Centralization is appropriate when a multinational corporation needs to maintain strict control over its subsidiaries located around the world. Centralizing key functions like planning, decision making, and resource allocation allows headquarters to pursue consistent strategies and ensure policies are uniformly implemented globally. However, too much centralization can limit a subsidiary's ability to respond to local conditions and competitively serve its host country market.

1. Luthans and Doh (2012) discuss organizational characteristics
of MNCs. Briefly describe a scenario where centralization is
appropriate.
Your response should be at least 150 words in length. All
sources used must be referenced; paraphrased and quoted
material must have accompanying citations.
use chapter 9 starting pages 328
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