Chapter 14

Which organizational structure is characterized by decentralized decision-making and autonomy for regional subsidiaries?

• • A) Global product structure

• • B) Global matrix structure

• • C) Transnational structure

• • D) International division structure

In international organizations, what does the term "local responsiveness" refer to?

• • A) Centralized decision-making at headquarters

• • B) Adapting products and strategies to local markets

• • C) Standardizing products globally

• • D) Outsourcing operations to local suppliers

Which control mechanism involves setting clear performance targets and monitoring results using key performance indicators (KPIs)?

• • A) Personal control

• • B) Bureaucratic control

• • C) Output control

• • D) Cultural control

What is the purpose of integrating information systems across global subsidiaries in international organizations?

• • A) To reduce global competition

• • B) To facilitate communication and data sharing

• • C) To increase tariff barriers

• • D) To decentralize decision-making

Which international organizational structure combines elements of both global product and area division structures?

• • A) Global matrix structure

• • B) Global functional structure

• • C) International division structure

• • D) Global product structure

What role does cultural control play in international organization design?

• • A) It standardizes operational procedures globally

• • B) It aligns employee behavior with organizational values

• • C) It decentralizes decision-making authority

• • D) It reduces dependency on local market conditions

What is a key advantage of a global functional structure in international organizations?

• • A) It facilitates local responsiveness

• • B) It promotes product innovation

• • C) It enhances coordination and efficiency

• • D) It decentralizes decision-making authority

Which strategy involves integrating global operations while maintaining local flexibility and responsiveness?

• • A) Standardization strategy

• • B) Localization strategy

• • C) Transnational strategy

• • D) Export strategy

Which control mechanism relies on establishing norms, values, and beliefs that guide employee behavior?

• • A) Output control

• • B) Bureaucratic control

• • C) Cultural control

• • D) Personal control

What is the primary objective of international organization design?

• • A) Minimizing cultural differences

• • B) Maximizing operational efficiency

• • C) Reducing global competition

• • D) Increasing tariff barriers