Briefly explain which of the four organizational structures is appropriate for each of the MNE strategic choices.
International division this is typically used when firms first expand abroad, often engaging in a home replication strategy. Geographic area structure organizes the MNE according to different geographic area so the localization strategy would be appropriate.
Global product division structure this structure supports the global standardization strategy by assigning global responsibilities to each product division.
Global matrix lightens the disadvantages associated with both geographic area and global product divisions structures which is why this structure supports the goals of the transnational strategy.
Learn More :
International Business
- The textbook states that leadership can be a root cause of unethical behavior. Explain how this can be and if you agree.
- List and contrast the advantages and disadvantages of Individualism versus Collectivism.
- Milton Freidman stated in his famous article in the New York Times in 1970 that "the social responsibility of business is to increase profit." Do you agree or disagree? Explain your position.
- How would business practices in an Islamic country differ from business practices in a Christian country?
- What are the implications for international business of differences in the dominant religion or ethical system of a country?
- The study of international business is fine if you are going to work in a large multinational enterprise, but it has no relevance for individuals who are going to work in small firms. Evaluate this statement.
- What is the relationship among property rights, corruption, and economic progress?
- Free market economics stimulate greater economic growth, whereas state-directed economies stifle growth. Explain.
- What are the two primary means to set up a WOS?
- How does the carnage of the highway support a service industry?
- What are the two primary means to set up a WOS?
- What is international business? What are the primary reasons that companies engage in international business?