THE CATEGORIES MULTINATIONAL AND COMPANIES

The Hierarchy

Multinational companies can be an organizations that works through a hierarchical model and often hire people from the region where a place will be established but the managers are foreigners.

Flat Organizations

Multinationals can also be an organization that is willing to change and innotaion, companies that work for their employees and listenn to their ideas can also be an organization where there are no work titles, where workers can work on many proiects.

Flatarchies

There are many multinational companies that have a system of flatarchies in them organizational structure because they can be more hierarchical and then have ad-hoc teams. An example of this type are the organizations that innovate a lot.

Holocratic Organizations

This type is a model that use many multinational companies and this consist in them workers do what they do best.

Multinational Corporations

Advantages

-Multinational corporations to reach new markets become global, benefits from the cheapest labor in less developed countries and this also ensures that corporations are closer to nearby sources of raw materials.

-Multinational companies pay better than domestic companies. They teach new skills to the workforce, provide the much needed money to the domestic population.

-Learn to work with advanced equipment and learn other business plans and models.

Disadvantages

-If a domestic company moves its production to other countries to a large extent, this will result in thousands of people in the national country losing their jobs.

-Multinational corporations dominate local governments that need multinational corporations more than vice versa.

-The local economy is distorted and dependent on the Multinational Corporation. This dependence creates distortion by controlling the financial health of the economy and government at the local level