International Management Final Exam
questions with complete solutions
alliance - ANS ✔✔any type of cooperative relationship among different firms
centralization - ANS ✔✔a management system in which important decisions are made at the
top
decentralization - ANS ✔✔pushing decision making down the line and getting the lower-level
personnel involved
formalization - ANS ✔✔the use of defined structures and systems in decision making,
communicating, and controlling
franchise - ANS ✔✔a business arrangement under which one party allows another to operate
an enterprise using its trademark, logo, product line, and methods of operation in return for a
fee
global area division - ANS ✔✔a structure under which global operations are organized on a
geographic rather than a product basis
global functional division - ANS ✔✔a structure that organizes world-wide operations primarily
based on function and secondarily on product
global product division - ANS ✔✔a structural arrangement in which domestic divisions are given
worldwide responsibility for product groups
, horizontal specialization - ANS ✔✔the assignment of jobs so that individuals are given a
particular function to perform and tend to stay within the confines of this area
international division structure - ANS ✔✔a structural arrangement that handles all international
operations out of a division created for this purpose
joint venture (JV) - ANS ✔✔an agreement under which two or more partners own or control a
business
license - ANS ✔✔an agreement that allows one party to use an industrial property right in
exchange for payment to the other party
merger/acquisition - ANS ✔✔the cross-border purchase or exchange or equity involving two or
more companies
mixed organization structure - ANS ✔✔a structure that is a combination of a global product,
area, or functional arrangement
specialization - ANS ✔✔an organizational characteristic that assigns individuals to specific, well-
defined tasks
transnational network structure - ANS ✔✔a multinational structural arrangement that
combines elements of a function, product, and geographic designs, while relying on a network
arrangement to link worldwide subsidiaries
vertical specialization - ANS ✔✔the assignment of work to groups or departments where
individuals are collectively responsible for performance
wholly owned subsidiary - ANS ✔✔an overseas operation that is totally owned and controlled
by an MNC
questions with complete solutions
alliance - ANS ✔✔any type of cooperative relationship among different firms
centralization - ANS ✔✔a management system in which important decisions are made at the
top
decentralization - ANS ✔✔pushing decision making down the line and getting the lower-level
personnel involved
formalization - ANS ✔✔the use of defined structures and systems in decision making,
communicating, and controlling
franchise - ANS ✔✔a business arrangement under which one party allows another to operate
an enterprise using its trademark, logo, product line, and methods of operation in return for a
fee
global area division - ANS ✔✔a structure under which global operations are organized on a
geographic rather than a product basis
global functional division - ANS ✔✔a structure that organizes world-wide operations primarily
based on function and secondarily on product
global product division - ANS ✔✔a structural arrangement in which domestic divisions are given
worldwide responsibility for product groups
, horizontal specialization - ANS ✔✔the assignment of jobs so that individuals are given a
particular function to perform and tend to stay within the confines of this area
international division structure - ANS ✔✔a structural arrangement that handles all international
operations out of a division created for this purpose
joint venture (JV) - ANS ✔✔an agreement under which two or more partners own or control a
business
license - ANS ✔✔an agreement that allows one party to use an industrial property right in
exchange for payment to the other party
merger/acquisition - ANS ✔✔the cross-border purchase or exchange or equity involving two or
more companies
mixed organization structure - ANS ✔✔a structure that is a combination of a global product,
area, or functional arrangement
specialization - ANS ✔✔an organizational characteristic that assigns individuals to specific, well-
defined tasks
transnational network structure - ANS ✔✔a multinational structural arrangement that
combines elements of a function, product, and geographic designs, while relying on a network
arrangement to link worldwide subsidiaries
vertical specialization - ANS ✔✔the assignment of work to groups or departments where
individuals are collectively responsible for performance
wholly owned subsidiary - ANS ✔✔an overseas operation that is totally owned and controlled
by an MNC
