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

Question

Quizplus · Accepted Answer

This statement is true. Firms with a low level of diversification tend to have simpler organizational structures, and often adopt a worldwide structure which is based on geographic regions. Additionally, firms with domestic structures based on functions may find it easier to adopt a worldwide structure, as the functional departments can be replicated in each geographic region.

The Worldwide Structure Tends to Be Adopted by Firms with a Low