Local managers in the MNC can respond quickly to customer discount demands, local government demands, and changes in the political climate.
The different languages native to managers of divisions in the MNC make miscommunication an even greater problem.
MNCs address this problem in two ways.
First, a decentralized structure pushes decision making down to the local manager level, eliminating the need to interpret instructions from above.
Second, MNCs are learning to incorporate technology that overrides the language barrier and eases cross-border data transfer.
Technology is of great help in smoothing communication difficulties between parent and subsidiary and between one subsidiary and another.