less centralized than enterprises pursuing a localization or international strategy. 
D)  have a high need for coordination and cultural controls.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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 15

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 16

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

Accepted Answer

A) True 
 B)False

Question 17

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 18

The need for coordination between subunits is lowest 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 19

Direct contact between subunit managers is the simplest integrating mechanism.

Accepted Answer

A) True 
 B)False

Question 20

Discuss the issues involved in refreezing an organization.

Accepted Answer

Refreezing the organization takes longer

Firms pursuing a transnational strategy:

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):

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

What are the basic principles for successful organizational change?

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

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

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

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

Which of the following is an argument favoring decentralization?

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

Firms pursuing a global standardization strategy:

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

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.

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).

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

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

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

Direct contact between subunit managers is the simplest integrating mechanism.

Discuss the issues involved in refreezing 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

Firms pursuing a transnational strategy:

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):

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

What are the basic principles for successful organizational change?

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

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

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

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

Which of the following is an argument favoring decentralization?

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

Firms pursuing a global standardization strategy:

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

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.

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).

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

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

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

Direct contact between subunit managers is the simplest integrating mechanism.

Discuss the issues involved in refreezing 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