Which sequence correctly represents the stages of organizational globalization?
The Correct Answer is: A. Domestic → International → Multinational → Transnational → Global
Organizational globalization typically progresses from operating solely in the home country (domestic) to entering foreign markets (international), then managing operations in multiple countries (multinational). It advances to a transnational stage, where operations and strategies are integrated across borders, and finally to the global stage, where the organization operates as a truly unified worldwide entity with seamless coordination.
Why the other options are incorrect:
B. Domestic → International → Multinational → Global → Transnational
This sequence places the “global” stage before “transnational,” which is inaccurate. The transnational stage precedes the global stage, as it reflects the integration of operations and strategies across multiple countries before achieving fully unified global operations.
C. Domestic → International → Transnational → Multinational → Global
This order incorrectly places “transnational” before “multinational.” An organization must first expand into multiple countries (multinational) before integrating its operations and strategies to become transnational.
D. Domestic → Transnational → International → Multinational → Global
This sequence is unrealistic because an organization cannot jump directly from domestic operations to the complex transnational stage without first developing international and multinational capabilities. The stages build progressively in scope and integration.
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