Summary

   Multi-domestic companies often exploit a firm-specific advantage abroad, which focuses on local responsiveness. In this situation the subsidiaries in different countries operate the entire value chain including purchasing, production, marketing, sales activities and R&D. The opposite of the Multi-domestic company is the global company that concentrates the activities in the value chains as much as possible to one country. The strategy is economies of scale and scope through rationalisation of production, R&D and marketing. The network company transfers goods, services and knowledge between different subsidiaries. The strength for the network company is to use the unique resources in every country and place the different activities in the most suitable country.