Different Relationships Between Companies, Governments, And Customers Essay

Multinational Corporations (or MNC’s) are businesses with operations placed in various countries other than the home country where all functions are managed. Traditionally, it is up to the federal government to prevent these entities from abusing their power and violating International Law by implementing regulations. However, because of their transnational status, MNC’s are separate from the government, the state, and society; giving them the ability to act outside of public standards. This has caused problems in the international realm as it frees up opportunity for corporations to abuse their power due to a serious

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.

International business is a term used to collectively describe all commercial transactions that take place between two or more nations. A multinational enterprise (MNE) is a company that has a worldwide approach to markets and production or one with operations in more than a country.

Direct investment among the richest countries has been one of the eminent features of the world economy since the mid-1980s. Within this broad trend, Europe features prominently as both a home and host to multinational enterprises (MNEs). Not only did many Japanese and American firms invest massively, but even the most somnolent European firms appeared to awake to the need to look beyond their own national borders. (Thomsen and Woolcock, 1993)

Discuss at least two (2) strategies that multinational corporations (MNCs) can undertake in order to make

This phenomenal change in the international environment in which business is conducted has resulted in increased levels of foreign direct investment by companies from developed countries in lesser developed economies such as the Third World as economic benefits were sought through the globalization of production as well as markets. (Hill 2011, p.5)

Peng et al. (2008) articulates a framework in which firm resources and capabilities are viewed as one of three antecedents of a firm’s international business strategy (the other two being industry based competition and institutional conditions and transitions). Thus, the current literature sheds light only on how the capabilities of MNEs enable them to formulate appropriate strategic choices that match their resources with opportunities in their external, that is, their global, environment. However, mechanisms that ensure successful implementation of the chosen strategies remain unclear. While we assume that MNEs should be able to establish appropriate structures to match their strategies, research has shown that there is a lot of incongruence between MNE strategy and structure (Duysters and Hagedoorn 2001).

By taking a closer look into the different types of international business, it is helpful to first define the two major categories. All types of international business are sub-categories of equity and non-equity entry modes. These are different in their commitment level of spending resources, which is extremely difficult to transfer to other business units. Therefore, to choose the correct entry modes to other countries is one of the most critical strategy decision of a multinational enterprise (Decker and Zhao, 2004, p.1). In addition, the risk as well as the control is a major difference. The equity entry modes require more investments and are therefore riskier. However, the companies using an equity entry mode have more control over the

(1) Source: Mahoney, D., Trigg, M.; Griffin, R. & Pustay, M. (2001). International Business: A managerial perspective (2nd ed.). Australia: Prentice-Hall, Inc. p.372-3.

A significant proportion of international trade comprises of trade between affiliates of multinational enterprises (MNE). For instance in the United States of America (USA) intra-firm cross border trade between 2005 and 2014 ranged between 39.8% to 42.3% of the total value of cross border trade in goods with a low of 39.8% being recorded in 2008 and a high of 42.3% being recorded in 2014. The value of intra-firm trade for USA import from Africa constituted 31.9% of the total value of imports from Africa by the USA in 2014 while intra-firm export by the USA to Africa accounted for 15.6% of the total exports from the USA to Africa in 2014 . Data on intra-firm trade from African countries to other regions of the world is rare. It can be inferred that the proportion of

The second group of policies refers to the actions that foreign companies undertake (Dicken, 2003). Some of the requirements might aim at involving local resources or labour force in the firm’s activities; others might claim certain levels of exports or policies towards the transfer of technology (Dicken, 2003). The third category is based on minimum outflow of capital and higher taxation towards FDI companies. Last, but not least important a number of countries stimulates the inward investment, because FDI might be

Today, revenues of the world’s largest multinationals exceed the gross domestic products of a host of countries, multinationals have a global reach not enjoyed by countries and private companies are increasingly being called upon to deliver services that were once the domain of governments. The power relationship between country states and multinational companies has shifted dramatically over the past 40 years and with that, the

Exports are also regarded as a means of economic growth. They facilitate production of goods and services efficiently by exploiting and attaining a competitive advantage over other nations. The success stories of East and South East Asian countries such as Singapore and Malaysia suggest that foreign direct investment is a powerful tool to promote export for the host country. Grossman and Helpman (1993) explain that a number of investigations confirm that FDI through MNCs (multi-national corporations) offer greater merit over local companies in regard to export performance. These MNCs bring intangible assets such as technology, brand names, and skills, globally proven strategies in marketing, advertising strategies, and international

In this paper we will be answering five critical questions in the world of international business. In the business world companies must understand how to answer these critical questions.

International business has grown so rapidly in the past decades because of strategic imperatives and environmental changes. Along with the growth of international business, some more issues have been becoming very phenomenal in relation to ways of doing international business as well as aspects of redefining global competition. In this essay, will cite some articles to interpret the phenomenon related to international business, such as Foreign Direct Investment (FDI) and Anti-dumping issue which are mostly associated with events of international business in China.