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Tacit knowledge is non-codifiable,and its acquisition and transfer require hands-on practice.

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True

Which of the following is a leading problem with the international division organizational structure?


A) It encourages the fragmentation of the multinational enterprises into fiefdoms.
B) It does not give sufficient voice to foreign subsidiary managers relative to the heads of domestic divisions.
C) It treats each product division as a stand-alone entity with full worldwide responsibilities.
D) It does not allow a firm to focus on its domestic activities because it serves as a silo whose activities are not coordinated with the rest of the firm.

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In the context of knowledge management,which of the following is true of multinational enterprises (MNEs) adopting a transnational strategy?


A) Knowledge is developed at the center and transferred to subsidiaries.
B) Knowledge is developed and retained within each subsidiary.
C) Knowledge is mostly developed and retained at key locations.
D) Knowledge is developed jointly and shared worldwide.

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Which of the following is true of a localization strategy?


A) It has low costs due to duplication of efforts in multiple countries.
B) It promotes diffusion of innovation in multiple ways.
C) It involves the development and distribution of standardized products worldwide.
D) It is effective when pressures for cost reductions are low.

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Transnational strategy aims to capture the best of both worlds by endeavoring to be both cost efficient and locally responsive.

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TrinkCan Inc.,a soft drink company in Wales,establishes new branches in England,Australia,and the United States.To minimize its costs,the company uses similar packaging,distribution,and promotion across all the countries.According to the integration-responsiveness framework,which of the following strategies is used by TrinkCan?


A) Home replication strategy
B) Localization strategy
C) Transnational strategy
D) Global standardization strategy

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Multinational enterprises that engage in a _____ strategy promote global learning and diffusion of innovations in multiple ways.


A) transnational
B) home replication
C) localization
D) global standardization

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Formal structures are easier to observe and imitate than informal structures.

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A hallmark of transnational multinational enterprises is a high degree of interdependence and extensive and bi-directional flows of knowledge.

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Frolik Foods Inc.,a fast food franchise in the United States,opens a new outlet in Germany.The franchise develops recipes in the U.S.and then transfers them to its outlets in Germany.Which of the following strategies is being used by Frolik Foods?


A) Localization strategy
B) Home replication strategy
C) Global standardization strategy
D) Transnational strategy

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Which of the following is an advantage of adopting a home replication strategy?


A) It is relatively easy to implement.
B) It focuses on host country.
C) It is effective when the pressures for cost reductions are low.
D) It encourages the fragmentation of a company into fiefdoms.

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Multinational enterprises appoint home-country nationals as the head of a foreign subsidiary because the home-country nationals:


A) create a fiefdom of their enterprise in the host-country.
B) can deal effectively with two bosses without any major conflict.
C) have an understanding of the informal workings of multinational enterprises.
D) focus on implementing a localization strategy.

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In the context of knowledge management,which of the following is true of multinational enterprises (MNEs) adopting a home replication strategy?


A) Knowledge is developed at the center and transferred to subsidiaries.
B) Knowledge is developed and retained within each subsidiary.
C) Knowledge is mostly developed and retained at the center and key locations.
D) Knowledge is developed jointly and shared worldwide.

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A

The global matrix structure supports the goal of the transnational strategy,but in practice it is often difficult to deliver because:


A) managers have to deal with two bosses who are often in conflict.
B) managers have to deal with the pressures of both global integration and local responsiveness.
C) the structure encourages fragmentation of multinational enterprises into fiefdoms.
D) the structure increases inefficient duplication in multiple countries.

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Which of the following is true of the business leader of a specific country (or a geographic region) ?


A) They carry a great deal of weight in their geographic area.
B) They are less influential than domestic managers.
C) No geographic area is stand-alone.
D) They tend to decrease local responsiveness overall.

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Centralized research and development guarantees persistent heterogeneity in the solutions generated by a company.

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_______ is an organizational structure often used to alleviate the disadvantages associated with both geographic area and global product division structures,particularly when adopting a transnational strategy.


A) Geographic structure area
B) Subsidiary initiative
C) Global matrix
D) Global product division

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C

Formally,organizational charts specify the scope of responsibilities for various parties.

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Which of the following is an effect of adopting a local responsiveness strategy?


A) Standardized products are developed and distributed.
B) Home-country-based competencies are duplicated in foreign countries.
C) Regulations on local products are loosened.
D) Costs of products and services are increased.

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_____ can be defined as the structures,processes,and systems that actively develop,leverage,and transfer knowledge.


A) Knowledge engineering
B) Knowledge management
C) Global standardization
D) Global product division

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