Global Competitive Environment Has Forced More And More Multinational Corporations ( Mncs )

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.

Competitiveness has become one of the most important determinants of both prospects and assesses the functioning of the company in the market, and is seen as a determinant development. Competition between companies is an inherent characteristic of a market economy. From the practical point of view it is important to recognize and understand the conditions and factors that have an impact on the competitiveness of enterprises. Drafted the research problem requires a comprehensive approach - including the aspects and characteristics of the MNE, foreign investment importance and competitive advantage.

At the time of development of globalization there were many concerns about its benefits. However, it has brought significant changes in all segments of human life and International business is one area in which it contributed heavily (Reich, 1998). Companies all over the world are currently formulating their business strategies mainly after considering the trends in global market instead of domestic market. Outsourcing and offshoring are some of the new business principles emerged in this world after the implementation of globalization (Samimi and Jentabad, 2014). The core of these new business concepts is to exploit the business opportunities in overseas countries as much as possible (Samimi and Jentabad, 2014).

Social stratification implies the separation of a given populace into progressively superimposed classes. It is showed in the presence of upper and lower social layer. Its premise comprises in an unequal conveyance of rights and benefits, obligations and duties, social esteems, social power and impacts among the individuals from a general public. No general public is unstratified. Stratification includes the dissemination of unequal rights and benefits among the individuals from a general public. Social stratification is the division of society into lasting gatherings or classes connected with each other by the relationship of prevalence and subordination.

The transnational model was developed to support the needs of large, multinational companies. This model consists of multinational corporations-experienced in international markets with facilities in several foreign countries that simultaneously utilize technological advances, innovation, global learning and efficiency to be successful. These multinational organizations adopt organic structures, similar to the learning organization, that are flexible, unified and coordinated through corporate culture and shared visions and values of its employees (Daft,

Businesses today operate an environment that differs greatly from anytime millennia, centuries or even decades ago. The pace of businesses has increased exponentially with the continuous improvement of information technology, telecommunications and geolocation supported by satellites and progressively more efficient modes of transportation and mechanization. The ability to move products globally overnight, increasing levels of automation, and collaboration instantaneously via virtual means has forever changed and reduced traditional barriers businesses face while creating a myriad of new challenges, risks and opportunities.

Multinational Corporations have always been and are currently now under harsh criticism. They are mainly condemned for exploiting resources and workers of third world countries, taking jobs away from the US industry, and destroying local cultures. Although there are negatives of multinational corporations, there are also positives. Business done overseas provides jobs for the people of the host country, improving the standard of living, and transfers technology. Richard T. De George explains moral standards, in five basic theses, that multinational corporations must adhere to in order to maintain corporate ethics.

“10 Rules for Managing Global Innovation” is written by the authors to pin point ten rules that the authors see crucial for a multinational company to manage its globally

Evolutionary theory was proposed by B Kogut and U Zander. The fundamental principle of this theory is that the firms are like social communities that specialize in creation and transfer of knowledge. MNE's are formed due to their enhanced efficiency as organizational vehicle to transfer knowledge across borders (Kogut, B and Zander U., Knowledge of the firm and evolutionary theory of multinational enterprises, Journal of International Business Studies, 2003, Pg

Organization wants to achieve the objectives of sustained growth and increased profitability, organization must constant innovation its product or service, also need to carry out some plans to expand its business to enable an organization to have a better development. Organization expands its business cannot be confined to the domestic market must also move abroad, which effectively allows an organization closer to the global market and broadening the scope of business and profitability. However, business expansion is not as easy in this global environment, globalization has not only changed the enterprise competitive landscape also influence the way leaders conduct business (Caligiuri, 2006). Furthermore, with globalization, global leadership in terms of cultural knowledge needed to become more acute and require more advanced level of cognitive ability on the complexity of managing the demand of multiple cultures while completing managerial tasks (Caligiuri, 2006, Grosse, 2011). Therefore, the development of global management skills is very important for the global organizations and managers. Only effective in developing global management skills can help the organization reduce the risk of international business

Leadership in a globalizing world. The global economy has changed the way the corporations do business today. The melting of trade barriers among nations and their increasing inter connectedness, accelerated by technology has brought a profound impact on global business. The expanding global environment has extended the reach and goals of the companies with greater access to wider markets. Managers are looking to globalize operations, developing new markets for their products for better strategic business outcomes. Consumers also have better access to a greater variety of goods and services; and the competition to reach to the new markets with the right product is getting stronger among businesses. Globalization gives businesses better access to a global workforce, enables them to tap into international raw materials and financial resources. As the world economy is fast becoming a single interdependent system, businesses have competitors, customers, employees from anywhere in the world.

Regional Trade Agreements and Global trade liberalization are common terms that are used to analyze different market structures in the market. According to international economics, RTAs (Regional Trading Agreements) are the agreements in which members give each another privileged treatment with respect to the extent by which the trade barriers have been established. On the other side, Global Trade liberalization is a general term referring to the depletion of trade boundaries globally to ensure free trade among all state. Ideally, Free trade agreements are sometimes more formal than the Global Trade liberalization policies. It is deemed that Regional Trade Agreements are yielded from the Global Trade liberalization. That is; it is an

Over the last few decades there has been a substantial amount of attention being diverted towards born global firms who unlike ordinary firms, have defied the traditional stage wise process of internationalization. These firms have long puzzled researchers and challenged the basic perception of internationalization. As a result it has given way to a new field of research and aroused global interest in the emergence and success of these firms. Before going into any further detail its important to understand what born global firms really are. They are defined as “a business organization that, from inception, seeks to derive significant competitive advantage from the use of resources and the sale of outputs in multiple countries”. A more detailed definition defines born global firms as “companies who have reached a share of foreign sales of at least 25 per cent within a time frame of two to three years after their establishment”. The term “born global” was first coined together by Michael Rennie (1993) who undertook a study on firms who were capable of managing and co-ordinating resources beyond national borders and competing globally. This essay will go on explain why born global firms emerge, the factors that influence them and examples of born global firms in the real world. The Uppsala theory and Buckley and Casson’s theory of internationalization of MNE’S are used to further analyze this essay.

A multinational corporation (MNC) is a corporation that operating in two or more countries, known as host countries but managed from one country, known as home country. Multinational Corporation is also known as international corporation (Wikipedia, 2011). Besides that, MNC can be defined as a corporation that derives revenues from operations in countries other than home country (BusinessDictionary, 2011).

global knowledge of consumer demands for services as well as products in a world scale, the