Centralized Decision Making in a Multinational Company (MNC)is More Likely

question 8

Multiple Choice

Centralized decision making in a multinational company (MNC) is more likely when:

• A) domestic competition increases and management wants a local subsidiary manager to have greater decision-making authority.
• B) the home office has more confidence in delegating to the local level and less to gain by making all the important decisions.
• C) there are important brand names or patent rights involved and a multinational company (MNC) wants to create as much protection as possible.
• D) a subsidiary has superior staff and resources that is likely to become increasingly skilled in manufacturing and marketing products at the local level over time.

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Definitions:

Estimated Values

Values calculated within a statistical model that approximate the real data points, often used in making predictions.

Coefficient Of Determination

A statistical measure that indicates the proportion of the variance in the dependent variable predictable from the independent variable(s).

Standard Error

A statistical measure that estimates the accuracy of a sample mean by quantifying the dispersion of sample means around the population mean.

Regression Model

A statistical technique used to analyze the relationship between a dependent variable and one or more independent variables.