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.