Three types of control systems are used in MNEs.These are ________.
A)market control, bureaucratic control, and clan control
B)standardization control, adjustment control, and clan control
C)market control, adjustment control, and clan control
D)planning control, market control, and clan control

Question

Quizplus · Accepted Answer

Market control, bureaucratic control, and clan control are the three types of control systems commonly used in multinational enterprises (MNEs). Market control involves using external market mechanisms to establish standards and performance criteria. Bureaucratic control relies on administrative and hierarchical methods, such as rules, procedures, and formal authority. Clan control is based on shared values, beliefs, corporate culture, and informal relationships to guide employee behavior and decisions.

Three Types of Control Systems Are Used in MNEs