In domestic situations,when competition increases and profit margins are driven down,home-office management is likely to seek to standardize product and marketing decisions to reduce cost and maintain profitability.

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In international situations, when competition increases and profit margins are driven down, home-office management often seeks to standardize product and marketing decisions to reduce cost and maintain profitability. Many upper-level operating decisions are made by central management and merely implemented by the subsidiary, although, in some instances, companies still opt to decentralize operations if product diversification is necessary.

In Domestic Situations,when Competition Increases and Profit Margins Are Driven