Which Type of Multinational Organisational Structure Is Appropriate When Local

question 80

Multiple Choice

Which type of multinational organisational structure is appropriate when local differences are large and the benefits of global integration are small?

• A) Global area division structure
• B) Regional lattice structure
• C) Regional headquarters structure
• D) Global product division structure
• E) Global transnational division structure

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Definitions:

Adjusted Cost

Adjusted cost refers to the original cost of an asset after adjustments for improvements, depreciation, or amortization, directly affecting its value on the balance sheet.

Direct Materials

The cost of raw materials and components used directly in the production of goods.

Indirect Materials

Materials used in the production process that cannot be directly traced to the final product, such as lubricants and cleaning supplies, and are classified as overhead costs.

Manufacturing Overhead

Includes all manufacturing costs except direct materials and direct labor, covering expenses like utilities, depreciation, and equipment maintenance in a production facility.