An Argument For An Organization

953 WordsMar 21, 20174 Pages
Unit one Question one Propose an argument for organizations to become multinational. Your response should be at least 200 words in length. The main argument for organizations to become multination is to operate their businesses in different countries so that they can diversify their market beyond the national boundary. Multinational presence will enable the firms to operate their business activities in different countries for acquiring benefits regarding business and technical efficiency (Collins, 2013). This will reduce the cost of the product by obtaining cheap labor, tax advantage, large and untapped market share and technical advancement. For instance, Toyota, a car manufacturing multinational company, operates its different…show more content…
There is a remarkable increase in the form of strategic alliances, merger, and acquisitions, joint venture, takeover, etc. among national and international commercial marketplace. The primary reason for the adoption of collaborations is so as to fill in the remaining gap for an organization to remain competitive over the competitors in its region. The strategic alliance is such type of collaboration, which is used by companies by working together towards achieving their goals and objectives adequately (Volkmann, 2012). For example, Microsoft and Nokia made a strategic alliance for the purpose of developing a quality based Windows mobile phone for acquiring a significant market share in the mobile industry. Similarly, ‘CISCO Systems’ partnered with China’s largest e-commerce company ‘Alibaba’ to deliver exceptional services to their corporate clients. Question three Analyze and compose the significant components of international and domestic finance. International financial system and the local system have various components and which drives the market some of them which have an impact on the system are: Foreign currency, foreign deposits, and investments and foreign assets (Moffet, 2014);. The three top components which we can see are 1) International money There are international markets where the internationally accepted currency is a trade. Such currency is deposited with
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