The International Model of Organizational Structure Consists of

question 29

Multiple Choice

The international model of organizational structure consists of

• A) Large low-cost manufacturing facilities located in selected locations with products exported to various subsidiaries.
• B) Subsidiaries located in countries where the company does business with much of the control exercised by the parent company.
• C) Subsidiaries located in countries where the company does business with much of the control exercised by the subsidiaries.
• D) Manufacturing various components at appropriate sites and assembling the components at national subsidiaries.
• E) Global services.

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Definitions:

Market Price

The ongoing price level for buying or selling an asset or service in the open market.

Market Output

The total quantity of goods and services produced and offered for sale in a market.

External Benefits

Positive effects experienced by third parties as a result of an economic transaction not directly involved.

Efficient Outcome

A situation in which no individual can be made better off without making someone else worse off, typically referring to an optimal allocation of resources.