StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Multinational Enterprises and Global Capitalism - Research Paper Example

Comments (0) Cite this document
Summary
This paper will begin with the statement that the aims of a multinational vastly differ from that of a local business. While a local business may be aiming to expand throughout its country of operation and earn a respectable amount of profit, multinational aims more globally…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER97% of users find it useful
Multinational Enterprises and Global Capitalism
Read Text Preview

Extract of sample "Multinational Enterprises and Global Capitalism"

Download file to see previous pages There are several reasons why a multinational may choose to undertake foreign direct investment. One of these reasons is that the company has been very successful in selling its product with success and efficiency, and has been successful on satisfying the demand for this product to a full extent in the area of its origin. After seeing its success in that area, perhaps the exhaustion of demand within the area, the company may be tempted to open up a second location in a different country. The main reason, in this case, would be that the company would be seeking to satisfy the demand of consumers elsewhere, at that point. It will see a profitable business investment to open up a new location near these new potential customers because it predicts a similar response from them as it got in the country it was originally operating in. This new group of customers would be an attractive basis for foreign direct investment for any company, and once it has evaluated the possible risks associated with the possible expansion, it will surely consider the expansion as feasible, profitable and the next logical step to their expansions and operations (Jones, pp. 74, 2005). A company will not expand to a county in which it does not perceive the demand for its product (Seymour, pp.104, 1987). For example, one can consider a company, which produces food products, which use ham as the main ingredient. This company may be extremely successful in a non-Muslim country like the United States. Here, consumers in all age groups, as well as several different socio-economic statuses, may love its product. This would logically mean that once the company finishes expanding within the areas of the US where it finds functioning feasible, it could expand to and invest in even the less developed countries because it knows by experience that its product is well accepted by people of lower-middle income statuses as well. This logic will not apply in those countries, however, which have a majority of Muslim population. This is because, even though the acceptance of the company’s product has proven to be high amongst previous consumers, these new Muslim consumers would not warm up to them because their ingredients include pork, which they do not eat. In this regard, even when a product has been popular in several countries, the company will have to make several other inquiries before it can assume whether it is a good idea to undertake foreign direct investment in a newer area. In other words, the product needs to be tested in any region to where the multinational corporation (MNC) wishes to expand because, without that, the FDI will have very slight chances of yielding a successful result. Another reason is the political stability that is present in that country. Political stability is an important factor to consider for any MNC when it chooses to undertake foreign direct investment (Yoshitomi, & Graham, pp. 30, 1996). This is because it has a large bearing on how smoothly the company is able to operate in that area with hindrances, strikes and other interruptions, which often result in large losses, which make a large profit out of their daily operations. The political stability of the country is an important factor because it affects the consumer market of the country. ...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Multinational enterprises Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.org/business/1409084-multinational-enterprises
(Multinational Enterprises Essay Example | Topics and Well Written Essays - 1000 Words)
https://studentshare.org/business/1409084-multinational-enterprises.
“Multinational Enterprises Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/business/1409084-multinational-enterprises.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Multinational Enterprises and Global Capitalism

Global Values, Westernisation or Americanization in the Globalizing World

So, along with a country’s army, navy, air force, scientists, etc, soft power in the form of culture, media, trade, etc are being jointly used by nations to achieve an advantage. The wish to gain an advantage over other nations or even influence other nations and its people has turned out to be the main applications of soft power. Among the many soft powers, the one which the United States of America uses, that too effectively and also unethically (as viewed from certain quarters) is the Media. Actually, the word “soft power” was coined to denote mainly American connotations; it is used synonymously or interchangeably with “Americanization”. So, Americanization is being done using the soft power of Me...
10 Pages (2500 words) Case Study

The Development of a Single Global Culture Will Benefit Humankind

Social relations show spatial transformation across the world, encompassing both the hazardous and beneficial effects of globalization (Held,2000) and are marked by the intensification of communication flows (Cochrane and Paine, 2004). Such flows as an increase in broadcast activities, satellite channels, Internet, telephony, people to people contact, migration, and proliferation of transnational companies are playing an important role in the development of a single global culture. There is an emergence of diasporic and shared cultural forms across the world that are aided by increasingly porous national boundaries.

According to Cochrane and Paine (2004), the lives of people in one part of the world are affected by even...
6 Pages (1500 words) Coursework

Global Environment Change

A number of fields are involved in the study of environmental change, such as chemistry, physics, biology, oceanography, etc. In this paper, some of the major global environmental changes will be studied and explored and implications will be provided for the sustainability of the global environment.

Responses to the global environmental challenges have become one of the heated debatable matters around the world, as a number of organizations, researchers, and nations are endeavoring to sustain the continuity of the global environment, where is harmed by different natural and manmade causes. In order to come up with an effective solution, it is very important to understand and go into the core of the global problem. In th...
7 Pages (1750 words) Coursework

Global Culture on Fast Track

Lifestyles are changing fast to invite international practices. Youths in large numbers are instrumental to change to live in a free environment. They are resisting ‘no change’ attitude and fighting for the new environment where they can express freely what think right to make a modern culture. The change is undergoing automatically and being accepted by most of the resistant quarters.

Globalization does not create a common culture, values, attitude or beliefs as mentioned above. It gives way to a single arena in which people of different cultures interact and present their values for comparisons, analysis, acceptance or rejection on certain standard yardsticks. This is the internationalist version of global...
6 Pages (1500 words) Essay

Nationalism and National Identities in a Global World

Having said that, we need to understand that globalization is not just a phenomenon, it’s the science of human evolution and since man has for long held fast to this belief, there can be no reason as to why he should not comprehend the basis of the phenomenon of globalization. It is a paradigm shift or a movement as we might call it, one that brings more stability within the ranks and agreement in the efforts and activities of all concerned. More often than not, we have seen improvements within the present-day systems owing to globalization and it is because of this very perspective of change that we see world bodies doing their utmost to reach out to far-flung areas and explore hidden markets for the betterment of one and a...
6 Pages (1500 words) Assignment

Billing System Upgrade with Web-Based Version Project of Rick Auto Enterprises: A Communication Plan

The project is envisioned to involve changes to existing business processes, changes to existing jobs, and/or the creation of new positions. With the new web-based version, customers and auto brokers will be able to view and pay their bills online, as well as access a billing customer service agent is required. This change will affect the billing, sales, and customer service departments but it is expected to reduce costs, improve customer satisfaction, and reduce the number of days for outstanding accounts receivable.
Ownership of the existing system rests with the Billing Department. However, with the benefits projected to be derived from the upgraded system, especially with the implantation of the web-based version, the Cus...
12 Pages (3000 words) Case Study

Global Warming and Food Production

The carbon fertilization effect of increased carbon dioxide concentration in the atmosphere has an impact on plant growth, which benefits plant growth by facilitating photosynthesis, cannot balance the complex impact of increased temperatures around the world. Thus, although some regions will benefit from global warming, a total reduction in global agricultural production will result. This essay presents a discussion about the impact of global warming on agriculture and food production around the world.
Although the history of the planet earth suggests that for the last million years ice ages have been interspersed with warmer periods, evidence suggests that the average rate of global warming within the recent past has accele...
14 Pages (3500 words) Assignment

The Importance of Employee Empowerment in the Global World

Empowerment is the authority to make decisions within one’s area of operation without having to get approval; from anyone else. Here the operatives are encouraged to use their initiative to do things the way they like. To this end, the employees are given not just authority but resources as well so that they not only take decisions but implement them quickly. This empowerment means giving the employees the authority to make decisions and providing them with financial resources to implement these decisions (Koch & Godden, 1997 11).
Employee participation and empowerment participation means sharing the decision making power with the lower ranks of an organization in an appropriate manner (Lashley & McGoldrick, 199...
9 Pages (2250 words) Assignment

Global Challenges for Business Management and Leadership

This section aims at understanding the challenges faced by the United Nations due to political conflicts. In the summer of 2007, an issue in the Politically Speaking, the DPA had highlighted the increased focus on the conflict meditation. This report had also highlighted the interview with the Under-Secretary-General for political affairs. In the interview, he defended the UN against all the criticism and he also highlighted the need for finding political solutions for issues around the world. The interview also highlighted the importance of results to show the effective working of the UN. This interview also highlighted and urged critics to look at the positive along with the negatives of the UN. “The UN has knowledgeable a...
7 Pages (1750 words) Research Proposal

Global Inequality

Dependency theories came in as a critique of this view and they stated that nations cannot grow and become developed, as there are two types of nations including those who are underdeveloped or developing and then there are those who are already developed. They state that developing nations cannot gain the status of developed nations because the developed nations are exploiting the underdeveloped nations. This assignment will focus on the reasons that the theorists of dependency theory and modernization theory provide for the existence of global inequality and the paper will further focus on the strengths and weaknesses associated with these theories.
According to the findings of Giddens, theorists who follow the dependency a...
6 Pages (1500 words) Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic Multinational Enterprises and Global Capitalism for FREE!

Contact Us