The document discusses four types of international organizational structures: 1) Multi-domestic organizations have decentralized subsidiaries that operate independently within each country. 2) International organizations centralize assets and knowledge at headquarters and disseminate information outward to subsidiaries. 3) Global organizations centralize control and require subsidiaries to share best practices and comply with headquarters. 4) Transnational organizations blur national boundaries by adopting both centralized and decentralized methods, with interdependent subsidiaries that actively share knowledge globally.

1. Types of International Organization : The company’s approach to global expansion needs to fit in to its corporate agenda, and be in tune with the industry and time. Cross national business have been labeled into tour types in terms of organizational structure buy researchers.

2. Multi-domestic Organization: It is one that exports to/imports from organizations in other countries with primarily domestic production. The subsidiaries develop into decentralized decision-making units, make use of local resources to create a self-sufficient entity.

3. Ex: GM, is a firm with subsidiaries extending over Europe that stand along as self-contained units.

4. International Organization: It has its assets centralized at its headquarters. The knowledge base is developed at the center, and from there it is dispersed to overseas locations. Subsidiary units are expected to leverage their local capabilities. Here core competencies are central, parent company capabilities are used, and knowledge disseminates from center outwards.

5. Ex: Microsoft, Core product is developed at center, and the subsidiaries take care of localizing the product to fit the customer requirements that are regional or local.

6. Global Organization: It is one that is centralized but scaled globally, with knowledge retained at the center. Control is retained at the center. The subsidiary units have to furnish information to the center and comply with the headquarters control. Subsidiary units must draw from the best practices and experiences of all the subsidiary units and adopt the most efficient strategies from the entire company.

7. Ex: Intel, keeping performance up to global standards and taking advantage of the learning, drawn from experience to show in terms of low costs and location advantages.

8. Transnational: Refers to an enterprise where national boundaries get blurred. Both centralized and decentralized methods are adopted in this model. While units are specialized, interdependence of units is also a characteristic feature. The subsidiary units abroad play an active role in the development of the firm’s capabilities and share knowledge with worldwide locations. This model enables a firm to “think globally and Act locally”.

9. Ex: Caterpillar Inc., has set up manufacturing units in certain locations for many identical components. It however has assembly units in each of its major markets, so that the product can be made to suit local needs.