Question 1

Neoclassical structures aim to centralize decision-making authority by removing boundaries that impede the decentralization of decision making.

Accepted Answer

A) True 
 B)False  False

Question 2

What is the difference between a classical structure and a neoclassical structure? Provide examples of each type.

Accepted Answer

Classical structures,like the functional,divisional,and matrix formats,rely on the hierarchy to arrange roles,responsibilities,and relationships.Neoclassical structures,like the network or virtual format,arrange work roles,responsibilities,and relationships in ways that bypass the horizontal,vertical,or external boundaries that block the development of knowledge-generating and decision-making relationships.

Question 3

Which of the following is NOT one of the main priorities for most corporate universities?

Accepted Answer

A)  complying with labor regulations in local markets 
B)  facilitating strategic understanding among executives 
C)  strengthening employee commitment to organization goals 
D)  improving the influence of the organization's culture 
A)  complying with labor regulations in local markets 
B)  facilitating strategic understanding among executives 
C)  strengthening employee commitment to organization goals 
D)  improving the influence of the organization's culture A

Question 4

Johnson & Johnson distributes decision-making power among departments and divisions.This policy provides managers with a sense of ownership and control at the company.Johnson & Johnson is best described as a ________ organization.

Accepted Answer

A)  vertical 
B)  centralized 
C)  horizontal 
D)  decentralized 
A)  vertical 
B)  centralized 
C)  horizontal 
D)  decentralized

Question 5

Which of the following is NOT one of the three prevalent approaches to coordination?

Accepted Answer

A)  standardization 
B)  mutual adjustment 
C)  adaptation 
D)  planning 
A)  standardization 
B)  mutual adjustment 
C)  adaptation 
D)  planning

Question 6

One advantage of centralized corporate practices is a reduced risk that lower-level employees make costly,wrong decisions.

Accepted Answer

A) True 
 B)False

Question 7

A company adopting a ________ strategy will likely aim to develop an organization culture that helps employees around the world unconditionally accept common goals and practices.

Accepted Answer

A)  domestic 
B)  multidomestic 
C)  national 
D)  global 
A)  domestic 
B)  multidomestic 
C)  national 
D)  global

Question 8

Avery Designs is an MNE with a diverse portfolio of products including cookware and clothing.Both the foreign and domestic operations for the firm's cookware products report to the same manager.Which structure is most likely used by Avery?

Accepted Answer

A)  matrix division 
B)  product division 
C)  international division 
D)  geographic division 
A)  matrix division 
B)  product division 
C)  international division 
D)  geographic division

Question 9

Which of the following statements is most likely true regarding vertical differentiation?

Accepted Answer

A)  MNEs with decentralized structures are more appealing to foreign workers. 
B)  Most MNEs balance authority between headquarters and subsidiaries because of globality. 
C)  MNEs with many organizational levels are less likely to perform well in emerging markets. 
D)  Most MNEs implement centralized authority structures due to the complexity of globalization. 
A)  MNEs with decentralized structures are more appealing to foreign workers. 
B)  Most MNEs balance authority between headquarters and subsidiaries because of globality. 
C)  MNEs with many organizational levels are less likely to perform well in emerging markets. 
D)  Most MNEs implement centralized authority structures due to the complexity of globalization.

Question 10

In a matrix structure,product,functional,or geographic groups compete for resources.

Accepted Answer

A) True 
 B)False

Question 11

The notion of boundaries,within the context of neoclassical structures,refers to those limitations that interfere with communication and collaboration between the firm and its suppliers,distributors,allies,competitive rivals,and customers.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is the LEAST likely reason that global firms are shifting away from formal organizational structures?

Accepted Answer

A)  advancements in communication systems 
B)  changes in managerial standards 
C)  opportunities in new markets 
D)  demands of stockholders 
A)  advancements in communication systems 
B)  changes in managerial standards 
C)  opportunities in new markets 
D)  demands of stockholders

Question 13

Companies tend to use geographic divisions when they have large foreign operations that are not dominated by a single country or market.

Accepted Answer

A) True 
 B)False

Question 14

Tyrone is a production manager at Penderhall Electronics,an MNE with operations in Asia,Europe,and the United States.Tyrone has very little decision-making authority at Penderhall,since most decisions are made at headquarters and distributed downward.Which structure is most likely used by Penderhall?

Accepted Answer

A)  centralized 
B)  systematic 
C)  decentralized 
D)  multidomestic 
A)  centralized 
B)  systematic 
C)  decentralized 
D)  multidomestic

Question 15

New configurations of value activities create coordination and control challenges that cannot be addressed by the functionality outlined in a formal structure.

Accepted Answer

A) True 
 B)False

Question 16

The open source model is a hyperarchy that involves giving source code to volunteers who fix software bugs.

Accepted Answer

A) True 
 B)False

Question 17

________ is a system of shared values about what is important and beliefs about how the world works among the employees of an organization.

Accepted Answer

A)  Organizational system 
B)  Organizational structure 
C)  Organizational culture 
D)  Organizational vision 
A)  Organizational system 
B)  Organizational structure 
C)  Organizational culture 
D)  Organizational vision

Question 18

Which tool is used by most firms to monitor the data linkages among product planning,parts purchasing,and inventory maintenance activities?

Accepted Answer

A)  reports 
B)  clan controls 
C)  financial metrics 
D)  information systems 
A)  reports 
B)  clan controls 
C)  financial metrics 
D)  information systems

Question 19

Describe how an MNE might use reports as a control mechanism.

Accepted Answer

Headquarters needs timely reports to all

Question 20

The keiretsu structure long used by Japanese companies is an example of virtual organization.

Accepted Answer

A) True 
 B)False

Neoclassical structures aim to centralize decision-making authority by removing boundaries that impede the decentralization of decision making.

What is the difference between a classical structure and a neoclassical structure? Provide examples of each type.

Which of the following is NOT one of the main priorities for most corporate universities?

Johnson & Johnson distributes decision-making power among departments and divisions.This policy provides managers with a sense of ownership and control at the company.Johnson & Johnson is best described as a ________ organization.

Which of the following is NOT one of the three prevalent approaches to coordination?

One advantage of centralized corporate practices is a reduced risk that lower-level employees make costly,wrong decisions.

A company adopting a ________ strategy will likely aim to develop an organization culture that helps employees around the world unconditionally accept common goals and practices.

Avery Designs is an MNE with a diverse portfolio of products including cookware and clothing.Both the foreign and domestic operations for the firm's cookware products report to the same manager.Which structure is most likely used by Avery?

Which of the following statements is most likely true regarding vertical differentiation?

In a matrix structure,product,functional,or geographic groups compete for resources.

The notion of boundaries,within the context of neoclassical structures,refers to those limitations that interfere with communication and collaboration between the firm and its suppliers,distributors,allies,competitive rivals,and customers.

Which of the following is the LEAST likely reason that global firms are shifting away from formal organizational structures?

Companies tend to use geographic divisions when they have large foreign operations that are not dominated by a single country or market.

New configurations of value activities create coordination and control challenges that cannot be addressed by the functionality outlined in a formal structure.

The open source model is a hyperarchy that involves giving source code to volunteers who fix software bugs.

________ is a system of shared values about what is important and beliefs about how the world works among the employees of an organization.

Which tool is used by most firms to monitor the data linkages among product planning,parts purchasing,and inventory maintenance activities?

Describe how an MNE might use reports as a control mechanism.

The keiretsu structure long used by Japanese companies is an example of virtual organization.

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

International Trade and Factor-Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

Globalization and Society

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

Marketing Globally

Global Manufacturing and Supply-Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters

Exam 16: The Organization of International Business

Neoclassical structures aim to centralize decision-making authority by removing boundaries that impede the decentralization of decision making.

What is the difference between a classical structure and a neoclassical structure? Provide examples of each type.

Which of the following is NOT one of the main priorities for most corporate universities?

Johnson & Johnson distributes decision-making power among departments and divisions.This policy provides managers with a sense of ownership and control at the company.Johnson & Johnson is best described as a ________ organization.

Which of the following is NOT one of the three prevalent approaches to coordination?

One advantage of centralized corporate practices is a reduced risk that lower-level employees make costly,wrong decisions.

A company adopting a ________ strategy will likely aim to develop an organization culture that helps employees around the world unconditionally accept common goals and practices.

Avery Designs is an MNE with a diverse portfolio of products including cookware and clothing.Both the foreign and domestic operations for the firm's cookware products report to the same manager.Which structure is most likely used by Avery?

Which of the following statements is most likely true regarding vertical differentiation?

In a matrix structure,product,functional,or geographic groups compete for resources.

The notion of boundaries,within the context of neoclassical structures,refers to those limitations that interfere with communication and collaboration between the firm and its suppliers,distributors,allies,competitive rivals,and customers.

Which of the following is the LEAST likely reason that global firms are shifting away from formal organizational structures?

Companies tend to use geographic divisions when they have large foreign operations that are not dominated by a single country or market.

New configurations of value activities create coordination and control challenges that cannot be addressed by the functionality outlined in a formal structure.

The open source model is a hyperarchy that involves giving source code to volunteers who fix software bugs.

________ is a system of shared values about what is important and beliefs about how the world works among the employees of an organization.

Which tool is used by most firms to monitor the data linkages among product planning,parts purchasing,and inventory maintenance activities?

Describe how an MNE might use reports as a control mechanism.

The keiretsu structure long used by Japanese companies is an example of virtual organization.

Globalization and International Business

The Cultural Environments Facing Business

The Political and Legal Environments Facing Business

The Economic Environments Facing Businesses

International Trade and Factor-Mobility Theory

Governmental Influence on Trade

Cross-National Cooperation and Agreements

Global Foreign-Exchange Markets

The Determination of Exchange Rates

Global Capital Markets

Globalization and Society

The Strategy of International Business

Country Evaluation and Selection

Export and Import

Direct Investment and Collaborative Strategies

Marketing Globally

Global Manufacturing and Supply-Chain Management

International Accounting and Finance Issues

International Human Resource Management

Filters