Which of the following best characterizes a transnational ...

[hbsimmons88]

Which of the following best characterizes a transnational corporation?
 
  A) a single central home-country management
  B) an organization in which multiple operations function with a large degree of autonomy
  C) a loose alliance of totally separate, wholly independent companies
  D) a company that eliminates geographical boundaries

Question 2

Which choice constitutes the typical first step for an organization that is going global?
 
  A) outsourcing
  B) franchising
  C) licensing
  D) strategic alliance

[mcarey591]

Answer to Question 1

Answer: D
Explanation: A transnational corporation is a borderless organization of multiple operations that have no single home base. This rules out a single central home-country management since a transnational is not centralized and has no home country. The choices regarding having multiple operations function with a large degree of autonomy and loose alliance of separate companies are not correct because operations in a transnational are integrated and do not work independently of one another.

Answer to Question 2

Answer: A
Explanation: To go global, a company usually begins by global sourcing or outsourcing, in which the company purchases materials or labor from a foreign market at a lower price than it can obtain from its domestic market. Steps that follow outsourcing include franchising and licensing, both of which involve selling an organization's brand name and other trade practices for a fee. An even later stage involves a strategic alliance, in which the company forms a partnership with a foreign organization.