Fregonnat Systems Is a Company That Faces Pressure to Be

question 8

Multiple Choice

Fregonnat Systems is a company that faces pressure to be both locally responsive as well as globally integrated. It makes several trade-offs to successfully adopt the transnational strategy. Which of the following statements is true of Fregonnat Systems in this scenario?

• A) It prevents subsidiaries from having the discretion and autonomy to adapt and customize locally.
• B) It is a lateral organization that succeeds or fails based on its ability to effectively shepherd knowledge transfer and communication between foreign subsidiaries.
• C) It achieves integration through decisions made mostly by headquarters.
• D) It prevents information flow across borders.

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Definitions:

Common Law

A system of law developed from court-made precedents rather than statutes passed by legislatures.

Ambiguous

Something that is unclear, uncertain, or capable of being understood in more than one way.

Assignment

The conveyance of rights, possessions, or duties from one individual to another.

Sublease

An agreement where the original tenant leases out the premises to another tenant, with or without the landlord’s permission.