International Business: Strategy and Organization in the International Firm

International Business: The New Realities, Global Edition, 3e (Cavusgil)
Chapter 12 Strategy and Organization in the International Firm

1) Firms that want to become globally competitive must seek simultaneously three strategic objectives—efficiency, flexibility, and learning.
Answer: TRUE
Difficulty: Easy
Skill: Concept
Objective: 12-1
AACSB: Dynamics of the global economy

2) Efficiency refers to emphasizing consensus-based decision making and problem solving, in which managers readily share their knowledge.
Answer: FALSE
Difficulty: Easy
Skill: Concept
Objective: 12-1
AACSB: Dynamics of the global economy

3) During the recent global financial crisis, efficiency and flexibility became particularly important to the success of multinational firms.
Answer: TRUE
Difficulty: Easy
Skill: Concept
Objective: 12-1
AACSB: Dynamics of the global economy

4) Visionary leadership is more complex and important in domestic firms than global firms because corporate headquarters is where major decisions are made.
Answer: FALSE
Difficulty: Easy
Skill: Concept
Objective: 12-2
AACSB: Dynamics of the global economy

5) Organizational culture refers to managerial routines, behaviors, and mechanisms that allow the firm to function as intended.
Answer: FALSE
Difficulty: Easy
Skill: Concept
Objective: 12-2
AACSB: Dynamics of the global economy

6) Companies that proactively build a global organizational culture subscribe to subjective ethical and moral standards.
Answer: FALSE
Difficulty: Easy
Skill: Concept
Objective: 12-2
AACSB: Dynamics of the global economy
7) Strategic global teams identify or implement initiatives that enhance the long-term direction of the firm in its global industry.
Answer: TRUE
Difficulty: Easy
Skill: Concept
Objective: 12-2
AACSB: Dynamics of the global economy

8) Global IT infrastructure and tools such as intranets, the Internet, and electronic data interchange ensure that distant parts of the global network share