Which of the Following Will Most Likely Harm a Multinational

question 45

Multiple Choice

Which of the following will most likely harm a multinational enterprise's (MNE's) reputation?

• A) Principal-agent problems cause an MNE to merge with another MNE.
• B) Increased competition causes an MNE to close a factory in a developing country.
• C) Wages for workers in a factory owned by an MNE increase, causing profits to decline.
• D) A sweatshop owned by an MNE has an explosion that kills hundreds of workers.

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Definitions:

Minimal Communication

A communication approach that involves the least amount of information necessary to convey an idea effectively.

Ultimate Responsibility

The highest level of accountability for the outcomes of decisions and actions within an organization or project.

Departmentalization Scheme

The method an organization uses to segment its operations into specialized units or departments based on function, product, geography, or process.