Multinational Corporations

A multinational corporation houses other offices and factories in different countries and regions (Investopedia.,2014). In addition, these corporations tend to have a centralized office where global management is carried out. Becoming a multinational corporation has the advantages of vertical and horizontal economies of scale as well increased market share due to the increased outputs (Investopedia.,2014). To contrast these corporations can be portrayed as entities that seek political and economic control. While this perception is not always the case it does occasionally occur because big businesses can impact the countries they are in.

Multinational Corporations have always been and are currently now under harsh criticism. They are mainly condemned for exploiting resources and workers of third world countries, taking jobs away from the US industry, and destroying local cultures. Although there are negatives of multinational corporations, there are also positives. Business done overseas provides jobs for the people of the host country, improving the standard of living, and transfers technology. Richard T. De George explains moral standards, in five basic theses, that multinational corporations must adhere to in order to maintain corporate ethics.

Multinational corporations is an organization that doing business activities and operating in two or more countries. In the next explanation, multinational corporations will be called as MNCs. Home country is where the MNCs is coming from. Host country is a country where the MNCs operates outside the country where it is based.

Technology has advanced the world in such a way that it has eliminated cultural barriers. The credit for this goes to companies that innovate ideas through their products. A multinational enterprise called Apple Inc. is a vivacious company that has revolutionized the world. This company creates and produces computers, media devices and mobile phones in the information technology industry. Apple Inc.

When a company decides that it is time for it to grow from a national into a multinational company (MNC) there are cost and benefits involved. A multinational corporation is a company that has productive assets, which they own and control in countries other than their own. An MNC is unlike an enterprise, which exports products and services, but the MNC directly invests into developing countries, where it can benefit from producing products at a lower cost, while increasing its market share. Whether this has a positive or a negative impact for the company and its host state, is dependent on the

The rapid development of economy promotes the development of multinational companies, which have become a general form rather than a special form of a company. Multinational companies carry a lot of money, production technology, management expertise and sales channels to expand their business around the world. There is no doubt that multinational companies will become the subject of an act of international relations and play an increasingly large impact on international relations.

Multinationals have existed since the 17th century with European based companies such as British East India Company. These corporations have acknowledged as main agents of civilizations especially during the colonization era. In more recent times of globalization, these multinational organizations have been herald as being instruments for improving global relations through commercial engagements. However, what exactly are multinationals? Multinationals are business entities with presence and operations in more than one country. These operations outside their home countries is always channeled and achieved through mergers, acquisitions, and collaborations. It is estimated that multinationals globally are responsible for sales totaling $7.1 trillion and 28.3 percent of the world's GDP. To ensure that the operations of multinationals are checked and standardized, there are a number of institutions set up and these are The World Trade Organization (WTO), The World Bank (WB) and the International Monetary Fund (IMF).

A multinational company is often defined as a corporation whose operations and investments are broaden across a number of countries. They are also referred to as transnational companies. Therefore given this definition it would be expected that if a company operates over such a large territory that it would indeed have many effects and impacts, locally and globally, and its role would also be quite significant as it can have a direct influence on an economy, the environment and general effects on society. However, changing the way they run things in order to accomidate society could break there business down and they could eventually have no impact on society so looking

Multinational corporations are seen as contributors to problems as well as solutions to economic value creation. As the surge of globalization reduces the gap between continents and international trade increasing, the issues from one country can have an effect in another. As Corporate citizens they are well equipped to influence and create awareness to these international problems.

The global landscape of business is continually expanding and major companies are crossing borders in their daily business activities. As these multinational corporations branch into new areas, known as emerging markets, they will face a plethora of risk, challenges, and opportunities. Branding and sustainability are two major aspects of a business and emerging markets provide a different landscape that will require strategic changes and innovative solutions. One of the major ramifications of these corporations entering emerging markets, is their coherence to the principles of corporate social responsibility (CSR). Whereas much of the past research on this topic focuses primarily on the risks and challenges a company faces in such a situation, this paper will focus primarily on the positive implications of Multinational Corporations (MNCs). This paper will look to answer what CSR efforts should be taken by MNCs? What are the risk, challenges, and benefits to MNCs and the emerging market? What are the effects on the MNCs brand when they participate in CSR? How is the nature of the emerging market important when taking into consideration CSR? Given the stature and resources that many MNCs have, they have the potential to make a major positive impact on emerging markets in the realm of ethics, rights, and quality of life.

A multinational corporation (MNC) is a company engaged in producing and selling goods or services in more than one country. Besides that, multinational corporation can be defined as a company or group that derives a quarter of its revenue from operations outside of its home country. It generally consists of a parent company situated in the home country and approximately five or six foreign subsidiaries, usually with a high degree of strategic interaction amongst the units. The largest MNCs are oil companies such as BP and Exxon (Esso) and car companies such as Ford, Toyota and Volkswagen. Other famous companies such as Sony, IBM and Coca-Cola are also defined as being multinational. Lots of MNCs have about 100 foreign subsidiaries strewn around the world, and all of them face a number of challenges, which they need to deal with.

A multinational organization is a company that has branches all over the world. For example, MacDonald is on of the hugest multinational company. There is a long list of Multinational Corporation that would take ages to state but for today I want to talk about one of my favorite shops, which is FOREVER21. Forever21 is today one of the best and largest retail stores, their shops are all over the globe which makes them a multinational corporation. Forever 21 is known for its trendy offerings and its reasonable pricings. The company sells clothing, accessories, and beauty products for women, men, and girls.

Multinational corporations occupy a prominent role in the global economy. In the beginning, they emerged as significant and enduring components in the international economy in the nineteenth century. Great Britain was considered one of the largest capital-exporting country during that century. By the year 2008, the number of these corporations was eleven times the number in operation in the early 1980s. Ultimately, the number of MNCs continue to grow within the world’s economy. The decision that these firms make are based on global strategies for corporate success. They are not focused on the conditions within any of these countries in which these firms conduct their business in. Multinational corporations work simultaneously in national political systems and global market. Multinational corporations can place multiple production facilities in multiple countries under the control of a single corporate

Multinational organizations have cross-border operations that are primarily decentralized and autonomous. Decentralized organizations give more authority to lower level employees giving them a sense of empowerment. International organizations have a headquarters that retains some decision-making control but the organization is still largely decentralized. International companies build one or a few facilities in another country, in trying to have a competitive edge and lower costs, they become multinational when they build facilities in a number of different countries. An example is the U.S. automakers facilities in Mexico for cheap labor and Eastern Europe for manufacturing and assembly (Noe, Hollenbeck, Gerhart & Wright, 2012).

As Multinational Corporations (MNCs) have become a growing force in world trade they have attracted supporters and critics. Briefly discuss the arguments put forward by both sides. Explain how the WTO Organisation assists in managing world trade.