Which One of the Following Represents the Basic Difference Between

question 46

Multiple Choice

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

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

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Definitions:

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and the government.

Distribution Center

A warehouse or specialized facility where goods are stored, managed, and then distributed to retailers or directly to customers.

Technologically Feasible

A state in which a new technology has been developed to the point where it is operational and can be reliably produced or implemented.

General Release

A legal agreement whereby one party releases another from any claims or liabilities, often used in settlements or upon the termination of employment.