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

Question

Quizplus · Accepted Answer

The basic 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. This means that in multidomestic corporations, each country runs its operations independently and makes its own decisions, while in global companies, decisions are made at the headquarters and then distributed to the different countries.

Which of the Following Is the Basic Difference Between Multidomestic