Big Business Inc.is in the shoe business.They have plants and stores in 40 different countries.They have many regional headquarters and perhaps a world headquarters.In Big Business Inc.nearly all the value-adding activities are managed from a global perspective without reference to national borders,optimizing sources of supply and demand wherever they appear,and taking advantage of any local competitive advantages.They do not have a home country,as their management frame of reference.The governance of this firm has been likened to a federal structure in which there is a strong central management core of decision making,but considerable dispersal of power and financial muscle throughout the global divisions.This firm would be an example of a ________.

Question

Quizplus · Accepted Answer

A transnational corporation or enterprise operates in multiple countries and has a global perspective, managing all value-adding activities without reference to national borders. Additionally, the description of Big Business Inc.'s governance as a federal structure with a strong central management core and significant dispersal of power throughout global divisions aligns with the characteristics of a transnational corporation. Therefore, option A) transnational is the best choice.