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:

Units of X

A quantifiable amount of a product or resource, denoted as 'X', used in various contexts to measure output, consumption, or other economic variables.

Marginal Rate

refers to the rate at which one variable changes as another variable changes slightly, commonly used in the context of taxes or interest.

Indifference Schedule

A representation of combinations of two goods between which a consumer is indifferent because they provide the same level of utility.

Substitution

The act of replacing one item with another, often referring to the economic principle where consumers switch between similar goods in response to changes in price or income.