Business Expansion Plan (Scenario)
As a business expansion director, Salma's goal is to scout out potential locations and basically provide input on how her company should proceed with its planned expansion into Europe. There are many options, including maintaining the businesses head office in Egypt and sending over company representatives when necessary or establishing separate operations facilities abroad and hiring locals as managers.
-If Salma's company decides to open a completely new operation in the UK, tailoring the company to local customs and marketing strategies and hiring local managers, they would be considered a ________.
A) multidomestic corporation
B) transnational corporation
C) regional trade alliance
D) global company

Question

Quizplus · Accepted Answer

A multidomestic corporation is one that decentralizes management and other decisions to the local country, allowing it to tailor its products and services to the local market. By opening a new operation in the UK and hiring local managers, Salma's company would fit this description.