Question 1

In a company that has a narrow product line,the export manager usually reports directly to the head of _____.

Accepted Answer

A)  purchasing 
B)  personnel 
C)  production 
D)  marketing 
A)  purchasing 
B)  personnel 
C)  production 
D)  marketing D

Question 2

Which of the following statements is true about an international division structure of an organization?

Accepted Answer

A)  It puts a great deal of burden on the CEO for monitoring the operations of a series of overseas subsidiaries as well as domestic operations. 
B)  It prevents the company from developing an overall, unified approach to international operations as well as a cadre of internationally experienced managers. 
C)  Companies still in the development stages of international business involvement are least likely to adopt an international division structure. 
D)  Companies that use an international division structure include those with small international sales, limited geographic diversity, or few executives with international expertise. 
A)  It puts a great deal of burden on the CEO for monitoring the operations of a series of overseas subsidiaries as well as domestic operations. 
B)  It prevents the company from developing an overall, unified approach to international operations as well as a cadre of internationally experienced managers. 
C)  Companies still in the development stages of international business involvement are least likely to adopt an international division structure. 
D)  Companies that use an international division structure include those with small international sales, limited geographic diversity, or few executives with international expertise. D

Question 3

The decision-making control in which local units are given autonomy is characteristic of a(n)_____.

Accepted Answer

A)  global area division structure 
B)  international division structure 
C)  global product division structure 
D)  transnational network structure 
A)  global area division structure 
B)  international division structure 
C)  global product division structure 
D)  transnational network structure A

Question 4

One of the major drawbacks of a global product division structure is that it disallows line and staff managers within the division to gain expertise in the technical and marketing aspects of the products assigned to them.

Accepted Answer

A) True 
 B)False

Question 5

The global structural arrangement differs from the international division structure because,while both have an international scope,the former focuses on greater expansion and integration among international operations.

Accepted Answer

A) True 
 B)False

Question 6

A franchise is an agreement that allows one party to use an industrial property right in exchange for payment to another party.

Accepted Answer

A) True 
 B)False

Question 7

A structure that is a combination of a global product,an area,or a functional arrangement is referred to as a(n)_____ organizational structure.

Accepted Answer

A)  assimilated 
B)  transnational 
C)  mixed 
D)  team-based 
A)  assimilated 
B)  transnational 
C)  mixed 
D)  team-based

Question 8

Which of the following statements is true about licensing?

Accepted Answer

A)  In a typical arrangement, the licensor will allow the licensee to use a patent, a trademark, or proprietary information in exchange for a fee. 
B)  Companies that spend a relatively large share of their revenues on research and development (R&
D)  are likely to be licensees. 
C)  Licenses are uncommon among large firms seeking to acquire technology to bolster an existing product. 
D)  A license is a very high-cost way of gaining and exploiting foreign markets. 
A)  In a typical arrangement, the licensor will allow the licensee to use a patent, a trademark, or proprietary information in exchange for a fee. 
B)  Companies that spend a relatively large share of their revenues on research and development (R&
D)  are likely to be licensees. 
C)  Licenses are uncommon among large firms seeking to acquire technology to bolster an existing product. 
D)  A license is a very high-cost way of gaining and exploiting foreign markets.

Question 9

Which of the following statements is true about global product divisions?

Accepted Answer

A)  A global product division structure prevents line and staff managers within the division from gaining expertise in the technical and marketing aspects of the products assigned to them. 
B)  A global product division structure provides a direct line of communication from the customer to those in the organization who have product knowledge and expertise. 
C)  The products in a global product division are in the maturity stage and require very little promotion and marketing. 
D)  Managers of a global product division depend heavily on corporate headquarters to run the operation. 
A)  A global product division structure prevents line and staff managers within the division from gaining expertise in the technical and marketing aspects of the products assigned to them. 
B)  A global product division structure provides a direct line of communication from the customer to those in the organization who have product knowledge and expertise. 
C)  The products in a global product division are in the maturity stage and require very little promotion and marketing. 
D)  Managers of a global product division depend heavily on corporate headquarters to run the operation.

Question 10

What are the basic components of the structural framework of a transnational network?

Accepted Answer

The basic structural framework of a tran

Question 11

A structural arrangement that handles all international operations out of a division created for this purpose is referred to as a(n)_____.

Accepted Answer

A)  worldwide organizational structure 
B)  global matrix structure 
C)  international division structure 
D)  overseas network structure 
A)  worldwide organizational structure 
B)  global matrix structure 
C)  international division structure 
D)  overseas network structure

Question 12

What is franchising? Explain with examples how it can result in a highly profitable business.

Accepted Answer

Franchising is closely related to licens

Question 13

In which type of multinational structure is bureaucratic control considered unimportant?

Accepted Answer

A)  Global product division structure 
B)  Global area division structure 
C)  Matrix structure 
D)  International division structure 
A)  Global product division structure 
B)  Global area division structure 
C)  Matrix structure 
D)  International division structure

Question 14

The assignment of jobs so that individuals are given a particular function to perform,who tend to stay within the confines of this area,is referred to as _____.

Accepted Answer

A)  diagonal specialization 
B)  parallel specialization 
C)  vertical specialization 
D)  horizontal specialization 
A)  diagonal specialization 
B)  parallel specialization 
C)  vertical specialization 
D)  horizontal specialization

Question 15

Specialization in an international context can be classified into _____.

Accepted Answer

A)  diagonal and vertical specializations 
B)  vertical and parallel specialization 
C)  horizontal and vertical specializations 
D)  diagonal and parallel specializations 
A)  diagonal and vertical specializations 
B)  vertical and parallel specialization 
C)  horizontal and vertical specializations 
D)  diagonal and parallel specializations

Question 16

Identify a true statement about a nonequity venture.

Accepted Answer

A)  It is characterized by one group's merely providing a service to another. 
B)  It provides the most benefits when the need for product specification or differentiation is high. 
C)  It involves a financial investment by a multinational company (MN
C)  in a business enterprise with a local partner. 
D)  It organizes worldwide operations based primarily on function and secondarily on product. 
A)  It is characterized by one group's merely providing a service to another. 
B)  It provides the most benefits when the need for product specification or differentiation is high. 
C)  It involves a financial investment by a multinational company (MN
C)  in a business enterprise with a local partner. 
D)  It organizes worldwide operations based primarily on function and secondarily on product.

Question 17

Identify a true statement about alliances and joint ventures.

Accepted Answer

A)  They prevent partners from achieving economies of scale and scope that would be easy for a firm operating alone to accomplish. 
B)  They are likely to be less favored as a means of doing business in emerging countries. 
C)  They fail to help partners overcome the effects of local collusion or limits being put on foreign competition. 
D)  They have become popular in recent years because of the significant operational benefits they offer to both multinational companies (MNCs) and their local partners. 
A)  They prevent partners from achieving economies of scale and scope that would be easy for a firm operating alone to accomplish. 
B)  They are likely to be less favored as a means of doing business in emerging countries. 
C)  They fail to help partners overcome the effects of local collusion or limits being put on foreign competition. 
D)  They have become popular in recent years because of the significant operational benefits they offer to both multinational companies (MNCs) and their local partners.

Question 18

A _____ is a business arrangement under which one party allows another to operate an enterprise using its trademark,logo,product line,and methods of operation in return for a fee.

Accepted Answer

A)  license 
B)  franchise 
C)  certificate of proprietary usage 
D)  joint venture 
A)  license 
B)  franchise 
C)  certificate of proprietary usage 
D)  joint venture

Question 19

A feature of global area division structures is that they:

Accepted Answer

A)  often ignore research and development (R&
D)  efforts because they are selling goods that have reached the maturity stage. 
B)  fail to focus on goods that are proven winners and now are being marketed conveniently worldwide. 
C)  focus on latest technologically superior goods that will win the market in the long run. 
D)  are characterized by strong centralized management and control system. 
A)  often ignore research and development (R&
D)  efforts because they are selling goods that have reached the maturity stage. 
B)  fail to focus on goods that are proven winners and now are being marketed conveniently worldwide. 
C)  focus on latest technologically superior goods that will win the market in the long run. 
D)  are characterized by strong centralized management and control system.

Question 20

The primary reason for the use of wholly owned subsidiaries is a multinational company's (MNC's)desire for total control and the belief that managerial efficiency will be better without outside partners.

Accepted Answer

A) True 
 B)False

In a company that has a narrow product line,the export manager usually reports directly to the head of _____.

Which of the following statements is true about an international division structure of an organization?

The decision-making control in which local units are given autonomy is characteristic of a(n)_____.

One of the major drawbacks of a global product division structure is that it disallows line and staff managers within the division to gain expertise in the technical and marketing aspects of the products assigned to them.

The global structural arrangement differs from the international division structure because,while both have an international scope,the former focuses on greater expansion and integration among international operations.

A franchise is an agreement that allows one party to use an industrial property right in exchange for payment to another party.

A structure that is a combination of a global product,an area,or a functional arrangement is referred to as a(n)_____ organizational structure.

Which of the following statements is true about licensing?

Which of the following statements is true about global product divisions?

What are the basic components of the structural framework of a transnational network?

A structural arrangement that handles all international operations out of a division created for this purpose is referred to as a(n)_____.

What is franchising? Explain with examples how it can result in a highly profitable business.

In which type of multinational structure is bureaucratic control considered unimportant?

The assignment of jobs so that individuals are given a particular function to perform,who tend to stay within the confines of this area,is referred to as _____.

Specialization in an international context can be classified into _____.

Identify a true statement about a nonequity venture.

Identify a true statement about alliances and joint ventures.

A _____ is a business arrangement under which one party allows another to operate an enterprise using its trademark,logo,product line,and methods of operation in return for a fee.

A feature of global area division structures is that they:

The primary reason for the use of wholly owned subsidiaries is a multinational company's (MNC's)desire for total control and the belief that managerial efficiency will be better without outside partners.

Globalization and International Linkages

The Political, Legal, and Technological Environment

Ethics, Social Responsibility, and Sustainability

The Meanings and Dimensions of Culture

Managing Across Cultures

Organizational Cultures and Diversity

Cross-Cultural Communication and Negotiation

Strategy Formulation and Implementation

Managing Political Risk, Government Relations, and Alliances

Management Decision and Control

Motivation Across Cultures

Leadership Across Cultures

Human Resource Selection and Development Across Cultures

Filters

Exam 9: Entry Strategies and Organizational Structures

In a company that has a narrow product line,the export manager usually reports directly to the head of _____.

Which of the following statements is true about an international division structure of an organization?

The decision-making control in which local units are given autonomy is characteristic of a(n)_____.

One of the major drawbacks of a global product division structure is that it disallows line and staff managers within the division to gain expertise in the technical and marketing aspects of the products assigned to them.

The global structural arrangement differs from the international division structure because,while both have an international scope,the former focuses on greater expansion and integration among international operations.

A franchise is an agreement that allows one party to use an industrial property right in exchange for payment to another party.

A structure that is a combination of a global product,an area,or a functional arrangement is referred to as a(n)_____ organizational structure.

Which of the following statements is true about licensing?

Which of the following statements is true about global product divisions?

What are the basic components of the structural framework of a transnational network?

A structural arrangement that handles all international operations out of a division created for this purpose is referred to as a(n)_____.

What is franchising? Explain with examples how it can result in a highly profitable business.

In which type of multinational structure is bureaucratic control considered unimportant?

The assignment of jobs so that individuals are given a particular function to perform,who tend to stay within the confines of this area,is referred to as _____.

Specialization in an international context can be classified into _____.

Identify a true statement about a nonequity venture.

Identify a true statement about alliances and joint ventures.

A _____ is a business arrangement under which one party allows another to operate an enterprise using its trademark,logo,product line,and methods of operation in return for a fee.

A feature of global area division structures is that they:

The primary reason for the use of wholly owned subsidiaries is a multinational company's (MNC's)desire for total control and the belief that managerial efficiency will be better without outside partners.

Globalization and International Linkages

The Political, Legal, and Technological Environment

Ethics, Social Responsibility, and Sustainability

The Meanings and Dimensions of Culture

Managing Across Cultures

Organizational Cultures and Diversity

Cross-Cultural Communication and Negotiation

Strategy Formulation and Implementation

Managing Political Risk, Government Relations, and Alliances

Management Decision and Control

Motivation Across Cultures

Leadership Across Cultures

Human Resource Selection and Development Across Cultures

Filters