Question 1

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

Accepted Answer

The correct stage for a company to shift its interest from domestic activity to exporting is the second stage, the international stage. In the multinational stage, the company has already established a significant presence in multiple foreign markets and may even have subsidiaries in those markets.

Question 2

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...

Question 3

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

Accepted Answer

Truly global companies operate across multiple countries and do not consider themselves as belonging to a single home country. Such companies are often referred to as stateless corporations.

Question 4

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

The statement is true as international development requires taking into account different countries with their unique competitive issues and considering exports as a serious aspect of business.

Question 5

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. The "not-invented-here" syndrome refers to a reluctance of managers to use ideas, products, or solutions developed by other people or units, as they feel that they are more capable of developing them internally. This can lead to a narrow worldview and missed opportunities for collaboration and innovation.

Question 6

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 to wash dishes due to its affordability and effectiveness, highlighting the need for a multidomestic strategy that considers local customs and practices.

Question 7

If the forces for national responsiveness and the forces for global integration are high, then a multidomestic strategy with a global geographic structure would be the best fit.

Accepted Answer

A transnational strategy, not a multidomestic strategy, is best suited when both national responsiveness and global integration forces are high, as it seeks to balance these competing demands.

Question 8

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 9

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

That is correct. With a product-based structure, divisions are responsible for specific products, which can be standardized for global marketing. This allows divisions to focus on their specific product lines and develop capabilities to support them.

Question 10

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

Accepted Answer

The global matrix structure is designed to allow companies to respond to both global and local opportunities simultaneously.

Question 11

Innovation refers to the quality of collaboration across organizational units.

Accepted Answer

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

Question 12

Hybrid structures are typical in highly volatile environments.

Accepted Answer

Hybrid structures, which combine elements of hierarchy and network structures, are commonly used in organizations operating in highly volatile and constantly changing environments.

Question 13

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

Accepted Answer

A joint venture is a separate legal entity created with two or more active firms as sponsors, and is formed for a specific business purpose or project.

Question 14

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

Accepted Answer

Many managers and organizations do recognize the importance of cooperation to achieve and maintain competitive advantage on a global scale. Collaborations and partnerships among companies are becoming more common, particularly in industries that require significant investments in research and development or have complex global supply chains.

Question 15

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

Accepted Answer

The global geographic structure does indeed divide the world into geographical regions, with each region reporting to a regional manager who then reports to the CEO.

Question 16

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 17

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 18

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 19

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 20

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.

Quiz 6: Designing Organizations for the International Environment