Author Question: If Shana's company decides to open operations in France but maintain company management in the ... (Read 136 times)

jazziefee · **on:** Jul 6, 2018

If Shana's company decides to open operations in France but maintain company management in the United States, it would be considered a ________.

A) transnational corporation
B) global corporation
C) multidomestic corporation
D) joint venture

Question 2

If Shana's company decides to open a new operation in Germany that has local managers and is run locally but still exists under the umbrella of the home company, it would be considered a ________.

A) national corporation
B) borderless organization
C) trade alliance
D) multidomestic corporation

ngr69 · **Reply #1 on:** Jul 6, 2018

Answer to Question 1

Answer: B
Explanation: Maintaining management in the home office in the United States gives Shana's company the profile of a global corporation. A global corporation is a multinational corporation that maintains its management in its home country. A multidomestic corporation, on the other hand, has a central home-country management but allows local management to run the company in its foreign locations. This differs from a borderless or transnational corporation that has no home country and is instead organized by industry and function. A joint venture is not a branching out of a home corporation but rather a joining of the home corporation with a foreign corporation.

Answer to Question 2

Answer: D
Explanation: Allowing locals to make marketing and management decisions describes a multidomestic corporation. A national corporation would have no international component. A trade alliance would partner Shana's company with a foreign company. In a borderless organization there would be no home company.