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  • Essay / Essay on the Rise of Globalization - 701

    These are companies that own or control production and service facilities in one or more countries other than their home/founding country. There are four main types of multinational corporations. The first being a decentralized multinational company; it is a type of company with a very strong presence in the country of origin, that is; most leaders are citizens of the founding country. The second is a centralized, global multinational corporation. This type of company gains a cost advantage through centralized production. Their production sites are based in countries where the resources used in their production are the cheapest to acquire. The third type of multinational corporation is an international corporation that relies on the founding company. All of its subsidiaries are owned by the parent company. The fourth and final type of multinational corporation is a transition company that combines all aspects of the three multinational corporations mentioned above. Due to globalization, managers of multinational companies encounter many problems when they go to work in the establishments (subsidiaries) of the companies for which they work; some of these issues include culture shock experiences, fair trade issues, and ethical issues. And the difference in management styles according to different