Question

Which of the following international operations strategies uses decentralized authority with substantial autonomy at each business?
A. transnational
B. global
C. multidomestic
D. international

Answer 1

Answer:

C. multidomestic

Explanation:

In a multidomestic international operations strategy, foreign branches of a multi national corporation decide their own strategy as per that country's needs, tastes, traditions and culture.

In such cases, the strategies adopted at branches could be entirely different from those employed by the parent company.

Such a strategy ensures a greater degree of independence or autonomy and at the same time, allows delegation of authority to the lowest level i.e decentralization.

Delegation refers to assigning of authority by a superior to his immediate subordinate. When delegation is carried out to the lowest organizational level, it is referred to as decentralization.