Modern Management: concepts and skills, 14/e

Categorizing Organizations by Level of International Involvement

A number of different categories have evolved to describe the extent to which organizations are involved in the international arena. These categories are domestic organizations, international organizations, multinational organizations, and transnational or global organizations. As Figure  4.4 suggests, this categorization format actually describes a continuum of international involvement, with domestic organizations representing the least and transnational organizations representing the most international involvement. Although the format may not be perfect, it is useful for explaining the primary ways in which companies operate in the international realm.¹⁵ The following sections ...