One of the Main Benefits of Formal Hierarchy as a Coordinating

question 140

True/False

One of the main benefits of formal hierarchy as a coordinating mechanism is that it increases flexibility and responsiveness to customer needs.

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Definitions:

Contract Manufacturing

The outsourcing of certain production activities to third-party companies, often to save costs or leverage specialized capabilities.

Joint Venture

An arrangement in which a domestic firm partners with a foreign company to create a new entity, thus allowing the domestic firm to enter the foreign company’s market.

Exporting

Selling domestically produced products to foreign markets.

Foreign Company

A business entity that is registered, operates, or is based in a country other than the one where it conducts most of its operations or sales.