Which of the Following Is the Basic Difference Between Multidomestic

question 17

Multiple Choice

Which of the following is the basic difference between multidomestic corporations and global companies?

• A) Multidomestic corporations decentralize management to the local country, while global companies centralize management in the home country.
• B) Multidomestic corporations pay more in taxes than global companies do.
• C) Multidomestic corporations typically do business with more countries than global companies do.
• D) Multidomestic corporations are run by global companies but must be owned by a local, national company.

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Definitions:

Flexibility

The ability of a system or process to adapt to changes or variations, often in response to demand or environmental changes.

Transportation Decisions

Entail choosing the most effective methods and routes for shipping products to meet delivery and cost targets.

Trade-Offs

The balancing act of giving up one thing to gain another, often seen in decision-making processes where compromises are made to achieve a desired outcome.

Third Party Milk Runs

A logistics strategy where a third-party provider collects and delivers small shipments from multiple suppliers in a single trip, increasing efficiency and reducing transportation costs.