The International Telephone And Telegraph Company

There are many theories given by different group of researchers about the existence of multinational enterprises or MNE's. According to John Cantwell, it was in the 1970's and 1980's that many theories on MNE's were proposed. These theories were either general theories of MNE's which were called the main institution for international production or the theories on foreign direct investment, the means by which international production is done ( Pitelis, Christos N. and Sugden, Roger, The nature of the Transnational firm, Pg 10). Amongst the most famous are the Hymer's theory of international production, the internalization theory put forward by Buckley and Casson, Dunning's Eclectic Paradigm, and the evolutionary theory

Multinational companies operate in more than one country outside of its originating country. Due to the vast sizes of most MNC local communities are developed by the creation of jobs and increasing community wealth. The growth strategy of MNC have positive and negative effects on the host countries economy via the reduction in market and production costs and increasing technology and efficiency. The largest down fall is from the competitor stand point as most MNC will put surrounding store owners out of business. Wal-Mart is currently if not the world largest MNC and throughout this discussion I will critically discuss the cost and benefits likely to have occurred as a result of its takeover of Asda.

Over the year’s organizations from, all parts of the world have experienced growth in the areas of business. Much of this growth is in part due to multinational companies, many of them enjoying significant benefits. One such area is investment, however it creates benefits for foreign MNCs, and it brings about concern. Perhaps the greatest fear. Fear concerning state owned corporations and the lack of effectiveness of legislation / regulatory enforcement.

The purpose of this report is to define & understand how a MNC effect or effected by Home & Host country environments. Due to increasing global competition, changes in economic & political system business organisation are facing rapid change in business environment. The world is separated politically & financially into 200 countries separate countries where each country has its own laws, judiciary system and boundary regulations. We will be discussing how a MNC adapt these differentials and contribute to improve the economy and standard of living of the society. Multinational corporations have a huge impact on the host country economy as well as there are some problems also created by MNC in host country. For the view of

The companies have become a key parameter, especially in the global economy. The size of global companies closely correlated with the decrease of vulnerabilities, with higher resistance to economic shocks occurred along the time and with their bigger chances of success in certain markets. Companies aim not only to optimize their size, but also to strengthen the global production networks, affording them a better competitive position, in a mighty competitive environment and under the pressure of quick development of the technological environment. The size of an organization has become a barrier that stops its entry into the sector, higher than profitability, which explains why some corporations have focused, in recent times, more on strengthening their position abroad, although their economic performance does not justify this endeavor. The process of economic globalization is both a resultant of the increasing activity of multinational organizations and a cause of their increasingly stronger internationally affirmation. However, global organizations activity is much more intense in the developed countries; their impact on the developing countries must not be neglected. Global organizations have a few main features that individualize them from all other forms of companies known so far:

It is argued that many actors in a political system are essential to multinationals because they base their decisions of investment on it. The author names three distinct forms of government structure; fiscal federalism, political federalism and political decentralization of which he argues that politically federal institutions are more conducive to multinational corporations and hence, they attract the most FDI inflows.

Multinational business enterprises have had a big impact on the global economy over the years because of their

In the last few decades of the 20th century, the rapid transformation of the industrial world took a new form. The economy is one of the areas experiencing striking changes in these times. What is certain is the emergence of multinational companies, to some extent, open up opportunities for economic globalization. The economic growth in the 19th century in many developed countries are originated from international capital movements that growing rapidly at the time. Mobility of factors of production that occurred between the states reached its breaking point with the presence of multinational companies. Perhaps, the most important developments in international economic relations during the last three decades is the amazing surge of strength and influence of large multinational corporations. They are the main distributor of various factors of production, capital, labor and production technology, all in a massive scale, from one country to another.

There is a growing number of firms in the developing world, which have participated in overseas business and many have even started merging or acquiring their foreign counterparts. Firms in the developed world are well-known to invest in Developing countries, which in return benefits the foreign firm and the local stakeholders. However, it is argued that many foreign firms exploit the resources and labour of the under-developed countries.

Management as greatly influence the affairs of multinational corporation in sense that people come to gether to do business thereby there is always a high spirit of corporation through buying, selling, exchange of foreign currencies e.g. the exchange from US Dollarto Euro or Japanese Yan etc. Moreover, the multinational corporation has lead to the whole effort making the global community as one village. that means to say; goods that are found in one one country can now be found or seen in many countries. All these is due to mass advertisement, communication, transportation.

Companies in the trading blocs therefore have to compete to attract foreign direct investment from large multinational companies which have been responsible for holding an ever increasing share of global outputs. Multinationals are companies which own assets and produce in more than one country, hence increasing international trade within globalization. MNCs can therefore achieve benefits from specialization, exploit cost advantages that different countries offer at different markets. Recently, there is an ever increasing trend in outsourcing.

As an important driving force of economic globalization and also the implementer of FDI, Multinational Corporations occupy an unparalleled position in the contemporary economy. According to Friedman: "We are living in a time of globalization. People generally think that all countries have no choice but to wear" gold tights "(Friedman 1999: 104). Therefore, in some people's viewpoints, in the bargaining range Transnational Corporations is more effective than the state. However, through the specific case analysis of this report, reader can see that their relationship is very delicate. It is not that one occupies a strong position while the other is in a disadvantaged position. In summary, they cooperate and compete. They may similarly find themselves in conflict or support each other. This report gives a few specific case studies on how to think critically about whether any of these have more advantages status, as well as what led to this status change.

On the one hand, as mentioned before we can observe that there are positive consequences for the worldwide economy. The countries that are part of the globalised world gain many advantages, such as the absence of economic barriers. Since the lack of barriers between countries the markets all over the world have increased in terms of goods and services. In other words, capital movements are set on a global scale in which multinationals play a crucial role. Multinational corporations are those which not only act in their home country, but also in others called host countries. Some examples are Coca-Cola, McDonald´s or

For starters let us start with defining what is a MNC: a multinational corporation is a company that has more than one facilities in countries other than where their headquarters is located at. {http://www.britannica.com/topic/multinational-corporation} So General Motors, Atari, Boeing, IKEA, and Apple are all examples of modern international corporations. And if you look through many of your everyday items that you use you will find that almost everything you own is multinational. Which you may have to think about the next time someone tells you MNC’s are bring the New World Order to take over your land and country while using their IPhone 7.

Despite the considerable negative connotation that MNCs have garnered, their undeniable enormity and influence in generating the flow of FDI, their contribution in hastening the distribution of technology and knowledge throughout the globe, and their status as the absolute major player in modernization and globalization through