Subsidiaries of multidomestic corporations are run as independent companies.

Question

Quizplus · Accepted Answer

Multidomestic corporations operate in different countries and recognize the unique characteristics of each market. To achieve this, they typically run subsidiaries as independent entities with their own management, marketing, and sales strategies, among other functions. This approach allows subsidiaries to respond more effectively to local market conditions and consumer preferences, making the parent company more competitive and profitable overall.

Subsidiaries of Multidomestic Corporations Are Run as Independent Companies