In order to maximize global profits, foreign subsidiaries should always be established as profit centers.

Question

Quizplus · Accepted Answer

Establishing foreign subsidiaries as profit centers may not always be the best strategy for maximizing global profits. Other factors such as local regulations, cultural differences, and market conditions may need to be considered to determine the most effective organizational structure. Additionally, subsidiaries established for strategic purposes (such as gaining access to resources or markets) may not have immediate profit goals.

In Order to Maximize Global Profits, Foreign Subsidiaries Should Always