Multinational Corporation : An Powerful Acceleration For Administrators

2041 Words9 Pages
Due to the globalisation is developing rapidly worldwide, doing business effectively is the best way to ensure the economic’s growth as well as to gain more reputation for the organisation. In global expansion strategy, a multinational corporation (MNC) is considered as the most powerful acceleration for administrators. Acknowledging the advantages of MNC, many businesses started to invest in developing countries to target the cost-benefits and broaden their scope of activities. This leads to the unexpected rise of MNC in recent years. However, managing a multinational corporation in another country is not a simple issue because the world is changing day by day and the success of each firm is based on both internal and
…show more content…
Each culture would have its own specific features which would be useful for us in the future. It looks like an infinitive and valuable knowledge that could be learnt and used for a long time. Adapting the different culture, a company will have a sustainable basis for future expansion of other markets. Moreover, it is also an excellent opportunity to build a good relationship between home country and host country since they understand each other better. Consequently, the gaps between two cultures might be shortened. Secondly, for the host country’s sake, the MNCs could supply plenty of jobs for local residents and these residents could adopt new technological invention or knowledge certainly. It also makes the unemployment rate decrease, which improve the host country’s economy significantly. Ultimately, the home country (MNCs) could receive a lot of beneficial rights thanks to the policy of host country (Rugman & Verbeke, 2001).
One of the most popular countries for multinational enterprise establishment is China. With 128 billion US dollars has been invested in 2014, China has become a country that received the highest capital from foreign direct investment in the world (BBC, 2015). After the economic and political reforms in 1978, China becomes an attractive destination for the foreign investors in various fields. Many companies in developed countries like US, UK, Australia, Japan… choose China
Get Access