Question 1

Organizing to facilitate a globalization strategy does not involve rationalization.

Accepted Answer

A) True 
 B)False

Question 2

Sigma Inc.is designed on the basis of the company's business activities such as production,finance,and marketing.Foreign operations at Sigma are integrated into the activities and responsibilities of each division to achieve economies of scale and operative specialization.In other words,Sigma has a(n)________.

Accepted Answer

A)  domestic structure with foreign subsidiary 
B)  domestic structure with export department 
C)  global functional structure 
D)  international division structure

Question 3

Regardless of the stage of internationalization,a firm's structural choices always involve two opposing forces: globalization and localization.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is true with regard to the structural evolution model?

Accepted Answer

A)  Typically, firms that start their internationalization at a higher level of involvement use this model. 
B)  Firms using this model do not export. 
C)  This model has become known as the stages model, resulting from Stopford's research on 187 U.S. multinational corporations. 
D)  All firms follow this model without exception.

Question 5

The focus of Selina Inc.,an MNC producing a range of products that can be marketed through common channels to similar customers worldwide,is marketing.Its aim is to become an insider in every country it operates.Which of the following organizational forms is most likely to be favored by Selina's management?

Accepted Answer

A)  a global geographic structure 
B)  a global functional structure 
C)  a domestic structure plus export department 
D)  a domestic structure plus foreign subsidiary

Question 6

In a ________ strategy,the need to coordinate is low.

Accepted Answer

A)  multidomestic 
B)  international 
C)  global 
D)  transnational

Question 7

To be effective,firms reorganizing into a domestic structure plus foreign subsidiary in one or more countries should ________.

Accepted Answer

A)  categorically ignore niche markets 
B)  stop investing in domestic businesses 
C)  refrain from exporting 
D)  allow a great deal of autonomy to subsidiary managers

Question 8

To achieve rationalization,managers choose the manufacturing location for each product based on where the best combination of cost,quality,and technology can be attained.

Accepted Answer

A) True 
 B)False

Question 9

Papillion Inc.is a small American high-technology firm that has been successfully competing in the international business arena from its inception two years ago.Instead of internationalizing slowly,Papillion embarked upon an ambitious plan to leverage niche market opportunities worldwide-right from the beginning.Papillion Inc.exemplifies the ________ phenomenon.

Accepted Answer

A)  born-global 
B)  subordinateship 
C)  outsourcing 
D)  insourcing

Question 10

To address the globalization-localization dilemma,firms that have evolved through the multinational form and the global company seek the advantages of horizontal organization in the pursuit of transnational capability.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is true with regard to a global product structure?

Accepted Answer

A)  A global product structure is disadvantageous for firms with diversified product lines that are aimed at dissimilar or dispersed markets. 
B)  The advantages of this organizational form are market concentration, innovation, and responsiveness to new opportunities in a particular environment. 
C)  In a global product structure, a cluster of products are grouped into a single division. 
D)  A global product structure does not facilitate diversification and inhibits growth.

Question 12

Meaningful,long-term performance standards can be provided by taking into account nonfinancial measures such as ________.

Accepted Answer

A)  union relations 
B)  taxes 
C)  transfer pricing 
D)  exchange-rate fluctuations

Question 13

Managers choose the manufacturing location for each product based on where the best combination of cost,quality,and technology can be attained in order to achieve ________.

Accepted Answer

A)  customer loyalty 
B)  integration 
C)  segregation 
D)  rationalization

Question 14

Sedona Inc.is an American firm that manufactures high-quality handbags,duffel bags,and leather belts at its facility in Arizona.Sedona's products have been featured in various fashion magazines and as a result,consumer demand has increased significantly.Currently,Sedona is organized as a domestic structure plus export department.Executives at Sedona believe the firm is ready to internationalize its operations,and they are considering various organizational structures. Which of the following best supports the argument that Sedona should give its subsidiary managers significant autonomy?

Accepted Answer

A)  Praxis Inc., one of Sedona's domestic competitors, has a flat organizational structure. 
B)  Sedona is a family-owned business that began as a subsidiary to Aloha enterprises. 
C)  Sedona has recently reorganized into a domestic structure plus foreign subsidiary. 
D)  Sedona conducts a large percentage of domestic sales through the company's Web site.

Question 15

Which of the following is true with regard to information systems in less-developed countries?

Accepted Answer

A)  In less-developed countries, the sources of reliable data for decision making is relatively high in number. 
B)  The accuracy and timeliness of information systems are often less than perfect in less-developed countries. 
C)  In less-developed countries, the sources of reliable data for decision making are easy to locate. 
D)  Government information in less-developed countries is rarely fabricated, so it is considered to be the most reliable source of information for headquarters managers.

Question 16

________ is described by Miles et al.as a collaborative,multi-firm network along with community-based structures,used by innovative firms such as Taiwan's Acer.

Accepted Answer

A)  A cloud database 
B)  A born global 
C)  Platformisation 
D)  The I-form

Question 17

________ refers to the ability to manage across national boundaries,retaining local flexibility while achieving global integration.

Accepted Answer

A)  Positioning 
B)  Globalization 
C)  Transnational capability 
D)  Filtering capability

Question 18

To reconcile accounting statements,MNCs usually require ________ different sets of financial statements from subsidiaries.

Accepted Answer

A)  two 
B)  three 
C)  five 
D)  seven

Question 19

Which of the following is the most common form of organizing foreign operations in which divisions are created to cover various regions?

Accepted Answer

A)  global functional structure 
B)  global geographic structure 
C)  global product structure 
D)  matrix structure

Question 20

A ________ is a hybrid organization of overlapping responsibilities.

Accepted Answer

A)  functional structure 
B)  divisional structure 
C)  product structure 
D)  matrix structure

Exam 8: Organization Structure and Control Systems

Organizing to facilitate a globalization strategy does not involve rationalization.

Regardless of the stage of internationalization,a firm's structural choices always involve two opposing forces: globalization and localization.

Which of the following is true with regard to the structural evolution model?

In a ________ strategy,the need to coordinate is low.

To be effective,firms reorganizing into a domestic structure plus foreign subsidiary in one or more countries should ________.

To achieve rationalization,managers choose the manufacturing location for each product based on where the best combination of cost,quality,and technology can be attained.

To address the globalization-localization dilemma,firms that have evolved through the multinational form and the global company seek the advantages of horizontal organization in the pursuit of transnational capability.

Which of the following is true with regard to a global product structure?

Meaningful,long-term performance standards can be provided by taking into account nonfinancial measures such as ________.

Managers choose the manufacturing location for each product based on where the best combination of cost,quality,and technology can be attained in order to achieve ________.

Which of the following is true with regard to information systems in less-developed countries?

________ is described by Miles et al.as a collaborative,multi-firm network along with community-based structures,used by innovative firms such as Taiwan's Acer.

________ refers to the ability to manage across national boundaries,retaining local flexibility while achieving global integration.

To reconcile accounting statements,MNCs usually require ________ different sets of financial statements from subsidiaries.

Which of the following is the most common form of organizing foreign operations in which divisions are created to cover various regions?

A ________ is a hybrid organization of overlapping responsibilities.