3. How organization go global?
Types of INTERNATIONAL ORGANIZATION :
1
• MULTINATIONAL CORPORATION :
A firm that operates in multiple countries but manages from the home country.
• MULTIDOMESTIC CORPORATION :
A firm that operates in several countries but decentralizes management to the
local country.
• GLOBAL COMPANY :
An international company that centralizes management in the home country.
5. 3
How organization go global?
• GLOBAL SOURCING :
Purchasing materials or labour from around the world, wherever it is
cheapest.
• EXPORTING :
Making products at home and selling them abroad.
• IMPORTING :
Selling products at home that are made abroad.
6. 4
How organization go global?
• STRATEGIC ALLIANCE :
Partnership between a domestic and foreign company to share resources
In developing new products or building production facilities.
Joint Venture is a type of strategic alliance in which partners form an
Independent organization for a business purpose.
7. How organization go global?
• FOREIGN SUBSIDIADRY :
A direct investment by an organization in a foreign country by creating
a separate and independent production facility or office.
This involve the greatest amount of resources and highest risk.
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