A simple way of defining an MNC is ‘an enterprise that controls and manages production establishments in at least two countries’. Another definition is ‘a corporation which owns (in whole or in part), controls and manages income-generating assets in more than one country’. Yet, a third definition is ‘an enterprise that engages in foreign direct investment (FDI) and owns or controls value-adding activities in more than one country’. Firms that compete globally typically face two types of competitive pressures: pressures for cost reductions, and the pressures for local responsiveness in the industry in which it competes. These competitive pressures place conflicting demands on firms. Firms pursuing a multidomestic strategy customize their product offering, marketing strategy, and business strategy to national conditions. They tend to transfer skills and products developed at home to foreign markets. It provides very useful and highly powerful teaching and research material in the field of organizational behaviour for teachers, researchers and HRD managers.
