What are the different types of organizational forms corporations use for international operations?

Question

What will be an ideal response?

Answer 1

1. Domestic Corporation: A domestic corporation is characterized by an organization whose headquarters and operations are in the parent country. Most organizations start out as a domestic corporation. Because the organization only operates in one labor market, managing its human capital is much easier than that of organizations operating in multiple countries.
2. International Corporation: An international corporation uses its existing core competencies to expand operations into foreign markets (Bohlander & Snell, 2007). These organizations compete in the global marketplace by exporting existing products and eventually opening facilities in other countries. While their corporate headquarters reside in the parent country, international corporations have foreign operations in one or more host countries.
3. Multinational Corporation: A multinational corporation is a more complex international business operation. Multinational corporations operate as fully autonomous units in multiple countries in an attempt to capitalize on lower production and distribution costs.
4. Global corporations are similar to multinational corporations; however, global corporations integrate their operations worldwide through a centralized home office. Multinational corporations produce and distribute identical products and services worldwide. Global corporations, on the other hand, emphasize flexibility and mass customization to meet the needs of differing customers worldwide.