NewGen Communications Technology has subsidiaries in each country in which it does business. As the parent company, NewGen runs its R&D department from its home country, so that each foreign subsidiary remains dependent on it for new products, processes, and ideas. This illustrates the _____ model for global strategy.
A)international
B)multinational
C)global
D)transnational
E)intranational

Question

Quizplus · Accepted Answer

The international model uses subsidiaries in each country in which the company does business, with ultimate control exercised by the parent company. In particular, while subsidiaries may have some latitude to adapt products to local conditions, core functions such as research and development tend to be centralized in the parent company.

NewGen Communications Technology Has Subsidiaries in Each Country in Which