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Essay / Research Paper Abstract
A 12 page paper that begins by describing the four organizational models of global corporations. The rest of the paper discusses aspects of the multinational organizational model and the transnational organizational model. The writer also describes the evolution of global corporations, alliances, foreign direct investment and integration models. Bibliography lists 7 sources.
Page Count:
12 pages (~225 words per page)
File: MM12_PGmltrc.RTF
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Unformatted sample text from the term paper:
comprehensive discussion of two models, multinational and transnational, will follow this brief description. 1. Multinational Organizational Model. This is the oldest and most common model. It is described as
a "decentralized federation of assets and responsibilities, a management process defined by simple financial control systems" (Sawaya 1991). 2. Global Organizational Model. This model is the opposite of the
Multinational model. Each geographic unit is not independent, instead, all units operate under a global strategy with each unit "expected to implement policies and plans developed at headquarters" (Sawaya 1991).
Bartlett and Ghoshal call this model the "centralized hub" because headquarters controls everything. Management views the business as "one single global integrated market where similarities are to be highlighted and
differences are to be ignored" (Sawaya 1991). 3. International Organization Model. Bartlett and Ghoshal called this the "coordinated federation" as compared to the multinational, which is a decentralized federation (Sawaya
1991). Under this structure, companies transfer and disseminate their knowledge and expertise to their subsidiaries. Under this model, subsidiaries own their "assets, resources, decisions, and responsibilities" (Sawaya 1991) but they
understand that headquarters still has the ultimate control. 4. Transnational Corporation Model. The designers called this model the "integrated network" (Sawaya 1991) model. Corporations decide which decisions will be
centralized and which will be decentralized (Sawaya 1991). One fact that is important to be aware of is that "Economists are not in agreement as to how multinational or transnational
corporations should be defined" (Multinational Corporations n.d.). Some economists argue that if the owners of the corporation do not represent at least two other countries, it is not a multinational
corporation (Multinational Corporations n.d.). Researchers will find that many manuscripts use the terms multinational and transnational interchangeably, so, in effect, these authors are saying they are one in the same.
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