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Four Basic Company Strategies

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There are four basic strategies--international, global, multidomestic, and transnational. What are the advantages and disadvantages associated with each?

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Global.

Global companies operate in two or more foreign countries. Most of them have foreign direct investment (FDI) in some if not all of the foreign countries they operate in. There is a centralized approach in decision making and organizational approaches coming from the headquarter or Parent company. The Parent company initiates and completes product development and distributes them to the subsidiary foreign companies for further trading. The emphasis is on efficiency, cost management and volume.

Global companies invest in many foreign countries and oftentimes, they are subjected to regulatory and legal issues in those countries. Since the products are standardized or have uniform product types, global companies fail to ...

Solution Summary

The four basic company strategies: international, global, multidomestic, transnational -- explained with their advantages and disadvantages in them are determined. The solution is 450 words with two non-APA references.

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