Fair Trade Case Study

Multinational Corporation - business enterprise with manufacturing, sales, or service subsidiaries in one or more foreign countries, also known as a transnational or international corporation. These corporations originated early in the 20th century and proliferated after World War II.

A Multinational Corporation can be defined as enterprises which own or control production or service facilities outside the country in which they are based (definition by the UN; Czinkota, 1992; page 298). Inditex can be classified as a multinational since they offer their services in 800 outlets in 25 countries all over the world, although the production is done in Spain, its home country. It also follows some of the appropriate strategies to trade abroad

Multinational company : An organization with multi country affiliates, each of which formulates its own business strategy based on perceived market differences.

Additionally, MNC might opt for international status to diversify, this help the business reduce exposure to possible economic and instability in a single country. Although, competing in international markets offers important potential benefits, going overseas also poses daunting challenge. One of the main problems many business often face abroad is cultural barrier, strategies that work at home might fail overseas, given wide social and cultural differences. Another potential problem is currency exchange and regulation issues. The companies might also have to pay high tariffs or taxes, which can put the corporation in disadvantage or the host government may insist on part ownership in the subsidiary. Equally, MNC can bring many advantages and disadvantage for the host country. (Resource book)

Multinational corporations are companies that have branches and operations in two or more countries. These companies are the main results of globalization, since they operate all over the world as if it was one country. Multinational corporations have a home country which contain their headquarters and offices for management and have host countries in which their operations take place. The home countries of multinational corporations are usually developed countries that have great capitals and the host countries are developing countries due to the low costs of labor, raw materials, and taxes paid to the governments.

2009). This in itself shows the high standards of sustainability can be made from free trade (Gidney, M. 2009). Fair trade provides two key benefits that can help with the current world economic crisis. First it provides sustained benefits for producers that can help maintain their business through fluctuations of the world market (Gidney, M. 2009). Second, fair trade helps to maintain fair prices, additional social premium, and long-term partnerships that help provide better living standards for millions of people in over 60 countries (Gidney, M. 2009).

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

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.

Fair trade is an organized social movement. Its goal is to carry out trade under commercial agreements where producers achieve better trading conditions and sustainability by setting minimum prices at which distributors can sell their products. The movement is focused mainly on products that are made and exported from developing nations to developed ones. Most commonly products and commodities such as coffee, sugar, tea, honey, cotton, cocoa, gold and fruits etc from countries like India, Brazil, Sri Lanka and African nations.

Lately, the international financial integration has increased. Over the years, the world economy has witnessed an increase in the number of individuals and businesses using international banking services. In today’s competitive global economy banks have the option to solely service their home market, to export services to foreign markets, or to establish a presence in that market. Essentially, banks have two options of expanding their operations in foreign markets. They can either service foreign clients through their domestic offices or they can establish a presence in the foreign markets. In general, the reasons for bank internationalization in

I used to think fair trade was a great concept, now I believe there are better options, like direct trade and whole trade. Though buying fair trade is still a better option than supporting the free trade industry. My high school used to do a fair trade annual fundraiser, and I learned about the positives of fair trade, but I never considered the negative aspects. Mike Woodard, briefly touched upon fair trade. He stated that with a capitalist system, fair trade won’t really work. There are still middlemen who receive a large portion of the profit meaning even though consumers pay more for fair trade, a lot is still not even reaching the workers.

A Multinational Company (MNC) is “an enterprise which owns and controls activities in different countries” (Buckley and Casson, 1991, p.1). According to Buckley and Casson (1991), MNCs have very high labour productivity, which creates very high profits. They are among the most rapidly growing businesses in the world. They even argue that MNCs might have a greater impact on world affairs than the government institutions of the countries where they trade. Even with all of this in mind, they can still be subject to limitations. In the end, MNCs have to consider that they are operating in a different environment, which may have different legal and political systems, institutions, and culture (Edwards and Rees, 2006). This is also known as the

A Multinational corporation is a corporation that does business in two or more countries. It has its home base in its own country, but has branches or subsidiaries in other countries. Their home base is the company’s identity. For example

Multinational corporations play a very important role in the international economy, the help to act as financial pipelines to countries with low capital. In return, large amounts of wealth is created, which is created through the “Crowding-In” effect. This effect basically occurs when their is an increase in outside private investment as the debt-financed government spending increases. It is caused by the government boosting their demand for goods, which increases the private need for more technology like factories and industrial capabilities. Because of this new taxes are brought up from MNC generated income, this allows for these under developed countries to do infrastructure improvements and educate their population to strengthen their human capital.

Multination corporations (MNCs) are for- profit enterprises that conduct business in more than one country. They have positive and negative impact in globalization of business. Here is some of the positive point of MNCs. Since a high number of production, retail, and subsidiary company has been opened in the world. Therefore, it will provide more investment, more job opportunities more encourage to development the infrastructure like build new road and bridges, more advance in technology in addition they will also provide access to the world market. However it has some its negative points to Such as: The decapitalization of other countries this means that multinational corporations tend to get their capital from many different countries and bring it to the headquarters country. They can create an