Explain the Differences Between Centralized and Decentralized Decision Making

question 30

Essay

Explain the differences between centralized and decentralized decision making. Also list some of the reasons why a company would choose to decentralize.

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Definitions:

Domestic Consumption

The total demand for goods and services within a country, excluding those goods and services that are exported.

Domestic Production

The creation of goods and services within a country's borders.

Free Trade

An economic policy that allows imports and exports between countries with minimal governmental restrictions or duties.

Domestic Price

The cost of products or services within the confines of a nation, in contrast to prices on the international or overseas market.