
International Organization Structure and Design 187
usually considered to be at the second tier
of the organizational hierarchy, with less
authority and decision-making power than
his domestic counterparts.
■ There is also a lack of coordination
between domestic and foreign operations
as these are isolated from each other in the
organizational hierarchy. This becomes an
obstacle in the ability of the firm to reap the
benefits of experience and scale economies
that may arise out of global production.
GLOBAL ORGANIZATIONAL STRUCTURES
As a result of these drawbacks, as firms continue their international expansion they adopt one of the
global structures ...