In terms of global business strategy, the governance of ________ firms has been likened to a federal structure-strong central management core of decision making, but considerable dispersal of power and financial resources.
A) domestic exporter
B) multinational
C) franchiser
D) transnational

Question

Quizplus · Accepted Answer

The governance of transnational firms has been compared to a federal structure as they have a strong central management core for decision-making but also a significant dispersal of financial resources and power, similar to how power and resources are dispersed in a federal system. Domestic exporter companies only export goods to other countries and do not have a global presence, franchisers grant franchises to other parties in exchange for fees or royalties but do not manage the franchises directly, and multinational companies operate in multiple countries but may still have a centralized management structure.

In Terms of Global Business Strategy, the Governance of ________