Which of the following is the basic difference between multidomestic corporations and global companies?
A) Multidomestic corporations decentralize management to the local country, while global companies centralize management in the home country.
B) Multidomestic corporations pay more in taxes than global companies do.
C) Multidomestic corporations typically do business with more countries than global companies do.
D) Multidomestic corporations are run by global companies but must be owned by a local, national company.

Question

Quizplus · Accepted Answer

The main difference between multidomestic corporations and global companies is that multidomestic corporations decentralize management to the local country, while global companies centralize management in the home country. Multidomestic corporations operate in multiple countries and tailor their products and services to fit the local market needs. Global companies, on the other hand, aim to standardize their products and services across all markets to create a consistent brand image. Thus, the structure of management is different between the two types of companies.

Which of the Following Is the Basic Difference Between Multidomestic