What Is Multinational Corporations (Mncs?

1137 Words3 Pages
bulb-icon

Recommended: Importance of multinationals

I. Introduction
Multinational Corporations (MNCs) in the global economy in these recent years has become the most important actors in doing international businesses, foreign investments, and world trades. MNCs plays an important role in determining the diplomatic relations between states. How the MNCs entering the host countries are also being considered to expand their market base. Commercial diplomacy and the diplomatic assistance as a part of MNCs activities also considered as one of the most important factors in determining the successful of the MNCs. In this paper, I would like to discuss and explain more about what MNCs is, its activities, its commercial diplomacy activities, and its diplomatic assistance.
II. Content
Multinational Corporations (MNCs) can be defined as a business organization in which the production activities, the distribution facilities, and the other assets are located at least in more than one country. The MNCs have offices and or factories in different countries and usually have a centralized head office where they coordinate the global management. MNCs is usually referred to any …show more content…

Conclusion
IV. References
"Equity Modes." Entry Strategies into Foreign Markets. Accessed October 24, 2016. http://entrystrategies.weebly.com/equity-modes.html.
Hanks, Gerald. "Compare & Contrast Equity & Non-Equity Modes for International Business." EHow. Accessed October 24, 2016. http://www.ehow.com/how_6747391_compare-equity-modes-international-business.html.
"Multinational Corporations in the Global Economy." University of North Carolina, 2016, 1-17. Accessed October 25, 2016. www.unc.edu/~toatley/mncs.pdf.
"Non-Equity Modes." Entry Strategies into Foreign Markets. Accessed October 24, 2016. http://entrystrategies.weebly.com/non-equity-modes.html.
"What is a Multinational Corporation (MNC)? Definition and Meaning." BusinessDictionary.com. Accessed October 24, 2016.

Show More
Related

  • It Is Unethical To Pay Cheap Wages In Developing Countries

    333 Words  | 1 Pages

    With the continuous development and progress of society, globalization gradually becomes the main trend toward the development within the company. Therefore, correct understanding of a multinational company becomes extremely important. This research will introduce a multinational company in accordance with the three thesis from the perspective of comprehensively and objectively. It is helpful to understand multinational companies

    Read More

  • World Politics

    1096 Words  | 3 Pages

    Some argue that MNCs actually encourage local business to flourish by encouraging competition, but most local business could never possible compete with these giant corporations. People also argue that they provide technology that wouldn’t be there otherwise that aid their economic development. Even though they may now have this technology, local business still are in no shape to compete with these companies that have so many choices at such low cost. Many defenders of MNCs also argue that they are truly part of the solution for third world countries, while the third world countries disagree bec...

    Read More

  • Article Review on Unleash Innovation in Foreign Subsidiaries by Birkinshaw and Hood

    580 Words  | 2 Pages

    Rugman, A. M. & Verbeke, A. (2004). A Perspective on Regional and Global Strategies of Multinational Enterprises. Journal of International Business Studies, 35(1), 3-18.

    Read More

  • Frito Lay Research Paper

    183 Words  | 1 Pages

    A multinational corporation (MNC) that came to my mind was Frito-Lay. Frito-lay has produced many products over the years from when they first started which was 1961. Four years later Frito-Lay merged with the Pepsi-Cola Company. When I visited Jordan last summer I noticed that in their markets they had Lay's, but not the usual flavors that we have in the US. Frito-Lay customizes its produce to appeal to the people that live there. Lay’s were created and produced by a company named Frito-Lay. Frito-Lay was created here in North America but it sells its produce in many countries such as Jordan. Frito-lay sells its products in Jordan nothing more. Frito-Lay manufactures and distributes to countries such as United Kingdom, Gamesa and Sabritas

    Read More

  • Transnational Actors and Coporations

    1140 Words  | 3 Pages

    Transnational actors have increasingly gained power in international politics. They have become strength that cross the traditional boundaries which set up by nation states and gradually shifted the focus in international politics from old school thoughts of state actors to a much more discursive range of concerns about considerable number of potential actors. This kind of transnational actor is including transnational corporations (TNCs), individuals, international non-governmental organizations (INGOs), and international governmental organizations. The emergence of transnational actors is not new and played a role for centuries, but came into power recently after Second World War. The reason can be attributed to the diminishing concern of traditional military security conflicts and threats among states, instead of growing new types of threat. Besides, the complexity of domestic interests also makes different actors seeking for their own power in international negotiation.

    Read More

  • MNC Vs Mncs

    999 Words  | 2 Pages

    The dramatic acceleration of globalisation has been a central feature of world politics in recent decades. Subsequently, the concept of the nation-state becomes less vivid, while new actors such as multinational corporations (MNCs) become more important and influential on the international stage. MNCs are a direct creation of globalisation. The annual sales of these MNCs can exceed the annual gross domestic product of many nations, which suggests that such corporations could indeed be considered actors in the international system in the same way as nations (Brinkman and Brinkman, 2008). This essay aims to assess whether, in the era of globalisation, MNCs are more powerful than nation-states. Firstly this essay will define MNCs and consider the power they hold. This essay will also consider in what ways MNCs are similar to and differ from nation states. Finally this essay will determine whether the power held by MNCs is equivocal or more than that held by nation-states.

    Read More

  • Impact of Multinational Corporations on Lesser Developed Countries

    418 Words  | 1 Pages

    (MNCs of multinational corporations) can operate `geocentrically', planning the location of their production and the pattern of their investment according to the balance of advantage across the whole capitalist world economy. For example, in the short-term these geocentric MNCs have the ability to increase the level of production in one country at the expense of another and in the longer term they could even shift the entire balance of their production between countries.

    Read More

  • Multinational Corporations Must Adapt their Marketing Strategies to Accommodate Local Preferences

    1814 Words  | 4 Pages

    Gone are accustomed differences in national or regional preferences... The globalization оf markets is at hаnd. With that, the multinational commercial world nears its end, аnd so does the multinational corporation… The multinational corporation operates in a number оf countries аnd adjusts its products аnd practices to each – at high relative costs. The global corporation operates with resolute consistency – at low relative cost – as if the entire world were a single entity; it sells the same things in the same way everywhere…

    Read More

  • Globalization and Analysis of Lenovo in an International Market

    1313 Words  | 3 Pages

    [3] ElGhazaly B S C A H. Multinationals from Emerging Economies [J]. The Regional Economist, July 2010.

    Read More

  • Structure And Strategic Advantages And Disadvantages Of Global Business Analysis

    973 Words  | 2 Pages

    This paper offers a global business analysis of ABC Corporation that is a proposed multinational corporation (MNC) in the auto and IT (information technology) sector based in the United States. It looks at issues of business structure approach to be used by the firm for purposes of global expansion and the strategic advantages and disadvantages of the Global Business approach of the company. Also, the paper will review the structure and strategies of other leading MNCs, the Ford Motor Company (FMC), in comparison. It is important to note that the Global Business strategy of MNC is similar to those of other leading MNCs in the global market like McDonald 's,

    Read More

  • MNE's from developed and developing companies

    1906 Words  | 4 Pages

    An enterprise operating in more than one country is known to be a Multinational Enterprise or an MNE. The foremost aim of all MNE’s is to globalize their operations. Top managers of large organisations argues that globalization is one of the most critical challenge they face today. Economic globalization refers to the fast increase in the international markets for goods and services and cross border interdependence and integration of production. (Dunning, 1997a).

    Read More

  • History of Multinational Corporations

    2012 Words  | 5 Pages

    The progression and evolution of international business has played an integral role in the overall development and progress of the world economy, culture, and politics. The multinational corporation was an essential part of this process and has roots as far back as the 15th and 16th centuries in Western Europe, specifically in the nations of England and Holland, during a period known as mercantilism. This was a time of unprecedented global exploration, colonization, and other imperialist ventures. Organizations such as the British East India Trading Company, promoted both global trade and the acquisition of natural resources, primarily for their home countries in areas including Africa, East Asia, and the Americas. Global trade was the primary factor in the growth of the world economy during this time. However the modern MNC, as it is known today, did not appear until the 19th century. These new entities provided a new level of inter-firm connectedness, a wider division of labor, and a higher level of product integration across countries in which MNCs are growing. Studies have shown that modern MNCs are characterized by a high degree of complexity, and have not followed a linear pattern in their development. In addition, it is crucial to understand the geographical context in which these MNCs were founded. This paper will analyze the development of the multinational corporation (MNC) from the 1870s to the modern day and examine it what ways, and to what degree it has changed over time.

    Read More

  • The Huawei Company and International Business

    2743 Words  | 6 Pages

    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).

    Read More

  • Management Problems Facing Multinational Corporations

    1385 Words  | 3 Pages

    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.

    Read More

  • Globalization and Technology

    1460 Words  | 3 Pages

    Stonehouse, G., Campbell, D., Hamill, J. & Purdie, T. (2004). Global and Transnational Business (2nd ed.). Chichester: John Wiley & Sons.

    Read More

More about What Is Multinational Corporations (Mncs?

Open Document