Multinational Corporation Flashcards
Enterprise that is headquartered in one country but
has operations in one or more countries.
Multinational Corporation
a company that does
business in a select few countries around the world
and operates facilities such as warehouses or
distribution centres in at least one foreign country
Multinational Corporation
Examples of MNC
Google, Apple, MCDO, and Amazon.com
4 Types of MNC
Decentralized Corporation
Global Centralized Corporation
International Company
Transnational Enterprises
have a strong presence
in their home country.
Decentralized Multinational Corporation
means there is no
centralized office
Decentralization
is one where decision-making
authority, operations, and management are spread across
different locations or subsidiaries, often with a significant degree
of autonomy.
Decentralized Corporation
Often with significant degree of autonomy
Decentralized Corporation
These subsidiaries may operate relatively independently but are
still part of the same corporate entity
Decentralized Corporation
have a
central administrative office in the
home country.
Global Centralized Corporation
They may outsource
production to developing countries to
save time and production costs while
making use of local resources
Global Centralized Corporation
characterized by
a centralized management structure that makes key
decisions and controls operations from a single
headquarters or main office.
Global Centralized Corporation
Despite having a global
presence,
decision-making
authority
remains
concentrated at the center
Global Centralized Corporation
utilize the
resources of the parent company to
develop new products or features that
will help them gain a competitive edge
in local markets.
International Companies
conducts business activities in
multiple countries, but it does not necessarily have a
strong integration or coordination of operations between
these countries. Each country’s operations may function
relatively independently
International Company