Question 1

The nonequity venture:

Accepted Answer

A) Is characterized by one group merely providing a service for another 
B) Provides the most benefits when the need for product specification or differentiation is high 
C) Involves a financial investment by the MNC in a business enterprise with a local partner 
D) Organizes worldwide operations based primarily on function and secondarily on product 
A) Is characterized by one group merely providing a service for another 
B) Provides the most benefits when the need for product specification or differentiation is high 
C) Involves a financial investment by the MNC in a business enterprise with a local partner 
D) Organizes worldwide operations based primarily on function and secondarily on product

Question 2

One of the main objectives in developing the structure for joint ventures is to help the partners address and effectively meld their different values and organizational preferences.

Accepted Answer

A) True 
 B)False

Question 3

Wholly owned subsidiaries, mergers and acquisitions, alliances and joint ventures, licensing agreements, franchising, and basic export and import operations are:

Accepted Answer

A) The only entry approaches for international operations 
B) Examples of mixed organization structures 
C) The most common entry approaches for international operations 
D) Matrix design structures 
A) The only entry approaches for international operations 
B) Examples of mixed organization structures 
C) The most common entry approaches for international operations 
D) Matrix design structures

Question 4

MNCs are realizing that the outsourcing function can be delivered online.

Accepted Answer

A) True 
 B)False

Question 5

Global structures of MNCs come in three common types:

Accepted Answer

A) Vertical, horizontal, and flat 
B) Product, area, and functional 
C) Mixed, transnational, and nontraditional 
D) Authoritarian, democratic, and socialist 
A) Vertical, horizontal, and flat 
B) Product, area, and functional 
C) Mixed, transnational, and nontraditional 
D) Authoritarian, democratic, and socialist

Question 6

In a study of U.S.and Japanese firms in Taiwan, objective formalization was measured by:

Accepted Answer

A) Use of informal controls 
B) The extent to which goals were vague and unspecified 
C) The number of different documents given to employees 
D) Use of culturally induced values in getting things done 
A) Use of informal controls 
B) The extent to which goals were vague and unspecified 
C) The number of different documents given to employees 
D) Use of culturally induced values in getting things done

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Advantages of alliances and joint ventures include all of the following except:

Accepted Answer

A) Improvement of efficiency 
B) Collusion or restriction in competition 
C) Access to knowledge 
D) Mitigating political factors 
A) Improvement of efficiency 
B) Collusion or restriction in competition 
C) Access to knowledge 
D) Mitigating political factors

Question 9

The combination of global integration and local responsiveness, and simultaneous commitment to global design, production, sales, and marketing integration, leaves VW as the strongest auto producer in the world and well-positioned for years to come.

Accepted Answer

A) True 
 B)False

Question 10

MNCs realize there are two dimensions of formality-informality that must be considered:

Accepted Answer

A) Internal and external 
B) International and national 
C) Horizontal and vertical 
D) Functionality and centralization 
A) Internal and external 
B) International and national 
C) Horizontal and vertical 
D) Functionality and centralization

Question 11

According to the text, all of the following types of companies are likely to adopt the international division structure except:

Accepted Answer

A) Companies with limited geographic diversity 
B) Companies with a large number of executives with international expertise 
C) Companies still in the developmental stage of international business 
D) Companies with small international sales 
A) Companies with limited geographic diversity 
B) Companies with a large number of executives with international expertise 
C) Companies still in the developmental stage of international business 
D) Companies with small international sales

Question 12

Firms that pursue a global product division structure typically have products that are in the maturity stage of the product life cycle.

Accepted Answer

A) True 
 B)False

Question 13

Which basic value is not common in Asian firms?

Accepted Answer

A) Group 
B) Trust 
C) Confrontation 
D) Fluid 
A) Group 
B) Trust 
C) Confrontation 
D) Fluid

Question 14

Which of the following is an advantage gleaned from a mixed organization structure?

Accepted Answer

A) As the matrix design's complexity increases, coordinating the personnel and getting everyone to work toward common goals often become difficult. 
B) It allows the organization to create the specific type of design that best meets its needs. 
C) Too many groups go their own way. 
D) Coordination of manufacturing and marketing often becomes difficult. 
A) As the matrix design's complexity increases, coordinating the personnel and getting everyone to work toward common goals often become difficult. 
B) It allows the organization to create the specific type of design that best meets its needs. 
C) Too many groups go their own way. 
D) Coordination of manufacturing and marketing often becomes difficult.

Question 15

A disadvantage of the international division structure is that it separates a firm's domestic and international managers, which can result in two different camps with divergent objectives.

Accepted Answer

A) True 
 B)False

Question 16

All of the following are advantages of the global functional division structure except:

Accepted Answer

A) An emphasis on functional expertise 
B) A tight centralized control 
C) A relatively lean managerial staff 
D) The chief executive officer is held accountable for the profits 
A) An emphasis on functional expertise 
B) A tight centralized control 
C) A relatively lean managerial staff 
D) The chief executive officer is held accountable for the profits

Question 17

One disadvantage of the global product division structure is the necessity of duplicating facilities and staff personnel within each division.

Accepted Answer

A) True 
 B)False

Question 18

The primary reason for the use of _____ is a desire by the MNC for total control and the belief that managerial efficiency will be better without outside partners.

Accepted Answer

A) Licensing agreements 
B) Franchising 
C) Wholly owned subsidiaries 
D) Joint ventures 
A) Licensing agreements 
B) Franchising 
C) Wholly owned subsidiaries 
D) Joint ventures

Question 19

Explain alliances and joint ventures.

Accepted Answer

An alliance is any type of cooperative r

Question 20

This is an agreement in which two or more partners own or control a business.

Accepted Answer

A) Franchise 
B) Wholly owned subsidiary 
C) Licensing agreement 
D) Joint venture 
A) Franchise 
B) Wholly owned subsidiary 
C) Licensing agreement 
D) Joint venture

The nonequity venture:

One of the main objectives in developing the structure for joint ventures is to help the partners address and effectively meld their different values and organizational preferences.

Wholly owned subsidiaries, mergers and acquisitions, alliances and joint ventures, licensing agreements, franchising, and basic export and import operations are:

MNCs are realizing that the outsourcing function can be delivered online.

Global structures of MNCs come in three common types:

In a study of U.S.and Japanese firms in Taiwan, objective formalization was measured by:

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

Advantages of alliances and joint ventures include all of the following except:

The combination of global integration and local responsiveness, and simultaneous commitment to global design, production, sales, and marketing integration, leaves VW as the strongest auto producer in the world and well-positioned for years to come.

MNCs realize there are two dimensions of formality-informality that must be considered:

According to the text, all of the following types of companies are likely to adopt the international division structure except:

Firms that pursue a global product division structure typically have products that are in the maturity stage of the product life cycle.

Which basic value is not common in Asian firms?

Which of the following is an advantage gleaned from a mixed organization structure?

A disadvantage of the international division structure is that it separates a firm's domestic and international managers, which can result in two different camps with divergent objectives.

All of the following are advantages of the global functional division structure except:

One disadvantage of the global product division structure is the necessity of duplicating facilities and staff personnel within each division.

The primary reason for the use of _____ is a desire by the MNC for total control and the belief that managerial efficiency will be better without outside partners.

Explain alliances and joint ventures.

This is an agreement in which two or more partners own or control a business.

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 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

The nonequity venture:

One of the main objectives in developing the structure for joint ventures is to help the partners address and effectively meld their different values and organizational preferences.

Wholly owned subsidiaries, mergers and acquisitions, alliances and joint ventures, licensing agreements, franchising, and basic export and import operations are:

MNCs are realizing that the outsourcing function can be delivered online.

Global structures of MNCs come in three common types:

In a study of U.S.and Japanese firms in Taiwan, objective formalization was measured by:

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

Advantages of alliances and joint ventures include all of the following except:

The combination of global integration and local responsiveness, and simultaneous commitment to global design, production, sales, and marketing integration, leaves VW as the strongest auto producer in the world and well-positioned for years to come.

MNCs realize there are two dimensions of formality-informality that must be considered:

According to the text, all of the following types of companies are likely to adopt the international division structure except:

Firms that pursue a global product division structure typically have products that are in the maturity stage of the product life cycle.

Which basic value is not common in Asian firms?

Which of the following is an advantage gleaned from a mixed organization structure?

A disadvantage of the international division structure is that it separates a firm's domestic and international managers, which can result in two different camps with divergent objectives.

All of the following are advantages of the global functional division structure except:

One disadvantage of the global product division structure is the necessity of duplicating facilities and staff personnel within each division.

The primary reason for the use of _____ is a desire by the MNC for total control and the belief that managerial efficiency will be better without outside partners.

Explain alliances and joint ventures.

This is an agreement in which two or more partners own or control a business.

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 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