Global efficiencies are harder to obtain when a single unit of the firm is given world-wide responsibility for the task.

Question

Quizplus · Accepted Answer

Global efficiencies can be achieved through division of labor and specialization across different units of the firm operating in different regions. Assigning a single unit with world-wide responsibilities may limit the scope and effectiveness of achieving global efficiencies. Instead, a network of coordinated units working together with a common goal may be more effective.

Global Efficiencies Are Harder to Obtain When a Single Unit