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Chapter 18 Multiple choice questions
Return to International Business Student Resources
Chapter 18 Multiple choice questions
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Decentralization of decision-making is most likely to be observed in an international business following a managerial perspective of:
rationality.
correct
incorrect
egocentricity.
correct
incorrect
ethnocentricity.
correct
incorrect
polycentricity.
correct
incorrect
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The core values, beliefs, and assumptions that are widely shared by members of an organization are termed:
organizational climate.
correct
incorrect
organizational culture.
correct
incorrect
mission statement.
correct
incorrect
strategic plan.
correct
incorrect
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Strategy involves:
the allocation of resources to capitalise on opportunities identified in the organization’s external environment.
correct
incorrect
setting the long term direction of the organization.
correct
incorrect
clarifying the goals of the organization.
correct
incorrect
all of the above.
correct
incorrect
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The key skills that need to be displayed by corporate level managers in the global factory are the ability to:
build a vision and set directions for the organisation.
correct
incorrect
ensure continuing renewal, avoiding inertia.
correct
incorrect
initiate continuous change in response to environmental change.
correct
incorrect
all of the above.
correct
incorrect
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Which of the following best describes the characteristics of overseas affiliates of a company using a multidomestic strategy?
They are centralized to maximize opportunities for learning.
correct
incorrect
They are mainly autonomous and operate largely independently.
correct
incorrect
They are closely controlled by the company's headquarters.
correct
incorrect
They are integral to the transfer of standardised technologies.
correct
incorrect
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Organization culture consists of the core values, beliefs, and assumptions that are widely shared by members of an organization. What purpose does it serve?
Communicating what behaviours the organization values.
correct
incorrect
Providing employees with a sense of direction.
correct
incorrect
Fostering employee loyalty.
correct
incorrect
All of the above.
correct
incorrect
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Decentralization is likely in the case of :
ethnocentricity.
correct
incorrect
polycentricity.
correct
incorrect
egocentricity.
correct
incorrect
regiocentricity.
correct
incorrect
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This chapter suggests that the emerging management model within successful global factories needs to focus on:
Entrepreneurial processes - which provide the ability to open new markets and create new businesses.
correct
incorrect
Integration processes - linking diverse assets and resources to build competencies.
correct
incorrect
Renewal processes - the need to challenge conventional wisdom and ways of doing things.
correct
incorrect
All of the above.
correct
incorrect
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Which of the following best explains why a firm might shift from an international division structure to a more complex organizational design?
The firm needs to market its products more effectively and to maximize its production capabilities by utilizing global resources.
correct
incorrect
The firm wishes to pool resources to better meet domestic demand.
correct
incorrect
The firm wants to use knowledge gained from global management experience to negotiate more favourable conditions from suppliers.
correct
incorrect
The firm wants to take advantage of positive home country-of-origin effects.
correct
incorrect
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As organizations grow globally they find it difficult to manage their widespread operations. Which of the following is
not
true with regard to formal control methods?
Such methods are based on specific plans and targets that are to be achieved.
correct
incorrect
They require face-to-face communication between HQ and subsidiary managers.
correct
incorrect
They rely primarily on quantifiable data.
correct
incorrect
Companies adopt formal control methods for evaluation.
correct
incorrect
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