Deck 13: Strategizing,structuring,and Learning Around the World

Question 1

The global standardization strategy lacks local responsiveness.

Answer 1

True

Question 2

The geographic area structure is appropriate for a transnational strategy.

Answer 2

False

Question 3

The relationship between strategy and structure is reciprocal.

Answer 3

True

Question 4

Cost pressures often push MNEs to adapt locally.

Question 5

Many firms phase out the international division structure after their initial stage of overseas expansion.

Question 6

The home replication strategy duplicates home country-based competencies in foreign countries.

Question 7

The global product division structure organizes the MNE according to different geographic areas.

Question 8

A global matrix structure alleviates the disadvantages associated with both geographic area and global product division structures.

Question 9

Externally,MNEs are subject to the formal institutional frameworks erected by various home-country and host-country governments.

Question 10

Innovations flow only from the host countries to the home country in a transnational strategy.

Question 11

Local responsiveness makes local customers and governments happy and helps decrease costs.

Question 12

The global standardization strategy,despite its complexity,is still the best option at being cost effective,locally responsive,and learning-driven.

Question 13

The transnational strategy is usually the easiest strategy for an MNE to implement and the first one adopted when the firm ventures abroad.

Question 14

One of the disadvantages of the geographic area structure is that the country and regional managers are not given sufficient voice relative to the heads of the domestic divisions.

Question 15

The terms knowledge management and information management can be used interchangeably.

Question 16

MNEs that engage in a transnational strategy promote global learning.

Question 17

The integration-responsiveness framework allows managers to deal with the pressures for both global integration and local responsiveness.

Question 18

The international division structure is an organizational structure typically set up when a firm first engages in a home replication strategy.

Question 19

A localization strategy is effective when differences among national and regional markets are clear,and pressures for cost reductions are low.

Question 20

Management of MNE structure,learning,and innovation needs to take into account VRIO.

Question 21

The global account structure and solutions-based structure are two of the primary customer-focused dimensions of an MNE.

Question 22

Informal social capital hinders knowledge management.

Question 23

Subsidiary initiatives are new opportunities pursued by a subsidiary based on headquarters' demands.

Question 24

Accurately measuring the inflows and outflows of tacit and explicit knowledge is process oriented and easy to achieve.

Question 25

Flow of knowledge is limited in the home replication strategy.

Question 26

Knowledge retention faces the common problem of absorptive capacity.

Question 27

When an MNE is locally responsive,_____.

A) the local government's involvement reduces 
B) regulations are loosened 
C) innovations are limited 
D) costs increase

Question 28

Absorptive capacity refers to the informal benefits that individuals and organizations derive from their social structures and networks.

Question 29

Which of the following strategies is often known as "international strategy"? 

A) Localization 
B) Global standardization 
C) Transnational 
D) Home replication

Question 30

Explicit knowledge is codifiable.

Question 31

Which strategy is best for environments where there are clear differences among national and regional markets and there is a low pressure for cost reduction? 

A) Home replication strategy 
B) Localization strategy 
C) Global standardization strategy 
D) International strategy

Question 32

In a transnational strategy,the flow of knowledge is unidirectional.

Question 33

Learning aquatic zumba is an example of tacit knowledge.

Question 34

In MNEs adopting the home replication strategy,knowledge is developed at the center and transferred to subsidiaries.

Question 35

Which are the two primary pressures MNEs confront? 

A) Ethics and governance 
B) Cost reductions and local responsiveness 
C) Liability of foreignness and investment risk 
D) Ethics and local responsiveness

Question 36

From a resource-based view,explicit knowledge is strategically more important than tacit knowledge.

Question 37

Which of the following is a disadvantage of the home replication strategy? 

A) It lacks local responsiveness. 
B) It is organizationally complex and difficult to implement. 
C) It focuses too much on the foreign country. 
D) It has higher costs due to duplication of efforts in multiple countries.

Question 38

Social capital is the ability to recognize the value of new information,assimilate it,and apply it.

Question 39

Knowledge inflow faces the common problem of "Not invented here" syndrome.

Question 40

When MNEs adopt a localization strategy,the interdependence on knowledge management is high.

Question 41

The _____ structure allows for consolidation on a worldwide or regional basis and reduces inefficient duplication in multiple countries.

A) geographic area 
B) global matrix 
C) international division 
D) global product division

Question 42

Which of the following statements with respect to differences in knowledge management among the four types of MNEs is true? 

A) Interdependence on knowledge management in moderate in a transnational strategy. 
B) The role of foreign subsidiaries in a localization strategy is to adapt and leverage parent company competencies. 
C) There is extensive flow of knowledge and people in multiple directions in a transnational strategy. 
D) Knowledge is developed and retained within each subsidiary in a home replication strategy.

Question 43

The _____ structure is appropriate for a localization strategy.

A) international division 
B) global product division 
C) geographic area 
D) global matrix

Question 44

Which of the following strategies is usually the first one adopted when firms venture abroad? 

A) Global strategy 
B) Home replication strategy 
C) Localization strategy 
D) Transnational strategy

Question 45

In theory,a global matrix structure supports the goals of the _____ strategy.

A) transnational 
B) localization 
C) global standardization 
D) home replication

Question 46

The _____ strategy endeavors to be simultaneously cost efficient,locally responsive,and learning-driven around the world.

A) home replication 
B) transnational 
C) global 
D) localization

Question 47

The _____ strategy is also known as multidomestic strategy.

A) home replication 
B) transnational 
C) global 
D) localization

Question 48

The _____ structure is the opposite of the geographic area structure.

A) international division 
B) global matrix 
C) multidomestic 
D) global product division

Question 49

Which of the following may be a hindrance to successful knowledge management? 

A) Bonuses tied to measurable knowledge outflows and inflows 
B) Investment in codifying tacit knowledge 
C) Facilitation of informal social capital 
D) Use of single-subsidiary-based incentives

Question 50

Which strategy is organizationally complex and most difficult to implement? 

A) Localization strategy 
B) Transnational strategy 
C) Home replication strategy 
D) Global standardization strategy

Question 51

The _____ strategy focuses on development and distribution of standardized products worldwide to reap maximum benefits from low-cost advantages.

A) transnational 
B) localization 
C) home replication 
D) global standardization

Question 52

The _____ strategy is an extension of the home replication strategy.

A) global 
B) transnational 
C) localization 
D) export

Question 53

The hallmark of the _____ structure is the coordination of responsibilities between product divisions and geographic areas.

A) global product division 
B) geographic area 
C) global matrix 
D) international division

Question 54

Which of the following strategies has the lowest interdependence on knowledge management? 

A) Global standardization strategy 
B) Transnational strategy 
C) Localization strategy 
D) Home replication strategy

Question 55

Which of the following is an example of tacit knowledge? 

A) Performing surgery 
B) A product manual 
C) HR policies 
D) Writing an e-mail

Question 56

____ innovation is the use of purposive inflows and outflows of knowledge to accelerate internal innovation and expand the markets for external use of innovation.

A) Collaborative 
B) Open 
C) Closed 
D) Absorptive

Question 57

The global product division structure supports the _____ strategy.

A) transnational 
B) global matrix 
C) multidomestic 
D) global standardization

Question 58

In which of the following strategies is knowledge mostly developed and retained at the center and key locations? 

A) Global standardization strategy 
B) Transnational strategy 
C) Localization strategy 
D) Home replication strategy

Question 59

The _____ strategy focuses on a number of foreign countries/regions,each of which is regarded as a standalone market worthy of significant attention and adaptation.

A) global 
B) home replication 
C) localization 
D) transnational

Question 60

MNEs adopting the _____ strategy may designate centers of excellence.

A) global 
B) home replication 
C) localization 
D) transnational

Question 61

____ is the ability to recognize the value of new information,assimilate it,and apply it.

A) Social capital 
B) Micro-macro link 
C) Absorptive capacity 
D) Global mandate

Question 62

Explain the reciprocal relationship between multinational strategy and structure.

Question 63

____ is the informal interpersonal relationships among managers of different units that may greatly facilitate intersubsidiary cooperation among various units.

A) Social capital 
B) Absorptive capacity 
C) Micro-macro link 
D) Subsidiary initiative

Question 64

Briefly explain which of the four organizational structures is appropriate for each of the MNE strategic choices.

Question 65

What are centers of excellence?

Question 66

Knowledge outflow,one of the knowledge management elements,faces the common problem of _____.

A) inappropriate channels 
B) absorptive capacity 
C) "How does it help me?" syndrome 
D) "Not invented here" syndrome

Question 67

MNEs do face a few issues with respect to knowledge management.Elaborate on these issues and the possible ways to combat them.

Question 68

Summarize the advantages and disadvantages of the transnational strategy.

Question 69

Which element of knowledge management faces the common problem of employee turnover? 

A) Knowledge inflow 
B) Knowledge transmission 
C) Knowledge outflow 
D) Knowledge retention

Question 70

In the context of the customer-focused dimension of a global matrix,the _____ structure supplies customers in a coordinated and consistent way across various countries.

A) solutions-based 
B) open innovation 
C) global account 
D) social capital

Question 71

Explain the advantages and disadvantages of the global standardization strategy.

Question 72

In the context of the customer-focused dimension of a global matrix,the _____ structure allows a provider to sell whatever combination of goods and services that customers prefer,including rivals' offerings.

A) open innovation 
B) solutions-based 
C) global account 
D) social capital

Question 73

Elaborate on the differences in knowledge management among the four types of MNEs.

Question 74

Which element of knowledge management faces the common problem of absorptive capacity? 

A) Knowledge inflow 
B) Knowledge transmission 
C) Knowledge outflow 
D) Knowledge retention

Question 75

____ is the informal benefits individuals and organizations derive from their networks.

A) Social capital 
B) Micro-macro link 
C) Absorptive capacity 
D) Global mandate

Question 76

Which element of knowledge management faces the common problem of "Not invented here" syndrome? 

A) Knowledge inflow 
B) Knowledge transmission 
C) Knowledge acquisition 
D) Knowledge outflow

Question 77

Summarize the advantages and disadvantages of the home replication strategy.

Question 78

Knowledge acquisition,one of the knowledge management elements,faces the common problem of _____.

A) "How does it help me? " syndrome 
B) failure to share and integrate external knowledge 
C) "Not invented here " syndrome 
D) absorptive capacity