The international model of organizational structure involves

Question

A) large low-cost manufacturing facilities located in selected locations, with products exported to various subsidiaries.
B) subsidiaries located in countries where the company does business, with much of the control exercised by the parent company.
C) subsidiaries located in countries where the company does business, with much of the control exercised by the subsidiaries.
D) manufacturing various components at appropriate sites and assembling the components at national subsidiaries.
E) farming out core functions, such as research and development, to subsidiaries around the world.

Answer 1

B) subsidiaries located in countries where the company does business, with much of the control exercised by the parent company.
Explanation: In the international model, managers use their organization's existing core capabilities to expand into foreign markets. The international model uses subsidiaries in each country in which the company does business, with ultimate control exercised by the parent company and with most core functions centralized in the parent company.