Question 1

The main objective of organizational design is

Accepted Answer

A)  to help employees find information. 
B)  to provide, maintain and develop the organizational structure that works best towards the achievement of the company's strategic goals. 
C)  to help prospective customers choose what company to do business with. 
D)  to determine what areas of interest the company should pursue. 
A)  to help employees find information. 
B)  to provide, maintain and develop the organizational structure that works best towards the achievement of the company's strategic goals. 
C)  to help prospective customers choose what company to do business with. 
D)  to determine what areas of interest the company should pursue.

Question 2

Implementer subsidiaries operate in more strategically important markets and have competence to maintain local operations.

Accepted Answer

A) True 
 B)False

Question 3

Local responsiveness needs stem from diversity of market conditions and social and political environments in the various countries in which the firm operates.

Accepted Answer

A) True 
 B)False

Question 4

Contributor subsidiaries operate in important markets and have distinctive capabilities.

Accepted Answer

A) True 
 B)False

Question 5

This type of strategy indicates relative standardization across national markets, allowing strategic and operational control.

Accepted Answer

A)  global 
B)  multi-domestic 
C)  receptive 
D)  transnational 
A)  global 
B)  multi-domestic 
C)  receptive 
D)  transnational

Question 6

Subsidiary strategy can be______________________.

Accepted Answer

A)  autonomous 
B)  receptive 
C)  active 
D)  all of the above 
A)  autonomous 
B)  receptive 
C)  active 
D)  all of the above

Question 7

Organization design represents an opportunity to adapt the MNEs structure to the multiple environments in which it operates and to its employees.

Accepted Answer

A) True 
 B)False

Question 8

In the ______________. a business reports to a cluster headquarters that is accountable to corporate headquarters for business results.

Accepted Answer

A)  related divisional format 
B)  cluster format 
C)  unrelated holding company format 
D)  none of the above 
A)  related divisional format 
B)  cluster format 
C)  unrelated holding company format 
D)  none of the above

Question 9

Local responsiveness is likely to be high if the firm emphasizes global vertical integration and global value-chain control.

Accepted Answer

A) True 
 B)False

Question 10

Functional structures are usually adopted by MNEs with a diversified product line.

Accepted Answer

A) True 
 B)False

Question 11

One important reason for MNEs to globally organize, structure, and coordinate geographically dispersed businesses is due to the complexity and rapid change of global business which necessitates paying close attention to different sources of knowledge and expertise.

Accepted Answer

A) True 
 B)False

Question 12

Which of these is not a MNE design?

Accepted Answer

A)  global functional 
B)  technological 
C)  global geographical 
D)  none of the above 
A)  global functional 
B)  technological 
C)  global geographical 
D)  none of the above

Question 13

Among organizational characteristics, the level of global integration is likely to be high if the firm

Accepted Answer

A)  attempts to use transfer pricing, tax minimization, or transaction cost savings. 
B)  targets local market expansion. 
C)  building presence in highly uncertain markets. 
D)  aims to seize market opportunities. 
A)  attempts to use transfer pricing, tax minimization, or transaction cost savings. 
B)  targets local market expansion. 
C)  building presence in highly uncertain markets. 
D)  aims to seize market opportunities.

Question 14

If a unit acts as a black hole, corporate management develops resources and capabilities to make it less responsive to the local market.

Accepted Answer

A) True 
 B)False

Question 15

Among sociopolitical characteristics, customer needs tend to be the same or similar across borders tend to boost local responsiveness.

Accepted Answer

A) True 
 B)False

Question 16

Which structure makes it easy to dispose of non-core assets while strengthening core ones?

Accepted Answer

A)  mixed product 
B)  cluster format 
C)  matrix design 
D)  holding company format 
A)  mixed product 
B)  cluster format 
C)  matrix design 
D)  holding company format

Question 17

Among organizational characteristics, local responsiveness is likely to be high if the firm

Accepted Answer

A)  targets local market expansion or building presence in highly uncertain markets. 
B)  aims to seize market opportunities overseas or develop a sustained competitive position in the host country. 
C)  seeks acquisition of local firms' knowledge and experience, or tries to improve organizational legitimacy through localization and adaptation. 
D)  all of the above 
A)  targets local market expansion or building presence in highly uncertain markets. 
B)  aims to seize market opportunities overseas or develop a sustained competitive position in the host country. 
C)  seeks acquisition of local firms' knowledge and experience, or tries to improve organizational legitimacy through localization and adaptation. 
D)  all of the above

Question 18

The relative strength of global integration and local responsiveness pressures can be analyzed at different levels, such as industry, division, or subsidiary.

Accepted Answer

A) True 
 B)False

Question 19

Subsidiary strategy can be

Accepted Answer

A)  autonomous 
B)  receptive 
C)  active 
D)  all of the above 
A)  autonomous 
B)  receptive 
C)  active 
D)  all of the above

Question 20

A global strategy indicates relative standardization across national markets, allowing strategic and operational control.

Accepted Answer

A) True 
 B)False

The main objective of organizational design is

Implementer subsidiaries operate in more strategically important markets and have competence to maintain local operations.

Local responsiveness needs stem from diversity of market conditions and social and political environments in the various countries in which the firm operates.

Contributor subsidiaries operate in important markets and have distinctive capabilities.

This type of strategy indicates relative standardization across national markets, allowing strategic and operational control.

Subsidiary strategy can be______________________.

Organization design represents an opportunity to adapt the MNEs structure to the multiple environments in which it operates and to its employees.

In the ______________. a business reports to a cluster headquarters that is accountable to corporate headquarters for business results.

Local responsiveness is likely to be high if the firm emphasizes global vertical integration and global value-chain control.

Functional structures are usually adopted by MNEs with a diversified product line.

One important reason for MNEs to globally organize, structure, and coordinate geographically dispersed businesses is due to the complexity and rapid change of global business which necessitates paying close attention to different sources of knowledge and expertise.

Which of these is not a MNE design?

Among organizational characteristics, the level of global integration is likely to be high if the firm

If a unit acts as a black hole, corporate management develops resources and capabilities to make it less responsive to the local market.

Among sociopolitical characteristics, customer needs tend to be the same or similar across borders tend to boost local responsiveness.

Which structure makes it easy to dispose of non-core assets while strengthening core ones?

Among organizational characteristics, local responsiveness is likely to be high if the firm

The relative strength of global integration and local responsiveness pressures can be analyzed at different levels, such as industry, division, or subsidiary.

Subsidiary strategy can be

A global strategy indicates relative standardization across national markets, allowing strategic and operational control.

International Business in an Age of Globalization

International Trade Theory and Application

Foreign Direct Investment Theory and Application

The Multinational Enterprise

Country Competitiveness

The Cultural Environment

The Political and Legal Environment

International Economic Integration and Institutions

The International Monetary System and Financial Markets

International Entry Strategies

Building and Managing Global Strategic Alliances Gsas

Managing Global Research and Development Rd

Financial Management for Global Operations

International Accounting for Global Operations

Global Marketing and Supply Chain

Global Human Resource Management

Internet and Global E-Commerce

Social Responsibility and Corruption in the Global Marketplace

International Entrepreneurship

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Exam 11: Mne Organization Structure and Design

The main objective of organizational design is

Implementer subsidiaries operate in more strategically important markets and have competence to maintain local operations.

Local responsiveness needs stem from diversity of market conditions and social and political environments in the various countries in which the firm operates.

Contributor subsidiaries operate in important markets and have distinctive capabilities.

This type of strategy indicates relative standardization across national markets, allowing strategic and operational control.

Subsidiary strategy can be______________________.

Organization design represents an opportunity to adapt the MNEs structure to the multiple environments in which it operates and to its employees.

In the ______________. a business reports to a cluster headquarters that is accountable to corporate headquarters for business results.

Local responsiveness is likely to be high if the firm emphasizes global vertical integration and global value-chain control.

Functional structures are usually adopted by MNEs with a diversified product line.

One important reason for MNEs to globally organize, structure, and coordinate geographically dispersed businesses is due to the complexity and rapid change of global business which necessitates paying close attention to different sources of knowledge and expertise.

Which of these is not a MNE design?

Among organizational characteristics, the level of global integration is likely to be high if the firm

If a unit acts as a black hole, corporate management develops resources and capabilities to make it less responsive to the local market.

Among sociopolitical characteristics, customer needs tend to be the same or similar across borders tend to boost local responsiveness.

Which structure makes it easy to dispose of non-core assets while strengthening core ones?

Among organizational characteristics, local responsiveness is likely to be high if the firm

The relative strength of global integration and local responsiveness pressures can be analyzed at different levels, such as industry, division, or subsidiary.

Subsidiary strategy can be

A global strategy indicates relative standardization across national markets, allowing strategic and operational control.

International Business in an Age of Globalization

International Trade Theory and Application

Foreign Direct Investment Theory and Application

The Multinational Enterprise

Country Competitiveness

The Cultural Environment

The Political and Legal Environment

International Economic Integration and Institutions

The International Monetary System and Financial Markets

International Entry Strategies

Building and Managing Global Strategic Alliances Gsas

Managing Global Research and Development Rd

Financial Management for Global Operations

International Accounting for Global Operations

Global Marketing and Supply Chain

Global Human Resource Management

Internet and Global E-Commerce

Social Responsibility and Corruption in the Global Marketplace

International Entrepreneurship

Filters