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 …show more content…

a. TechInnovation could centralize more decision-making to counter-balance the decentralization that has taken place during the past 50 years.
b. TechInnovation could create regular cross subsidiary meetings to coordinate activities and resolve differences.
c. TechInnovation could break up its value-chain to ensure that subsidiaries perform interrelated activities.
d. TechInnovation could develop career paths to routinely transfer managers across subsidiaries.

A

8. In developing differentiated coordination processes in a transnational organization, which of the following factors would be most important for an MNC manager to consider?
a. How the company sources its raw materials, transfers technologies, and manages scarce resources.
b. How the company is structured and how decision-making authority is assigned.
c. The environment in which the firm operates and the nature of competition in that environment.
d. The portfolio of products that the MNE offers and the markets in which it offers them.

A
P417

9. Which of the following is not an appropriate coordination mechanism to be employed by a transnational corporation with worldwide activities?
a. The coordination of information flows through the socialization of employees.
b. The coordination of asset flows through a process of rationalization.
c. The coordination of product flows through formalized management processes.
d. The coordination of resource flows through centralized