Which of the Following Does Not Enhance the Efficiency of a Local-For-Local

question 24

Multiple Choice

Which of the following does not enhance the efficiency of a local-for-local innovation process?

• A) Dispersing assets and resources to the subsidiaries and delegating decision-making authority regarding innovations to them.
• B) Assigning competent headquarter managers to lead development projects within a subsidiary.
• C) Improving linkages between headquarters and subsidiaries through the use of expatriates.
• D) Promoting cross-functional integration at the subsidiary level.

---

Definitions:

Marginal Benefit

The boost in satisfaction or utility received from consuming one more unit of a good or service.

Efficiency Loss

The reduction in economic efficiency due to factors like market distortions, resulting in resources not being allocated optimally.

Deadweight Loss

refers to the loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved, leading to a reduction in total societal welfare.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the benefit to consumers.