The Agency Costs of an MNC Are Likely to Be

question 28

Multiple Choice

The agency costs of an MNC are likely to be lower if it:

• A) scatters its subsidiaries across many foreign countries.
• B) increases its volume of international business.
• C) uses a centralized management style.
• D) scatters its subsidiaries across many foreign countries AND increases its volume of international business.

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Definitions:

Employee Motivation

The level of energy, commitment, and creativity that a company's workers bring to their jobs, influenced by factors such as recognition, rewards, and work environment.

Herzberg's Motivator-Hygiene Model

A theory suggesting that job satisfaction and dissatisfaction arise from two different sets of factors: motivators that enrich an individual's job and hygiene factors that must be present to avoid dissatisfaction.

Hygiene Factors

Elements related to job environment such as salary, company policies, and working conditions, that can lead to dissatisfaction if not adequately addressed.

Job Characteristics Model

A theory that proposes that the nature of one's job or the characteristics of the task one undertakes can play a role in influencing job satisfaction and job performance.