Suboptimization in the MNC refers to
A) the local subsidiary ignoring the needs of the larger parent company.
B) the parent company ignoring the needs of the local subsidiary.
C) the parent company failing to hire local managers.
D) the local subsidiary being staffed by all expatriates.
E) the ease of the MNC in meeting its worldwide objectives.

Question

Quizplus · Accepted Answer

Suboptimization in the MNC refers to the local subsidiary ignoring the needs of the larger parent company. In other words, the subsidiary operates solely based on its own goals and objectives without considering the impact on the overall organization. This can lead to inefficiencies and conflicts within the MNC.

Suboptimization in the MNC Refers to