Going Global: Indian Mncs

An acquisition will typically result in greater growth for an MNC, but it is riskier because it normally requires a larger investment by the company and the decision cannot be easily reversed once the acquisition is made.

MNC’s/TNC’s are companies that locate their factories in various places throughout the world. This gives countries more jobs, access to the global market, cheap manufacturing and large profits.

Indians will often take longer than usual to get the U.S. company a contract, certificate, or document which can create a bottleneck (Hume, 2012). The bureaucrats holding up the progress expect a payoff for moving things along faster so having a local player or someone who knows how to weave in and out of bureaucracy in India may make business dealings easier. Hume (2012), suggests doing research beforehand to figure out who the right players are and be diligent. Other cultural nuisances when conducting business in India is their perspective on time. Indians don’t like to be ruled by a calendar or a clock so getting business done in a timely fashion is hard to accomplish. One of the frustrations with doing business in India is that the politicians have a great deal of power. If a person in office is in the process of being replaced and a company had business dealing with the previous person, business dealing will start over at square one with the new

4b.The next article, “Their oyster, with grit included”, discuses cross border deals that India is involved in. Most Indian firms are aspiring to be multinationals, and succeeding. Some of the way these firms are achieving this is through vertical integration, acquisition and using a Greenfield approach. This is successful because Indian workers are already used to a very diverse workforce. Another approach that is gaining success is firms being pocket multinationals meaning that acquire small businesses abroad and use those small businesses to maintain a presence. A benefit of being a pocket multinational is having access to new technology, products and markets but merging to different very cultures of two different firms is always a challenge. Foreign firms in investing in India are not having the easiest time either. Most Indian

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

The fundamental question is what makes developing countries MNEs succeed in international business and what factors influence the firm’s strategy in international business?

DIRECT FLOW OF CAPITAL-When a company enters to foreign market with huge investment and cash flows there is possibility of change in import and export pattern. MNC generally benefit with low production cost facilities available in host countries, this promotes the export in host country.

Firms pursue an international strategy in order to take advantage of the larger market for potential consumers and buyers of products and services on a global basis, as compared to the limited markets available in the home countries of businesses. In this way, expansion into the international market presents companies with a large scope for growth opportunities (Hitt et al., 2011, p. 219). Firms are also better able to earn a larger gain from their investments due to the larger potential market. Firms are able to ramp up production and other capabilities so that they can achieve better economies of scale and make the same quality products and services more cheaply. There is also bigger scope for performance and for innovation, since a diversity of markets offers a wide range possible strategies for bringing exciting new products to market and attempting new management and business strategies.

“A multinational enterprise is a company that is headquartered in one country but has operations in one or more other countries” (Rugman and Collison, 2012). A firm on the other side operates within the national borders of a country. Some firms want to expand, not only in sizes but also in value and market share, by becoming MNEs. This is due to the fact that it can bring remarkable advantages even though is very risky. MNEs perform international business operations named as: Exports and Imports, Foreign Direct Investment (FDI). The first branch includes the goods and services that are produced in a country and sold in another one and vice versa, the second branch consists in equity funds invested in foreign countries. It is when firms begin to use FDI that they become MNEs.

ICICI was inclined towards expanding globally to other countries after establishing a strong foothold in India and had taken several actions to realize that goal. However, in the wake of the global financial crisis, the top management must decide on whether it was the right time to engage in globl

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).

Subject : Appraisal of a MNE's recent market entry (2007-2010) ( 1. Firm Motivations for internationalization 2. Entry Strategy 3. Corporate Strategy)

Additionally, through acquisition, enterprise can be benefited with reduced industry rivalry and increased market power to bargain down the input price over suppliers and raise up the selling price to buyers. In contrast, there are challenges associated with acquisition. The biggest challenge in the international acquisition is how to deal with inter-culture difference. Overestimating the economic benefits also contributes to the failure to increase profitability.

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

So the company in which we will choose will have to be established as well as have a reputation as a market leader. And because of the reception in which we have found from the government in India we do not see a problem with them helping us find a corporation with such high a standards in which we hold. Being the legal issues which are involved with this venture it is very beneficial to us that the language India is English and we do not have to deal with some of the majors issues that are involved in some countries. In addition to the previous advantages we feel as though an already established corporation can help us learn and implement our own distribution channels as well as our marketing campaign. It is through this venture that we will be able to implement our true strategy, which is entry into the complete Asian market.