Question 1

Subsidiaries that are located anywhere in the world where they can benefit the organization are called _____.

Accepted Answer

A)  chaebols 
B)  keiretsus 
C)  specialized subunits 
D)  dispersed subunits

Question 2

Interdependent relationships are:

Accepted Answer

A)  designed to tap specialized expertise or other resources in a company's worldwide subsidiaries. 
B)  subsidiaries that are located anywhere in the world where they can benefit the organization. 
C)  used to share information and resources throughout dispersed and specialized subunits. 
D)  designed to take advantage of low factor costs.

Question 3

A _____ is designed to help multinational companies (MNCs)take advantage of global economies of scale while also being responsive to local customer demands.

Accepted Answer

A)  global matrix structure 
B)  transnational network structure 
C)  worldwide divisional structure 
D)  cross-cultural matrix structure

Question 4

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

Accepted Answer

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

Question 5

Multinational companies (MNCs)have found that cross-functional coordination results in people spending more time within their functions and thus becoming more knowledgeable regarding developments that are occurring in their specialized areas.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is true about cultural control mechanism in a global area division?

Accepted Answer

A)  Cultural control mechanism is treated like all other multinational company (MN
C)  structural divisions. 
B)  Local subsidiary culture is often the most important. 
C)  Cultural control mechanism is possible for some companies but not always necessary. 
D)  Culture must support the shared decision making.

Question 7

Which of the following statements is true about transnational network structures?

Accepted Answer

A)  A major drawback of transnational network structures is that they focus on goods that are proven winners and now are marketed conveniently worldwide. 
B)  It is easy to draw a transnational network structure in the form of an organization chart because it is simple and constant. 
C)  They may use more than one strategy to supplement inefficient operations, but they are still fairly centralized in the sense that decisions are balanced between the main headquarters and international subsidiaries. 
D)  They are convoluted integrations of business functions and communications where decisions are made at the local level, but each grouping informs headquarters and sometimes each other.

Question 8

Describe the commonly cited advantages of alliances and joint ventures.

Accepted Answer

The answer of Describe the commonly cited advantages of alliances...

Question 9

Individuals who work for a company,usually via the Internet,and move on to other employment when their assignment is done are known as _____.

Accepted Answer

A)  purchasing agents 
B)  marketing managers 
C)  international outsourcers 
D)  electronic freelancers

Question 10

One disadvantage of a global product division structure is that division managers may pursue currently attractive geographic prospects for their products and neglect other areas with better long-term potential.

Accepted Answer

A) True 
 B)False

Question 11

An international alliance is composed of two or more firms from different countries.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is a feature of a global functional division?

Accepted Answer

A)  Easy coordination of manufacturing and marketing 
B)  An emphasis on functional expertise 
C)  Easy management of multiple product lines 
D)  A lack of centralized control

Question 13

A structural arrangement in which domestic divisions are given worldwide responsibility for product groups is referred to as a(n)_____.

Accepted Answer

A)  international division structure 
B)  global product division structure 
C)  global area division structure 
D)  global functional division structure

Question 14

One of the main objectives of 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 15

An important feature of an equity joint venture is that:

Accepted Answer

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

Exam 9: Entry Strategies and Organizational Structures

Subsidiaries that are located anywhere in the world where they can benefit the organization are called _____.

Interdependent relationships are:

A _____ is designed to help multinational companies (MNCs) take advantage of global economies of scale while also being responsive to local customer demands.

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

Multinational companies (MNCs)have found that cross-functional coordination results in people spending more time within their functions and thus becoming more knowledgeable regarding developments that are occurring in their specialized areas.

Which of the following statements is true about cultural control mechanism in a global area division?

Which of the following statements is true about transnational network structures?

Describe the commonly cited advantages of alliances and joint ventures.

Individuals who work for a company,usually via the Internet,and move on to other employment when their assignment is done are known as _____.

One disadvantage of a global product division structure is that division managers may pursue currently attractive geographic prospects for their products and neglect other areas with better long-term potential.

An international alliance is composed of two or more firms from different countries.

Which of the following is a feature of a global functional division?

A structural arrangement in which domestic divisions are given worldwide responsibility for product groups is referred to as a(n) _____.

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

An important feature of an equity joint venture is that: