Global strategies in the automobile industry

This paper Views the multinational firm as a learning hierarchy and present s a model capable of analysing the spatial organization of multinational fi rms. This model is based on two criteria: the principle of hierarchy; and t he degree of hierarchical control. Four types of multinational companies ar e defined (world-wide, multidomestic, multiregional and transregional) and the process of internationalization is understood through the way in which firms develop their organizational capabilities. The model is applied to a study of the strategies which have been followed by American, Japanese and European carmakers.