As Their Overseas Operations Have Increased in Importance,larger Multinationals Have

question 126

Multiple Choice

As their overseas operations have increased in importance,larger multinationals have felt the need to

• A) change from a global structure to an international division.
• B) establish worldwide organizations based on product, process, national subsidiary, or customer classes at the top level.
• C) eliminate their domestic operations.
• D) establish worldwide organizations based on product, customer class, function, or region at the top level.
• E) adopt a matrix structure to improve efficiency and reduce the complexity of global activities.

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Definitions:

Global Corporation

A large business enterprise that operates and has assets in more than one country, often influencing global economics and politics.

Domestic Firm

A company that operates primarily within the borders of one country and focuses on the local market.

Overseas Markets

International regions or countries where products, services, and investments are directed for expansion and profit.

Home Country Nationals

Individuals who reside and work in their country of origin while being employed by an organization headquartered in the same country.