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By Michel Ghertman, Margaret Allen (auth.)

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Several years before, during the Spanish Civil War, the manager of the General Motors' subsidiary had been working peaceably with the Republican Government. The day in 1936 when Franco came to power everything changed. The 28 An Introduction to the Multinationals immediate reaction was brutal: the manager found himself in jail. Because of this, relations between the multinational in question and Franco's Government were impaired for a long time. After the Second World War, the automobile industry had an exceptional rate of growth.

Several years before, during the Spanish Civil War, the manager of the General Motors' subsidiary had been working peaceably with the Republican Government. The day in 1936 when Franco came to power everything changed. The 28 An Introduction to the Multinationals immediate reaction was brutal: the manager found himself in jail. Because of this, relations between the multinational in question and Franco's Government were impaired for a long time. After the Second World War, the automobile industry had an exceptional rate of growth.

Horizontally, by geographical area. Ultramar, the oil company is one British example. Each area has its management (for example, Europe or the Far East), which coordinates the activities of the subsidiaries located there. This type of organization is far less common in the United Kingdom than vertical integration. The reverse is true in France. 3. The huge multinationals like Unilever or Philips have a matrix form of organization which combines regional and product group organization. The most important development in the relations between the parent company and its subsidiary is that of the establishment of the budget.

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