Regarding the international division structure
A) conflicts tend to be minimized within the firm.
B) by operating separately from the domestic operations, it prevents disagreements from arising regarding product design.
C) the challenges of managing the international division diminish as larger size and scale are achieved.
D) most companies move away from an international division and adopt a global function structure.
E) disagreements may be encountered regarding prices charged to the international division by the domestic unit.

Question

Quizplus · Accepted Answer

Unfortunately, the use of an international division structure can result in conflicts within the firm. For example, there may be disagreements and power struggles between the domestic operations and the international division over product designs, priority in scheduling of production, or the prices that the domestic unit charges to the international unit. The challenges of managing the international division effectively as the size of this division and the range of products, markets, and activities increase, can be substantial, which can result in rising inefficiency. Therefore, as the company's overseas operations increase in importance and scope, management often eliminates international divisions in favor of worldwide organizational structures based on product, region, function, or customer classes. Few ICs are organized by function at the top level.

Regarding the International Division Structure