Which of the Following Is a Problem That Arises Due

question 101

Multiple Choice

Which of the following is a problem that arises due to an international division structure?

• A) In an international division structure, a firm's international division tends to be organized on products.
• B) The heads of domestic functions are presumed to be able to represent the interests of all countries to headquarters.
• C) The heads of foreign subsidiaries are not given as much voice in the organization as the heads of domestic functions or divisions.
• D) The dual-hierarchy structure can lead to conflict and perpetual power struggles between the areas and the product divisions.

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Definitions:

Bounded Rationality

A concept suggesting that when individuals make decisions, their rationality is limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision.

Perceptual Defence

The psychological mechanism by which individuals unconsciously filter out or modify distressing information to protect themselves.

Functional Specialty

An area of expertise or a department within an organization that focuses on a specific function or discipline, such as marketing, finance, or human resources.

Information Overload

The state of having more information available than one can easily process or manage, often leading to stress or decision-making difficulties.