1. A. Types of Companies in International Business Companies that do an international business generally defined as companies that do the business in more than one country and have an active management for its international business (Business Dictionary, 2016). Commonly, the companies that do the international business categorized as Multinational Enterprises (MNEs) or Multinational Companies (MNCs). In addition, those companies also do the Foreign Direct Investment (FDI), since most of the companies that do an international business have an active management towards it. Yet, there are also some of them that only buy the share of the local companies without involved in the management system in the host countries of their business, which called Portfolio/Foreign Investment (FI). The MNEs or MNCs that do the international business mostly come from private companies, NGOs, and subsidiary …show more content…
If the company does not respect and follow the host country’s policy about the business, the company might get sued by the host country’s government. As a result, the company will get loss of profit, pay penalties, or even be nationalized by the host country’s government. B. Environmental Constraint The trend of climate change can be something that makes a company has to consider about what type of products that they have to produce, in order to get a good sale as well as being friendly to the environment. People may think that climate change mostly caused by the products that has been produced or contained ingredients that is not friendly to the environment. When the people awareness is increasing towards the usage of environmentally friendly products, it may make the company’s sales decreased and force the company to be an environmentally friendly company to be successful. C. Legal
A Multinational Corporation (MNC) can be defined as “a single entity that controls and manages group of goal-disparate and geographically dispersed productive subsidiaries” (Triandis and Wasti, 2008, p. 2). Multinational corporations are entities that make Foreign Direct Investment (FDI) and produce added value in countries other than the country in which they are headquartered. One of the key objectives of the MNC is to obtain capital where is it cheapest and to invest FDI and undertake production in areas that yield the highest rates of return (De Beule and Van Den Bulcke, 2009). However, many theories have been advanced to account for the decision-making process that MNCs undertake in relation to FDI. The purpose of this paper is to explain the two main theories – internalization theory and OLI eclectic paradigm theory – and to critique these in relation to some of the other conceptual models that have been advocated.
Sainsbury’s will also sell products with low or zero carbon refrigerators to customers so that they are able to influence customers to protect the environment. Sainsbury’s will also install technologies such as carbon refrigeration systems, air conditioning and energy efficient lighting into all the stores of Sainsbury’s in order to reduce carbon and energy. (Puppala, Secreteanu, 2014) This resulting that Sainsbury’s has invested in green technology that will prevent the climate change and also creating job opportunities and boost the economy of European Union. Environment policy also impact Sainsbury’s to protect the environment from climate change by cutting greenhouse gas
As environmental concerns become more of an issue for consumers, they will be more aware of the impact that a company has on themselves and the environment and therefore be more conscious of who they support with their dollar.
Climate change has been one of the most discussed issues in these modern days. It is prove on many researches that the increase in man-made green house gas emission can significantly affect the climate in the world, on every part of the globe. In the last few years, climate change has become the most researched subject in science. The reason is that because climate change can affect significantly to the earth and it has to be taken care of. In a business world, particularly in Automotive Industry, climate change is also one of the must discussed subject, and because of automobile is one of the factors that produce the most CO2 (Carbon dioxide), it become one issue that force automotive industry to change their product to reduce the amount of CO2 emission.
Multinational enterprise (MNE) is “a company that is headquartered in one country but has operations in one or more other countries” (Rugman and Collinson 2012, p.38) that has at least one office in different countries but centralised home office. These offices coordinate global management in the context of international business. MNEs have increasingly essential influence on the development of the global economy and coordinate with other companies in different business environments. However, there are many issues involved with how MNEs operate well overseas, especially in emerging markets (EMs) (Cavusgil et al., 2013, p.5).
Exploratory Essay As a new student in the Business School, I have little knowledge of current issues in business. However, an issue I’ve always been passionate about is climate change. For this essay, I decided to merge my knowledge of climate change with topics in the business field. My first research topic idea I chose was how climate change affects business.
There are three main political risks that can be encountered when moving business overseas which are: confiscation, expropriation, and domestication. Each of these risks can have significant adverse effects on a company that is trying to expand into foreign countries. Of the three, confiscation is considered to be the most severe political
As Per section 6(3) of the Income Tax Act, any company which is incorporated in India is always considered as resident company or during the year control and management of its affairs situated wholly in India.
THE POLITICAL ENVIRONMENT: The critical concern Political environment has a very important impact on every business operation no matter what its size, its area of operation. Whether the company is domestic, national, international, large or small political factors of the country it is located in will have an impact on it. And the most crucial & unavoidable realities of international business are that both host and home governments are integral partners. Reflected in its policies and attitudes toward business are a governments idea of how best to promote the national interest, considering its own resources and political philosophy. A government control's and restricts a company's activities by encouraging and offering support or by discouraging and banning or restricting its activities depending on the government. Here steps in international law. International law recognizes the right of nations to grant or withhold permission to do business within its political boundaries and control its citizens when it comes to conducting business. Thus, political environment of countries is a critical concern for the international marketer and he should examine the salient features of political features of global markets they plan to enter. THE SOVEREIGNITY OF NATIONS From the international laws point of view a sovereign state is independent and free from external control; enjoys full legal equality; governs its own territory; selects its own political, social, economic systems; and has the power to enter into agreements with other nations. It is extension of national laws beyond a country's borders that much of the conflict in international business arises. Nations can and do abridge s...
Each year the average temperature of the earth increases .02 degrees Fahrenheit (Global Warming). Although this may not seem like a big change, our ecosystems are so fragile that even this slight boost in temperature is very destructive; oceans rise, glaciers melt at an alarming rate, species of animals cannot adapt and die off. As the twenty first century continues on, these changes are accelerating at an alarming rate, mainly due to population increase. Humans are producing more waste, owning more cars and building more pollution emitting factories every year. Unfortunately all of these factors help contribute to global warming. Some awareness concerning this problem has been raised but the general public seldom takes heed of these warnings. Rarely do people ever think of the effects of their actions and those that do almost never change their ways. Luckily, some companies such as Honda, GM and BP are working hard to change people’s attitude towards our environment. They have realized the threat pollution poses and have decided to do something about it—through advertising. Each year these companies raise millions of dollars through advertising for the purpose of environmental research, auto development and public education.
Not to mention we also have HR and OSHA rules that oversea a lot of other regulations and rules are broken down showing political corruption of power. Business managers must understand territories across regions managers. They must follow rules, guidelines, and acceptable approaches. It’s no different from a woman going to Saudi Arabia and having to cover herself up versus a man that does not, while in United States she is freely allowed to dress as she pleases. A company that’s able to follow the guidelines within a country is able to increase is growth. The majority of the time businesses can cut costs if it operates within a third world market.
Today the consumerism plays an extremely important role in contemporary societies; consumerism has carried a part of the planet to the edge of Ecological, social and economic abyss, and every day becomes more evident. But naturally, it goes against a process that has become common in the daily life of people, The consumers need to advise about nature of the products, the value and the consequences of the consumption of certain products in the environment. One of the most creative ways to solve this problem is to minimize consumption of newly manufactured products, either by buying items with a longer shelf life or buying used items, new resources are not used in the manufacturing and industrial pollution and carbon dioxide will be lower. We can Recycling and reusing, also make reasonable use of natural resources, energy, and water, this contribute to the mitigation of climate impacts, will require manufacturers to use more sustainable technologies.
Mira Wilkins defines a multinational enterprise (MNE) as a “firm that extends itself over borders to do business outside its headquarters country.” By 1870, a period denoted as industrial capitalism, MNCs started to evolve and the nature of foreign direct investment (FDI) changed.... ... middle of paper ... ...) , The Oxford Handbook of International Business, New York: Oxford University Press.
Nowadays, business is set in a global environment. Companies not only regard their locations or primary market bases, but also consider the rest of the world. In this context, more and more companies start to run multinational business in various parts of the world. In this essay, companies which run multinational business are to be characterized as multinational companies'. By following the globalization campaign, multinational companies' supply chains can be enriched, high costs work force can be transformed and potential markets can be expanded. Consequentially, competitive advantages of companies can be strengthened in a global market. Otherwise, some problems are met in the changed environments in foreign countries at the same time. The changed environments can be divided into four main aspects, namely, cultural environment, legal environment, economic environment and political system problems. All the changed environments make problems to multinational companies. In particular, problems which are caused by changed culture environment are the most serious aspect of running a multinational business. This essay will discuss these problems and give some suggestions to solve them.
For many years climate change has become a crucial issue around the globe. The environment has considerably deteriorated by the change of climate: seasons are shifting, the earth 's climate is changing, sea levels are rising and ice is melting. Global warming and the greenhouse effect is a topic that is becoming more and more concerning and a lot of research is done in order to examine what the issues are and how these affect the economy (Stern, 2006; CCRA, 2012) but also business industry and politics (Hanley & Owen, 2004). This phenomenon is a result of approximately 100 years of carbon-dioxide emission (amongst other greenhouse gases) in the atmosphere (Stern, 2006). It is a serious phenomenon affecting the environment and living organisms.