Multinational Corporations

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.

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.

Businesses but not all corporations are categorized as conglomerates. Conglomerates and other sorts of corporations are permitted entities, meaning that the entity can purchase possessions or face charges. Corporations and conglomerates, pay state and federal taxes. Conglomerates are distinguished by the fact that they have much more complex assemblies than other sorts of corporations.

General Motors Company commonly known as GM, is an American multinational corporation headquartered in Detroit, Michigan, that designs, manufactures, markets and distributes vehicles and vehicle parts and sells financial services. It produces vehicles in 37 countries under thirteen brands: Alpheon, Chevrolet, Buick, GMC, Cadillac, Holden, HSV, Opel, Vauxhall, Wuling, Baojun, Jie Fang and UzDaewoo. General Motors employs more than 212,000 people from all over the world and does business in more than 120 countries. It also has numerous joint ventures like Wuling, GM-avtoVAZ and General Motors India. As part of its 2009 bankruptcy restructuring the current company, General Motors Company LLC, (new GM), was formed in 2009, after the bankruptcy of the General Motors Corporation (old GM).

Foreign firms that choose to list on a U.S. exchange to raise value with new speculators when their household markets may have low capitalization or liquidity. Huaneng Power International, Inc. (HPI) is an example of this advantage. The People 's Republic of China (PRC) had two stock trades however, both were generally new and offered low capitalization and liquidity which brought about HPI and other PRC firms looking to the US to capital.

5. The modern international trade theories explain trade from a firm, rather than a country, perspective.

The global landscape of business is continually expanding and major companies are crossing borders in their daily business activities. As these multinational corporations branch into new areas, known as emerging markets, they will face a plethora of risk, challenges, and opportunities. Branding and sustainability are two major aspects of a business and emerging markets provide a different landscape that will require strategic changes and innovative solutions. One of the major ramifications of these corporations entering emerging markets, is their coherence to the principles of corporate social responsibility (CSR). Whereas much of the past research on this topic focuses primarily on the risks and challenges a company faces in such a situation, this paper will focus primarily on the positive implications of Multinational Corporations (MNCs). This paper will look to answer what CSR efforts should be taken by MNCs? What are the risk, challenges, and benefits to MNCs and the emerging market? What are the effects on the MNCs brand when they participate in CSR? How is the nature of the emerging market important when taking into consideration CSR? Given the stature and resources that many MNCs have, they have the potential to make a major positive impact on emerging markets in the realm of ethics, rights, and quality of life.

Other challenges to MNCs do exist in addition to those deriving from trade barriers. Wu (2008) gives insight to the situation faced by multinationals in China. According to Wu, multinationals in China have serious problems on two fronts, firstly

As transnational corporations (TNCs) grow more powerful than some nations and dominate the world market, governments favor neoliberal policies. Neoliberalism, a movement toward less government involvement in the regulation of markets, illustrates the push for open markets and free trade by core countries. (Knox, 299) Since the core countries already gained wealth and power, they possess the means to adopt neoliberal policies without the fear of being exploited. Without state intervention, the TNCs form monopolies and outsource labor to the cheapest bidder without concern for the factory conditions. Therefore, many argue abandoning social goals and standards leads to profitability for businesses. (Knox, 299). Others claim making the markets open and free improves political and social relations between nations. Although businesses are able to make a larger profit without governmental standards, neoliberalism causes deregulation of industry and factories, creating problems for the future generations.

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.

Many of the world large indusial companies in foreign countries do not follow regulations for pollution and carbon dioxide (Co2). The toxic waste is causing major health issues for not only the people that live in these countries but the world. These gasses have been found in our water and food supplies; this toxin is also eating away the ozone layer for the atmosphere. This second layer helps protect the earth and its population from the harmful ultraviolet radiation from the sun. The world’s Public administration need to Fight and set Policy against the Global Carbon Footprint. Public administrators around the world need to fight and set policy for regulations to stop these countries letting big business polluted the world’s air and

The primary purpose of this essay is to evaluate the Multinational Corporations (MNCs) role in discharging their ethical and philanthropy beyond the statutory requirements and its implications on the reporting system.

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.

The end of the 1980s experienced a visible change experienced in the literature concerning MNE functions and nature of business (Segal-Horn and Faulkner, 2010). Before 1980s, the main research in MNE field was about analyzing relation between affiliates and headquarters of the firm, and also decisions concerning making investment in foreign country, which was also experienced in Dunning’s work. After that, the focus was shifted to operations concerning coordination in management of a network of affiliates of an MNE and analysis of the competitive advantages received by these affiliates from the respective economies. Therefore, the last 20 years have experienced a very beneficial theoretical work in the field of international business and