A Multinational Company (MNC)is Likely to Centralize Its Decision Making

question 26

Multiple Choice

A multinational company (MNC) is likely to centralize its decision making when:

• A) it has a mature product line and the subsidiary managers are experienced.
• B) it is a high-tech, research-intensive firm dealing with sophisticated levels of technology.
• C) a subsidiary has superior staff and resources which is likely to become increasingly skilled in manufacturing and marketing products at the local level over time.
• D) the home office has more confidence in delegating to the local level and less to gain by making all the important decisions.

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Definitions:

Phosphorus

A chemical element, essential for life, involved in many cellular processes, including energy transfer and the structure of DNA and RNA.

Inhalation

The act of drawing air or other substances into the lungs.

Primary Consumers

Organisms that feed directly on producers in a food chain, typically herbivores that eat plants.

Trophic Level

The position an organism occupies in a food chain, indicating its level of feeding and energy transfer.