Question 1

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.E) None of the above
F) B) and D) B

Question 2

Global learning based on the multidirectional transfer of skills between subsidiaries and the corporate center is a central feature of a firm pursuing a(n)  _____ strategy.

Accepted Answer

A)   localization
B)   global standardization
C)   transnational
D)   internationalE) C) and D)
F) B) and C)

Question 3

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  True

Question 4

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.E) A) and B)
F) All of the above

Question 5

What are the basic principles for successful organizational change?

Accepted Answer

There are three basic principles for org...

Question 6

The worldwide product division structure facilitates local responsiveness.

Accepted Answer

A) True 
 B)False

Question 7

A firm that operates with matrix-type structures in which both product divisions and geographic areas have significant influence would use which of the following strategies?

Accepted Answer

A)   International strategy
B)   Transnational strategy
C)   Global strategy
D)   Localization strategyE) A) and B)
F) All of the above

Question 8

What are the formal integrating mechanisms used to integrate subunits?

Accepted Answer

The formal mechanisms used to integrate ...

Question 9

Why should a firm centralize its decision-making?

Accepted Answer

Firms should centralize their decision-making for four main reasons. First, centralization can facilitate coordination. Second, centralization can help ensure that decisions are consistent with organizational objectives. Third, by concentrating power and authority in one individual or a management team, centralization can give top-level managers the means to bring about needed major organizational changes. Finally, centralization can avoid the duplication of activities that occurs when similar activities are carried on by various subunits within the organization.

Question 10

Firms pursuing a global standardization strategy are more centralized than enterprises pursuing a localization or international strategy.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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.E) None of the above
F) B) and C)

Question 13

The choice between centralization and decentralization is not absolute.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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 16

Direct contact between subunit managers is the simplest integrating mechanism.

Accepted Answer

A) True 
 B)False

Question 17

What are output controls?

Accepted Answer

Output controls involve setting goals fo...

Question 18

What is a knowledge network? What is the advantage of such a system?

Accepted Answer

A knowledge network is a network for tra...

Question 19

By centralizing decision making, a firm can avoid the duplication of activities that occurs when similar activities are carried on by various subunits within the organization.

Accepted Answer

A) True 
 B)False

Question 20

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...

Exam 14: The Organization of International Business

Centralization:

Correct Answer
verified
B

Global learning based on the multidirectional transfer of skills between subsidiaries and the corporate center is a central feature of a firm pursuing a(n) _____ strategy.

Correct Answer
verified

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

Correct Answer
verified
True

In practice, the dual-hierarchy in a global matrix structure:

Correct Answer
verified

What are the basic principles for successful organizational change?

Correct Answer
verified
There are three basic principles for org...
View Answer

The worldwide product division structure facilitates local responsiveness.

Correct Answer
verified

A firm that operates with matrix-type structures in which both product divisions and geographic areas have significant influence would use which of the following strategies?

Correct Answer
verified

What are the formal integrating mechanisms used to integrate subunits?

Correct Answer
verified
The formal mechanisms used to integrate ...
View Answer

Why should a firm centralize its decision-making?

Firms pursuing a global standardization strategy are more centralized than enterprises pursuing a localization or international strategy.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

The choice between centralization and decentralization is not absolute.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Direct contact between subunit managers is the simplest integrating mechanism.

Correct Answer
verified

What are output controls?

Correct Answer
verified
Output controls involve setting goals fo...
View Answer

What is a knowledge network? What is the advantage of such a system?

Correct Answer
verified
A knowledge network is a network for tra...
View Answer

By centralizing decision making, a firm can avoid the duplication of activities that occurs when similar activities are carried on by various subunits within the organization.

Correct Answer
verified

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

Correct Answer
verified
The worldwide area structure tends to be...
View Answer

Exam 14: The Organization of International Business

Centralization:

Correct AnswerverifiedB

Global learning based on the multidirectional transfer of skills between subsidiaries and the corporate center is a central feature of a firm pursuing a(n) _____ strategy.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedTrue

In practice, the dual-hierarchy in a global matrix structure:

Correct AnswerverifiedShow Answer

What are the basic principles for successful organizational change?

Correct AnswerverifiedThere are three basic principles for org...View AnswerShow Answer

The worldwide product division structure facilitates local responsiveness.

Correct AnswerverifiedShow Answer

A firm that operates with matrix-type structures in which both product divisions and geographic areas have significant influence would use which of the following strategies?

Correct AnswerverifiedShow Answer

What are the formal integrating mechanisms used to integrate subunits?

Correct AnswerverifiedThe formal mechanisms used to integrate ...View AnswerShow Answer

Why should a firm centralize its decision-making?

Firms pursuing a global standardization strategy are more centralized than enterprises pursuing a localization or international strategy.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The choice between centralization and decentralization is not absolute.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Direct contact between subunit managers is the simplest integrating mechanism.

Correct AnswerverifiedShow Answer

What are output controls?

Correct AnswerverifiedOutput controls involve setting goals fo...View AnswerShow Answer

What is a knowledge network? What is the advantage of such a system?

Correct AnswerverifiedA knowledge network is a network for tra...View AnswerShow Answer

By centralizing decision making, a firm can avoid the duplication of activities that occurs when similar activities are carried on by various subunits within the organization.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedThe worldwide area structure tends to be...View AnswerShow Answer

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
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Correct Answer
verified
There are three basic principles for org...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The formal mechanisms used to integrate ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Output controls involve setting goals fo...
View Answer

Correct Answer
verified
A knowledge network is a network for tra...
View Answer

Correct Answer
verified

Correct Answer
verified
The worldwide area structure tends to be...
View Answer