Question

9. Differences between domestic and multinational corporations

A collection of business firms, usually with a financial institution at the lead, designed to provide the integrated production and sale of the organization’s products is called (An industrial group, an integrated corporation, a pyramid, or a multinational corporation)? (Pick one)

Based on your understanding of the differences between U.S. and foreign businesses, which of the following statements is correct? Check all that apply.

-The sovereignty of the different countries in which a multinational firm operates (with their ability to create idiosyncratic laws and manage their own unique economies) requires managers to be extremely knowledgeable about these differences and adept at creating a business organization that can be profitable when operating in them.

-Examples of the operational constraints that a host government can impose on foreign firms include regulations that apply to the employment and treatment of domestic and foreign employees, the availability of bank accounts for foreign nationals, and the freedom of foreign firms to own real estate.

-It is reasonable to assume that the government’s objectives and level of involvement in the product and financial markets are the same in all countries.

Answer 1

Answer

a.

A collection of business firms, usually with a financial institution at the lead, designed to provide the integrated production and sale of the organization’s products is called an industrial group.

b.

The second statement, in this case, is correct which is examples of the operational constraints that a host government can impose on foreign firms include regulations that apply to the employment and treatment of domestic and foreign employees, the availability of bank accounts for foreign nationals, and the freedom of foreign firms to own real estate. The reason behind that the management policy of each country including the organization doing business in that country is completely different. There lie various constraints while doing foreign business in comparison to that of the US business policies. The employment-related norms slightly vary between the US and foreign-based organization. But the managers or rather the top-level management system, in this case, have to be knowledgeable regarding the adoption of the culture and style associated with it.