The organizational structure for an internationally diversified firm requires trade-offs between global integration and local market responsiveness.

Question

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An internationally diversified firm must balance the need for global integration to achieve economies of scale and consistency in operations with the need for local market responsiveness to meet the unique demands and preferences of customers in different countries or regions. This requires making trade-offs in the organizational structure, such as centralizing certain functions while delegating others to local subsidiaries, or creating regional or global teams that collaborate closely with local managers.

The Organizational Structure for an Internationally Diversified Firm Requires Trade-Offs