...Multinational corporations Table of contents Preface 4 1. Introduction; General meaning of MNC 4 2. Ranking multinationals 5 3. Entry of Multinational corporation into new markets, 6 4. Three Stages of Evolution 7 5. Motives for Foreign Direct Investment (FDI) 9 6. The comparison of MNC and TNC 11 7. What are the benefits and problems that MNCs face? 11 8. What are the Russian companies that achieve the multinational status? 13 Conclusion 14 Bibliography 14 Appendix 15 Preface We would like to consider the most interesting topic concerning the multinational corporations. If we called it like that, it means that company made a great success in the market, it operate in several foreign countries. In this mini-course work we will investigate more detailed the structure and strategies of MNCs. In the first part we will look through the history of MNCs. The history, in general, is to be considered as an essential part of every project in order everyone may compare the development of the particular sphere. Next part will show us the statistical data of MNCs, where we will recognize all the most reputable companies from the different industries, such as BMW, Nike, Lego, etc. We cannot leave a side the point of entry into the new market. There it will be explained the strategies of MNCs, such as mergering, joint venture and sequential market entries. Also we will consider investing into the particular companies, weather it is risky or not and the motives...
Words: 3800 - Pages: 16
...Multinational Companies have contribution: Adidas In 2011, the Adidas employess volunteered a total of 16,000 hours, supported more than 900 different projects globally and cooperated with more than 20 long-term partners. All of their partners and activities connect children with coaches who teach life values in combination with sport. These organizations and their programs use sports to teach children values, which can break down barriers and allow people to live healthier, happier lives. This is the goal that Adidas strongly believes in. Nestle Nutrition must be a first key driver of Nestlé's work because company aims to be the best nutrition, health and wellness company. Good health is coming from proper nutrition and food. Water is a life necessity no matter who you are and where you live. Nestlé claims to: * sells affordable micronutrient-fortified products to help fight malnutrition. * provides school-age children in 60 countries with nutrition education partnering with organizations and governments * provides physical activity through our Nestlé Healthy Kids Global programs * provides training and microfinance to help farmers become more productive while also investing in their communities. * maintains direct relationships with more than 680,000 farmers worldwide. Efforts to cut carbon emissions Coca cola Issues to Social Responsibility In India,However, the company came in for severe criticism from activists and environmental experts who charged it...
Words: 286 - Pages: 2
...Business Ethics Essay Assignment: Multinational Corporations Submitted to: Prof. H. Aronovitch University of Ottawa Submitted by: David Hamilton Student # 5322750 PHI 2397 C Thursday November 29, 2011 Personal Ethics Agreement Concerning University Assignments Individual Assignment I submit this assignment and attest that I have applied all the appropriate rules of quotation and referencing in use at the University of Ottawa. I also confirm that I have taken knowledge of and respected the Beware of Plagiarism! brochure found on doc-depot. I attest that this work conforms to the rules on academic integrity of the University of Ottawa. __________HAMILTON, DAVID______ _________5322750___ Name, Capital letters Student number _______________________________ ________11/29/2011_____ Signature Date Ethics in business must start at the top of a company and work its way down to every employee involved in an organization. In today’s world, corporations feel a moral obligation to practice business fairly while treating their employees with respect, so shouldn’t a company keep the same ethical approach if they expand their operations abroad? Over the last century or so, the global economy has changed drastically, with less barriers and a greater flow of goods and services between countries. A multinational corporation is any business that has productive activities in two or more countries. Although there are many...
Words: 2476 - Pages: 10
...American Intercontinental University Multinational Organizations MGMT 310 – Management and Leadership of Organizations April 16, 2015 What type of structure will be best suited to a multinational Internet retailer? Why? First hand, we need to specify, that the structure that we chose to endorse will affect us in two ways. The organizational structure embraced will create the platform on which all routine operations and agendas will be established. This particular structure will consist of teams which will each have organizational leaders at the top and secondary employees throughout the business. Embracing the correct structure by this retailer will inspire the type of people that partake in the decision-making process and create the ideas that impact how the company will grow. Managers who are leading teams in multinational internet retailer must assume that their partners, customers, investors, competitors, suppliers, and markets can be in any place in the world, which will consistently create room for better ideas and ways to improve business across the globe. Finally, leaders in multinational companies should always be mindful of the characteristics which make them different and similar within each of their national boundaries, this will create an openness to obtain opportunities and rebuild possible drawbacks. How would you recommend building a culture that was inclusive of diverse cultures and accommodates highly creative technical staff? In order for business...
Words: 651 - Pages: 3
...A multinational corporation is considered to a type of firm or company that accomplished many beneficial activities in several different countries located around the world. A multinational corporation is responsible for conducting different levels of businesses in a lot of countries in different parts of the world. There are numerous multinational companies who decide to move the procedures and tasks of the company to one particular country called the “host nation”. This action is performed in order to prevent costly financial pollution issues in which the multinational company can actually contribute to the environment surrounding the MNC. This action is performed solely for the purpose of reducing the costs associated with the operations of the multinational corporation and also to gain an advantage in the global market. Pollution is considered a majority contributor to the endangerment of human life, water, plant life and also wild life in numerous host countries. Multinational Corporation is considered to be a firm or business that has a home base in one country however the firm operates out of several different countries and all at once. There are many firms who are considered to be a multinational corporations; however it can be quite difficult to determine if the company is a multinational corporation. The reason for that is because it isn’t’ always evident that the company is a multinational corporation. There is growth with companies merge; there joint...
Words: 1554 - Pages: 7
...Multinational Recruitment Individuals need to prove their out-of-the-box working techniques in a multinational company. A multinational company operates in two or more countries. It manages production or delivers services internationally. The country that has the headquarters is called the home, while other countries are referred to as the host countries. The rapid expansion of organizations beyond borders has led to the need to pull, recruit, train and then retain employees who can adapt to relocating and can be equally productive in multiple countries Hiring Unit The boom of multinational companies around the globe has brought more employment among an already competitive market. Selection and recruiting is the job of human resources, known as the HR department of the entity. In "Managing Across Cultures: Concepts, Policies and Practices," Mohamed Branine says that the selection and hiring of workers in an organized structure is conducted by the human resources personnel who plan job specifications after completing a job analysis. The employers have to ensure they are employing the right person for the right job. They often pay top bucks for big positions, so they expect the best output from their employees. Requirements The primary recruitment step is describing the job description of that position. HR personnel or department managers devise a list of prerequisites for a person who would be best-suited for a multinational company. At this step, company employees...
Words: 502 - Pages: 3
...critically examine our hypothesis in part A, we examine 10 large MNEs (5 DMNEs and 5 EMNEs). 5 Developed Countries’ Multinational Enterprises Barclays It’s a British multinational banking & financial services enterprise, with its headquarters in London. It’s a global financial institution with operations in investment, retail and banking, in addition to credit cards, wealth management and mortgage lending. Its operations are available in more than 50 countries and regions and have about 48 million clients. As of December 31st, 2011 Barclays had aggregate assets amounting to US$2.42 trillion, making it the seventh-largest bank in the world (Wikipedia, 2015). It’s organized into these business clusters: Wealth & Investment Management; Retail & Business Banking; and Corporate & Investment Banking. Wealth & Investment Management and Corporate & Investment Banking have three business units: investment banking, wealth and investment management and corporate banking. The Retail & Business Banking cluster, on the other hand, has four business units: Europe Retail & Business Banking; UK Retail & Business Banking; and Africa Retail & Business Banking (including Barclaycard (loan and credit card provision) and Absa Group (Wikipedia, 2015). British Petroleum (BP) It’s among the 6 "supermajor" gas and oil firms in the world. It’s a British multinational corporation with its headquarters in London, England. Thanks to its 2012 performance, it became the 6th-largest...
Words: 1943 - Pages: 8
...Multinational Corporations and Foreign Direct Investment This page intentionally left blank Multinational Corporations and Foreign Direct Investment Avoiding Simplicity, Embracing Complexity Stephen D. Cohen 1 2007 1 Oxford University Press, Inc., publishes works that further Oxford University’s objective of excellence in research, scholarship, and education. Oxford New York Auckland Cape Town Dar es Salaam Hong Kong Karachi Kuala Lumpur Madrid Melbourne Mexico City Nairobi New Delhi Shanghai Taipei Toronto With offices in Argentina Austria Brazil Chile Czech Republic France Greece Guatemala Hungary Italy Japan Poland Portugal Singapore South Korea Switzerland Thailand Turkey Ukraine Vietnam Copyright # 2007 by Oxford University Press Published by Oxford University Press, Inc. 198 Madison Avenue, New York, New York 10016 www.oup.com Oxford is a registered trademark of Oxford University Press All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of Oxford University Press. Library of Congress Cataloging-in-Publication Data Cohen, Stephen D. Multinational corporations and foreign direct investment: avoiding simplicity, embracing complexity / Stephen D. Cohen. p. cm. Includes index. ISBN-13 978-0-19-517935-4; 978-0-19-517936-1 (pbk.) ISBN 0-19-517935-8; 0-19-517936-6 (pbk.) 1. International...
Words: 160016 - Pages: 641
...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...
Words: 316 - Pages: 2
...As a result of 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...
Words: 515 - Pages: 3
...Although academic business ethics is relatively recent, its intellectual roots are found in the corporate social responsibility (CSR) and business and society literatures originating in law and in business in the early and middle 20th century (Marcoux). The corporate focus is evident in the titles of early works of academic business ethics that have done much to shape the subsequent discussion in the field. Velasquez’s "International Business, Morality and the Common Good" 1992 paper takes business ethics to be concerned centrally with questions about the corporation's proper role in and relationship to the social order. These questions are said to surround the moral status of the corporation: Is the corporation a moral agent? Do multinational companies have any moral obligations to contribute to the international common good? While dominant management thinking is steered by profit maximization, this paper proposes that sustained organizational growth can best be stimulated by attention to the common good and the capacity of corporate leaders to create commitment to the common good. However, the complex process of re-orientating corporate priorities towards the common good requires alertness and concerted effort if both business and society are to truly benefit. In our contemporary post-modern context, it has become increasingly awkward to talk about a good that is shared by all. This is particularly true in the context of multi-national corporations operating in global markets...
Words: 1463 - Pages: 6
...CHAPTER 1 SUGGESTED ANSWERS TO CHAPTER 1 QUESTIONS 1.a. What are the various categories of multinational firms? ANSWER. Raw materials seekers, market seekers, and cost minimizers. b. What is the motivation for international expansion of firms within each category? ANSWER. The raw materials seekers go abroad to exploit the raw materials that can be found there. It just happens that nature didn't place all natural resources domestically. Market seekers go overseas to produce and sell in foreign markets. The cost minimizers invest in lower-cost production sites overseas in order to remain cost competitive both at home and abroad. In all cases, the firms involved recognize that the world is larger than the home country and provides opportunities to gain additional supplies, sell more products or find lower cost sources of production. 2.a. How does foreign competition limit the prices that domestic companies can charge and the wages and benefits that workers can demand? ANSWER. As domestic producers raise their prices, customers begin substituting less expensive goods and services supplied by foreign producers. The likelihood of losing sales limits the prices that domestic firms can charge. Foreign competition also acts to limit the wages and benefits that workers can demand. If workers demand more money, firms have two choices. Acquiesce in these demands or fight them. Absent foreign competition, the cost of acquiescence is relatively low, particularly if the industry is unionized...
Words: 1953 - Pages: 8
...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...
Words: 736 - Pages: 3
...the world economy, the international trade, and the relations between each country. The globalisation has also changed the labour market and work in all countries, creating a "global work" market. The labour market is divided into two parts around the world: the labour force in developed post-industrial economies, which is a very expensive labour and less productive but provided high quality goods and a labour of works from developing countries, which offered low wage rates and few workers rights. In their search for economy and profits, multinationals have become increasingly interested in the potential offered by developing countries in terms of manpower often less expensive than in their countries of origin. Moreover, the deregulation policies pursued in United States during the '80s, have offered to the multinationals more freedom of action and more opportunities around the world. Asia was the cradle of the first movement led by multinationals offshoring, in their search for productive economy. However, this labour has often been misused, paid with low wages, often composed of children, and working conditions which violate international labour laws. It therefore...
Words: 2306 - Pages: 10
...The slowdown in China’s growth has had a rippling effect with consequences seen in the Australian Government, Domestic Firms and even Multinational Firms. Due to the slowdown, implications that have been placed on the Australian Government have been ones such as a need for the restructuring of certain policies to be able to handle the increased exposure to the volatility of the commodity market. The government should ensure appropriate policies are in place to facilitate the management of risk in regards to this volatility. Seeing as how the price of iron ore has fallen by more than what the government expected at the time of the May budget, there is a need to look at the budget again as this may hinder any planned spending due to predicted government investment and income. With the Australian mining industry being held at such a high standard from the rest of the world, there is a need for Australia to retain as much revenue as possible. With the super-sized profits being reeled in by resource companies operating in Australia, it is up to the Australian Government and the implementation of the mining tax, as this would reduce the damage being felt by the exports industries such as manufacturing and tourism which has suffered due to the increased Australian Dollar (Jessica Irvine 2010). Other implications seen by the Government include a potential volatility in the relationship between the Australian Government and the Chinese Government due to a reduction in the...
Words: 2054 - Pages: 9
