Question 1

Low uncertainty avoidance means that people have a high tolerance for the unstructured, the unclear, and the unpredictable.

Accepted Answer

Low uncertainty avoidance cultures prioritize flexibility, creativity, and adaptability, and tolerate risk-taking and ambiguity.

Question 2

The trend toward large organizations was initially sparked by the Industrial Revolution.

Accepted Answer

The Industrial Revolution of the 18th and 19th centuries transformed manufacturing and production processes, leading to the growth and development of large organizations.

Question 3

Innovation refers to the quality of collaboration across organizational units.

Accepted Answer

The answer of Innovation refers to the quality of collaboration...

Question 4

The "not-invented-here" syndrome makes some managers reluctant to tap into the know-how and expertise of other units.

Accepted Answer

The statement is true, as the "not-invented-here" syndrome refers to the belief that solutions or ideas from outside one's own organization or department may not be valid or useful, leading to a reluctance to seek out or utilize external knowledge or expertise.

Question 5

Network coordinators would enable a manufacturing organization to provide knowledge and integrated solutions across multiple business, divisions, and countries for a large customer.

Accepted Answer

Network coordinators would be able to facilitate communication and collaboration within the organization, allowing for the sharing of expertise and resources across different areas and regions. This would enable the organization to offer more comprehensive solutions and support to their clients.

Question 6

Functional managers coordinate across functions whereas country managers coordinate among countries.

Accepted Answer

Functional managers are responsible for overseeing the activities of a specific function or department within a company, and their role involves collaborating with other functional managers to ensure that all departments are working together effectively. In contrast, country managers are responsible for managing and coordinating the activities of a company's operations within a specific country or region, which requires them to work closely with local leaders and stakeholders to ensure that the company is meeting local regulations and customer needs. As such, the scope and focus of their coordination efforts differ significantly, with functional managers coordinating within a company and country managers coordinating across multiple countries.

Question 7

Only a few decades ago, many companies could afford to ignore the international environment.

Accepted Answer

The answer of Only a few decades ago, many companies...

Question 8

The fourth and ultimate stage of international development is the multinational stage.

Accepted Answer

The answer of The fourth and ultimate stage of international...

Question 9

In the global stage of international development, the market potential of a firm is mostly domestic.

Accepted Answer

In the global stage of international development, the market potential of a firm is not limited to its domestic market but can expand to international markets. Globalization has opened up opportunities for firms to enter new markets, reach new customers, and increase revenue. However, firms need to adapt their products and marketing strategies to suit the local culture and preferences of the target market.

Question 10

A transnational team is a work group made up of multinational members whose activities span multiple countries.

Accepted Answer

The answer of A transnational team is a work group...

Question 11

European companies typically take a decentralized approach to coordination and control.

Accepted Answer

European companies have a tendency towards a decentralized approach to coordination and control, where decision-making and authority are distributed across different levels and departments within the organization.

Question 12

High uncertainty avoidance means that people accept inequality in power among institutions, organizations, and people.

Accepted Answer

High uncertainty avoidance means that people have a low tolerance for ambiguity and prefer structure, rules, and guidelines. It does not necessarily relate to acceptance of inequality in power.

Question 13

Hybrid structures are typical in highly volatile environments.

Accepted Answer

Hybrid structures, which combine elements of different organizational structures, are often used in unpredictable and rapidly changing environments where flexibility and adaptability are key.

Question 14

In general, services are less suitable for globalization because different customs and habits often require a different approach to providing service.

Accepted Answer

Services are often more localized due to cultural, linguistic, and regulatory differences. Customizing services to meet the needs and preferences of different markets can be challenging, which is why services are generally less suitable for globalization.

Question 15

The only way an organization can reasonably expect to be successful in different countries is to customize its products and services to suit the local interests, preferences, and values in each country.

Accepted Answer

The answer of The only way an organization can reasonably...

Question 16

The transnational model reflects the ultimate in both organizational complexity, with many diverse units, and organizational coordination, with mechanisms for integrating the varied parts.

Accepted Answer

The statement is true. The transnational model is designed to manage a complex and diverse organization with coordinated mechanisms for integrating different units.

Question 17

When forces for both global standardization and local responsiveness in many countries are low, simply using an international division with the domestic structure is an appropriate way to handle international business.

Accepted Answer

If there are low forces for global standardization and local responsiveness, it may not be necessary to create a separate international division and the domestic structure may suffice for handling international business.

Question 18

Many large international companies are moving toward a multidomestic model of organization.

Accepted Answer

The answer of Many large international companies are moving toward...

Question 19

The management philosophy of transnational model is based on interdependence rather than either full divisional independence or total dependence of these units on headquarters for decision making and control.

Accepted Answer

The statement correctly defines the management philosophy of transnational model.

Question 20

Service companies cannot use a divisional structure.

Accepted Answer

Service companies can use a divisional structure to divide their operations into different divisions based on geographic location, service offerings, customer segments, or other factors. This allows them to better manage resources, focus on specific markets, and tailor their services to meet the needs of different customers.

Quiz 6: Designing Organizations for the International Environment