Question 1

As their overseas operations have increased in importance, companies have felt the need to:

Accepted Answer

A)  eliminate the international division. 
B)  establish worldwide organizations based on product, function, region, or customer classes at the top level. 
C)  lower production costs by setting up in-bond plants. 
D)  two of the above. 
E)  all of A, B, and C. 
A)  eliminate the international division. 
B)  establish worldwide organizations based on product, function, region, or customer classes at the top level. 
C)  lower production costs by setting up in-bond plants. 
D)  two of the above. 
E)  all of A, B, and C.

Question 2

In designing the organizational structure, management knows two concerns, __________ and __________, run counter to each other.

Accepted Answer

A)  finding the most effective way to departmentalize; coordinating activities 
B)  earning profits; paying taxes 
C)  hiring employees; reducing labor costs 
D)  sales growth; research and design expenditures 
E)  none of the above. 
A)  finding the most effective way to departmentalize; coordinating activities 
B)  earning profits; paying taxes 
C)  hiring employees; reducing labor costs 
D)  sales growth; research and design expenditures 
E)  none of the above.

Question 3

Price and profit allocation decisions are usually best made:

Accepted Answer

A)  at the subsidiary headquarters. 
B)  at the IC headquarters. 
C)  cooperatively by both subsidiary and IC headquarters. 
D)  at the subsidiary headquarters in the host country with the lowest prices. 
E)  none of the above. 
A)  at the subsidiary headquarters. 
B)  at the IC headquarters. 
C)  cooperatively by both subsidiary and IC headquarters. 
D)  at the subsidiary headquarters in the host country with the lowest prices. 
E)  none of the above.

Question 4

The more familiar, or the more similar, conditions in the host country are perceived to be, the more likely headquarters is to rely on subsidiary management.

Accepted Answer

A) True 
 B)False

Question 5

Control activities:

Accepted Answer

A)  are the efforts to develop strategic plans for an organization. 
B)  are needed more by domestic companies than international companies. 
C)  should be linked to evaluation and reward systems. 
D)  none of the above. 
E)  two of A, B, and C. 
A)  are the efforts to develop strategic plans for an organization. 
B)  are needed more by domestic companies than international companies. 
C)  should be linked to evaluation and reward systems. 
D)  none of the above. 
E)  two of A, B, and C.

Question 6

In a typical matrix organization based on area and product dimensions, country managers will be responsible to both the area managers and the product line managers.

Accepted Answer

A) True 
 B)False

Question 7

It is sensible for an IC to direct or allocate as much profit as reasonably possible to subsidiaries in countries with:

Accepted Answer

A)  two of B, C, and 
B)  the least currency controls. 
C)  lower taxes. 
D)  B and C are correct, so A is the appropriate response. 
E)  all of B, C and D. 
A)  two of B, C, and 
B)  the least currency controls. 
C)  lower taxes. 
D)  B and C are correct, so A is the appropriate response. 
E)  all of B, C and D.

Question 8

In larger, older organizations:

Accepted Answer

A)  more decisions are delegated to the subsidiary headquarters. 
B)  decisions are delegated to empowered, decentralized subsidiary managers. 
C)  more decisions are made at headquarters of the parent company. 
D)  all of the above. 
E)  two of A, B, and C. 
A)  more decisions are delegated to the subsidiary headquarters. 
B)  decisions are delegated to empowered, decentralized subsidiary managers. 
C)  more decisions are made at headquarters of the parent company. 
D)  all of the above. 
E)  two of A, B, and C.

Question 9

Two of the concerns that management faces in designing the organizational structure for an international company are (1) finding the most effective way to take advantage of geographic differences and (2) coordinating the activities of departments to enable the firm to meet its overall objectives.

Accepted Answer

A) True 
 B)False

Question 10

According to the text, which of the following dimensions provide(s) the basis for organizational subdivisions at the secondary, tertiary, and still lower levels?

Accepted Answer

A)  Two of B, C, and D 
B)  National subsidiary 
C)  Domestic or international 
D)  Function 
E)  All of B, C, and D 
A)  Two of B, C, and D 
B)  National subsidiary 
C)  Domestic or international 
D)  Function 
E)  All of B, C, and D

Question 11

The product global corporate form eliminates the duplication of product and area specialists.

Accepted Answer

A) True 
 B)False

Question 12

Moving executives around an IC system can increase confidence and mutual reliance.

Accepted Answer

A) True 
 B)False

Question 13

The horizontal organization has been characterized as antiorganization because its designers try to remove the constraints imposed by the conventional organizational structure.

Accepted Answer

A) True 
 B)False

Question 14

Hybrid organizations are often the result of a regionally organized company having introduced a new and different product from what the regionally organized form is accustomed to handling.

Accepted Answer

A) True 
 B)False

Question 15

Explain why and where decisions are made among ICs and their subsidiary units.

Accepted Answer

Answers may vary but may include the fol

Question 16

The common characteristic of multinationals that are organized by function at the upper level is a narrow:

Accepted Answer

A)  and highly integrated product mix. 
B)  and highly integrated customer list. 
C)  variation of prices in the product mix. 
D)  research and development effort. 
E)  none of the above 
A)  and highly integrated product mix. 
B)  and highly integrated customer list. 
C)  variation of prices in the product mix. 
D)  research and development effort. 
E)  none of the above

Question 17

A form of organization characterized by lateral decision processes, horizontal networks, and a strong corporatewide business philosophy is a horizontal corporation.

Accepted Answer

A) True 
 B)False

Question 18

Production coordination poses difficult problems in many regionalized organizations, which has led many companies to assign many specialized product managers who have line authority.

Accepted Answer

A) True 
 B)False

Question 19

The potential benefits of the virtual corporation concept include that:

Accepted Answer

A)  it permits greater flexibility than is associated with more typical corporate structures. 
B)  virtual corporations form a network of static relationships that allow them to take advantage of the competencies of other organizations. 
C)  this form of organization increases management's control over the corporation's activities. 
D)  all of the above. 
E)  two of A, B, and C. 
A)  it permits greater flexibility than is associated with more typical corporate structures. 
B)  virtual corporations form a network of static relationships that allow them to take advantage of the competencies of other organizations. 
C)  this form of organization increases management's control over the corporation's activities. 
D)  all of the above. 
E)  two of A, B, and C.

Question 20

Regarding the structure of international companies:

Accepted Answer

A)  managers have to consider the nature of their company's international operating environment, both currently and how it is expected to change in the future. 
B)  managers have to consider the nature of their competitors' international strategies, both currently and how they are expected to change in the future. 
C)  gains from increased specialization of labor may at times be nullified by the increased cost of coordination. 
D)  all of the above 
E)  two of A, B, and C. 
A)  managers have to consider the nature of their company's international operating environment, both currently and how it is expected to change in the future. 
B)  managers have to consider the nature of their competitors' international strategies, both currently and how they are expected to change in the future. 
C)  gains from increased specialization of labor may at times be nullified by the increased cost of coordination. 
D)  all of the above 
E)  two of A, B, and C.

As their overseas operations have increased in importance, companies have felt the need to:

In designing the organizational structure, management knows two concerns, and , run counter to each other.

Price and profit allocation decisions are usually best made:

The more familiar, or the more similar, conditions in the host country are perceived to be, the more likely headquarters is to rely on subsidiary management.

Control activities:

In a typical matrix organization based on area and product dimensions, country managers will be responsible to both the area managers and the product line managers.

It is sensible for an IC to direct or allocate as much profit as reasonably possible to subsidiaries in countries with:

In larger, older organizations:

Two of the concerns that management faces in designing the organizational structure for an international company are (1) finding the most effective way to take advantage of geographic differences and (2) coordinating the activities of departments to enable the firm to meet its overall objectives.

According to the text, which of the following dimensions provide(s) the basis for organizational subdivisions at the secondary, tertiary, and still lower levels?

The product global corporate form eliminates the duplication of product and area specialists.

Moving executives around an IC system can increase confidence and mutual reliance.

The horizontal organization has been characterized as antiorganization because its designers try to remove the constraints imposed by the conventional organizational structure.

Hybrid organizations are often the result of a regionally organized company having introduced a new and different product from what the regionally organized form is accustomed to handling.

Explain why and where decisions are made among ICs and their subsidiary units.

The common characteristic of multinationals that are organized by function at the upper level is a narrow:

A form of organization characterized by lateral decision processes, horizontal networks, and a strong corporatewide business philosophy is a horizontal corporation.

Production coordination poses difficult problems in many regionalized organizations, which has led many companies to assign many specialized product managers who have line authority.

The potential benefits of the virtual corporation concept include that:

Regarding the structure of international companies:

The Challenging World of International Business

International Trade and Foreign Direct Investment

International Institutions From an International Business Perspective

Sociocultural Forces

Natural Resources and Environmental Sustainability

Political and Trade Forces

Intellectual Property and Other Legal Forces

The International Monetary System and Financial Forces

International Competitive Strategy

Global Leadership Issues and Practices

Assessing International Markets

Entry Modes

Export and Import Practices

Marketing Internationally

Global Operations and Supply Chain Management

Managing Human Resources in an International Context

International Accounting and Financial Management

Filters

Exam 10: Organizational Design and Control

As their overseas operations have increased in importance, companies have felt the need to:

In designing the organizational structure, management knows two concerns, __________ and __________, run counter to each other.

Price and profit allocation decisions are usually best made:

The more familiar, or the more similar, conditions in the host country are perceived to be, the more likely headquarters is to rely on subsidiary management.

Control activities:

In a typical matrix organization based on area and product dimensions, country managers will be responsible to both the area managers and the product line managers.

It is sensible for an IC to direct or allocate as much profit as reasonably possible to subsidiaries in countries with:

In larger, older organizations:

Two of the concerns that management faces in designing the organizational structure for an international company are (1) finding the most effective way to take advantage of geographic differences and (2) coordinating the activities of departments to enable the firm to meet its overall objectives.

According to the text, which of the following dimensions provide(s) the basis for organizational subdivisions at the secondary, tertiary, and still lower levels?

The product global corporate form eliminates the duplication of product and area specialists.

Moving executives around an IC system can increase confidence and mutual reliance.

The horizontal organization has been characterized as antiorganization because its designers try to remove the constraints imposed by the conventional organizational structure.

Hybrid organizations are often the result of a regionally organized company having introduced a new and different product from what the regionally organized form is accustomed to handling.

Explain why and where decisions are made among ICs and their subsidiary units.

The common characteristic of multinationals that are organized by function at the upper level is a narrow:

A form of organization characterized by lateral decision processes, horizontal networks, and a strong corporatewide business philosophy is a horizontal corporation.

Production coordination poses difficult problems in many regionalized organizations, which has led many companies to assign many specialized product managers who have line authority.

The potential benefits of the virtual corporation concept include that:

Regarding the structure of international companies:

The Challenging World of International Business

International Trade and Foreign Direct Investment

International Institutions From an International Business Perspective

Sociocultural Forces

Natural Resources and Environmental Sustainability

Political and Trade Forces

Intellectual Property and Other Legal Forces

The International Monetary System and Financial Forces

International Competitive Strategy

Global Leadership Issues and Practices

Assessing International Markets

Entry Modes

Export and Import Practices

Marketing Internationally

Global Operations and Supply Chain Management

Managing Human Resources in an International Context

International Accounting and Financial Management

Filters

In designing the organizational structure, management knows two concerns, and , run counter to each other.