Which term refers to a firm with highly decentralized operations in many countries and weak ties to any single country?
A) Subsidiary
B) Joint venture
C) Multinational corporation
D) Transnational corporation

Question

Quizplus · Accepted Answer

A transnational corporation is a firm with decentralized operations in several different countries and weak connections to any one specific country. It is also known as a borderless organization, as its operations are not confined by national borders. Subsidiaries, while they may be decentralized, are still closely tied to their parent company in a single country. Joint ventures involve partnerships between two or more companies, and while they may operate in multiple countries, they are generally not as decentralized as a transnational corporation. Multinational corporations are similar to transnational corporations, but they tend to have more centralized operations in each country where they operate.

Which Term Refers to a Firm with Highly Decentralized Operations