When Companies Become Too Tall and the Chain of Command

question 49

True/False

When companies become too tall and the chain of command too long, strategic managers tend to lose control over the hierarchy and, subsequently, their strategies.

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Definitions:

Autarky

A situation where an economy is self-sufficient and does not engage in international trade.

Trade

The exchange of goods, services, or both between two or more parties.

Producer Surplus

The difference between what producers are willing to sell a good for and the market price they actually receive, representing their net benefit.

Free Trade

International trade left to operate without tariffs, quotas, or other restrictions, allowing for the unrestricted exchange of goods and services between countries.