In which structure do product divisions have worldwide responsibility?

Study for the Arizona State University MGT302 International Business Exam. Prepare with flashcards and multiple choice questions, featuring hints and explanations for each. Get exam-ready with ease!

The correct choice indicates that in a worldwide product division structure, product divisions are organized to have global responsibility for their specific products. This means that each product division operates on a global scale and manages all aspects related to its products, including marketing, production, and distribution in various international markets.

This structure allows companies to align their product strategies effectively across different markets while leveraging economies of scale. Each product division is empowered to make decisions that cater to global trends and consumer needs specific to their product lines, which helps facilitate innovation and responsiveness in a competitive international landscape.

In contrast, a worldwide area structure organizes divisions based on geographical regions, focusing on local market needs rather than specific products. An international division typically consolidates all international operations under one division, which may not provide the same level of product-specific oversight worldwide. Lastly, a global matrix structure adds a level of complexity by integrating both product and geographical focuses, which can complicate clear responsibility for individual products compared to a straightforward product division approach.

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