Multinational Organizations : Multinational Corporations Essay

736 Words Apr 23rd, 2015 3 Pages
Multinational Corporation may be defined as enterprise that operate and has its assets and other facilities in more than one country than their home countries. However in most cases, such companies have offices or industries in different nations and normally have a centralized main office where all the global management is coordinated. The major distinguishing factor of the large multinationals corporations is that their budgets exceed those of many small countries. The major multinational corporations are mainly from Japan, America, or Western European, such as Nike, Honda, AOL, Toshiba, Coca-Cola, and BMW.
Multinational corporations can be categorized into four groups based on their operations; first there is multinational, decentralized corporation: these are corporations with high and strong presence in a home country. Secondly, the international company: these are corporations that build and develop on the technology of the parent corporations or research and development. Thirdly, there is the global centralized corporation operates on cost advantage through centralized production due to the availability of relatively cheaper resources. Lastly, the transnational enterprises: these adopt the previous three approaches in terms of management and production. Employees in multinational organizations can be basically categorized into three types: expatriates, host-country national, and third-country national.
Expatriates
These are organization members who live and work in a…

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