The Parent of MNC Can Implement Compensation Plans That Directly

question 14

True/False

The parent of MNC can implement compensation plans that directly reward the subsidiary managers for enhancing the value of the MNC.

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Definitions:

Open Systems

A term referring to systems that interact with their environment, exchanging information, materials, or energy.

Value Chain

The sequence of activities carried out by organizations to create valued goods and services to consumers.

Open System Chain

A concept in systems theory referring to the interconnectedness and interaction between a system and its external environment, allowing for exchange of information, energy, and materials.

Production

refers to the process of creating goods and services through the combination of human labor, materials, and technology.