Why Is Management Control Particularly Complex in Decentralized Multinational Organizations

question 57

Multiple Choice

Why is management control particularly complex in decentralized multinational organizations?

• A) Managers abroad are not as well-trained as managers of domestic operations.
• B) Decision-making authority is not delegated to the local managers of foreign operations.
• C) Managers of foreign operations may be motivated by local goals rather than parent's goals.
• D) Financial risks are always higher for the local managers of foreign operations than for managers of domestic operations.

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Definitions:

Born Global

Companies that engage in international expansion soon after starting in a domestic market.

Natural Resources

Raw materials and components provided by nature that can be utilized for economic gain.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, and insurance premiums.

Research and Development

The process focused on developing new products or improving existing ones, often involving scientific and technological innovations.