What is a common misconception about the roles of subsidiaries within multinational enterprises (MNEs)?
Understand the Problem
The question is asking about misconceptions related to how subsidiaries function within multinational enterprises. It presents multiple choices that reflect different beliefs about the independence, equality, treatment, and uniqueness of subsidiaries.
Answer
Subsidiaries are often mistakenly thought to have identical roles and responsibilities in MNEs.
A common misconception is that all subsidiaries have the same roles and responsibilities within an MNE. In reality, subsidiaries often have different roles based on strategic importance, local market needs, and other factors.
Answer for screen readers
A common misconception is that all subsidiaries have the same roles and responsibilities within an MNE. In reality, subsidiaries often have different roles based on strategic importance, local market needs, and other factors.
More Information
Subsidiaries within MNEs are tailored to specific strategic needs and not given one-size-fits-all roles. This nuanced approach allows MNEs to exploit opportunities in diverse markets effectively.
Tips
Avoid assuming a uniform role for all subsidiaries. Recognize the diversity of strategic, operational, and market contexts.
Sources
- International strategic management - WorldSupporter - worldsupporter.org
- Re-conceptualizing Bartlett and Ghoshal's Classification of National Subsidiary Roles in MNEs - edisciplinas.usp.br
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