A decentralized management style of MNC results in relatively high agency costs.

Question

Quizplus · Accepted Answer

Decentralized management style in MNCs involves delegating decision-making powers to local managers in different regions. This increases the potential for agency conflicts as the interests of local managers may not align with the overall objectives of the MNC. As a result, monitoring and controlling these managers can lead to higher agency costs.

A Decentralized Management Style of MNC Results in Relatively High