Question 1

Managers and organizations all over the world are very reluctant to cooperate to achieve competitive advantage on a global scale.

Accepted Answer

This statement is not true. Many managers and organizations recognize the benefits of cooperation and collaboration, particularly when it comes to achieving competitive advantage in a global marketplace. Examples of such cooperation can be seen in joint ventures, strategic partnerships, and other forms of collaboration between companies.

Question 2

The second stage of international evolution, "International Stage," will usually be structured with a domestic structure with an export department.

Accepted Answer

The answer of The second stage of international evolution, "International...

Question 3

The global geographic structure divides the world into geographical regions, with each geographical division reporting to the CEO.

Accepted Answer

This statement is true. The global geographic structure is a common organizational structure used by multinational companies to divide the world into regions for effective management and reporting. Each region is typically headed by a regional manager who reports to the CEO.

Question 4

Building a global presence expands an organization's scale of operations, enabling it to realize economies of scale.

Accepted Answer

Building a global presence allows an organization to reach a larger market, increase sales volume, and reduce costs per unit, resulting in economies of scale.

Question 5

The global product division structure works best when pressure for decision-making balances the interests of both product standardization and geographical localization and when coordination to share resources is important.

Accepted Answer

The answer of The global product division structure works best...

Question 6

In many instances, companies will need to respond to both global and local opportunities simultaneously. In this case, the global matrix structure can be used.

Accepted Answer

The global matrix structure allows companies to operate across different countries and regions while also taking into account specific local needs and conditions. This structure enables companies to respond to both global and local opportunities at the same time.

Question 7

In parts of Mexico, laundry detergent is used to wash dishes, not clothes, pointing out the need for a multidomestic strategy.

Accepted Answer

This statement is true. In some parts of Mexico, laundry detergent is used for dishes because it is cheaper and easier to obtain than dish soap. This highlights the need for a multidomestic strategy that considers the unique cultural and economic factors of different regions.

Question 8

Four primary factors motivate companies to expand internationally: profitability, economies of scale, economies of scope, and low-cost production factors.

Accepted Answer

The answer of Four primary factors motivate companies to expand...

Question 9

A company typically shifts its interest from domestic activity to exporting in the 3rd stage (multinational) of international development.

Accepted Answer

The 3rd stage of international development is usually the "global" stage, where a company has a strong international presence and is focused on standardizing products and marketing globally. Exporting is typically done in earlier stages, such as the "international" stage.

Question 10

Functional structures are found more frequently in a worldwide business than in a domestic business.

Accepted Answer

The answer of Functional structures are found more frequently in...

Question 11

As companies begin to explore international opportunities, they typically start with an international division that grows into an export department.

Accepted Answer

The answer of As companies begin to explore international opportunities,...

Question 12

To meet new competitive threats, many manufacturing firms are emphasizing the ability to customize their products to meet specific needs which requires a greater emphasis on global responsiveness.

Accepted Answer

The answer of To meet new competitive threats, many manufacturing...

Question 13

The international stage of international development means that exports are taken seriously and that the company deals with the competitive issues of each country separately.

Accepted Answer

Yes, the international stage of development requires taking exports seriously and understanding the competitive issues of different countries. This involves adapting products, marketing strategies, and pricing to cater to different markets, cultures, and regulations.

Question 14

Truly global companies no longer think of themselves as having a single home country and have been called stateless corporations.

Accepted Answer

This statement is true. Truly global companies view themselves as operating in multiple countries and do not primarily identify with a single home country. Some have been labeled as "stateless corporations" due to their lack of strong national affiliation.

Question 15

The product-based structure works best when a division handles products that are technologically similar and can be standardized for marketing around the world.

Accepted Answer

The product-based structure is designed to group products that share similar technology and can be marketed globally using standardization.

Question 16

A joint venture is a separate entity created with two or more active firms as sponsors.

Accepted Answer

A joint venture is indeed a separate legal entity created by two or more parent companies or sponsors, who share ownership and control in the joint venture.

Question 17

With a global geographic division structure, each division's manager is responsible for planning, organizing, and controlling all functions for the production and distribution of its products for any market around the world.

Accepted Answer

The answer of With a global geographic division structure, each...

Question 18

Having a presence in multiple countries provides marketing power and synergy compared to the same size firm that has presence in fewer countries.

Accepted Answer

Having a presence in multiple countries allows for a larger audience reach, cultural diversity, and potentially lower costs through economies of scale. This can lead to greater marketing power and synergy compared to a company with a limited international presence.

Question 19

The globalization strategy means that product design, manufacturing, and marketing strategy are standardized throughout the world, whereas a multidomestic strategy means that competition in each country is handled independently of competition in other countries.

Accepted Answer

The statement accurately describes the differences between a globalization strategy and a multidomestic strategy.

Question 20

Stage two is the global stage which means the company takes exports seriously and begins to think multidomestically.

Accepted Answer

The answer of Stage two is the global stage which...

Quiz 6: Designing Organizations for the International Environment