International Business: Strategy and Organization in the International Firm

Topics: Organizational structure, International trade, Globalization Pages: 30 (7702 words) Published: April 20, 2015
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 knowledge and learn from each other. Answer: TRUE

Difficulty: Easy
Skill: Concept
Objective: 12-2
AACSB: Dynamics of the global economy

9) A multidomestic industry is one in which competition takes place on a regional or worldwide basis. Answer: FALSE
Difficulty: Easy
Skill: Concept
Objective: 12-2
AACSB: Dynamics of the global economy

10) Global integration is a plan of action that accounts for competition on a country-by-country basis. Answer: FALSE
Difficulty: Easy
Skill: Concept
Objective: 12-3
AACSB: Dynamics of the global economy

11) Due to the competition involved in global industries, marketing strategies are determined by the unique needs and regulations of each nation. Answer: FALSE
Difficulty: Easy
Skill: Concept
Objective: 12-3
AACSB: Dynamics of the global economy

12) Sourcing inputs from large-scale, centralized suppliers allows firms to obtain economies of scale, more consistent quality, lower costs, and generally more efficient operations. Answer: TRUE
Difficulty: Easy
Skill: Concept
Objective: 12-3
AACSB: Dynamics of the global economy
13) A company can be compelled to globally integrate its activities to seek cost reduction through scale economies. Answer: TRUE
Difficulty: Easy
Skill: Concept
Objective: 12-3
AACSB: Dynamics of the global economy

14) A company can be compelled to be locally responsive in individual countries to provide uniform services to global customers. Answer: FALSE
Difficulty: Easy
Skill: Concept
Objective: 12-3
AACSB: Dynamics of the global economy

15) The home replication strategy is often employed as a means of extending a product's life cycle in a foreign market and to replicate home-market success. Answer: TRUE
Difficulty: Easy
Skill: Concept
Objective: 12-4
AACSB: Dynamics of the global economy

16) When using a home replication strategy, firms delegate autonomy to managers in each foreign...
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