Question 1 T F For an MNE to exist, first foreign countries must provide locat

Question 1 T F For an MNE to exist, first foreign countries must provide locat

Apr 10, 2020 | Business

Question 1 T F For an MNE to exist, first foreign countries must provide locat

Question 2
T F An MNE with an ‘international perspective’ will
typically be managed as a coordinated federation.
True

False

Question 3
T F An MNE with a ‘multinational perspective’ will typically
be managed as a coordinated federation.
True

False

Question 4
T F An MNE with a ‘global perspective’ will typically manage
its operations centrally.
True
False
Question 5
T F An MNE with a ‘transnational perspective’ will typically
be managed as an integrated network.
True

False

Question 6
T F Emerging motivations for internationalization include
the desire to enhance the firm’s competitive position and the desire to develop
global scanning capabilities.
True
False

Question 7
Which of the following correctly describes the sequential
evolution in management thinking with respect to the strategic role of foreign
operations in emerging MNEs?

global mentality, multinational mentality, international
mentality, transnational mentality.

international mentality, global mentality, transnational
mentality, multinational mentality.

multinational mentality, global mentality, international
mentality, transnational mentality.

international
mentality, multinational mentality, global mentality, transnational
mentality.

all of the above

Question 8
An MNE is a(n):

import-export company that actively trades in foreign
markets.

company that passively manages its substantial foreign
direct investment.

import-export company that actively manages its foreign
investment portfolio.

company
that actively manages substantial foreign direct investment.

All of the above

Question 9
Which of the following constitutes a list of foreign entry
modes that involve the MNE to make a foreign investment?

Greenfield,
acquisition, joint venture and capital participation

Greenfield, acquisition, joint venture and license

Franchising, acquisition, joint venture and capital
participation

Greenfield, acquisition, cooperation agreements and
capital participation

none of the above

Question 10
One motivation behind internationalization is to sustain the
firm’s competitive position. To pursue a sustainable competitive position
relative to its rivals in the athletic clothing industry, Nike attempts to:

preempt markets, capture global scale, and secure raw
materials

capture global scale, access scarce knowledge, and match
competitors

match
competitors, capture global scale, and preempt markets

exploit factor cost differences, preempt markets, and
match competitors

all of the above

Question 11
_________ suggests that in the first stage innovations are
produced in the home developed country; in the second stage they are exported
to other similarly developed countries; in the third stage, they start being
produced in these developed countries; in the fourth stage they start being
produced in low-wage developing countries.

Vernon’s
product cycle theory

Johanson and Vahlne’s stages theory

Dunning’s eclectic theory

Levitt’s globalization theory

none of the above

Question 12
A franchise, such as McDonald’s, is a _________ mode of
foreign entry.

low commitment, low control

low
commitment, moderate control

low commitment, high control

moderate commitment, moderate control

none of the above

Question 13
A joint venture is a _________ mode of foreign entry.

low commitment, low control

low commitment, moderate control

low commitment, high control

moderate
commitment, moderate control

none of the above

Question 14
Three prerequisites that must be satisfied before a national
firm can transform itself into a multinational firm include:

scale-based advantages, ownership-specific advantages and
contractual capabilities.

location-specific
advantages, ownership-specific advantages and organizational capabilities.

scale-based advantages, ownership-specific advantages and
organizational capabilities.

location-specific advantages, knowledge advantages and
organizational capabilities.

All of the above

Question 15
Pashpa Co. is a new manufacturer of home appliances. Pashpa
wants to go international. Some of the traditional motivations for pursuing
internationalization include:

securing key supplies, seeking new markets, and raising
global scanning and learning capabilities

securing key supplies, seeking new markets, and improving
competitive positioning

securing
key supplies, seeking new markets and accessing low-cost factors of
production

securing key supplies, improving competitive positioning,
and accessing low-cost factors of production

All of the above

Question 16
T F The search for global competitiveness is the major
source of conflict between MNEs and host governments.
True
False

Question 17
T F Worldwide innovation and learning forces that are
encountered by MNEs are driven by factor costs.
True
False

Question 18
T F In the emerging international environment, most
industries can be categorized as multinational, global or international.
True
False
Question 19
T F A multinational industry is characterized by low
national responsiveness and high global integration.
True

False

Question 20
T F An international industry is characterized by low
national responsiveness and moderate global integration.
True
False

3 points

Question 21
T F The three conflicting environmental forces that MNEs
encounter are cross-border integration and coordination, national
differentiation and responsiveness, and worldwide innovation and learning.
True
False
Question 22
What are the main forces that drive MNEs such as Nokia, the
mobile communications company, to innovate and learn on a global scale?

Economic and political forces.

Political and social forces.

Social and informational forces.

Technological
and informational forces.

none of the above

Question 23
A transnational industry is characterized by _____________.

low national responsiveness and low global integration

low national responsiveness and high global integration

high national responsiveness and low global integration

high
national responsiveness and high global integration

none of the above

Question 24
In a transnational industry, MNEs are expected to

collaborate with their competitors to increase the prices
of their products.

build
the capability to learn from the many environments in which they operate.

acquire their competitors to increase their pool of
resources.

decentralize decisions to better respond to local demands.

none of the above

Question 25
Philips, a multinational electronics corporation based in
the Netherlands and diversified in the consumer electronics, domestic
appliance, lighting, medical systems and medical technology industries would
encounter the following forces of local responsiveness:

Cultural differences, government demands and economies of
scope

Cultural differences, government demands and factor costs

Cultural
differences, government demands and local competitors

Cultural differences, government demands and increasingly
liberalized trade environments

none of the above

Question 26
What are the main forces that motivate MNEs such as Dell
Computers to disaggregate their operations and activities to respond to
national, regional and local needs and demands?

Social and economic forces.

Social
and political forces.

Political and economic forces.

Economic and psychological forces.

None of the above

Question 27
The pressures that drive book publishers such as McGraw-Hill
to integrate and coordinate their activities across national boundaries are
primarily _________.

economic

political

social

organizational

all of the above

Question 28
An industry that is characterized by low national
responsiveness and high global integration is a(n)

multinational industry.

global
industry.

international industry.

transnational industry.

none of the above

Question 29
Which global integration and coordination forces would MNEs,
such as Hewlett Packard, encounter?

Economies of scale, increasingly liberalized trade
environments and government demands

Economies
of scope, factor costs and increasingly liberalized trade environments

Economies of scale, expanding spiral of globalization and
local competitors

Economies of scale, economies of scope and government
demands

none of the above

Question 30
An industry that is characterized by moderate national
responsiveness and moderate global integration is a(n)

international
industry.

global industry.

transnational industry.

multinational industry.

none of the above

Question 31
T F The diversity of environments in which the MNE operates
enables the firm to develop diverse capabilities and experience multiple
learning opportunities.
True
False

3
points
Question 32
T F An MNE can maximize each of the following objectives
independently – global scale efficiency, multinational flexibility and
innovation development.
True

False
Question 33
T F Cost reductions due to scale-economies are static and
constant over time and few dynamic benefits are associated with scale
economies.
True

False
Question 34
T F Companies using multinational strategies are
characterized by asset and capability configurations that are dispersed,
interdependent and specialized.

True

False

Question 35
T F In addition to capturing cost advantages due to national
differences in factor endowments, an MNE can also exploit markets by responding
to customer needs and commanding higher prices.
True
False

Question 36
T F Since efficiency, flexibility and learning are conflicting
goals, a transnational company should focus on only one of these goals and try
to exploit it through the three sources of worldwide competitive advantage –
national differences in both input and output markets, scale economies and
scope economies.
True

False
Question 37
In order to secure worldwide competitive advantage, a
multinational firm should pursue all of the following objectives, except:

the development of global-scale efficiencies.

the development of multinational flexibility.

the ability to develop innovation.

maximizing
market share in all subsidiaries simultaneously.

Such a firm should pursue all of the above objectives

Question 38
Which of the following is not a benefit associated with
higher production volumes?

exploiting scale economies.

enhancing
innovation.

accumulating learning.

taking advantage of the learning curve effect to further
reduce production costs.

All of the above are such benefits

Question 39
Which of the following describes the strategic orientation
of a multinational company?

focused on developing global efficiency, flexibility and
worldwide learning capability simultaneously.

focused on exploiting parent company knowledge and
capabilities through worldwide diffusion and adaptation.

focused on building cost advantages through centralized,
global scale operations.

focused
on building flexibility to respond to national differences through strong,
resourceful and entrepreneurial national operations.

none of the above

Question 40
Which of the following describes the strategic orientation
of a transnational company?

focused on building flexibility to respond to national
differences through strong, resourceful and entrepreneurial national
operations.

focused
on developing global efficiency, flexibility and worldwide learning
capability simultaneously.

focused on building cost advantages through centralized,
global scale operations.

focused on exploiting parent company knowledge and
capabilities through worldwide diffusion and adaptation.

all of the above

Question 41
At the annual meeting of the board of directors of LabZaws
Co., James Wilson, the CEO of the company, was directed to focus primarily on
enhancing the firm’s efficiency. How could he achieve this objective?

focus on cost reduction alone.

focus on revenue enhancement alone.

focus
on both cost reduction and revenue enhancement.

downsize and outsource many of the firm’s activities.

none of the above

Question 42
Lindux Co., intends to enhance its competitive advantage
by exploiting the national differences that prevail in the countries that
host its subsidiaries. Which of the following is consistent with this
intention?

moving
the manufacture of labor-intensive components to Vietnam in order to
capitalize on the lower cost labor found in Vietnam.

hiring local managers for its foreign subsidiaries
rather than employing expatriates.

centralizing the company’s R&D activities in the
home country for reasons of strategic security.

using a common distribution channel for multiple
products.

all of the above

Question 43
Which of the following best describes an international
company’s asset and capability configuration?

assets and capabilities are decentralized and nationally
self-sufficient.

assets and capabilities are centralized and globally
scaled.

assets and capabilities are dispersed, interdependent and
specialized.

sources
of core competences are centralized, while other assets and capabilities are
decentralized.

none of the above

Question
44
Which of the following best describes a global company’s
asset and capability configuration?

assets
and capabilities are centralized and globally scaled.

core competences are centralized, while other assets and
capabilities are decentralized.

assets and capabilities are dispersed, interdependent and
specialized.

assets and capabilities are decentralized and nationally
self-sufficient.

none of the above

Question 45
Which of the following best describes scope economies?

cost advantage resulting from production, development or
distribution in more than one country.

cost advantage resulting from large volume production,
development or distribution.

cost
advantage resulting from the joint production, development or distribution of
more than one product.

cost advantage resulting from the production, development
or distribution of very high quality products.

none of the above

3
points
Question 46
T F In a transnational organization, knowledge is developed
at the headquarters and transferred to foreign units.
True

False
Question 47
T F The key strategic capability associated with the coordinated
federation organizational model is global-scale efficiency.
True

False
Question 48
T F In a transnational organization, the asset and
capability configuration can be described as dispersed, specialized and
interdependent.
True
False

Question 49
T F Summit Corp. is transitioning from a multinational
strategy to a transnational strategy. It would probably be more effective and
less costly if the company commenced its accompanying organizational transition
by focusing on changing employees’ attitudes and mentalities, than it would be
if it led its efforts by engaging in structural change.
True

False

Question 50
T F In the transnational organization, capable managers
situated in the national subsidiaries act as the primary source for sensing and
analysing worldwide opportunities and threats.
True
False

Question 51
T F Companies that pursue a multinational strategy are
inclined to adopt the decentralized federation organizational model.
True
False

Question 52
T F MNEs that adopted a centralized hub organizational model
were able to develop competitive advantage through their ability to transfer
knowledge and expertise and adapt it to markets worldwide.
True

False
Question 53
Which of the following strategy-structure pairs cannot be
associated?

Coordinated federation and multinational strategy.

Centralized hub and global strategy.

Decentralized
federation and multinational strategy.

Integrated network and transnational strategy.

All of the above such pairs can be associated.

Question 54
Isatis Co. has successfully transitioned from a global
strategy to a transnational strategy. Which of the following describes the
likely configuration of assets and capabilities that now most likely prevails
at Isatis?

Decentralized and nationally self-sufficient.

Centralized and globally scaled.

Dispersed,
specialized, and interdependent.

Core competencies are centralized; other assets and
capabilities are decentralized.

None of the above.

Question 55
Which of the following is not a core characteristic of the
decentralized federation structure?

Most key assets and resources are decentralized.

Subsidiaries are highly autonomous.

Corporate management regards subsidiaries as largely
independent national operations.

Reporting
and oversight conflicts prevail.

All of the above are core characteristics of such a
structure

Question 56
Which of the following describes the preferred sequencing of
changes associated with implementing the typically more effective emerging
change process model?

Change
in individual attitudes and mentalities; then, change in interpersonal
relationships and processes; and finally, change in the formal structure and
responsibilities

Change in the formal structure and responsibilities; then,
change in interpersonal relationships and processes; and finally, change in
individual attitudes and mentalities

Change in interpersonal relationships and processes; then,
change in the formal structure and responsibilities; and finally, change in
individual attitudes and mentalities.

Change in individual attitudes and mentalities; then,
change in the formal structure and responsibilities; and finally, change in
interpersonal relationships and processes.

None of the above

Question 57
Which of the following is not a core characteristic of the
coordinated federation structure?

Most assets and resources are decentralized but well
controlled by the headquarters.

Subsidiaries
are regarded as key sources of knowledge and expertise.

Subsidiary control exercised by the headquarters is
usually quite formal and rigorous.

Corporate managers tend to regard offshore subsidiaries as
extensions of domestic operations.

All of the above are core characteristics of such a
structure

Question 58
Which of the following is not a characteristic of a
transnational strategy?

Multiple diverse perspectives are developed and
legitimized.

Physical assets and management capabilities are
internationally distributed, yet interdependent.

Integrative processes are flexible and robust.

Knowledge
is developed centrally and adapted locally.

All of the above are characteristics of such a strategy

Question 59
Which of the following is not a characteristic of the
centralized hub structure?

Most of the key assets and resources are concentrated in
the home country.

Tight strategic and operational controls are maintained
over the subsidiaries.

Most
of the manufacturing and product development is executed by the subsidiaries.

Corporate management regards its subsidiaries as delivery
pipelines to the global market.

All of the above are characteristics of such a structure

Question 60

Which of the following statements regarding knowledge diffusion is correct?

In a decentralized federation, knowledge is developed in national
subsidiaries and diffused throughout the organization

In a centralized hub, knowledge is developed and retained at the center.

In a coordinated federation, knowledge is developed and retained within each
unit.

Knowledge diffusion is independent of structure, such that knowledge
diffuses in a quite similar manner in all organizational structures.

All of the above.

Question 62
What is the key lesson behind the metaphor that develops an
organizational change model based on a framework related to anatomy,
physiology, and psychology?

Question 1 T F For an MNE to exist, first foreign countries must
provide location-specific advantages to attract the company to invest there,
second the company must have ownership-specific advantages that counteract its
liability of foreignness, third the company must have the organizational
capability to leverage its strategic advantages more effectively internally
than externally.True False
Question 2 T F An MNE with an ‘international perspective’ will
typically be managed as a coordinated federation.True
False Question 3 T F An MNE with a ‘multinational perspective’ will typically
be managed as a coordinated federation.True
False T F An MNE with a ‘global perspective’ will typically manage
its operations centrally.True False Question 5 T F An MNE with a ‘transnational perspective’ will typically
be managed as an integrated network.True
False
T F Emerging motivations for internationalization include
the desire to enhance the firm’s competitive position and the desire to develop
global scanning capabilities.True False Which of the following correctly describes the sequential
evolution in management thinking with respect to the strategic role of foreign
operations in emerging MNEs?a.global mentality, multinational mentality, international
mentality, transnational mentality.b.international mentality, global mentality, transnational
mentality, multinational mentality.c.multinational mentality, global mentality, international
mentality, transnational mentality.d.international
mentality, multinational mentality, global mentality, transnational
mentality.e.all of the aboveAn MNE is a(n):a.import-export company that actively trades in foreign
markets.b.company that passively manages its substantial foreign
direct investment.c.import-export company that actively manages its foreign
investment portfolio.d.company
that actively manages substantial foreign direct investment.e.All of the aboveWhich of the following constitutes a list of foreign entry
modes that involve the MNE to make a foreign investment?a.Greenfield,
acquisition, joint venture and capital participationb.Greenfield, acquisition, joint venture and licensec.Franchising, acquisition, joint venture and capital
participationd.Greenfield, acquisition, cooperation agreements and
capital participatione.none of the aboveOne motivation behind internationalization is to sustain the
firm’s competitive position. To pursue a sustainable competitive position
relative to its rivals in the athletic clothing industry, Nike attempts to:a.preempt markets, capture global scale, and secure raw
materialsb.capture global scale, access scarce knowledge, and match
competitorsc.match
competitors, capture global scale, and preempt marketsd.exploit factor cost differences, preempt markets, and
match competitorse.all of the above_________ suggests that in the first stage innovations are
produced in the home developed country; in the second stage they are exported
to other similarly developed countries; in the third stage, they start being
produced in these developed countries; in the fourth stage they start being
produced in low-wage developing countries.a.Vernon’s
product cycle theoryb.Johanson and Vahlne’s stages theoryc.Dunning’s eclectic theoryd.Levitt’s globalization theorye.none of the aboveA franchise, such as McDonald’s, is a _________ mode of
foreign entry.a.low commitment, low controlb.low
commitment, moderate controlc.low commitment, high controld.moderate commitment, moderate controle.none of the aboveA joint venture is a _________ mode of foreign entry.a.low commitment, low controlb.low commitment, moderate controlc.low commitment, high controld.moderate
commitment, moderate controle.none of the aboveQuestion 14 Three prerequisites that must be satisfied before a national
firm can transform itself into a multinational firm include:a.scale-based advantages, ownership-specific advantages and
contractual capabilities.b.location-specific
advantages, ownership-specific advantages and organizational capabilities.c.scale-based advantages, ownership-specific advantages and
organizational capabilities.d.location-specific advantages, knowledge advantages and
organizational capabilities.e.All of the abovePashpa Co. is a new manufacturer of home appliances. Pashpa
wants to go international. Some of the traditional motivations for pursuing
internationalization include:a.securing key supplies, seeking new markets, and raising
global scanning and learning capabilitiesb.securing key supplies, seeking new markets, and improving
competitive positioningc.securing
key supplies, seeking new markets and accessing low-cost factors of
productiond.securing key supplies, improving competitive positioning,
and accessing low-cost factors of productione.All of the aboveQuestion 16 T F The search for global competitiveness is the major
source of conflict between MNEs and host governments.True False
T F Worldwide innovation and learning forces that are
encountered by MNEs are driven by factor costs.True False
T F In the emerging international environment, most
industries can be categorized as multinational, global or international.True False Question 19 T F A multinational industry is characterized by low
national responsiveness and high global integration.True
FalseT F An international industry is characterized by low
national responsiveness and moderate global integration.True False 3 points T F The three conflicting environmental forces that MNEs
encounter are cross-border integration and coordination, national
differentiation and responsiveness, and worldwide innovation and learning.True False What are the main forces that drive MNEs such as Nokia, the
mobile communications company, to innovate and learn on a global scale?a.Economic and political forces.b.Political and social forces.c.Social and informational forces.d.Technological
and informational forces.e.none of the aboveQuestion 23 A transnational industry is characterized by _____________.a.low national responsiveness and low global integrationb.low national responsiveness and high global integrationc.high national responsiveness and low global integrationd.high
national responsiveness and high global integratione.none of the aboveIn a transnational industry, MNEs are expected toa.collaborate with their competitors to increase the prices
of their products.b.build
the capability to learn from the many environments in which they operate.c.acquire their competitors to increase their pool of
resources.d.decentralize decisions to better respond to local demands.e.none of the aboveQuestion 25 Philips, a multinational electronics corporation based in
the Netherlands and diversified in the consumer electronics, domestic
appliance, lighting, medical systems and medical technology industries would
encounter the following forces of local responsiveness:a.Cultural differences, government demands and economies of
scopeb.Cultural differences, government demands and factor costsc.Cultural
differences, government demands and local competitorsd.Cultural differences, government demands and increasingly
liberalized trade environmentse.none of the aboveWhat are the main forces that motivate MNEs such as Dell
Computers to disaggregate their operations and activities to respond to
national, regional and local needs and demands?a.Social and economic forces.b.Social
and political forces.c.Political and economic forces.d.Economic and psychological forces.e.None of the aboveQuestion 27 The pressures that drive book publishers such as McGraw-Hill
to integrate and coordinate their activities across national boundaries are
primarily _________.a.economicb.politicalc.sociald.organizationale.all of the aboveQuestion 28 An industry that is characterized by low national
responsiveness and high global integration is a(n)a.multinational industry.b.global
industry.c.international industry.d.transnational industry.e.none of the aboveQuestion 29 Which global integration and coordination forces would MNEs,
such as Hewlett Packard, encounter?a.Economies of scale, increasingly liberalized trade
environments and government demandsb.Economies
of scope, factor costs and increasingly liberalized trade environmentsc.Economies of scale, expanding spiral of globalization and
local competitorsd.Economies of scale, economies of scope and government
demandse.none of the aboveQuestion 30 An industry that is characterized by moderate national
responsiveness and moderate global integration is a(n)a.international
industry.b.global industry.c.transnational industry.d.multinational industry.e.none of the aboveQuestion 31 T F The diversity of environments in which the MNE operates
enables the firm to develop diverse capabilities and experience multiple
learning opportunities.True False
3
points Question 32 T F An MNE can maximize each of the following objectives
independently – global scale efficiency, multinational flexibility and
innovation development.True
False Question 33 T F Cost reductions due to scale-economies are static and
constant over time and few dynamic benefits are associated with scale
economies.True
False Question 34 T F Companies using multinational strategies are
characterized by asset and capability configurations that are dispersed,
interdependent and specialized.a.Trueb.FalseQuestion 35 T F In addition to capturing cost advantages due to national
differences in factor endowments, an MNE can also exploit markets by responding
to customer needs and commanding higher prices.True False
Question 36 T F Since efficiency, flexibility and learning are conflicting
goals, a transnational company should focus on only one of these goals and try
to exploit it through the three sources of worldwide competitive advantage –
national differences in both input and output markets, scale economies and
scope economies.True
False Question 37 In order to secure worldwide competitive advantage, a
multinational firm should pursue all of the following objectives, except:a.the development of global-scale efficiencies.b.the development of multinational flexibility.c.the ability to develop innovation.d.maximizing
market share in all subsidiaries simultaneously.e.Such a firm should pursue all of the above objectivesQuestion 38 Which of the following is not a benefit associated with
higher production volumes?a.exploiting scale economies.b.enhancing
innovation.c.accumulating learning.d.taking advantage of the learning curve effect to further
reduce production costs.e.All of the above are such benefitsQuestion 39 Which of the following describes the strategic orientation
of a multinational company?a.focused on developing global efficiency, flexibility and
worldwide learning capability simultaneously.b.focused on exploiting parent company knowledge and
capabilities through worldwide diffusion and adaptation.c.focused on building cost advantages through centralized,
global scale operations.d.focused
on building flexibility to respond to national differences through strong,
resourceful and entrepreneurial national operations.e.none of the aboveWhich of the following describes the strategic orientation
of a transnational company?a.focused on building flexibility to respond to national
differences through strong, resourceful and entrepreneurial national
operations.b.focused
on developing global efficiency, flexibility and worldwide learning
capability simultaneously.c.focused on building cost advantages through centralized,
global scale operations.d.focused on exploiting parent company knowledge and
capabilities through worldwide diffusion and adaptation.e.all of the aboveAt the annual meeting of the board of directors of LabZaws
Co., James Wilson, the CEO of the company, was directed to focus primarily on
enhancing the firm’s efficiency. How could he achieve this objective?a.focus on cost reduction alone.b.focus on revenue enhancement alone.c.focus
on both cost reduction and revenue enhancement.d.downsize and outsource many of the firm’s activities.e.none of the aboveQuestion 42 Lindux Co., intends to enhance its competitive advantage
by exploiting the national differences that prevail in the countries that
host its subsidiaries. Which of the following is consistent with this
intention?a.moving
the manufacture of labor-intensive components to Vietnam in order to
capitalize on the lower cost labor found in Vietnam.b.hiring local managers for its foreign subsidiaries
rather than employing expatriates.c.centralizing the company’s R&D activities in the
home country for reasons of strategic security.d.using a common distribution channel for multiple
products.e.all of the aboveWhich of the following best describes an international
company’s asset and capability configuration?a.assets and capabilities are decentralized and nationally
self-sufficient.b.assets and capabilities are centralized and globally
scaled.c.assets and capabilities are dispersed, interdependent and
specialized.d.sources
of core competences are centralized, while other assets and capabilities are
decentralized.e.none of the aboveWhich of the following best describes a global company’s
asset and capability configuration?a.assets
and capabilities are centralized and globally scaled.b.core competences are centralized, while other assets and
capabilities are decentralized.c.assets and capabilities are dispersed, interdependent and
specialized.d.assets and capabilities are decentralized and nationally
self-sufficient.e.none of the aboveQuestion 45 Which of the following best describes scope economies?a.cost advantage resulting from production, development or
distribution in more than one country.b.cost advantage resulting from large volume production,
development or distribution.c.cost
advantage resulting from the joint production, development or distribution of
more than one product.d.cost advantage resulting from the production, development
or distribution of very high quality products.e.none of the above3
points Question 46 T F In a transnational organization, knowledge is developed
at the headquarters and transferred to foreign units.True
False Question 47 T F The key strategic capability associated with the coordinated
federation organizational model is global-scale efficiency.True
False Question 48 T F In a transnational organization, the asset and
capability configuration can be described as dispersed, specialized and
interdependent.True False
Question 49 T F Summit Corp. is transitioning from a multinational
strategy to a transnational strategy. It would probably be more effective and
less costly if the company commenced its accompanying organizational transition
by focusing on changing employees’ attitudes and mentalities, than it would be
if it led its efforts by engaging in structural change.True
False
Question 50 T F In the transnational organization, capable managers
situated in the national subsidiaries act as the primary source for sensing and
analysing worldwide opportunities and threats.True False
Question 51 T F Companies that pursue a multinational strategy are
inclined to adopt the decentralized federation organizational model.True False
Question 52 T F MNEs that adopted a centralized hub organizational model
were able to develop competitive advantage through their ability to transfer
knowledge and expertise and adapt it to markets worldwide.True
False Which of the following strategy-structure pairs cannot be
associated?a.Coordinated federation and multinational strategy.b.Centralized hub and global strategy.c.Decentralized
federation and multinational strategy.d.Integrated network and transnational strategy.e.All of the above such pairs can be associated.Isatis Co. has successfully transitioned from a global
strategy to a transnational strategy. Which of the following describes the
likely configuration of assets and capabilities that now most likely prevails
at Isatis?a.Decentralized and nationally self-sufficient.b.Centralized and globally scaled.c.Dispersed,
specialized, and interdependent.d.Core competencies are centralized; other assets and
capabilities are decentralized.e.None of the above.Which of the following is not a core characteristic of the
decentralized federation structure?a.Most key assets and resources are decentralized.b.Subsidiaries are highly autonomous.c.Corporate management regards subsidiaries as largely
independent national operations.d.Reporting
and oversight conflicts prevail.e.All of the above are core characteristics of such a
structureQuestion 56 Which of the following describes the preferred sequencing of
changes associated with implementing the typically more effective emerging
change process model?a.Change
in individual attitudes and mentalities; then, change in interpersonal
relationships and processes; and finally, change in the formal structure and
responsibilitiesb.Change in the formal structure and responsibilities; then,
change in interpersonal relationships and processes; and finally, change in
individual attitudes and mentalitiesc.Change in interpersonal relationships and processes; then,
change in the formal structure and responsibilities; and finally, change in
individual attitudes and mentalities.d.Change in individual attitudes and mentalities; then,
change in the formal structure and responsibilities; and finally, change in
interpersonal relationships and processes.e.None of the aboveWhich of the following is not a core characteristic of the
coordinated federation structure?a.Most assets and resources are decentralized but well
controlled by the headquarters.b.Subsidiaries
are regarded as key sources of knowledge and expertise.c.Subsidiary control exercised by the headquarters is
usually quite formal and rigorous.d.Corporate managers tend to regard offshore subsidiaries as
extensions of domestic operations.e.All of the above are core characteristics of such a
structureWhich of the following is not a characteristic of a
transnational strategy?a.Multiple diverse perspectives are developed and
legitimized.b.Physical assets and management capabilities are
internationally distributed, yet interdependent.c.Integrative processes are flexible and robust.d.Knowledge
is developed centrally and adapted locally.e.All of the above are characteristics of such a strategyQuestion 59 Which of the following is not a characteristic of the
centralized hub structure?a.Most of the key assets and resources are concentrated in
the home country.b.Tight strategic and operational controls are maintained
over the subsidiaries.c.Most
of the manufacturing and product development is executed by the subsidiaries.d.Corporate management regards its subsidiaries as delivery
pipelines to the global market.e.All of the above are characteristics of such a structurea.

In a decentralized federation, knowledge is developed in national
subsidiaries and diffused throughout the organization

In a centralized hub, knowledge is developed and retained at the center.

In a coordinated federation, knowledge is developed and retained within each
unit.

Knowledge diffusion is independent of structure, such that knowledge
diffuses in a quite similar manner in all organizational structures.

All of the above.

Question 61 Cool-Colas Ltd. is a national beverage manufacturer situated
in India. During the past few years, the company has suffered intense
competition from major multinationals such as Coca Cola, Nestl and Pepsi. What
can Cool-Colas do to protect its domestic market?Question 62 What is the key lesson behind the metaphor that develops an
organizational change model based on a framework related to anatomy,
physiology, and psychology?

Question 1 T F For an MNE to exist, first foreign countries must provide locat

Question 1 T F For an MNE to exist, first foreign countries must provide locat

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