Question 1

A firm's _____ determines where in its hierarchy the decision-making power is concentrated.

Accepted Answer

A)   organizational architecture
B)   vertical differentiation
C)   organizational structure
D)   horizontal differentiationE) A) and B)
F) A) and C)

Question 2

In which of the following organizational structures are the domestic operations and foreign operations isolated from each other leading to coordination problems?

Accepted Answer

A)   Global matrix structure
B)   International division structure
C)   Worldwide product division structure
D)   Worldwide area structureE) B) and C)
F) A) and B)

Question 3

Which of the following is an effective strategy for implementing organizational change?

Accepted Answer

A)   Physically move the organization to a new state.
B)   Keep the organizational structure.
C)   Refreeze the organizational structure.
D)   Slowly, through incremental changes, rearrange the organizational structure.E) B) and D)
F) B) and C)

Question 4

Firms pursuing a(n)  _____ have a low need for coordination between subunits.

Accepted Answer

A)   global standardization strategy
B)   localization strategy
C)   transnational strategy
D)   international strategyE) B) and D)
F) A) and D) B

Question 5

Which of the following would be a typical responsibility of a product division in a worldwide product divisional structure?

Accepted Answer

A)   Operating decisions
B)   Overall strategic development of the firm
C)   Financial control of the various divisions
D)   Decisions regarding legal issuesE) A) and B)
F) A) and C)

Question 6

_____ exists when the causes of a subunit's poor performance are not clear.

Accepted Answer

A)   Performance ambiguity
B)   Vertical differentiation
C)   Output controls
D)   Horizontal differentiationE) A) and B)
F) B) and C)

Question 7

Firms pursuing a(n)  _____ are more centralized than enterprises pursuing a localization or international strategy.

Accepted Answer

A)   localization strategy
B)   international strategy
C)   global standardization strategy
D)   transnational strategyE) A) and D)
F) None of the above

Question 8

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 D)
F) C) and D)

Question 9

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) All of the above
F) A) and B) C

Question 10

A knowledge network is a network for transmitting information within an organization that is based on formal organizational structure.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

In a _____, individual managers belong to two hierarchies (a divisional hierarchy and an area hierarchy)  and have two bosses (a divisional boss and an area boss) .

Accepted Answer

A)   worldwide product division structure
B)   classic matrix structure
C)   worldwide area structure
D)   performance structureE) B) and D)
F) None of the above

Question 13

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

Accepted Answer

The primary strength of the worldwide pr...

Question 14

When the need for integration is very high, firms may:

Accepted Answer

A)   use direct contact between subunit managers.
B)   give a person in each subunit responsibility for coordinating with another subunit on a regular basis.
C)   institute a matrix structure, in which all roles are viewed as integrating roles.
D)   use temporary or permanent teams composed of individuals from the subunits that need to achieve coordination.E) B) and C)
F) A) and D)

Question 15

The need for coordination between subunits is highest in firms pursuing a(n)  _____.

Accepted Answer

A)   localization strategy
B)   international strategy
C)   global strategy
D)   transnational strategyE) B) and C)
F) A) and C)

Question 16

Discuss the location of decision-making in a firm that is following a transnational strategy.

Accepted Answer

Decision-making in a firm pursuing a tra...

Question 17

What is horizontal differentiation?

Accepted Answer

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

Question 18

_____ 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)   CentralizationE) B) and C)
F) None of the above

Question 19

Discuss the issues involved in unfreezing an organization.

Accepted Answer

Because of inertia forces, incremental change is often no change. Those whose power is threatened by change can too easily resist incremental change. This leads to the big bang theory of change, which maintains that effective change requires taking bold action early to "unfreeze" the established culture of an organization and to change the distribution of power and influence. Shock therapy to unfreeze the organization might include the closure of plants deemed uneconomic or the announcement of a dramatic structural reorganization. It is also important to realize that change will not occur unless senior managers are committed to it. Senior managers must clearly articulate the need for change so employees understand both why it is being pursued and the benefits that will flow from successful change. Senior managers must also practice what they preach and take the necessary bold steps.

Question 20

Direct contact between subunit managers is the simplest integrating mechanism.

Accepted Answer

A) True 
 B)False

Exam 14: The Organization of International Business

A firm's _____ determines where in its hierarchy the decision-making power is concentrated.

Correct Answer
verified

In which of the following organizational structures are the domestic operations and foreign operations isolated from each other leading to coordination problems?

Correct Answer
verified

Which of the following is an effective strategy for implementing organizational change?

Correct Answer
verified

Firms pursuing a(n) _____ have a low need for coordination between subunits.

Correct Answer
verified
B

Which of the following would be a typical responsibility of a product division in a worldwide product divisional structure?

Correct Answer
verified

_____ exists when the causes of a subunit's poor performance are not clear.

Correct Answer
verified

Firms pursuing a(n) _____ are more centralized than enterprises pursuing a localization or international strategy.

Correct Answer
verified

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

Correct Answer
verified

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
C

A knowledge network is a network for transmitting information within an organization that is based on formal organizational structure.

Correct Answer
verified

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

Correct Answer
verified

In a _____, individual managers belong to two hierarchies (a divisional hierarchy and an area hierarchy) and have two bosses (a divisional boss and an area boss) .

Correct Answer
verified

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

Correct Answer
verified
The primary strength of the worldwide pr...
View Answer

When the need for integration is very high, firms may:

Correct Answer
verified

The need for coordination between subunits is highest in firms pursuing a(n) _____.

Correct Answer
verified

Discuss the location of decision-making in a firm that is following a transnational strategy.

Correct Answer
verified
Decision-making in a firm pursuing a tra...
View Answer

What is horizontal differentiation?

Correct Answer
verified

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

Correct Answer
verified

Discuss the issues involved in unfreezing an organization.

Direct contact between subunit managers is the simplest integrating mechanism.

Correct Answer
verified

Exam 14: The Organization of International Business

A firm's _____ determines where in its hierarchy the decision-making power is concentrated.

Correct AnswerverifiedShow Answer

In which of the following organizational structures are the domestic operations and foreign operations isolated from each other leading to coordination problems?

Correct AnswerverifiedShow Answer

Which of the following is an effective strategy for implementing organizational change?

Correct AnswerverifiedShow Answer

Firms pursuing a(n) _____ have a low need for coordination between subunits.

Correct AnswerverifiedB

Which of the following would be a typical responsibility of a product division in a worldwide product divisional structure?

Correct AnswerverifiedShow Answer

_____ exists when the causes of a subunit's poor performance are not clear.

Correct AnswerverifiedShow Answer

Firms pursuing a(n) _____ are more centralized than enterprises pursuing a localization or international strategy.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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 AnswerverifiedC

A knowledge network is a network for transmitting information within an organization that is based on formal organizational structure.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In a _____, individual managers belong to two hierarchies (a divisional hierarchy and an area hierarchy) and have two bosses (a divisional boss and an area boss) .

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedThe primary strength of the worldwide pr...View AnswerShow Answer

When the need for integration is very high, firms may:

Correct AnswerverifiedShow Answer

The need for coordination between subunits is highest in firms pursuing a(n) _____.

Correct AnswerverifiedShow Answer

Discuss the location of decision-making in a firm that is following a transnational strategy.

Correct AnswerverifiedDecision-making in a firm pursuing a tra...View AnswerShow Answer

What is horizontal differentiation?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Discuss the issues involved in unfreezing an organization.

Direct contact between subunit managers is the simplest integrating mechanism.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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B

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C

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Correct Answer
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The primary strength of the worldwide pr...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Decision-making in a firm pursuing a tra...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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