A key disadvantage of the worldwide area structure is that it limits local responsiveness.

a. True

b. False

The correct answer for the given question is False or option b. in the answer list.

Explanation:

In business, worldwide area structure or global area structure refers to the business operation of the multinational global companies within a specific or definite geographical area or a region. However, it can still maintain its operational activities in the domestic country or the country of its origin, which is the main existing market where it operates. The specific area or region under worldwide area structure can be a particular country or multiple countries where the company or business organization can expand its operational reach. The company can decentralize its course of conduct and modes of operation by establishing separate departments, subsidiary units and divide or allocate work responsibilities among those respective departments to facilitate the functioning of its overseas business operations.