Exam 12: Making Alliances and Acquisitions Work

The global product division structure seeks to balance local responsiveness with efficiency while an MNE using a global matrix aims to provide the world with standardized products to reach their full market potential.

A localization strategy is best adopted when an MNE is willing to give full attention to foreign market adaptation and there are minimal pressures to keep cost low.

Which is an economic result when an MNE acts locally responsive?

____ is the structures, processes, and systems that actively develop, advance, and transfer knowledge.

Strategy usually drives structure, but structure does not usually drive strategy.

Which of the following best describes the strength and weakness of the geographic area structure?

Explain the prediction made by Theodore Levitt, and determine whether or not it was accurate.

Which of the following best describes how the transnational strategy uniquely differs in regard to its communication relationship between home country and foreign market?

Which of the following is a leading problem with the international division organizational structure?

From a resource perspective, tacit knowledge is ultimately more valuable than explicit knowledge.

Which is one of the disadvantages of the home replication strategy?

In the eyes of stakeholders, a top echelon consisting of largely one nationality bodes well for an MNE aspiring to globalize everything it does.

Because of the popularity of the global standardization strategy, many firms have changed their organization to the global product division.

Which strategy for MNEs entering foreign markets is best described as the development and distribution of standardized products worldwide to reap maximum benefits from low cost advantages?

Why is the flexible global matrix a popular organizational structure right now?

Which strategy for MNEs is best for environments where there are clear differences between the home and foreign markets and there is a low pressure for cost reduction?

Which of the following is NOT part of the reciprocal relationship between strategy and structure?

The global standardization strategy, despite its complexity, is still the best option at being cost effective and locally responsive.

A localization strategy is best adopted when an MNE is willing to give full attention to foreign market adaptation and there are minimal pressures to keep cost low.

Which are the two primary pressures MNEs confront?