Which statement best describes the ownership pattern of multinationals?

Which statement best describes the ownership pattern of multinationals?

• A. Ownership and control are centered in the host country
• B. Ownership and control are shared evenly
• C. Ownership and control are centered in the home country
• D. Ownership and control are unpredictable

Answer: (C)

Ownership and control in a multinational are centered in the home country. The parent company is headquartered there and holds the main ownership stakes, making the big strategic decisions—things like overall direction, finance, branding, and major policy choices. Substantial operations exist in other countries, and these subsidiaries may be owned or managed locally, but they operate under the direction of the home-country headquarters. This structure allows the company to exploit global opportunities while keeping centralized control over its core strategy. The other patterns aren’t typical: ownership and control aren’t usually spread evenly across all countries, and they aren’t unpredictable—there’s a clear hierarchy where the home office steers global decisions, even though local units handle day-to-day operations.

Ownership and control in a multinational are centered in the home country. The parent company is headquartered there and holds the main ownership stakes, making the big strategic decisions—things like overall direction, finance, branding, and major policy choices. Substantial operations exist in other countries, and these subsidiaries may be owned or managed locally, but they operate under the direction of the home-country headquarters. This structure allows the company to exploit global opportunities while keeping centralized control over its core strategy.

The other patterns aren’t typical: ownership and control aren’t usually spread evenly across all countries, and they aren’t unpredictable—there’s a clear hierarchy where the home office steers global decisions, even though local units handle day-to-day operations.