56. The international division structure A. is usually adopted before a firm beg

Question

56. The international division structure

A. is usually adopted before a firm begins expanding into international markets.

B. usually has the international division reporting to the domestic division.

C. is only used during the early stages of internationalization; large multinationals change their structure to global, regional, or matrix structures.

D. is the most inefficient of the structures.

E. usually has the international division responsible for all overseas activity.

57. Problems with the matrix structure are as follows:

A. two or more managers must agree on decisions, which can lead to slow decision making.

B. special divisions often must be established to serve heterogeneous customer segments.

C. global branding and production coordination are hindered.

D. functional concerns are ignored.

E. upper management is no longer involved in key decisions of the IC.

Explanation / Answer

56. Option C.

Explanation: International division structure is generally adopted in the initial stages of internationalization. Later on, they change the structure to suit the increased operation activities.

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