In Developing Differentiated Coordination Processes in a Transnational Organization,which of the Following

question 15

Multiple Choice

In developing differentiated coordination processes in a transnational organization,which of the following factors would be most important for an MNC manager to consider?

• A) How the company sources its raw materials, transfers technologies, and manages scarce resources.
• B) How the company is structured and how decision-making authority is assigned.
• C) The environment in which the firm operates and the nature of competition in that environment.
• D) The portfolio of products that the MNE offers and the markets in which it offers them.

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Definitions:

Externality

An outcome from economic action that affects people who are not directly involved, and this impact can be beneficial or harmful.

Economically Efficient

A state where resources are allocated in a way that maximizes the production of goods and services, with no way to improve someone's condition without worsening another's.

Coase Theorem

A principle stating that if property rights are well-defined and transaction costs are low, parties will negotiate to correct externalities without government intervention.

Transaction Costs

Expenses incurred during the process of buying or selling goods and services that are not directly related to their price.