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In a global product division, each strategic business unit (SBU) is responsible for ________ and ________.


A) marketing; sales
B) production; sales
C) human resources; production
D) risk management; accounting

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What is the greatest risk for firms that have structurally sophisticated global networks?


A) environmental volatility
B) competition from domestic firms
C) shortages of experienced personnel
D) implementation of corporate policies

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Which of the following is NOT necessarily a characteristic of the best organizational structure for a firm?


A) dynamic
B) global
C) adaptable
D) flexible

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According to research by Neghandi and Welge, ________ firms require the greatest number of functional reports not including performance reviews.


A) U.S.
B) German
C) Japanese
D) Italian

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A specific strategy that treats the world as one market by using a standardized approach to products and markets is called ________.


A) globalization
B) rationalization
C) differentiation
D) integration

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Infosys, Lenovo, and Tata Motors are examples of ________.


A) emerging market companies
B) strategic business units
C) maquiladoras
D) SMEs

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Sedona Industries is a U.S. firm that manufactures high-quality handbags, luggage, and belts from its facility in Arizona. Sedona's products have been featured in various fashion magazines, and as a result, consumer demand has increased significantly. Currently, Sedona is organized as a domestic structure plus export department. Executives at Sedona believe the firm is ready to internationalize its operations, and they are considering various organizational structures. Which of the following best supports the argument that Sedona should reorganize into a global functional structure?


A) Sedona uses a decentralized system of management.
B) Sedona uses a variety of technologies for its products.
C) Sedona has a limited number of domestic competitors.
D) Sedona has a narrow spectrum of customers that it serves.

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What are the two essential interrelated tasks of organizing for globalization? Explain each task.

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The two essential tasks are differentiat...

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What are the most common structural forms of organizations? How does an organization know when it needs to consider a new structure?

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The most common structural forms are 1.D...

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The problem regarding noncomparability of performance data across countries is primarily caused by all of the following variables EXCEPT ________.


A) taxes
B) market share
C) political upheaval
D) currency devaluation

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What determines which decisions in the organization are centralized, and which are decentralized?

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In general, centralized decisions are co...

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How do the monitoring and reporting systems of Japanese and U.S. firms differ? What is the best explanation for these differences?

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U.S.companies, compared to Japanese comp...

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Firms typically internationalize in response to all of the following EXCEPT ________.


A) need for diversification
B) affects of governmentalism
C) increased global competition
D) domestic market saturation

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Which organizational form is a hybrid structure with overlapping responsibilities?


A) international division
B) divisional structure
C) area structure
D) matrix structure

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The creation of a(n) ________ facilitates the beginning of a global strategy by allowing managers to coordinate resources for foreign activities from one location.


A) local division
B) international division
C) transnational division
D) matrix division

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The advantages of the ________ structure are market concentration, innovation, and responsiveness to new opportunities in a particular environment.


A) global functional
B) global product
C) global geographic
D) global cultural

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Royal Phillips Electronics' structure would best be described as a(n) ________.


A) domestic structure plus export department
B) international division
C) global functional structure
D) network structure

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________ is the process by which a firm gradually changes in response to the imperatives of international competition, domestic market saturation, and desire for expansion.


A) Organizing
B) Strategy
C) Localizing
D) Internationalization

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What are the advantages of the global product structure?

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The advantages of this organiz...

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According to the author, the future for MNC structure most likely lies in a ________.


A) global web of networked companies
B) global functional structure
C) global product structure
D) centralized hierarchy

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