Global Corporation Overview
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Questions and Answers

What is the key difference between a decentralized corporation and a centralized global corporation?

  • Decentralized corporations focus on scaling quickly, while centralized global corporations look for opportunities to increase revenue by purchasing cheap resources and materials from foreign countries.
  • Decentralized corporations typically lack a central headquarters, while centralized global corporations have a head office in their home country where senior leaders reside. (correct)
  • Decentralized corporations adhere to regulations in each geographic area they operate in, while centralized global corporations have a single management team overseeing all domestic and international decisions.
  • Decentralized corporations have multiple offices and facilities in foreign countries, while centralized global corporations have a single headquarters in their home country.

    • What is the key characteristic of a transnational enterprise within a multinational corporation?

  • A transnational enterprise is focused on rapidly scaling the parent corporation's operations in foreign markets.
  • A transnational enterprise operates independently from the parent corporation and has its own management team.
  • A transnational enterprise is able to access the parent corporation's resources, such as its R&D team, while operating in separate countries. (correct)
  • A transnational enterprise has a centralized leadership structure where the parent company makes all decisions on its behalf.

    • What is the primary purpose of an international division within a corporation?

  • To maintain a cohesive brand image across the corporation's global operations and ensure consistent decision-making.
  • To create a parent-subsidiary relationship that allows the corporation to access the parent company's resources.
  • To oversee all of the corporation's domestic operations and make decisions that appeal to different cultures.
  • To separate the corporation's domestic operations from its international operations in order to reach a wider audience. (correct)

    • Which of the following is NOT considered a potential advantage of becoming a multinational corporation?

    <p>Decreased innovation</p> Signup and view all the answers

    How do centralized global corporations typically approach international business opportunities?

    <p>They seek to access cheap resources and materials from foreign countries to increase revenue.</p> Signup and view all the answers

    What is the primary benefit of a decentralized corporation's structure in terms of its global operations?

    <p>It allows the corporation to rapidly scale its operations in foreign markets.</p> Signup and view all the answers

    Which of the following is NOT a characteristic of a typical Multinational Corporation (MNC)?

    <p>Constant downsizing to reduce costs</p> Signup and view all the answers

    What is the minimum requirement for a company to be considered a Multinational Corporation?

    <p>Both a and b are considered minimum requirements by different authorities</p> Signup and view all the answers

    What is the primary reason for a Multinational Corporation to establish multiple branches in the same location or across various countries?

    <p>To expand their impact and achieve continuous growth</p> Signup and view all the answers

    Which of the following statements is TRUE about the structure and operations of Multinational Corporations?

    <p>They may vary depending on the industry, size, and products/services</p> Signup and view all the answers

    What is the meaning of the term 'global' in the context of a global corporation?

    <p>It refers to a company that operates all around the world</p> Signup and view all the answers

    Based on the information provided, which of the following is a likely reason for a company to become a Multinational Corporation?

    <p>To access new markets and customer bases</p> Signup and view all the answers

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