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

question 28

Multiple Choice

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

• A) a subsidiary is selling new products in growing markets.
• B) it is a high-tech, research-intensive firm dealing with sophisticated levels of technology.
• C) the home office has a lot of confidence in delegating to a local level.
• D) local subsidiary managers are inexperienced or ineffective.

---

Definitions:

Federal Bureaucracy

The vast administrative system that handles the day-to-day business of the U.S. federal government, composed of agencies, departments, and employees.

Iron Triangle

A term describing the policy-making relationship among the congressional committees, the bureaucracy (government agencies), and interest groups.

Interest Groups

Organizations formed to influence public policy and government decisions to benefit members' specific interests.

Legislators

Elected officials who have the authority to make or change laws within a legislative body, such as a parliament or congress.