21) In which of the following situations would a company : 1419050
21) In which of the following situations would a company most likely benefit from using the international division structure?
A) when the company's different foreign markets pose significantly different opportunities and threats
B) when the company relies on local managers in foreign operations to make strategic decisions
C) when the domestic market is much more important than the foreign market
D) when the domestic market has reached its full market capacity
22) A major benefit of the international division structure is ________.
A) the elimination of conflicts of interest among domestic and foreign operations
B) the integration of domestic and foreign operations
C) movement away from economies of scale
D) cost effectiveness
23) Chapman Enterprises is an MNE that markets a diverse portfolio of products including jewelry, luggage, and furniture. Which structure would most likely be used by Chapman?
A) international division
B) functional division
C) geographic division
D) product division
24) Avery Designs is an MNE with a diverse portfolio of products including cookware and clothing. Both the foreign and domestic operations for the firm's cookware products report to the same manager. Which structure is most likely used by Avery?
A) matrix division
B) product division
C) international division
D) geographic division
25) The primary limitation with the product division structure is the ________.
A) cost of duplicated functions and international activities
B) poor response to local market demands for a product
C) inability to transfer core competencies within units
D) difficulty of selling product lines
26) Historically, the geographic division structure is associated with companies pursuing ________ strategies.
27) Which of the following factors has most likely led to more MNEs using a geographic division structure?
A) growth of emerging markets
B) diversification of products
C) rise of social networking
D) global recession
28) Gary is a manufacturing manager at Forman Enterprises. Gary works at the MNE's headquarters in the U.S. Before Gary can implement any major changes or decisions, he must communicate and coordinate his plans with Raj, a sales manager at Forman's facility in India. Which structure is most likely used by Forman Enterprises?
C) product division
D) geographic division
29) The fundamental limitation of a matrix structure is that it ________.
A) creates a poor organizational culture
B) isolates upper management from operational levels
C) institutes a dual hierarchy that violates the unity-of-command principle
D) introduces more errors in the decision-making process due to the speed of the process
30) In reality, the organizational charts of ________ MNEs neatly depict a functional, divisional, or matrix structure.