Quiz Six T/F
True
Over the last few years, there has been a major increase in the number of "electronic freelancers" - individuals who work on a project for a company, usually via the Internet, and move on to other employment when the assignment is done
True
Strategic management is required to keep track of increasingly diversified operations in a continuously changing international environment
True
Although strategic planning usually seems to pay off, as with most other aspects of international management, the specifics of the situation will dictate the success of the process
False
An advantage of a global functional division structure is that only the CEO can be held accountable for the profits
True
Centralization is a management system in which important decisions are made at the top
False
Companies that spend a relatively large share of their revenues on research and development (R&D) are likely to be licensees, and those that spend very little on R&D are more likely to be licensors
True
Cultural differences and time constraints are the two most pervasive barriers in mergers and acquisitions
False
Firms that pursue a global product division structure typically have products that are in the maturity stage of the product life cycle
True
Franchise agreements typically require payment of a fee up front and then percentage of the revenues
True
International strategies are characterized by increased international standardization of products and services
False
International strategy is a differentiated strategy emphasizing local adaptation
True
Multinational corporations generally need higher profitability from their overseas operations than they do from their domestic operations
False
One of the primary advantages of global area division structures is the ease with which product emphasis can be reconciled with a geographic orientation
True
One of the ways in which a multinational corporation (MNC) can enter a frontier market is by entering into a joint venture with a local company that specializes in the cultural knowledge of the marketplace
True
The global structural arrangement differs from the international division structure because, while both have an international scope, the former focuses on greater expansion and integration among international operations
False
There is definitive evidence that strategic planning in the international arena always results in higher profitability
False
To a growing extent, the customers of multinational corporations have heterogeneous tastes, and this has helped to spread international consumerism
True
Total quality management techniques range from traditional inspection and statistical quality control to cutting-edge human resource management techniques
False
Use of the finance function to implement strategy normally is developed at the overseas affiliate or branch and sent to the home office
False
Wholly owned subsidiaries face a low risk with large investments in one area
