16. For MNEs pursuing a home-replication strategy, knowledge management:

is characterized by a great deal of dependence among subsidiaries. develops mostly at the subsidiary level and flows upward to headquarters. occurs in a one-way flow from center to subsidiaries. leads to persistent heterogeneity of ideas.

15. Which of the following is NOT true in regard to institution-based considerations?

Externally, MNEs are subject to the formal institutional frameworks erected by various home- and host-country governments. Host-country governments often encourage or coerce MNEs into undertaking certain activities. To staff the position of the head of a subsidiary, MNEs, in the absence of formal regulations, essentially have only one choice: to use a home-country national as the head of a subsidiary. Formal organizational charts do not necessarily reveal the informal rules of the game, such as organizational norms, values, and networks.

14. When faced with the complexity and cost of value-added customer-focused dimensions, the textbook suggests that you:

create new formal structures. simplify. find temporary solutions. decentralize.

13. Which of the following is a key idea regarding the reciprocal relationship between strategies and structures within MNEs?

The fit between strategies and structures is crucial. The relationship is typically one way. Strategies and structures are static. A good strategy cancels the effect of a bad structur