A Subsidiary in a Global Organization Is Managed Through

question 57

Multiple Choice

A subsidiary in a global organization is managed through

• A) local control.
• B) decentralized control.
• C) centralized control.
• D) national control.
• E) None of the answer choices is correct.

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Definitions:

Equity Mode

An investment strategy or approach that involves taking ownership stakes, typically in the form of stocks, in companies rather than lending money to them.

Joint Ventures

Business arrangements where two or more parties collaborate on a project, sharing risks and rewards.

Trading Blocs

Regional groups of countries that have agreed to reduce trade barriers among themselves, such as tariffs and import quotas, to encourage trade and economic cooperation.

Liability of Foreignness

The inherent disadvantages that foreign firms experience in host countries due to their non-native status.