In the context of Bartlett and Goshal's analysis of the situation relative to potential agency problems for international strategies, which strategy poses the highest risk of agency problems?
A) Multidomestic
B) Transnational
C) Regional
D) Global
E) Foreign Market

Question

Quizplus · Accepted Answer

The multidomestic strategy poses the highest risk of agency problems because it involves a high degree of decentralization, giving local managers significant autonomy. This can lead to misalignment of local managers' interests with the overall corporate goals, increasing the potential for agency problems.

In the Context of Bartlett and Goshal's Analysis of the Situation