Identify a factor that encourages the use of centralized decision making in subsidiary operations.
A) Little experience in international business
B) Moderate to low degree of technology
C) Small geographic distance between home office and subsidiary
D) Little importance attached to brand name and patent rights

Question

Quizplus · Accepted Answer

Small geographic distance between home office and subsidiary encourages the use of centralized decision making in subsidiary operations. The farther apart the two units are in either geographical area or cultural beliefs, the higher the level of decentralization.

Identify a Factor That Encourages the Use of Centralized Decision