First Business Trip to Asia (Scenario)
Jeff Elliott is on a flight across the Pacific and is excited about his first business trip to Asia. Born and raised in Alberta, Jeff is a manager for a rapidly growing Calgary-based company. His current mission is to scout out potential locations in Asia and develop an international expansion strategy for his company. There are many options, including maintaining the business's head office in Canada and sending over company representatives when necessary or developing a separate company in Asia and hiring locals to manage the business. Jeff's trip will take him to Japan, South Korea, Hong Kong, Taiwan, and China. He is looking forward to learning more about the business practices and customs of each country and is not too worried about the fact that he only speaks English. Jeff has heard that English is considered the main international business language, and he anticipates that most Asians will be able to speak it.
-If Jeff's company decides to open a completely new operation in China,tailoring the company to local customs and marketing strategies and hiring local managers,they would be considered a ________.
A)multidomestic corporation
B)global corporation
C)strategic alliance
D)joint venture

Question

Quizplus · Accepted Answer

A multidomestic corporation is one that allows its overseas operations to be relatively independent, tailoring products, practices, and strategies to local markets, which is what Jeff's company would be doing by opening a new operation in China with local customs, marketing strategies, and managers.