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.

---

Definitions:

ABC Approach

A strategy in inventory management that categorizes items into three classes (A, B, and C) based on their importance and value.

Folk Wisdom

Traditional beliefs, customs, sayings, and knowledge passed down through generations, often based on common sense or experiences.

Type A

A personality typology characterized by drive, competitiveness, and a sense of urgency, often linked to stress.

Type B

describes personality traits characterized by a more relaxed, less overly competitive, and less stress-prone behavior compared to Type A personality.