Multinational Corporations Are The Economic Powerhouses Of Globe

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.

While I'm no fan of multinationals in general, there are exceptions that need to be considered. One example of a multinational entity that truly benefits a peripheral nation is the luthier Robert Rey of Olympia, Washington (Luthiers are instrument builders, in this case Rob focuses on making violins and bows). Rather than having goods made in sweatshops, he has developed a relationship with luthiers in Beijing that run shoppes similar to his. He pays them to make celli and bows for him (Rey, Rob. personal communication 2016); which he can sell at low prices due to the disparity of the economies of China

The main disadvantage of the multinational corporations is that they have budgets more than the budget of any developing country and this huge capital provides these companies a great ability to influence the political and economic state of the host country. The multinational corporations have a high ability to change laws of the country that it operates in, either by threatening to withdraw from its markets or by supporting a candidate in the elections and when he win he change the laws in a way that serves the interests of the company that supported him. Also multinational companies can lobby against the governmental laws and make a great pressure on these governments due to their alliances with some political forces in those

Multinational corporations are business entities that operate in more than one country. The typical multinational corporation or MNC normally functions with a headquarters that is based in one country, while other facilities are based in locations in other countries. In some circles, a multinational corporation is referred to as a multinational enterprise or a transnational corporation .

A multinational corporation has office and different resources in one less than one nation other than its nation of origin. Such originations have workplace and manufacturing plants in various nations and for the most part have a concentred head office where they arrange worldwide admintranstion. Large multinational has budget that surpass those of numerous little national. Multinational is not individual. Multinational Corporation does not exist without shareholders and they exist just for benefits. Multinational Corporation can be measure from a few points for view for example, possession, and administration, auxiliary and vital. Multinational company likewise worldwide benefits amplification, some are home and host nation situated and

The tremendous growth and spread of MNCs has sparked controversy. Some people believe that MNCs contribute to unemployment in the country where they are based by hiring foreign workers for overseas branches or affiliates. Some people also believe MNCs exploit the people and resources of other countries. However, others argue that MNCs create more jobs than they eliminate and that MNCs bring capital and technology to areas that need

In the management of multinational corporations there are a multitude of ethics issues that arise. For instance in the United States it is illegal to bribe someone, but in Romania where it is illegal but still socially acceptable bribes sometimes are required to make a deal in business; when it comes down to a matter of cultural differences there is a lot more pressure for corporations to behave in an unethical manner. Other common problems are things like a corporation asserting political influence, using products that are legal in one country but illegal in others, tax evasion, and the exploitation of workers in developing counties. Though there are many problems faced there are solutions to these problems as well.

Multinational corporations are companies that that has at least one facility in another country than its home country. A good example of a multinational corporation is Nestle, Bacardi, Proctor & Gamble and Intel. These companies have offices and/or factories in other countries where they coordinate global management. While having facilities in other countries is a great way to cut costs and to create jobs in other countries, there are some disadvantages that should be taken into account regarding this practice as well.

Multinational corporations are becoming more significant in the worlds business markets. With an abundance of worldwide firms with foreign affiliation, multinational corporations employ managers who must work with others that have a wide variety of backgrounds and cultures. When multinational corporations require international business contacts to interact, it is critical for managers to demonstrate cultural sensitivity in order to meet business goals. In a world where crossing boundaries is routine, cultural intelligence becomes a vital ability and skill for managers, managers must adjust their managing styles between cultural and emotional intelligence.

Since the mid-1980s, the changing global competitive environment have forced more and more multinational corporations (MNCs) to development worldwide learning as their competitive viability, which requires to create worldwide innovative processes and knowledge transfer (Bartlett and Ghoshal, 1989). Knowledge from a subsidiary could be transferred to both parent company and peer subsidiaries, helping MNCs realize worldwide learning (Miao, Choe and Song, 2011). Knowledge flow from a subsidiary to parent firm could be considered as a critical condition to facilitate “local-for-center” innovation processes (Bartlett and Ghoshal, 1989, cited by Miao, Choe and Song, 2011). Traditionally, MNEs develop innovative capabilities by two classic processes, including “center-for-global” and “local for local” innovation model. Specifically, utilize the centralized resources and capabilities of parent company to create new products and operations and then implement these to subsidiaries, which could be defined as the central innovation process. By contrast, in the local innovation process, based on the local customers’ needs and market environment, subsidiaries development new products by their own resources and capabilities (Bartlett and Beamish, 2014). Based on different strategic roles and organizational specifics, the knowledge transfer includes two types, which are vertical and horizontal way. Horizontal knowledge flows in the multinational enterprise are generally adopted

Multinational corporations are evidently playing a starring role in the current process of globalization. This has been fueled by the rising share of cross-border capital flows attributable to foreign direct investment of such multinationals. Further, the multinational corporations have played an integral role in linking financial and product markets globally through transfers of technology, physical capital as well as management techniques. However, in order to venture into foreign markets, corporations have to use well-thought strategies to avoid failure. Some of the strategies used include, operating production facilities in a foreign market to cater for that market and the entire region, fragmenting its global production and research and design, or operating wholesale-trade outlets to import and distribute products into new markets.

Why do multinational enterprises (MNEs) exist? This seems to be a silly question. The answer seems to be simple – because they are profitable! But the issue is more complicated than it sounds.

Although the multinational is separated in several nations, it remains as a single enterprise and therefore must consider how to balance competitive pressures for differentiation and integration (Lawrence and Lorsch, 1967). Multinationals must decide how to be sensitive to the unique demands of the indigenous environment without inhibiting their ability to coordinate the internal operations of local units in search of global strategies. As these issues of differentiation and integration are often facilitated by HRM activities, they represent a critical component in the IHRM. An example of this dual focus is found in most multinational corporations based on international business, which tend to assign primary responsibility to their subsidiaries for local compensation and benefits, training and labour relations, with regional units assuming secondary responsibility (Reynolds 1992). Productive globalization occurred with the growth and expansion of multinationals. They are present in all the countries of the world and currently undergo mergers and acquisitions, with the expansion of its branch of activity.

A multinational corporation (MNC) or multinational enterprise (MNE) is a corporation that is registered in more than one country or that has operations in more than one country. It is a large corporation which both produces and sells goods or services in various countries. It can also be referred to as an international

The role of multinational corporations (MNCs) in emerging economies is growing, as shown by the growth of foreign direct investment (FDI), which in 2015 stood at $681 billion, up from $671 billion in 2013 (UNCTAD, 2015). Despite the above positive changes, some countries remain marginal areas in global terms. While emerging economies collectively account for 83% of the world 's population, they only account for less than 32 % of global gross domestic product (GDP) and FDI (UNDESA, 2015; WB, 2015). Consequently, the extent of economic and social challenges facing some developing countries remains enormous despite decades of MNC investments. One major social problem facing many of the emerging economies is still high levels of human poverty (UNM-MDG, 2015). Some African countries such as Zambia, are faced with the challenge of a large proportion of the population living in abject poverty (Gamu, le Billon, & Spiegel, 2015). The challenges prevail despite more than two decades of applying macroeconomic (basically structural adjustment programs) and microeconomic interventions (specifically through increased availability of microcredit) (Turyahabwa, 2014). According to the UN Millennium Development Goal Report of 2015 (UN-MDG, 2015), about 38% of the poor population in sub-Saharan Africa is chronically poor. At the current pace of development, the region is unlikely to achieve the Millennium Development Goals for poverty reduction within a stipulated time frame: by 2147