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Multinational Organizations and Corporations

In relation to multinational corporations, there are:

- Domestic structure plus export department
- Domestic structure plus foreign subsidiary
- Global structure
- Global functional structure
- Global product structure

Please provide and/or cite an example of each structure. Discuss the advantages and disadvantages of each structure.

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I have outline a response for you here. Please let me know if you have any questions based on this information. The advantages and disadvantages are those I see, but you may, from your studies, discover others or disagree.

Companies have to change to keep up with the demands of markets. This is especially true of companies that find themselves or plan to enter the global markets.

Domestic structure plus export department
This is a standard organizational structure of the CEO, departments, including production, sales and marketing, human resources, and finance. The company will add an export department to deal with transporting goods and services to other areas. This department would include areas of shipping, possible resource acquisition, and matters of taxes, fees, and legal needs. The advantage is that this department would be specialized in dealing with issues of foreign trade. The disadvantage is that it might be a large and cumbersome department and its workload the same if the company is in multiple countries with diverse requirements and needs.

An example would be the company that builds components for another. A maker of carburetors for a car manufacturer in China would need to deal with getting the product to China, paying the fees and taxes required by China, and addressing any legal matters pertaining to resources, safety and health issues for the state, and standards.

Domestic structure plus foreign subsidiary
This structure had a standard look as well with the CEO ...

Solution Summary

The expert examines multinational organizations and corporations.