Which of the Following Is a Drawback of Decentralizing a Multinational

question 75

Multiple Choice

Which of the following is a drawback of decentralizing a multinational company?

• A) It may lead to increased exchange rate risk.
• B) It may result in lack of control and results in increasing risk.
• C) It creates less responsiveness to the needs of a subunit's customers, suppliers, and employees.
• D) It may lead to an increase in bureaucracy.

Analyze the influence of investment on economic growth in comparison to other countries.

Evaluate the relationship between productivity, human capital, technological knowledge, and living standards.

Understand the significance of human and physical capital in economic development.

Understand the classification and impact of different types of capital in the economy.

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Definitions:

Middle Manager

A managerial position that bridges the gap between the executive level and the operational staff within an organization.

Organization Change

Refers to the process through which organizations transform their structure, strategies, operational methods, or culture to adapt to changes in the external environment or to improve internal efficiency.

Executive Edit

The process of making revisions or decisions by a senior editor or executive, particularly in publishing or content creation.

Role Model

A person whose behavior, example, or success is or can be emulated by others, especially by younger people.