This question has two parts; be sure to answer both.

Question

What will be an ideal response?

Answer 1

First, contrast a multinational corporation and a multinational organization, and explain why a global mind-set is essential in working in a globalized world.

Next, consider these two companies: (1) Voice of the Reader recruits volunteers, often actors and actresses, who read books out loud, in many different languages, so that they can be put onto electronic media, such as CDs. Voice of the Reader then distributes these books for free to blind people across the world. For example, books on CD in French go to France, Canada, and Haiti; books on CD in Spanish go to Spain and many of the countries of South America; books in Portuguese go to Portugal and Brazil. Voice of the Reader does not seek a profit, and it has small recording studios in many countries, where actors read the books out loud. (2) Blazing Glory is a role-playing game that is played with simple cards that look like baseball cards. Each card has a mythical figure, as well as multiple symbols that explain how the game can be played. Because there is no writing on the cards, the market is fully global—no translations or adaptations are required. The company that created Blazing Glory is now manufacturing and selling its cards throughout the developed world, and it has hired game creators in multiple countries, including Brazil, China, and India, to develop games that will appeal to the local markets.

Which of these companies is a multinational corporation, and which is a multinational organization? How do both companies benefit from a global mind-set? Explain.

A multinational corporation, or multinational enterprise, is a business firm with operations in several countries. A multinational organization is a nonprofit organization with operations in several countries. In the current business climate, a global mind-set is essential. A global mind-set combines (1) an openness to and awareness of diversity across cultures and markets with (2) a propensity to see common patterns across countries and markets. People and organizations with a global mindset see cultural and geographic diversity as opportunities to exploit and will take good ideas wherever they find them.

Voice of the Reader is a multinational organization because it is a nonprofit organization with operations in several countries. It is benefiting from a global mindset by understanding that language is a key factor that draws different parts of the world together. For example, life in Haiti and life in France are very different, but the countries share a common language and the need for books, learning, and entertainment. The company that creates Blazing Glory is a multinational corporation because it seeks a profit and has operations in several countries. It is benefiting from a global mind-set by understanding common patterns across countries and markets. For example, it understands that teenagers (and adults) love to play games, regardless of the country they live in or the language they speak.