How Does the Multidomestic Corporation Differ from the Global Corporation

question 39

Multiple Choice

How does the multidomestic corporation differ from the global corporation?

• A) The multidomestic companies rely on management teams made up of nationals; global corporations use management teams from the home office.
• B) Multidomestic is highly centralized, while global corporations are highly decentralized.
• C) Multidomestic companies use a standardized marketing strategy; global companies use a rigid marketing strategy.
• D) Multidomestic companies pursue different strategies in each of their foreign markets; global companies have an integrated approach.

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Definitions:

Stock Dividend

A dividend payment made in the form of additional shares of the paying company's stock rather than cash.

Common Stock Account

An equity account that represents the ownership interest held by common shareholders in a corporation, including its value and dividends.

Capital in Excess of Par

The amount by which the proceeds from the issuance of shares exceed the par value of the shares issued; it's often referred to as additional paid-in capital.

Debt-Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity.