Which of the following factors encourages the use of centralized decision making?
A)Small company size
B)Small capital investment
C)Relatively low importance to the MNC
D)Highly competitive environment

Question

Quizplus · Accepted Answer

In the international arena, however, sometimes the opposite approach is used. As 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.

Which of the Following Factors Encourages the Use of Centralized