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Questions from 31 to 35 are based on the following passage: As overseas sales and profits as a percentage of total sales and profits increase, there is likely to be more headquarters’ attention paid to foreign operations. Similarly, there will be pressures to centralize control in order to deal with the growing number of global competitors and the more homogenized(同质的) needs of global consumers. The need for centralization will present more challenges for MNEs in controlling their global operations. One challenge involves management’s position in foreign facilities, where manager may see the erosion of their autonomy over marketing, production, and financial decisions. To keep those managers motivated, the company needs to include more nationalities on boards of directors and use cross-national management teams to develop practices that are globally rather than nationally oriented. But with such cross-national fertilization comes the risk of clashes between cultural traditions. A second challenge for MNEs is a consequence of their size. A number of them already have sales larger than many countries’ GDPs. To manage such organizations may require even greater decentralization and more horizontal communication among subsidiaries in different countries that are mutually dependent on parts, products, and resources. This mutual dependence among subsidiaries may in turn require new hierarchical relationships within the organizational structure.
If the company fails to control its foreign business, the headquarters’ position will be shaken in that().
A.its foreign management often challenges the headquarters
B.foreign management may make its own decisions without asking for the headquarters’ permission
C.foreign management might try to be independent in marketing, production, and financial decisions
D.headquarters’ decisions are often ignored
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