Management

Q: The type of knowledge that is codifiable (that is, it can be written down and transferred without losing much of its richness) is called: a. Explicit. b. Implicit. c. Tacit. d. Lucid.

Q: Institutional factors that affect MNEs include: a. External, informal factors. b. Internal factors. c. External formal factors. d. All of the above.

Q: When it comes to multinational enterprises, host countries: a. May provide tax incentives to encourage MNE activity. b. Favor MNE investment in higher value-added areas. c. Often put formal institutional factors in place to protect domestic employment. d. All of the above.

Q: When a companys rivals all move toward a global standardization strategy, the strategy: a. No longer satisfies the resource-based consideration of rarity. b. Makes the rivals more innovative. c. Provides a source of differentiation. d. Allows for easier imitation of informal structures.

Q: Within a given industry, as competitors increasingly match each other in cost efficiencies and local responsiveness a. They will be less affected by the bargaining power of suppliers. b. Their rivalry naturally focuses on learning and innovation. c. A geographic area division structure will become the most effective structure. d. R&D activities and innovation become less and less important.

Q: Which of the following is NOT true in regard to institution-based considerations? a. Externally, MNEs are subject to the formal institutional frameworks erected by various home- and host-country governments. b. Host-country governments often encourage, or coerce MNEs into undertaking certain activities. c. To staff the position of the head of a subsidiary, MNEs, in the absence of formal regulations, essentially have only one choice: to use a home-country national as the head of a subsidiary. d. Formal organizational charts do not necessarily reveal the informal rules of the game, such as organizational norms, values, and networks.

Q: When it comes to the relationship between multinational strategy and structure, it is: a. Best implemented through the superiority of the matrix structure. b. Static. c. One of reciprocity. d. Mostly one way from structure to strategy.

Q: The structure that best supports, in theory, the transnational strategy is: a. Global matrix. b. International division. c. Global product division. d. Geographic area.

Q: The high costs due to duplication of efforts in multiple countries is a disadvantage of a: a. Global standardization strategy. b. Localization strategy. c. Home replication strategy. d. None of the above.

Q: A main advantage of a global standardization strategy is that it: a. Leverages low-cost advantages. b. Maximizes local responsiveness. c. Provides for significant local autonomy. d. Engages in global learning and diffusion of innovations.

Q: When the pressure for cost reduction is high, the integration-response framework recommends which form of multinational structure/strategy? a. Geographic area structure. b. International division structure. c. Home replication strategy. d. Global standardization strategy.

Q: When the pressure for local responsiveness is high, the integration-response framework recommends which form of multinational structure/strategy? a. Global matrix structure. b. International division structure. c. Home replication strategy. d. Global standardization strategy.

Q: Which of the following is NOT true of the global matrix structure? a. It is often used to alleviate the disadvantages associated with the geographic area structure. b. It is often used to alleviate the disadvantages associated with the global product division structures. c. It is often used for sharing and coordinating responsibilities between product divisions and geographic areas. d. This structure benefits front-line managers who now have only one boss either a country manager or a product division manager.

Q: The most appropriate structure for a multidomestic strategy is a: a. International division structure. b. Geographic area structure. c. Flexible matrix structure. d. Global matrix structure.

Q: In which of the following structures are foreign subsidiary managers not given sufficient voice relative to domestic managers? a. International division structure. b. Geographic area structure. c. Global product division structure. d. Global matrix structure.

Q: The structure that is typically set up when firms initially expand abroad is a: a. International division structure. b. Flexible matrix structure. c. Global product division structure. d. Global matrix structure.

Q: Multidomestic strategy involves all of the following EXCEPT: a. A focus on a number of foreign countries/regions. b. Regarding each foreign country as a stand-alone domestic market. c. Global standardization strategy is the same as a multidomestic strategy. d. High costs.

Q: Four strategic choices for MNEs do NOT include: a. Home replication. b. Domestic. c. Multidomestic. d. Transnational.

Q: The integration-responsiveness framework for dealing with pressures focuses on: a. How to simultaneously deal with cost reduction and local responsiveness. b. Host country demands and expectations. c. Making local customers and governments happy. d. Producing a global version of a product or service.

Q: In think global, act local a firm needs to leverage its global presence and learn from local operations in order to solve local problems. a. True b. False

Q: An international division serves as a means of coordination with the rest of the firm. a. True b. False

Q: A customer-focused solution in which a provider sells whatever combination of goods and services the customers prefer is known as a global account structure. a. True b. False

Q: A global account structure is a customer-focused solution that supplies customers in a coordinated and consistent way across various countries. a. True b. False

Q: Advocates of subsidiary initiatives argue that they may inject a much-needed spirit of entrepreneurship throughout a larger bureaucratic MNE. a. True b. False

Q: Subsidiary initiatives are inconsistent with corporate-wide goals. a. True b. False

Q: Transnational strategy aims to capture the best of both worlds by endeavoring to be both cost efficient and locally responsive. a. True b. False

Q: Customer-focused dimensions cut across all three existing mainstream dimensions. a. True b. False

Q: European MNEs are more likely than Japanese MNE to appoint host-country or third country nationals as head of a foreign subsidiary. a. True b. False

Q: It is hard to distinguish between subsidiary initiative and empire building. a. True b. False

Q: Global virtual teams must overcome communication and relationship barriers in order to be effective. a. True b. False

Q: Open innovation, although it accelerates internal innovation, tends to get out of control and is more of a detriment than a benefit. a. True b. False

Q: For MNEs faced with the intensification of competition, R&D can provide a vehicle to access a foreign countrys local talent and expertise. a. True b. False

Q: Knowledge flow in MNEs follows the path of a top-down hierarchy. a. True b. False

Q: Of the four types of multinational enterprises, home replication experiences the most limited flow of knowledge. a. True b. False

Q: The acquisition and transfer of tacit knowledge requires hands-on practice. a. True b. False

Q: Overall, the micro, informal interpersonal relationships among managers of various units may create a micro-macro link. a. True b. False

Q: MNEs often must rely on a great deal of informal integrating mechanisms. a. True b. False

Q: The not invented here syndrome causes managers to accept ideas invented elsewhere. a. True b. False

Q: In a transnational MNE, the role of subsidiaries is to adapt and leverage parent company competencies. a. True b. False

Q: Knowledge management not only depends on IT, but also on informal social relationships within the MNE. a. True b. False

Q: It is obviously a lot easier to imitate an intangible philosophy or mentality than to imitate a tangible structure. a. True b. False

Q: No one argues that knowledge management is the defining feature of MNEs. a. True b. False

Q: For most MNEs, their stakeholders do not react well to a top echelon of company officials coming almost entirely from one nationality. a. True b. False

Q: MNEs that buy and use enterprise resource planning (ERP) packages provide themselves with a firm-specific advantage in doing so. a. True b. False

Q: When buyer firms that have a great deal of bargaining power move internationally, components suppliers are often forced to internationalize in order to retain the buyer firms business. a. True b. False

Q: Industrial-products firms tend to adopt geographic area divisions, and consumer-goods companies often rely on global product divisions. a. True b. False

Q: The Porter five forces are not helpful in understanding MNE structure. a. True b. False

Q: Being locally responsive can run the risk of MNE fragmentation. a. True b. False

Q: A localization strategy is most appropriate in industries where the pressures for cost reduction are significant. a. True b. False

Q: A home replication strategy takes advantage of current competencies but risks alienating foreign customers if it lacks local responsiveness. a. True b. False

Q: Duplicating home country-based competencies in foreign countries is known as localization. a. True b. False

Q: A main advantage of a global standardization strategy is that it leverages low-cost advantages. a. True b. False

Q: Because consumer tastes around the world are converging, product differentiation will soon be unnecessary. a. True b. False

Q: Strategy drives structure: a misfit, such as combining a global strategy with a geographic area structure, may have grave performance consequences. a. True b. False

Q: Many MNEs have phased out the international division structure. a. True b. False

Q: Global product division structure is the same as the geographic area structure. a. True b. False

Q: Transnational strategy supposedly is a trade off between being cost efficient and locally responsive but is really locally responsive. a. True b. False

Q: Localization strategy is an extension of the home replication strategy. a. True b. False

Q: Home replication strategy emphasizes the home country replication of international based competencies. a. True b. False

Q: In combining product and geographic diversification, which is not one of the four possible combinations? a. Anchored replicators. b. Multinational replicators. c. Far-flung conglomerates. d. Classic replicators.

Q: Which is not true regarding geographic diversification and firm performance? a. U-shaped relationship at low level of internationalization. b. Initially a negative effect of international expansion on performance. c. Inverted-U shape at moderate to high levels of internationalization. d. Positive only at high levels of internationalization.

Q: Which geographic diversification is most likely to reduce the liability of foreignness? a. Culturally adjacent countries. b. Extensive international scope. c. Beyond geographically neighboring countries. d. Beyond culturally neighboring countries.

Q: Research regarding the relationship between product diversification and firm performance indicates that: a. Putting your eggs in similar baskets, has emerged as a balanced way to both reduce risk and leverage synergy. b. Performance may decrease as firms change from product-related to unrelated. c. The linkage between diversification and performance is inverted U shaped. d. All of the above.

Q: Which would be more characteristic of conglomerates? a. Putting ones eggs in one basket. b. Putting ones eggs in similar baskets. c. Putting ones eggs in different baskets. d. None of the above..

Q: Diversification premium is the same thing as: a. Conglomerate advantage. b. Diversification discount. c. Measurement of firm performance. d. Level of product diversification. e. Measurement of firm performance.

Q: Conglomeration tends to provide all of the following EXCEPT: a. Product-unrelated diversification. b. Financial synergy. c. Economies of scale. d. Economies of scope.

Q: Sources of operational synergy include: a. Technologies. b. Marketing. c. Manufacturing. d. All of the above.

Q: Engaging in thorough due diligence concerning both strategic fit and organizational fit will not guarantee successful M&As. a. True b. False

Q: You and your firm need to develop policies that avoid acquisitions and restructuring. a. True b. False

Q: You should understand that the nature of your industry might call for diversification, acquisitions, and restructuring. a. True b. False

Q: Compared with acquisitions, alliances cost less and allow for opportunities to learn from working with each other before engaging in full-blown acquisitions. a. True b. False

Q: Product relatedness is determined exclusively by visible product linkages. a. True b. False

Q: For firms considering an acquisition, product relatedness is easy to measure. a. True b. False

Q: Traits such as goals, experiences, and behaviors of a target firm that complement those of the acquiring firm lead to good organizational fit. a. True b. False

Q: In an acquisition, shareholders of the acquiring firm typically see a greater increase in stock value than do shareholders of the target firm. a. True b. False

Q: Hubris often leads to acquisition premiums. a. True b. False

Q: Gaining access to complementary resources is an institution-based motivation for acquisitions. a. True b. False

Q: Conglomerate M&As are transactions involving firms in product-related industries. a. True b. False

Q: Horizontal and vertical M&As are typically involve product-related diversification. a. True b. False

Q: Most cross-border deals are mergers rather than acquisitions. a. True b. False

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