Answered Essay: To be considered an MNC, a company based in the United States earns ___   of its total sales revenues

To be considered an MNC, a company based in the United States earns ___   of its total sales revenues from operations outside the United States.

a. more than 25%

B. more than 50%

Talia lives in Houston, Texas. She has traveled to India several times and is interested in working for a multinational corporation (MNC) with a presence there. She hopes that by working for such a company, she’ll first have an opportunity to transfer to a position in India and live there for an extended time and then be able to parlay that international experience into opportunities in other countries. Her research shows that MNCs with a significant presence in India include Nestlé, headquartered in Switzerland; PepsiCo, headquartered in the United States; Sony, headquartered in Japan; and Sun Pharmaceutical Industries, headquartered in India itself. Talia wants to do a lot more research on how these companies operate in India and on the nature of MNCs in general.

If Talia is hired as a manager at an MNC, what can she can expect? Check all that apply.

A. Strategy will include finding raw materials and locating production wherever it is most profitable to do so.

B. The corporate structure will integrate the activities of foreign affiliates.

C.She and her colleagues will cultivate a global perspective and view the entire world as one market.

D.The headquarters function will be dispersed, and various parts of the company will operate semi-independently.

Researchers have found that multinational corporations can be characterized based on their orientation to the different countries in which they do business. Complete the following sentence with the correct term.

________    company emphasizes its home country culture throughout its operations, and it tends to staff key positions abroad with expatriates from its home country operations.

A. A polycentric

B. A geocentric

C. An ethnocentric

Expert Answer


For a Company to be considered as an MNC in US, it should be more than 25% of its total sales venues from operations outside United States. 2. If Talia is hired as a manager at an MNC, she can expect the following: . As MNC involves businesses operating in different countries of the globe, corporate structure is made such as it can take the more advantage from its operations in foreign country. Thus, he corporate structure will integrate the activities of foreign affiliates This is due to the boons of Globalization that made business possible across the different territories on the globe. With this, worlds market is called as one market as it made trade possible among different business operations. Thus, She and her colleagues will cultivate a global perspective and view the entire world as one market. . 3. Expatriate Training - Developing International Staff and Multinational Teams, located in other countries and away from their homes and emphasizes the home country culture through-out its operations considered as an Ethnocentric companv. These companies place its home countries people at key positions in the organization.

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