The worldwide area structure tends to be adopted by firms with a low level of diversification whose domestic structures are based on functions.

Question

Quizplus · Accepted Answer

The worldwide area structure is often adopted by firms with a low level of diversification, and it is typically based on geographic regions rather than functions. However, firms with a domestic structure based on functions may still adopt a worldwide area structure to better coordinate their international operations.

The Worldwide Area Structure Tends to Be Adopted by Firms