Multinational Corporations And The Global Economy

1256 WordsAug 24, 20156 Pages
As corporation grows, their business expand into new international territories. Multinational firms represents one of the most prevalent types of firms in the global economy. In comparison to domestic corporations, MNC accounts for about 25% of the world’s product and approximately half of the total world trade (Guillen, n.d.). MNCs are increasingly becoming an important in the global economy and they are three times more common today than 20 years ago. In order to maintain competitiveness, multinational corporations must be able to change and adapt to global requirements. In order to progress and sustain success, MNCs must recruit, retain and manage local talents. Local talent management is crucial because local employees play a major role in the success of an MNC’s international expansion. It very common for MNCs to promote veteran employees and move them to the hosting country. MNC managers must be diligent and be willing to conform to a management strategy that will best suit their local employees. Although, MNC management approach can be similar, it can also vary based on the hosting country. For example, different local management approaches would be implemented in Dubai than in China. Each country have a different religious, social and political structures. An MNC manager would be required to adhere to the demands of the local environment while implementing the MNC’s corporate structure efficiently and effectively. MNCs also depend on the effectiveness of their
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