Question : 11.Which of the following best describes the strength and weakness : 1362011

11.Which of the following best describes the strength and weakness of the geographic area structure?

a.Cost of business.c.Level of local responsiveness.

b.Cost of equity.d.Management control.

12.What is the drawback to the global matrix approach?

a.The complex levels of management often have conflicting incentives, which require valuable time to align.

b.While teamwork is realized, it is difficult to know whom to blame or praise when things go poorly or well.

c.The management complexity creates slow decision making.

d.All of these answers

13.Which of the following is NOT part of the reciprocal relationship between strategy and structure?

a.Strategy usually drives structure.

b.Structure also usually drives strategy.

c.Strategies and structures have to be ready to change all the time.

d.All of these answers.

14.Which of the following best exemplifies how informal institutions govern MNEs?

a.The US has few laws limiting US firms from creating subsidiaries overseas, but there is often a vocal backlash from the public over domestic job loss.

b.MNEs coming into the US have relatively few restrictions, as long as they do not practice illegal dumping or price setting.

c.MNEs based in the US must advance quickly into foreign markets to beat competitors and take care of opportunities, but these moves are often slowed by legal regulations and entry barriers.

d.The laws governing MNEs based in the US are always changing.

15.Which of the following best describes the motive for appointing a host-country national as head manager in a MNE subsidiary?

a.They are familiar with the intricate workings of the MNE.

b.They are independent of the local traditions and MNE so act as a neutral leader.

c.They are familiar with the local informal institutions and market.

d.Host-country nationals are never appointed as head manager.

16.Which best describes what is meant by the phrase “value of innovation”?

a.It is important for a firm to add concrete value.

b.Structural changes are focused on finding new value.

c.Not all innovation is valuable, so finding profitable innovation is crucial.

d.How an organization is structured is directly related to how valuable it is.

17.Which best describes the weakness behind enterprise resource planning (ERP) packages and MNE strategy?

a.ERPs only help a firm beginning home replication strategy, so they have low levels of local responsiveness

b.ERPs help a firm compete as efficiently as possible, but they are designed for widespread use by many MNEs so they do not help a firm achieve strong rarity.

c.The cost of ERPs usually does not outweigh its benefits.

d.ERPs help with organization and limitability, but are rarely able to help a firm establish more value.

18.Why is the flexible global matrix a popular organizational structure right now?

a.Because formal structures are easier to observe and imitate than informal structures, and it is more of a management mentality than an organizational structure.

b.Because it balances local responsiveness and cost efficiency.

c.Because it allows efficiency and simplicity in management levels.

d.Because it takes everything global and efficiently creates standardized products and marketing.

19.____ is the structures, processes, and systems that actively develop, advance, and transfer knowledge.

a.Absorptive capacityc.Explicit knowledge

b.Tacit knowledged.Knowledge management

20.If an MNE wishes to maintain innovation-based firm heterogeneity (being different from other firms), which of the following best describes a potentially successful strategy?

a.Invest much more in a centralized, close-knit R&D

b.Spread R&D work across different locations and teams around the world

c.Outsource R&D to other firms

d.Make alliances with other firms that have strong R&D departments

21.Which best describes the tension between central control and subsidiary initiative in a large firm?

a.The central management must realize social capital in order to take advantages of the complex subsidiary relationships.

b.The central management’s main motivation is value for the firm, so it will only give subsidiaries greater responsibility if they create value.

c.The central management may want to give subsidiaries control and encourage entrepreneurship and innovation, but it is difficult to distinguish between good faith subsidiary initiative and opportunism.

d.All of the answers

22.Which of the following is NOT one of the major management strategies?

a.Understand and be prepared to change the internal rules of the game governing MNE management.

b.Understand and carefully control subsidiaries and minimize autonomous and locally dependent teams.

c.Understand and master the external rules of the game governing MNEs and home/host country environments.

d.Develop learning and innovation capabilities to leverage multinational presence as an asset.