In terms of geographical scope, multinational enterprises can be divided into three major groups in particular, local, regional, and global businesses. It should be noted that this classification is based on the premise that enterprises can focus on different markets that are critical for their sustainability. For instance, local multinational enterprises pay more attention to the needs of the consumers living in their host country, even though they can outsource some of their business processes overseas. Moreover, these organizations can receive foreign direct investment; nevertheless, their presence in foreign markets is rather limited.
Overall, one can say that the geographical classification of businesses can be better understood if one looks at the market orientation of various companies. Moreover, one should examine their sales and production networks in order to determine whether these businesses are local, regional, or global. These are the main aspects that can be identified.