Explore BrainMass

Explore BrainMass

    The Multinational Corporation

    Multinational corporations are corporations that operate in two or more countries, as opposed to domestic corporations, which operate in their home country only. A multinational corporation may have different types of operations in foreign countries including offshored production and support processes as well as marketing and selling operations in foreign markets.

    In the last several hundred years, multinational corporations have been key players in globalization. If companies like Walmart, Exxon Mobil, Chevron, ConocoPhillips, General Electric, General Motors, Ford, Bank of America and Proctor and Gamble were countries, they would be some of the biggest countries in the world. Even online giants like Amazon and E-Bay are larger than entire countries. In fact, these companies have operations in numerous different countries around the world. At the same time, our politicians are negotiating free trade agreements that will allow these companies, as well as start-ups, to compete better and more efficiently with domestic companies around the world.

    Because multinational corporations operate in more than one country, they face additional international business risk, and use different strategies to mitigate these risks. For example, businesses choose between different modes of entry into international markets depending on the level of risk (and the expected returns) a new market offers.

    International finance is also an important component of a multinational corporations' overall strategy. Multinational corporations use financial tools, such as hedging, to mitigate macroeconomic risks; for example, risks such as foreign exchange rate (currency exchange) risk.

    As well, multinational corporations face challenges with international human resource management. These challenges involve bridging the gap between new international business cultures – especially when corporate managers are sent as expatriates to manage people from foreign cultures in new plants or offices. 

    © BrainMass Inc. brainmass.com May 30, 2024, 12:24 pm ad1c9bdddf

    BrainMass Solutions Available for Instant Download

    China's RSM: Turning Strategy into Results

    Using the case study: "Red Star Macalline: Strategic Evolution", please help with these questions: Why is Red Star Macalline developing a new strategy? What are the key success factors for the execution of RSM's strategy? Identify and justify your choice of three specific initiatives that RSM could pursue to execute their new

    Effects of Corruption on Capitalism and Foreign Investment

    What are the effects of corruption on capitalism and foreign investment? Be sure to include at least the following points in your paper: - What are the types of corruption? - What are effects of corruption on MNCs? - How can MNCs deal effectively with these problems?

    Intercultural Management Questions about expatriate retention, forces for global convergence and divergence, how MNC's compensate expatriates and four components of compensation packages, and how to assimilate the spouse of an expatriate. Includes references.

    Question 1: The attrition rate for expatriates is about double that of non-expatriates. How do MNCs increase expatriate retention? What are the three reasons for poor expatriate retention? Question 2: What are the forces for global convergence in a labor system? What are the forces for a labor system to maintain divergence or

    First Mover Advantage

    Is First Mover Advantage a must? Is it an advantage to an MNC? And if so, how do you explain Apple's success (a company which did not invent anything but simply adapted existing products)? Are they an exception or an example of how an MNC should succeed? Lastly, explain Absolute and Comparative Advantage relative to your cou

    State Capitalism

    State Capitalism can boast of having some of the most powerful companies on the planet. Examples include Russia's Gazprom, the world's biggest natural-gas company, and China Mobile, a Chinese company with 600 million customers. Do you think state ownership and control of companies (like the aforementioned examples) in emerging

    MNC: Managing Political Risk

    In lieu of suspending operations, or withdrawing from the country, a MNC will usually take one of two routes to manage political risk: adaptation or dependency. What is adaptation? What is dependency? What are the four characteristics of adaption and dependency?

    Adaptations of Multinational Corporations

    A multinational corporation may need to adapt its control measures across the different locations where it operates, to ensure each measure is relevant in each location. Given this, how can a manager at the home office recommend appropriate actions to reduce performance gaps for the other locations? Is this possible? Explain and

    Global Strategies: Cargill and Arasco

    Please help me to interpret and comment on the article. This week we are learning about global strategies and the multinational corporation. Cargill and Arasco to Create Starches and Sweeteners Joint Venture in the Kingdom of Saudi Arabia http://finance.yahoo.com/news/cargill-arasco-create-starches-sweeteners-100500911.html

    Cultural Challenges for Multinational Corporations: a powerpoint that shows cultural problems multi-national corporation's employees and clients face and how to address them.

    Create a four-to-six-slide presentation that describes the cultural challenges that a multinational corporation typically faces and how these can be overcome or, at least, mitigated through the use of technology. This should contain information on the challenges that such a corporation would face both with its clients and its ow

    Trade Unions and Multinational Corporations

    Question: Trade unions can limit the strategic choices of multinational corporations in three ways: 1) By influencing wage levels to the extent that cost structures may become un-competitive. 2) By constraining the ability of multinationals to vary employment levels at will. 3) By hindering in the prevention of global integ

    Global Challenges: Multinational Corporational Ethics

    MNCs face ethical issues in host countries. Some ethical issues relate to: - Child or forced labor - Safety and security at the workplace - Duration of work in a week How do you think MNCs can successfully establish ethical practices in host countries? Discuss how a moral code of conduct can help resolve ethical issu

    Define ethnocentrism

    Define ethnocentrism and how it affects societies and multinational corporations. Give a comprehensive overview of the concept of ethnocentrism. Discuss the effect of ethnocentrism on individuals, societies, and multinational corporations.

    Global Growth and Economy.

    The BRIC countries, as per Goldman Sachs study, are expected to be dominant economies in the world in the next 25 years and are projected to challenge the existing world economic order. What are the economicl and financial implications of this for U.S. financial managers with respect to the following: A. International Trade Tr

    Multinational Corporations and Ethics Standards

    Can a multinational firm adopt varying ethical standards to win business in its global operations? Why or why not? How does corporate governance and financial management differ for US-based corporations and global multinational corporations?

    Hudson Co: Valuation of a multi-national corporation

    Hudson Co., a U.S. firm, has a subsidiary in Mexico, where political risk has recently increased. Hudson's best guess of its future peso cash flows to be received has not changed. However, its valuation has declined as a result of the increase in political risk. Explain.

    Multinational Corporations Who Borrow Foreign Currency

    There is some debate on whether Multinational Corporations (MNC's) increase risk when borrowing foreign currencies. Those in favor of borrowing state that lower costs of financing can be achieved and it improves their ability to compete. Those against state that when an MNC borrows a foreign currency, they are essentially specul

    Valuation of an MNC. Yahoo!

    Valuation of an MNC. Yahoo! has expanded its business by establishing portals in numerous countries, including Argentina, Australia, China, Germany, Ireland, Japan, and the United Kingdom. It has cash outflows associated with the creation and administration of each portal. It also generates cash inflows from selling advertising

    Multinational companies

    Research and prepare a discussion that addresses the ethical dilemmas that face multinational companies.

    GEC Corporation: Residual Income (or EVA) be better than ROI?

    GEC corp. is a large multinational with several divisions. Some of these divisions are well established divisions, primarily with a manufacturing focus, while others are "primarily consulting" divisions with very little investment in plant and equipment and where quality of the consultants employed determines reputation.The man