Challenges Faced By Firms Such As Multi National Companies ( Mnc )

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This report explores the challenges and trepidations faced by firms such as Multi-national companies (MNC), global institutions which involves in product or service transactions among different nations at high level of competition. Specifically the environmental factors that affect the trade and cannot be controlled by the companies in home or host countries are elaborated in detail with supporting real life trade examples. Can’t organisations grow without international business? The answer would be “no”, the business in their home market at the thrones of prolonged stagnation or at crisis seek for new customers and new talents to build their trade. Every business reaches its maturity stage of life cycle and looks for expansion. The best…show more content…
International business is not possible when the government of the home and host countries are not mutually interested and benefited in the trade. MNC’s always strive to build better relationship with the home and host ruling government. Government involvement and encouragement plays a vital role for the growth of international business. For example when Coca Cola decides to enter a developing third world nation like Sri Lanka, there are many factors to be considered other than the location and market size. The home country can support easily as it brings more income to the nation but The host country that is Sri Lankan government needs to approve the launch of Coca Cola in their market. There are so many elements to be considered by the government such as, whether Coca Cola will affect the local soft drink production, Will Coca Cola starts to control the industry and dominate other small producers? Do they bring any health oriented bad effects to the consumers, can they bring more employment opportunities to the local community, will their products affect the local culture and beliefs, and etc. One of the leading newspaper in Sri Lanka wrote an article in 1985 about the threats in Coca Cola entering the Sri Lankan market, mentioned that It is not an easy decision to make by the host government, they had to discuss with the industry associations and especially in a small nation like Sri

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