...Advantages and Disadvantages of Transnational Corporations Host Country: Advantages 1. The investment level, employment level, and income level of the host country increases due to the operation of TNC's. 2. The industries of host country get latest technology from foreign countries through TNC's. 3. The host country's business also gets management expertise from TNC's. 4. The domestic traders and market intermediaries of the host country gets increased business from the operation of TNC's. 5. TNC's break protectionism, curb local monopolies, create competition among domestic companies and thus enhance their competitiveness. 6. Domestic industries can make use of R and D outcomes of TNC's. 7. The host country can reduce imports and increase exports due to goods produced by TNC's in the host country. This helps to improve balance of payment. 8. Level of industrial and economic development increases due to the growth of TNC's in the host country. Disadvantages 1. TNC's may transfer technology which has become outdated in the home country. 2. As TNC's do not operate within the national autonomy, they may pose a threat to the economic and political sovereignty of host countries. 3. TNC's may damage the domestic industry by monpolising the host country's market. 4. In order to make profit, TNC's may use natural resources of the home country indiscriminately and cause depletion of the resources. 5. A large sums of money flows to foreign countries in terms of payments...
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...technology and globalisation Interaction between product sellers and customers have evolved from in store purchases to telephone orders, home deliveries, online orders and even self-services. this essay will focus on online markets and particularly on the techniques global companies use to target a particular market and give minimal review of its effectiveness. The idea of globalisation as regards to sales market implies that the world will suffer from loss of identity and witness the birth of a typical global consumer market. This was the general belief in the 1990’s but was proven not to be entirely accurate, because Multinational companies gradually saw the need to localise there products services, and method of outreach to conform with locale demands and to encourage familiarity between these products and services with those of native competitors.(Nitish, 2009).the explosion of the internet however made global consumers easy to reach. Global companies adopted the idea of localisation in their websites as a tool to homogenize their products to avoid the threat of losing their market as it is somewhat of a trend for natives of a locale to purchase locally produces products. In order to do this these companies use national symbols to promote familiarity, spark emotions and uniformity also to show they acknowledge and have respect for a locales national identity. it was once stated that “products designed for global markets have come to rely on the use of icons and symbols to...
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...Multinational Companies and Human Rights Ever since globalism has become the dominate economic system in the modern world, many companies specifically in the United States have found the benefits of moving manufacturing jobs out of the US in favor of countries that pay workers very low wages. These countries often times do not have the same stringent labor laws and enforcement features in place as in the US and as a result human rights abuses are much more pronounced and more apt to be violated. As more consumers in western nations become more educated about where their products are being manufactured and how many people are being mistreated and abused all in the name of making products cheaply, they are demanding that multinational companies or MNCs take more responsibility in making sure human rights are not being violated. An example of a way MNCs are attempting to take responsibility for ensuring workers human rights are the establishment of various codes of conducts. One such code of conduct mentioned in our textbook is the Anti-Sweatshop Code of Conduct established by former President Bill Clinton. The code which “includes a ban on forced labor, abuse, and discrimination requires companies to provide a healthy and safe work environment and to pay at least the prevailing local minimum wage, among other requirements” (Deresky, 2011). This particular code of conduct works in conjunction with the Department of Labor who essentially publishes the names of companies...
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...Abstract Multinational hotel companies, often integrated with travel agencies and tourism businesses, play an important role in the tourism industry in developing countries. Introduction of multinational hotel companies is always regarded as an opportunity to benefit host countries through provision capital and market connections. However, the activities of multinationals could also be threats to these countries. This paper reviews the potential costs of multinational hotel companies involvement like decreased economic benefits, foreign domination and negative environmental and cultural consequences. Furthermore, it illustrates some possible solutions for developing countries to reduce the adverse effects which could balance the advantages and disadvantages of multinational involvement and create a brighter future. 1. Introduction A multinational hotel companies, as a type of multinational enterprises, which is identified as an enterprise that owns or controls value-adding activities in the accommodation sector in two or more countries. It is widely accepted that most of developing countries are seeking opportunities to introduce multinational hotel companies because developing countries could obtain several benefits from the presence of multinational hotel companies, such as provision of capital, transfer of technical and managerial expertise, provision market connections,etc. It is true that multinational hotel companies can contribute to the growth of economy in...
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...national company an American company? A multinational company refers to a company that operates in more than one country. The headquarters of the company are located in one country but its business activities are spread over in other countries. A multinational company becomes an American Company if possess the following characteristics. Firstly, multinational company local subsidiaries are managed by the nationals of the host countries. Therefore, for a multinational company to become an American company its management must be international in character. For instance, Hindustan Lever is an American company but its management lies with Indians (Brigham, and Houston, 2007). Secondly, a multinational company becomes an American company if the parent company is in the United States of America. Such a company is governed by the laws and regulations of the host country of the parent company hence it becomes an American company. Thirdly, a multinational company whose sales in America are more than 25 percent of its total sales is considered an American company. This is because its operations are meant to benefit the American. Hence, it can be named as one of the American companies. Fourthly, a multinational company that has set many subsidiaries in the United States is considered an American company. This is because most of its production takes place in America since the company establishes production plants in the country (Brigham, and Houston, 2007). In addition, a Multinational company...
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...Apple Inc. Examining A Multinational Company Apple Inc. previously known as Apple Computer Inc. was founded in 1976. The American Multinational Corporation is known for dominating the technology industry with market savvy products. Apple’s success is attributed to the company’s ability to design and produce products with highly valued customer benefits and unique benefits for which customers pay premium prices. Although the company has a large presence in various segments of the technology market their focus is on four major products. Mac computers, iPod music players, iPhones, and iPads are primary products produced by the company. Apple also designs, manufacturers, and markets operating systems, developer tools, networking solutions, and database software. Historically, Apple has focused its efforts in the United States and Europe. One major contributor to the company’s success was the decision to become a multinational organization. Presently, North American sales account for half of Apple’s revenue. Twenty-five percent of sales are earned in Europe, fifteen percent in Japan, seven percent in Asia and Pacific regions, and the remaining five percent of sales are from the rest of the world. Apple, a now multinational billion dollar company has come a long way from being the company founded with $1300. In 1980, Apple became publicly traded. On the day Apple went public their stock rose 32% making approximately 40 employees instant millionaires. Not only...
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...subject to rigorous planning and coordination and when they cater to the firms’ interests in expanding its business beyond the borders of its home country, the parameters for analysis change. The company has to think beyond its own domestic construct and towards a more broad-based approach. Multinationals have to consider a completely new array of factors which range across the home country, the foreign country and even the distance in between. In today’s world of interconnectedness, FDI has been facilitated through the use of modern technology and the transferability of technology across boundaries. The global trading environment allows for investment flows across countries. While countries may be wary of imports, FDI is always welcomed as it leads to job creation within an economy and a boost to GDP. The FDI decision would itself be one needing intense planning, strategizing and thorough analysis. The factors which determine investment decisions by large firms vary across countries and it is up to the firms to determine whether the costs incurred by the variances among these parameters would be worth the price of admission. The cost benefit analysis has to be thorough given that the company is exploring new markets which could be considered a whole new world within the context of the company. Stepping out of the bounds of its own industrial and economical context and towards a global context or towards the industrial and economical context of a different country altogether is a decision...
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...Logoplaste, a company founded in 1976 by Marcel de Botton and now run by the CEO team of son, Filipe de Botton and Alexandre Relvas. The company under this pair has grown from what was a small container company in Portugal controlling a few plants to the top 10 rigid plastic container manufacturers in the world. Logoplaste has had tremendous growth over the past 15 years and mainly due to its extensive expansion strategies, it’s been able to maintain a CAGR (Compounded Annual Growth Rate) of 15.4%. In view of its articulate growth plans by 2010 they owned 60 plants in as many as 5 continents. Logoplaste had sales of about €300 million largely due to its large multinational clientele such as Coca-Cola, Heinz, Proctor & Gamble (P&G), Unilever etc. With the increase in acceptance of plastic throughout the world as a more safer and a durable alternative to metal, steel etc. the rigid plastic container industry was poised to grow at 5-6% annually while the overall container and packaging industry grew at just over 2%. Keeping these facts in mind it is vital that if Logoplaste wants to see continued growth and success and also wants to show similar growth rates in future it must also come up with viable strategies for growth. Starting with Logoplaste’s method of business, which advocated and practiced the “hole-in-the-wall” concept (on-site service focused towards decreasing transportation costs and increased customizability for clients) to perfection with customer centric, decentralized...
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...Becoming a multinational corporation gives the company a chance to grow and profit on a completely different level and could potentially make that corporation a household name worldwide. Not only does this create many opportunities for the company, it allows investors a chance to diversify their portfolios and enter the world of international investing. This project allowed me to learn more about international investing and competition in the global market. Two foreign stocks that trade on U.S. stock exchanges and two U.S.-based multinational corporations were included in the portfolio I created. Anheuser-Busch (BUD), a brewing company founded in 1366, produces, markets, and distributes beer, as well as non-alcoholic beverages. It boasts a portfolio of approximately 200 beer brands. The company’s international brands include Budweiser, Stella Artois, Corona, Beck’s, Leffe and Hoegaarden, while its local brands primarily consist of Bud Light, Skol, Brahma, Antarctica, Victoria, Modelo Especial, Michelob Ultra, Harbin, Sedrin, and Jupiler. The company has operations in 24 countries. Anheuser-Busch is a foreign stock, as it is headquartered in Belgium. National Grid (NGG) is also a foreign stock; this company is headquartered in the United Kingdom. National Grid conducts and allocates electricity and gas to industrial, residential, and commercial consumers. The company operates high voltage electricity and gas transmission networks in Great Britain, a gas distribution system in the...
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...Assignment 3 Name: (Your Name) HRM533 Date: (Today’s date) (Title) Organization Overview This paper will discuss the total rewards program for (Name of the Company, real or otherwise). This company is (Complete this paragraph briefly describing the multinational company and its requirements/needs for a total rewards system. You should remember that this company is diverse and in multiple countries.) Total Rewards Strategy In order to meet the HR needs of this company, HR must accomplish the elements discussed in the succeeding paragraphs that address the fundamentals of this type of total rewards system while complying with the regulatory environments. (See pages 24—27 for strategy development. Check the index in the back of the book for Compensation regulatory programs to get an idea of the regulatory environments. A strategy is a roadmap, so in the following paragraphs layout the steps that HR should take to meet these requirements.) The first element is (Complete the paragraph stating the first thing HR needs to do.) The second element is (Complete the paragraph stating the next thing HR needs to do.) (Continue writing paragraphs with this beginning until you have fully explained the elements that must be accomplished by the compensation system.) System Advantages There are several advantages to this total rewards system as described above, and they are discussed in the succeeding paragraphs...
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...Management styles Multinational corporations Case studies Classification Codes: 9179: Asia & the Pacific 1300: International trade & foreign investment 2200: Managerial skills 5400: Research & development 8650: Electrical, electronics, instrumentation industries 9110: Company specific/case studies 9510: Multinational corporations Geographic Names: Japan Companies: Matsushita Electric Corp of America Duns:00-891-9813 Sony Corp Ticker:SNE Duns:69-055-3649 Abstract: As companies transfer their R&D activities abroad, they will have to confront a challenging management issue: how to successfully operate R&D laboratories dispersed around the world. Both Matsushita Electric and Sony seem to have coped with this issue successfully by introducing new management systems and practices - redefining the mission and goals of their global R&D, assigning two types of projects at the same time, rather than specializing projects among different labs, coordinating not by large-scale committees or meeting but through human relationships among a small number of top R&D mangers, drastically changing their organizational structures. It appears that both companies have already realized some of the anticipated benefits. Full Text: Copyright Industrial Research Institute, Incorporated Mar/Apr 1999 [Headnote] A long tradition of conducting R&D overseas has helped these Japanese companies adapt to changing competitive conditions. [Headnote] OVERVIEW: As companies transfer their...
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... | |Introduction | |Organizational Study | | | |About the Company | |History | |Company Profile | |Objective of the Company | | | |Mission and Vision | | | |Principles and...
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...Corporation is a multinational company and is the world’s largest automaker in terms of sales volume. It has branches in almost all countries, the company Toyota has become the largest manufacturer of automobiles of the world and beating giant competitors such as General Motors and Ford. Most companies are concerned with the sales and profit from the next semester while Toyota focuses on the next 25 years. The majority of managers on Western companies receive dividends quarterly or annual, instead Toyota executives maintain a far-sighted of the business and they have less pressure to make it more convenient to make changes that would work better in the long term. Toyota has always operated one system of production focused on the necessities of the customers, the interesting thing about this long-term vision is that allows that all the company agreed more easily when making important decisions ,Toyota managers will give the importance to the experience gained by doing things and always invites employees to experience things by yourself. Toyota is one of the companies that always growth and have a plan to change and evolve according to customer demand Toyota has always opening to new markets and rejecting any practice erroneous and always ready for changes in the automotive market, unlike large manufacturers Toyota has a system where managers encourage their groups in a practical way, where the goals are achieved though the collaboration of each member of the company and not just...
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...Impact of Globalisation on Multinational Companies 2 Introduction 2 McDonalds’ Introduction 3 Globalisation and McDonald’s 3 Globalisation strategy of McDonald 5 1. Think Globally but Act Locally 7 2. Pricing 8 3. Advertising/Promotional strategies 8 4. Social responsibility 9 Challenges for McDonald 10 Conclusion 11 Reference 12 The Impact of Globalisation on Multinational Companies Introduction Globalization is a term used to describe the trend of growth; trade practices between undertakings perform beyond the geographic and economic boundaries, so that they exist (Waters, 2001 Brinkman, Brinkman, 2002). Globalization is used to describe the nature of the dominant international trade and business, as they are no longer limited to serving specific groups of consumers in the country (Levy, Hammond and Gross, 2003), the globalization of the increase is due to the expansion of economic and capitalist drive to achieve growth, and taking existing resources , improve the degree of efficiency of the operation. Thus, globalization is also very closely related to the outsourcing companies seeking to existing units, the production moved to another country, economically sensitive wage labour. A typical example of this is the first McDonald's in 1955 as a company in California, opened in 2013, is now in 195 countries and has more than 30,000 restaurants. This process, because it is difficult to control, some multinational companies responsible for the operation...
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...the HR director for a multinational firm that has recently begun to assign workers to international posts. You are responsible for determining the staffing needs of foreign operations. You will also need to adopt a mentoring program for expatriates. As you do not have the resources to provide in house training, you are considering the use of an external consulting firm to provide pre-departure training for employees. Write a six to eight (6-8) page paper in which you: 1. Determine four to six (4-6) components that the pre-departure training will need to cover. Provide a rationale for the use of using the training components in question. 2. Propose three (3) criteria that management will use to assess the performance of expatriates working abroad. Support your proposal with examples of the fundamental ways in which these performance requirements have improved performance, 3. Recommend the recruiting and selection strategy that you believe your firm should use when offering international assignments. Provide a rationale for your recommendation, 4. Compare and contrast two (2) staffing alternatives for foreign operations at your multinational firm. Select the staffing alternative that you believe to be the best fit for your scenario and provide a rationale for your selection. More Details hidden… BUS 325 ASSIGNMENT 2 INTERNATIONAL ASSIGNMENT NEW BUS 325 Assignment 2 – International Assignment – NEW Imagine that you are the HR director for a multinational firm that has recently...
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