There are several different types of companies, depending on how they act in the international environment. A multinational corporation is a firm that operates in markets in nations more than just their own. Some state that a firm has to generate 25% or more of its revenue in the company outside the homeland to be considered multinational, but there is no hard and fast specification. Companies look to source manufacturing out of countries to lower production cost. Some say that it is not ethical because you are removing business from the market which you live in (Chen, J., 2022, October 8).
A global corporation is a firm that operates in the global market. These firms have a headquarters in their headquarters where they control their operations. Global corporations have to be very aware of their management styles to not offend anyones worldview managing in the global environment. Corporate headquarters do not make every decision in an organization, only those that go throughout the entire organization (Chen, J., 2022, October 8).
A transitional corporation is a firm that is similar to the global corporation. You have a main headquarters that handles the operations in smaller operations of the companies. In this manner its called parent-subsidiary relationships. This is when a company has several small firms ran by the parent company in the organization. Subsidiaries can be different brands, but still be the same company (Chen, J., 2022, October 8).
The international company is slightly similar to the global corporation and transitional corporation. International companies still operate in the global market but they do not operate in countries outside their country of origin. You still provide the goods, services, and brands to the consumers, but you do not operate in the country. The country is still being ran at the headquarters of the company. This can help a company save money so they do not have to have operations in that country as well but can still reap from the profits. There is some disadvantages of that, for example you are not in control of the supply chain in your global market (Smyth, D., 2021, November 20).
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