Topic > Essay on the Rise of Globalization - 701

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