Essay about multinational companies

Effects of multinational corporations

Banking institutions commenced with the process of internationalization as well, and started opening their branches in the countries they were investing in. With Direct foreign investment, a firm in the country creates or expands a subsidiary in another through the use of international capital flows. Environmental Regulations — some countries do not care about the environment. Social responsibility entails developing businesses with a positive relationship to the society which they operate in Investopedia. In the actual process of globalization, multinational companies play an extremely significant part. The United Fruit Company invested in the growth of banana and other tropical fruits, and by doing this, the company directly determined the directions of the economic development of the country and the entire Caribbean region, having in mind the high level of political influence involved. The Maharashtra Electricity Board promised to buy all the high priced power produced by Enron even if cheaper power was available. Hundreds of thousands of survivors continue to suffer from multi-systemic injuries. Activities of Ford and General Motors in the United Kingdom represented a rear example of business across borders, since these types of activities were limited at the time. If food, then the temperature for which it is transported is regulated. Many Multinational Corporations are making the contract abroad to make more profit. They only want cheapest source of energy which is coal. Therefore, the significance of intercultural management is emphasized as one of the key success factors of multinational companies in this part of Europe.

Until there were no multinational companies in Serbia. Retrieved from Business Source Premier database. On the other hand, the American company Standard Oil transported raw oil from Mexico to the United States in order to refine it.

The multinational companies like Apple Inc.

bring out an essay on the od in multinational companies after 2010

Economies of scope refer to the opportunities related to the operating efficiency when companies invest in critical resources that can be utilized by multiple global operations. The issue over multinational corporations is a very controversial issue. There is a whole other world out there of how the food industry process its food and how it adds steroids, pesticides, hormones, and antibiotics.

They have a dominant role in the process of knowledge, idea and capital transfer across borders, and especially in the linkage of rich and poor economies.

managing multinational corporations

As a starting point, the researcher made a short historical overview of multinational companies in general, followed by the explanation regarding their contemporary importance and their significant role in the process of globalization.

If you are not competitive technology-wise in your field your are behind the game. Affiliates of some U.

evolution of multinational corporations

After that, majority of regional initiatives, which emerged only by the end of s and in course of s have been linked to two processes: The first wave of regional initiatives had been directly influenced by the dissolution of the Eastern Block and its Council of Mutual Economic Assistance, and therefore an urgent need for replacement arose.

Cost reduction opportunities are linked to the establishing of operations in markets with low labor costs. Businesses and brand names like Wal-Mart, Nik

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Multinational Corporations essays