In terms of cultural control in a global area division:
A)It is treated like all other MNC structural divisions
B)Local subsidiary culture is often the most important
C)It is possible for some companies, but not always necessary
D)Culture must support the shared decision making

Question

Quizplus · Accepted Answer

In a global area division, local subsidiary culture is often the most important factor in cultural control. This is because the subsidiary operates in a distinct cultural context with unique societal norms, values, and expectations. Therefore, MNCs must ensure that their global area divisions are culturally sensitive and responsive to local cultures to succeed. Alternatively, treating it like any other MNC structural division (A) or making shared decision making a cultural necessity (D) may not be as effective in achieving cultural control in global area divisions. While it is possible for some companies to forgo cultural control (C), it is not recommended as it could lead to misunderstandings, conflicts, and reputational damage.

In Terms of Cultural Control in a Global Area Division