Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

A manager receives a bonus because the national operating subsidiary,that she is in charge of,exceeds its performance target.This is an example of an incentive.

Accepted Answer

A) True 
 B)False

Question 3

The emphasis on local responsiveness in firms pursuing a localization strategy creates strong pressures for:

Accepted Answer

A)  centralizing all decisions regarding marketing,R&D,and human resource management. 
B)  decentralizing operating decisions to foreign subsidiaries. 
C)  centralizing all operating decisions. 
D)  global learning. 
A)  centralizing all decisions regarding marketing,R&D,and human resource management. 
B)  decentralizing operating decisions to foreign subsidiaries. 
C)  centralizing all operating decisions. 
D)  global learning.

Question 4

Why should a firm centralize its decision-making?

Accepted Answer

Firms should centralize their decision-m

Question 5

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

Accepted Answer

The primary strength of the worldwide pr

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Discuss the global matrix structure.

Accepted Answer

In the classic global matrix structure,h

Question 8

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 9

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

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

New processes that might lead to a competitive advantage can be developed anywhere within the organization's global network of operations.

Accepted Answer

A) True 
 B)False

Question 12

What type of firms favor the worldwide area structure and why? What are the disadvantages of this type of structure?

Accepted Answer

The worldwide area structure tends to be

Question 13

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 14

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

Accepted Answer

A) True 
 B)False

Question 15

Bureaucratic control involves personal contact with subordinates.

Accepted Answer

A) True 
 B)False

Question 16

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 17

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 18

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 19

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 20

Which of the following terms refers to the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits?

Accepted Answer

A)  Key processes 
B)  Control systems 
C)  Knowledge networks 
D)  Job assignments 
A)  Key processes 
B)  Control systems 
C)  Knowledge networks 
D)  Job assignments

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

A manager receives a bonus because the national operating subsidiary,that she is in charge of,exceeds its performance target.This is an example of an incentive.

The emphasis on local responsiveness in firms pursuing a localization strategy creates strong pressures for:

Why should a firm centralize its decision-making?

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

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

Discuss the global matrix structure.

The worldwide product division structure:

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

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

New processes that might lead to a competitive advantage can be developed anywhere within the organization's global network of operations.

What type of firms favor the worldwide area structure and why? What are the disadvantages of this type of structure?

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

Bureaucratic control involves personal contact with subordinates.

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 NOT true of a strong corporate culture?

Centralization:

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

Which of the following terms refers to the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits?

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

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

A manager receives a bonus because the national operating subsidiary,that she is in charge of,exceeds its performance target.This is an example of an incentive.

The emphasis on local responsiveness in firms pursuing a localization strategy creates strong pressures for:

Why should a firm centralize its decision-making?

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

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

Discuss the global matrix structure.

The worldwide product division structure:

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

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

New processes that might lead to a competitive advantage can be developed anywhere within the organization's global network of operations.

What type of firms favor the worldwide area structure and why? What are the disadvantages of this type of structure?

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

Bureaucratic control involves personal contact with subordinates.

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 NOT true of a strong corporate culture?

Centralization:

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

Which of the following terms refers to the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits?

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