Question 1

Explain the five reasons a firm should decentralize its decision making.

Accepted Answer

Firms should decentralize their decision...

Question 2

Integration mechanisms are the

Accepted Answer

A)   formal division of the organization into subunits.
B)   mechanisms that enable each subunit to operate independently.
C)   mechanisms for coordinating subunits.
D)   location of decision-making responsibilities within a structure.

Question 3

________ refers to the location of decision-making responsibilities within a structure.

Accepted Answer

A)   Vertical differentiation
B)   Integrating mechanisms
C)   Horizontal integration
D)   Horizontal differentiation

Question 4

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

Accepted Answer

A)   worldwide product division structure
B)   global matrix structure
C)   worldwide area structure
D)   performance structure

Question 5

A firm pursuing ________ will have a strong incentive to decentralize decision making.

Accepted Answer

A)   a localization strategy
B)   a transnational strategy
C)   a global standardization strategy
D)   an international strategy A

Question 6

________ are the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits.

Accepted Answer

A)   Cultural controls
B)   Control systems
C)   Output controls
D)   Incentives

Question 7

Refreezing an organization should happen quickly.

Accepted Answer

A) True 
 B)False

Question 8

________ gives top-level managers the power and authority to be able to bring about needed major organizational changes.

Accepted Answer

A)   Personal control
B)   Decentralization
C)   Bureaucratic control
D)   Centralization

Question 9

Consider the use of personal controls in international firms. In which type of firm is this control most common?

Accepted Answer

Personal control is control by personal ...

Question 10

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

Accepted Answer

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

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

Firm ABC is pursuing a localization strategy that is focused on local responsiveness. Therefore, the need for integration and coordination between self-contained country subsidiaries is low.

Accepted Answer

A) True 
 B)False  True

Question 13

Which of the following is more difficult for a leader?

Accepted Answer

A)   to change an established organizational culture
B)   to import an organizational culture
C)   to create an organizational culture from scratch in a new venture
D)   to export an organizational culture

Question 14

________ refers to giving a person in each subunit responsibility for coordinating with another subunit on a regular basis.

Accepted Answer

A)   Global learning
B)   Liaison roles
C)   Knowledge network
D)   Matrix structures

Question 15

The worldwide product division structure may create a lack of local responsiveness.

Accepted Answer

A) True 
 B)False  True

Question 16

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.

Question 17

________ tends to be adopted by firms that are reasonably diversified.

Accepted Answer

A)   A worldwide area structure
B)   An international division structure
C)   A worldwide product division structure
D)   A global matrix structure

Question 18

In the classic global matrix structure, horizontal differentiation proceeds along two dimensions. These dimensions are

Accepted Answer

A)   hierarchy and overall strategy.
B)   target returns and sales potential.
C)   marketing strategy and sales potential.
D)   product division and geographic area.

Question 19

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 20

Norms are abstract ideas about what a group believes to be good, right, and desirable.

Accepted Answer

A) True 
 B)False

Exam 14: The Organization of International Business

Explain the five reasons a firm should decentralize its decision making.

Correct AnswerverifiedFirms should decentralize their decision...View AnswerShow Answer

Integration mechanisms are the

Correct AnswerverifiedShow Answer

________ refers to the location of decision-making responsibilities within a structure.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A firm pursuing ________ will have a strong incentive to decentralize decision making.

Correct AnswerverifiedA

________ are the metrics used to measure the performance of subunits and make judgments about how well managers are running those subunits.

Correct AnswerverifiedShow Answer

Refreezing an organization should happen quickly.

Correct AnswerverifiedShow Answer

________ gives top-level managers the power and authority to be able to bring about needed major organizational changes.

Correct AnswerverifiedShow Answer

Consider the use of personal controls in international firms. In which type of firm is this control most common?

Correct AnswerverifiedPersonal control is control by personal ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Firm ABC is pursuing a localization strategy that is focused on local responsiveness. Therefore, the need for integration and coordination between self-contained country subsidiaries is low.

Correct AnswerverifiedTrue

Which of the following is more difficult for a leader?

Correct AnswerverifiedShow Answer

________ refers to giving a person in each subunit responsibility for coordinating with another subunit on a regular basis.

Correct AnswerverifiedShow Answer

The worldwide product division structure may create a lack of local responsiveness.

Correct AnswerverifiedTrue

In practice, the dual hierarchy in a global matrix structure

Correct AnswerverifiedShow Answer

________ tends to be adopted by firms that are reasonably diversified.

Correct AnswerverifiedShow Answer

In the classic global matrix structure, horizontal differentiation proceeds along two dimensions. These dimensions are

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Norms are abstract ideas about what a group believes to be good, right, and desirable.

Correct AnswerverifiedShow Answer

Correct Answer
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Firms should decentralize their decision...
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Personal control is control by personal ...
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True

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True

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