Question 1

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

Accepted Answer

Managers and organizations understand the importance of cooperation and partnerships to achieve competitive advantage on a global scale. Many global firms engage in strategic partnerships, joint ventures, and collaborations with other organizations to enhance their competitiveness.

Question 2

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 that is created by two or more firms to undertake specific business activities together.

Question 3

Which of the following characteristics distinguishes the transnational organization from other forms of global organizations?
A) Assets and resources are dispersed worldwide into highly specialized operations that are linked through interdependent relationships.
B) Structures are stable.
C) Subsidiary managers initiate strategy and innovations that become strategy for the corporation as a whole.
D) Unification and coordination are achieved primarily through corporate culture, shared vision and values, and management style rather than through formal structures and systems.

Accepted Answer

The answer of Which of the following characteristics distinguishes the...

Question 4

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

Accepted Answer

When operating on the international stage of international development, companies must take exporting seriously and address the distinct competitive factors in each country they do business in. This level of attentiveness and customization is necessary to succeed in the global market.

Question 5

To meet new competitive threats, many manufacturing firms are emphasizing their 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 6

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 difference between a globalization strategy and a multidomestic strategy.

Question 7

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

Accepted Answer

This statement implies that certain cultural practices and preferences vary between different regions, indicating the need for a multidomestic strategy that tailors products and marketing to local needs and preferences.

Question 8

What kind of major challenge do managers face as organizations become more differentiated, with multiple products, divisions, departments, and positions scattered across numerous countries?
A) knowledge transfer
B) differentiation
C) integration
D) development

Accepted Answer

As organizations become more differentiated with multiple products, divisions, departments, and positions scattered across numerous countries, the major challenge that managers face is integration. The various parts of the organization need to work together seamlessly, communicate effectively, and share resources to achieve common goals. Integration ensures that there is unity of purpose, collaboration, and cooperation among the different parts of the organization. Managers need to ensure that integration takes place across all levels in the organization, from individual employees to entire departments and regions. Without integration, the organization cannot function effectively, and there will be conflicts, duplication of efforts, and wasted resources.

Question 9

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 customer base and increase production, which can lead to cost savings and economies of scale.

Question 10

Which model reflects the ultimate in both organizational complexity, with many diverse units, and organizational coordination, with mechanisms for integrating the varied parts?
A) transformative
B) transnational
C) global
D) multidomestic

Accepted Answer

The transnational model reflects the ultimate in both organizational complexity, with many diverse units spread across different countries, and organizational coordination, with mechanisms for integrating the varied parts. In a transnational model, there is a high degree of integration and collaboration among different units, and decision-making is decentralized to ensure local responsiveness while maintaining global coordination. The other choices, transformative, global, and multidomestic, do not necessarily reflect the same level of complexity and coordination as the transnational model.

Question 11

An organization in the second stage of international evolution (international stage) will usually have a domestic structure with an export department.

Accepted Answer

The answer of An organization in the second stage of...

Question 12

Which of the following, if present to a high degree, means that people accept inequality among institutions, organizations, and people?
A) uncertainty avoidance
B) power distance
C) employee empowerment
D) integration

Accepted Answer

Power distance refers to the extent to which people in a society accept and expect unequal distribution of power. If present to a high degree, it means that people are more likely to accept inequality among different institutions, organizations, and people. A high power distance society tends to have a hierarchy and people at the top of the hierarchy are given more privileges and respect than those at the bottom.

Question 13

Which statement best describes Mandel-Campbell's description of Canada's approach to competing globally?
A) Canada has competed effectively internationally.
B) Canada needs policies to encourage entrepreneurial action.
C) Canada needs to do more research to understand and address globalization.
D) Canadian companies have not had the gumption necessary for international success.

Accepted Answer

The answer of Which statement best describes Mandel-Campbell's description of...

Question 14

Which of the following characterizes the transnational model?
A) using shared vision and values to achieve coordination in this horizontal structure
B) being one step short of the matrix in exploiting both global and local advantages for the corporation as well as multiple interrelated competitive issues
C) having a single headquarter and a single centre of control for each country and for each product line
D) not having a single corporate headquarter, but a clear hierarchical responsibility

Accepted Answer

The transnational model is characterized by using shared vision and values to achieve coordination in a horizontal structure, allowing for flexibility and integration across borders.

Question 15

Lawrence Incorporated used global teams as part of its internationalization, enabling them to be more locally responsive to different regional markets, consumer preferences, and political and legal systems. Which of the following issues did this structure address?
A) the differentiation challenge
B) units gaining influence within the global firm
C) codification of organizational knowledge throughout the global firm
D) lack of ability to gain economies of scope

Accepted Answer

The use of global teams addresses the differentiation challenge by allowing the organization to be more locally responsive to different regional markets, consumer preferences, and political and legal systems.

Question 16

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 17

In the third stage (multinational stage) of international development, a company typically shifts its interest from domestic activity to exporting.

Accepted Answer

In the third stage of international development, a company typically expands its international presence and invests in foreign markets to establish subsidiaries and joint ventures. This stage is known as the multinational stage, and it involves more than just exporting. The company may also engage in local production and marketing activities to tailor its offerings to each foreign market.

Question 18

Which of the following kinds of formal positions do organizations create to coordinate information and activities related to key customer accounts?
A) functional manager
B) transnational team
C) network coordinator
D) division network

Accepted Answer

Organizations create network coordinator positions to coordinate information and activities related to key customer accounts. Functional managers are responsible for overseeing a specific function within an organization, transnational teams are cross-functional groups that work on projects across multiple countries or regions, and division networks refer to the overall structure of an organization divided into smaller units or divisions.

Question 19

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

Accepted Answer

Having a presence in multiple countries allows firms to reach a larger audience, gain economies of scale, and benefit from local market knowledge and resources. This can result in increased marketing power and synergy, which can help the firm achieve greater success compared to a same-size firm with a less extensive global presence.

Question 20

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...

Quiz 6: Designing Organizations for the International Environment

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

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

Which of the following characteristics distinguishes the transnational organization from other forms of global organizations?

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

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

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.

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

What kind of major challenge do managers face as organizations become more differentiated, with multiple products, divisions, departments, and positions scattered across numerous countries?

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

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

An organization in the second stage of international evolution (international stage) will usually have a domestic structure with an export department.

Which of the following, if present to a high degree, means that people accept inequality among institutions, organizations, and people?

Which statement best describes Mandel-Campbell's description of Canada's approach to competing globally?

Which of the following characterizes the transnational model?

Lawrence Incorporated used global teams as part of its internationalization, enabling them to be more locally responsive to different regional markets, consumer preferences, and political and legal systems. Which of the following issues did this structure address?

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

In the third stage (multinational stage) of international development, a company typically shifts its interest from domestic activity to exporting.

Which of the following kinds of formal positions do organizations create to coordinate information and activities related to key customer accounts?

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

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