Against the flow of command in hierarchical organizations, some MNE subsidiaries take proactive and deliberate action to convince their headquarters to increase the scope of their responsibility.Such action is also known as:

Question

Quizplus · Accepted Answer

Proactive and deliberate action taken by subsidiaries to persuade their headquarters to broaden their responsibilities is known as subsidiary initiative. This term refers to the ability of a subsidiary to take the lead in implementing new ideas or strategies within its local environment, or to propose new initiatives that would benefit the entire organization. The term "subsidiary mandate" refers to the specific tasks that a subsidiary is expected to perform, while "worldwide mandate" refers to the overall responsibility of the organization as a whole. "Centre of excellence" refers to a subsidiary that has developed a particular expertise or competency that is recognized by other parts of the organization. Therefore, D is the correct choice in this context.

Against the Flow of Command in Hierarchical Organizations, Some MNE