Question 1

Which of the following organizes worldwide operations based primarily on function and secondarily on product?

Accepted Answer

A) International division structure 
B) Global product division structure 
C) Global area division structure 
D) Global functional division structure 
A) International division structure 
B) Global product division structure 
C) Global area division structure 
D) Global functional division structure

Question 2

Companies in the mature stage of international business involvement are the most likely to adopt an international division structure.

Accepted Answer

A) True 
 B)False

Question 3

A _____ is designed to help MNCs take advantage of global economies of scale while also being responsive to local customer demands.

Accepted Answer

A) Global matrix structure 
B) Transnational network structure 
C) Worldwide divisional structure 
D) Cross-cultural matrix structure 
A) Global matrix structure 
B) Transnational network structure 
C) Worldwide divisional structure 
D) Cross-cultural matrix structure

Question 4

A license is a structural arrangement in which domestic divisions are given worldwide responsibility for product groups.

Accepted Answer

A) True 
 B)False

Question 5

The products sold by firms that adopt a global product division structure are generally in the _____ stage of the product life cycle.

Accepted Answer

A) Introduction 
B) Growth 
C) Maturity 
D) Decline 
A) Introduction 
B) Growth 
C) Maturity 
D) Decline

Question 6

That division managers may pursue currently attractive geographic prospects for their products and neglect other areas with better long-term potential is a major drawback of the:

Accepted Answer

A) International division structure 
B) Global product division structure 
C) Global area division structure 
D) Global functional division structure 
A) International division structure 
B) Global product division structure 
C) Global area division structure 
D) Global functional division structure

Question 7

_____ is a management system in which important decisions are made at the top.

Accepted Answer

A) Centralization 
B) Decentralization 
C) Horizontal specialization 
D) Vertical specialization 
A) Centralization 
B) Decentralization 
C) Horizontal specialization 
D) Vertical specialization

Question 8

All of the following are advantages of the global functional division structure except:

Accepted Answer

A) An emphasis on functional expertise 
B) A tight centralized control 
C) A relatively lean managerial staff 
D) The chief executive officer is held accountable for the profits 
A) An emphasis on functional expertise 
B) A tight centralized control 
C) A relatively lean managerial staff 
D) The chief executive officer is held accountable for the profits

Question 9

Interdependent relationships are:

Accepted Answer

A) Designed to tap specialized expertise or other resources in the company's worldwide subsidiaries 
B) Subsidiaries that are located anywhere in the world where they can benefit the organization 
C) Used to share information and resources throughout the dispersed and specialized subunits 
D) Designed to take advantage of low factor costs, while others are responsible for providing information on new technologies or consumer trends 
A) Designed to tap specialized expertise or other resources in the company's worldwide subsidiaries 
B) Subsidiaries that are located anywhere in the world where they can benefit the organization 
C) Used to share information and resources throughout the dispersed and specialized subunits 
D) Designed to take advantage of low factor costs, while others are responsible for providing information on new technologies or consumer trends

Question 10

Specialization is the use of defined structures and systems in decision-making, communicating and controlling.

Accepted Answer

A) True 
 B)False

Question 11

A _____ is a business arrangement under which one party allows another to operate an enterprise using its trademark, logo, product line and methods of operation in return for a fee.

Accepted Answer

A) License 
B) Franchise 
C) Certificate of proprietary usage 
D) Joint venture 
A) License 
B) Franchise 
C) Certificate of proprietary usage 
D) Joint venture

Question 12

Explain the transnational network structure.What are its three subcomponents?

Accepted Answer

The transnational network structure is a

Question 13

The decision-making control in which local units are given autonomy is characteristic of a(n):

Accepted Answer

A) Global area division structure 
B) International division structure 
C) Global product division structure 
D) Transnational network structure 
A) Global area division structure 
B) International division structure 
C) Global product division structure 
D) Transnational network structure

Question 14

Subsidiaries that are located anywhere in the world where they can benefit the organization are called:

Accepted Answer

A) Chaebols 
B) Keiretsus 
C) Specialized subunits 
D) Dispersed subunits 
A) Chaebols 
B) Keiretsus 
C) Specialized subunits 
D) Dispersed subunits

Question 15

In a study of U.S.and Japanese firms in Taiwan, objective formalization was measured by:

Accepted Answer

A) Use of informal controls 
B) The extent to which goals were vague and unspecified 
C) The number of different documents given to employees 
D) Use of culturally induced values in getting things done 
A) Use of informal controls 
B) The extent to which goals were vague and unspecified 
C) The number of different documents given to employees 
D) Use of culturally induced values in getting things done

Question 16

A multinational structural arrangement that combines elements of function, product and geographic designs, while relying on a network arrangement to link worldwide subsidiaries is referred to as a:

Accepted Answer

A) Transnational network structure 
B) Cross-cultural matrix structure 
C) Transnational divisional structure 
D) Cross-cultural network structure 
A) Transnational network structure 
B) Cross-cultural matrix structure 
C) Transnational divisional structure 
D) Cross-cultural network structure

Question 17

A joint venture is an agreement in which two or more partners own and control an overseas business.

Accepted Answer

A) True 
 B)False

Question 18

An advantage of the global functional division structure is that only the CEO can be held accountable for the profits.

Accepted Answer

A) True 
 B)False

Question 19

A structure under which global operations are organized on a geographic rather than a product orientation is referred to as a global area structure.

Accepted Answer

A) True 
 B)False

Question 20

A structure that is a combination of a global product, an area or a functional arrangement is referred to as a(n) _____ organizational structure.

Accepted Answer

A) Assimilated 
B) Transnational 
C) Mixed 
D) Team-based 
A) Assimilated 
B) Transnational 
C) Mixed 
D) Team-based

Which of the following organizes worldwide operations based primarily on function and secondarily on product?

Companies in the mature stage of international business involvement are the most likely to adopt an international division structure.

A _____ is designed to help MNCs take advantage of global economies of scale while also being responsive to local customer demands.

A license is a structural arrangement in which domestic divisions are given worldwide responsibility for product groups.

The products sold by firms that adopt a global product division structure are generally in the _____ stage of the product life cycle.

That division managers may pursue currently attractive geographic prospects for their products and neglect other areas with better long-term potential is a major drawback of the:

_____ is a management system in which important decisions are made at the top.

All of the following are advantages of the global functional division structure except:

Interdependent relationships are:

Specialization is the use of defined structures and systems in decision-making, communicating and controlling.

A _____ is a business arrangement under which one party allows another to operate an enterprise using its trademark, logo, product line and methods of operation in return for a fee.

Explain the transnational network structure.What are its three subcomponents?

The decision-making control in which local units are given autonomy is characteristic of a(n):

Subsidiaries that are located anywhere in the world where they can benefit the organization are called:

In a study of U.S.and Japanese firms in Taiwan, objective formalization was measured by:

A multinational structural arrangement that combines elements of function, product and geographic designs, while relying on a network arrangement to link worldwide subsidiaries is referred to as a:

A joint venture is an agreement in which two or more partners own and control an overseas business.

An advantage of the global functional division structure is that only the CEO can be held accountable for the profits.

A structure under which global operations are organized on a geographic rather than a product orientation is referred to as a global area structure.

A structure that is a combination of a global product, an area or a functional arrangement is referred to as a(n) _____ organizational structure.

Globalization and International Linkages

The Political, Legal, and Technological Environment

Ethics and Social Responsibility

The Meanings and Dimensions of Culture

Managing Across Cultures

Organizational Cultures and Diversity

Cross-Cultural Communication and Negotiation

Strategy Formulation and Implementation

Managing Political Risk, Government Relations, and Alliances

Management Decision and Control

Motivation Across Cultures

Leadership Across Cultures

Human Resource Selection and Development Across Cultures

Filters

Exam 9: Entry Strategies and Organizational Structures

Which of the following organizes worldwide operations based primarily on function and secondarily on product?

Companies in the mature stage of international business involvement are the most likely to adopt an international division structure.

A _____ is designed to help MNCs take advantage of global economies of scale while also being responsive to local customer demands.

A license is a structural arrangement in which domestic divisions are given worldwide responsibility for product groups.

The products sold by firms that adopt a global product division structure are generally in the _____ stage of the product life cycle.

That division managers may pursue currently attractive geographic prospects for their products and neglect other areas with better long-term potential is a major drawback of the:

_____ is a management system in which important decisions are made at the top.

All of the following are advantages of the global functional division structure except:

Interdependent relationships are:

Specialization is the use of defined structures and systems in decision-making, communicating and controlling.

A _____ is a business arrangement under which one party allows another to operate an enterprise using its trademark, logo, product line and methods of operation in return for a fee.

Explain the transnational network structure.What are its three subcomponents?

The decision-making control in which local units are given autonomy is characteristic of a(n):

Subsidiaries that are located anywhere in the world where they can benefit the organization are called:

In a study of U.S.and Japanese firms in Taiwan, objective formalization was measured by:

A multinational structural arrangement that combines elements of function, product and geographic designs, while relying on a network arrangement to link worldwide subsidiaries is referred to as a:

A joint venture is an agreement in which two or more partners own and control an overseas business.

An advantage of the global functional division structure is that only the CEO can be held accountable for the profits.

A structure under which global operations are organized on a geographic rather than a product orientation is referred to as a global area structure.

A structure that is a combination of a global product, an area or a functional arrangement is referred to as a(n) _____ organizational structure.

Globalization and International Linkages

The Political, Legal, and Technological Environment

Ethics and Social Responsibility

The Meanings and Dimensions of Culture

Managing Across Cultures

Organizational Cultures and Diversity

Cross-Cultural Communication and Negotiation

Strategy Formulation and Implementation

Managing Political Risk, Government Relations, and Alliances

Management Decision and Control

Motivation Across Cultures

Leadership Across Cultures

Human Resource Selection and Development Across Cultures

Filters