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Exam 14: The Organization of International Business

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Question 41

Multiple Choice

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Which control system is most widely used by small firms?

A) Personal
B) Output
C) Bureaucratic
D) Cultural

E) A) and B)
F) B) and C)

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Question 42

Multiple Choice

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The need for coordination between subunits is lowest in firms pursuing a(n) :

A) localization strategy.
B) international strategy.
C) global strategy.
D) transnational strategy.

E) C) and D)
F) A) and C)

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Question 43

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It is more difficult for a leader to create an organizational culture from scratch in a new venture than it is to change an established one.

Organizational structure means all of the following, EXCEPT:

Firms pursuing a global standardization strategy:

It is important to realize that organizational change will occur regardless of the commitment of senior managers to it.

Discuss the location of decision-making in a firm that is following a transnational strategy.

There is low interdependence, performance ambiguity, and costs of control in firms pursuing a(n) :

The worldwide area structure tends to be adopted by firms with a low level of diversification whose domestic structures are based on functions.

Personal control is a type of control that tends to be most widely used in large firms.

To unfreeze the established culture of an organization the company must take bold steps such as shaking up the management structure in order to implement change.

Bureaucratic control involves personal contact with subordinates.

A(n) _____ tends to be adopted by firms that are reasonably diversified.

What are the three dimensions of organizational structure?

Regardless of a firm's domestic structure, its international division tends to be organized on economy.

Discuss the issues involved in refreezing an organization.

A worldwide product division structure tends to be adopted by firms that are reasonably diversified and originally had domestic structures based on product divisions.

Discuss the characteristics of a firm that is pursuing an international strategy.

The norms and values systems that are shared among the employees of a company are referred to as:

Firms pursuing a localization strategy have a high need for coordination between subunits.