A multinational company (MNC)is likely to centralize its decision making when:
A) it has a mature product line and the subsidiary managers are experienced.
B) it is a high-tech, research-intensive firm dealing with sophisticated levels of technology.
C) a subsidiary has superior staff and resources which is likely to become increasingly skilled in manufacturing and marketing products at the local level over time.
D) the home office has more confidence in delegating to the local level and less to gain by making all the important decisions.

Question

Quizplus · Accepted Answer

It is common for multinational companies (MNCs) to centralize operations when dealing with sophisticated levels of technology. This is particularly true for high-tech, research-intensive firms such as computer and pharmaceutical companies, which do not want their technology controlled at the local level.

A Multinational Company (MNC)is Likely to Centralize Its Decision Making