Categories: Strategy

International Firm or Multinational Corporation

There are number of organizations that has been doing business domestically means the investors are local. However, if an organization conducts business across the border or outside domestic/local market in that case it is called an International firm or multinational corporation. The term parent company refers to the firm investing in international operations while the host country is a country where the business is conducted. Since, international firm is operating in multiple countries each has its own internal and external factors therefore, management is more complex as compared to domestic firm. There is a high impact of social, economical, technological, competitive, environmental, legal cultural and demographics factors on International firm. Thus, strategies for international business should be made to capitalize on opportunities and defend threats exist in same industry of multiple countries.

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