As a business expansion director, Shana's goal is to scout potential locations for her company's planned expansion to other countries. There are many options, some of which include maintaining the business's head office in the United States. Other options send company representatives to foreign operations when necessary, or establishing separate operation facilities abroad and hiring locals as managers.
-If Shana's company reorganizes based on industry groups with no designated home country, the entire organization would be considered a ________.
A)transnational organization
B)strategic alliance
C)multidomestic corporation
D)global corporation

Question

Quizplus · Accepted Answer

A transnational organization is a type of multinational corporation that has a decentralized management structure that operates in multiple countries while also giving a high degree of autonomy to its local subsidiaries. In this case, if the company reorganizes based on industry groups with no designated home country, it would be considered a transnational organization as it would be operating in multiple countries with a decentralized structure. Choices B, C, and D do not accurately describe this scenario.

As a Business Expansion Director, Shana's Goal Is to Scout