Organizational Structure in International Business

  1. 11.5 Understand organizational structure in international business.

Organizational structure describes the reporting relationships inside the firm or the “boxes and lines” that specify the links between people, functions, and processes that allow the firm to carry out its operations. Organizational structure dictates the reporting relationships through which the firm’s vision and strategies are implemented. In the large, experienced MNE, these linkages are extensive and include the firm’s subsidiaries and affiliates. A fundamental issue in organizational structure is how much decision-making responsibility the firm should retain at headquarters, how much should be shared, and how much it should ...

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