Management and Global Business Manager Essay

2846 Words12 Pages
1. Frank is director of technology in an MNE in which most of the R&D activities are performed in the parent company’s home country, but then, foreign subsidiaries are responsible for introducing the resulting innovations to their local customers. The innovation process adopted by Frank’s MNE is:
a. globally linked.
b. local-for-local.
c. center-for-global.
d. locally leveraged. C

2. With responsibility for his company’s largely centralized R&D activities, Frank worries that the center may not understand local market needs, while the subsidiaries may not be committed to innovations developed at the center. To respond to these concerns, Frank’s priority should be to:
a. adopt a single point of contact between headquarters
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At the senior management committee level, where the top commercial, technical, and financial managers in the subsidiary foster subsidiary-level coordination
d. All of the above


5. Which of the following management assumptions is most likely to support transnational innovation in MNEs?
a. The roles of different organizational units should be uniform and symmetrical.
b. The headquarter-subsidiary relationship should be based on clear and unambiguous patterns of dependence or independence.
c. Career paths should be structured to give managers cross-border and cross-functional experience.
d. Headquarters should be responsible for exercising decision-making and control uniformly.

6. What is the primary advantage of operating interdependent subsidiaries?
a. It reduces the need to control subsidiaries and to coordinate their activities.
b. It allows the company to integrate scale-efficient operations and to cross-subsidize subsidiaries when necessary.
c. It provides an opportunity to balance the interests of subsidiaries with the needs of the headquarters.
d. It prevents subsidiaries from becoming too independent or uncontrolled.


7. TechInnovation is a large MNE operating in an environment characterized by rapid changes. During the past 50 years, its subsidiaries have operated independently. Which of the
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