67) Which one of the following is not a structural option for firms pursuing international
strategies?
A) Corporate federation
B) Decentralized federation
C) Transnational structure
D) Centralized hub
68) Which one of the following structural options combines a high level of both global
integration and local responsiveness?
A) Centralized hub
B) Decentralized hub
C) Transnational structure
D) Coordinated federation
69) In many ways, the transnational structure is similar to the
A) coordinated federation.
B) centralized hub.
C) decentralized federation.
D) decentralized hub.
70) In a coordinated federation structure, shared activities and other cross-divisional/cross-
country economies of scope are managed by the
A) country unit.
B) corporate center.
C) local unit.
D) country manager.
71) The role of corporate headquarters in a ________ is to constantly scan business operations
across different countries for resources and capabilities that might be a source of competitive
advantage for other divisions/country companies in the firm.
A) centralized hub
B) coordinated federation
C) decentralized federation
D) transnational structure
72) Firms that seek to maximize their local responsiveness will tend to choose a ________
structure
A) transnational
B) centralized hub
C) decentralized federation
D) coordinated federation
73) Firms that seek to maximize international integration in their operations will typically opt for
________ structures.
A) transnational
B) decentralized federation
C) coordinated federation
D) centralized hub
74) Firms that seek to balance the need for local responsiveness and international integration will
typically choose ________.
A) centralized federations
B) transnational structures
C) decentralized federations
D) matrix structures
75) Firms that attempt to optimize both local responsiveness and international integration will
choose a ________ organizational structure.
A) centralized hub
B) transnational
C) coordinated federation
D) decentralized federation
76) Firms that have been successful in adopting the transnational structure include
A) Sony.
B) Disney.
C) Ford.
D) Nokia.
77) Toyota is an example of a firm that uses the ________ structure.
A) centralized hub
B) transnational
C) decentralized federation
D) coordinated federation
78) General Electric (GE) uses a ________ structure to manage its global operations.
A) transnational
B) centralized hub
C) decentralized federation
D) coordinated federation
79) In a ________ structure, corporate staff functions are generally limited to the collection of
accounting and other performance information from divisions/country companies and to
reporting this aggregate information to appropriate government officials and to the financial
markets.
A) transnational
B) decentralized federation
C) centralized hub
D) coordinated federation
80) In a ________ structure, operational decisions are delegated to division general
managers/country presidents, but broader strategic decisions are made at corporate headquarters.
A) transnational
B) centralized hub
C) coordinated federation
D) decentralized federation
81) Firms pursuing an international strategy have ________ basic organizational structural
alternatives.
A) 3
B) 5
C) 4
D) 2
82) There are relatively few examples of pure ________ in today’s economy.
A) decentralized federations
B) transnational structures
C) centralized hubs
D) coordinated federations
83) An important economy of scope for Agrestal in pursuing international opportunities is
A) technology.
B) access to raw materials.
C) organizational learning.
D) synergy.
84) Agrestal’s use of licensing in certain countries is an example of ________ governance
organizing option.
A) market
B) corporate
C) hierarchical
D) intermediate market
85) When Agrestal (along with other companies) was asked to leave a foreign country in the
1990s, it was a victim of
A) corporate risk.
B) cultural risk.
C) political risk.
D) financial risk.
86) What Agrestal did in Brazil was an example of
A) hedging.
B) countertrade.
C) diversification.
D) strategizing.
87) Agrestal’s use of hedging is a way for the company to guard against ________ risks.
A) political
B) market
C) business
D) financial
88) Agrestal’s organizational structure is most likely the ________ structure.
A) centralized hub
B) transnational
C) decentralized federation
D) coordinated federation
89) From its organization structure, it appears that Agrestal is attempting to maximize ________
in its operations.
A) local responsiveness
B) strategic coordination
C) operational coordination
D) international integration
90) To optimize both local responsiveness and international integration, Agrestal has to move to
a ________ structure.
A) matrix
B) transnational
C) operational
D) coordinated federation
91) What are trade barriers? How do they affect foreign firms?
92) What is countertrade? How is it useful in international business?
93) In international business, is a “race to the bottom” always good for firms?
94) Is learning from international operations automatic for firms? Why or why not?
95) What is the local responsiveness/international integration trade-off that firms face when they
go into international markets?
96) Describe the transnational strategy.
97) What is meant by political risk? What types of political risks do firms face?
98) Is financial risk the same as business risk?
99) Describe the differences between market and hierarchical governance options for firms
pursuing international strategies.
100) Discuss the four structural options for firms pursuing international strategies.