Essay On Multinational Corporations

1052 Words5 Pages
MNC also called as Multinational Corporation, is an enterprise operating in several countries but managed from home country, for example, Nike, Coca-Cola and BMW. Such companies have offices and factories in different countries also have head office where they co-ordinate global management. Multinational firms arise because capital is much more mobile than labour, since cheap labour and raw material are located in other countries, multinational firms establish there. The advantages of multinational companies including, create jobs, wealth and improved technology in countries that are in need of such development, benefit from economies of scale, and lower output by purchasing automated equipment (fixed cost) and buying in bulk…show more content…
In 1995, the top 200 multinational corporations had combined sales of $7.1 trillion, which is equivalent to 28.3 percent of the world 's gross domestic product. The top multinational corporations are headquartered in the United States, Western Europe, and Japan; they have the capacity to shape global trade, production, and financial transactions. “ Grant J. Eldridge (no date stated) Multinational Corporations. Retreated from: http://www.referenceforbusiness.com/management/Mar-No/Multinational-Corporations.html The future for multinational corporations, will still success in underdeveloped world market. As the buying power still remains unchanged, it also will leads the productive capacity of multinationals increasing. However, there is a foreseeable future of multinational corporations worldwide to continue to…show more content…
All payments made should be within the law and should be fully disclosed to the public, because unethical business practices and payments can be used against the organisation at a later stage. Managers should also consider the social consequences of economic actions when making business decisions. Japanese managers are quite different from American managers, Japanese managers are more concerning in attitudes, values, high productivity, organisational growth, organisational stability and trying to perceive higher levels of self actualisation from their roles and positions. While the behavioural relevance of job satisfaction and individuality is higher for American managers. With the American management approach, is the development of best standards, once the standard is reached, it is merely repeated. While Japanese management favours continuous improvement, which everyone os committed to improving where possible. In American systems, rapid advancement is based on merit and qualifications, while Japanese system rewards long services and dedication. Company loyalty is highly valued and rewarded in Japanese system on the other hand, American system is a higher turnover in management and
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