Question

As the international operations of their firm continues to grow, Theodore and James have realized that decentralized management using foreign nationals to run operations in the host countries works best. Their firm has developed into a ________ organization.

Answer 1

Answer: Multi-domestic

Explanation: A multi-domestic organisation or multi-domestic corporation is, in fact, an organisation that, in its operations involves local nations as a management team and management structure. This practice therefore refers to the assignment of significant functions to local people, such as management, important decision-making and other relevant competencies in the countries where they have their companies as part of the overall corporation. Because they have their own companies in several countries, where the management structure is made up of local people, it is called multi-domestic.