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

The Role of Multinational Corporations - Essay Example

Comments (0) Cite this document
Summary
The paper "The Role of Multinational Corporations" highlights that foreign direct investment heavily exercised by MNCs is very important for Indonesia’s economy to flourish and prosper. In this era of globalization, foreign direct investment is fundamentally empirical…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER91.9% of users find it useful
The Role of Multinational Corporations
Read Text Preview

Extract of sample "The Role of Multinational Corporations"

Download file to see previous pages On the other hand, Maheshwari (2006, p.53) generally postulates six characteristics of a multinational corporation: (1) operates and carries direct investment to several nation-states; (2) formulates and maintains an industrial organization; (3) widely functions on the basis of globally owned assets; (4) largely transfers capital, goods, and services from home to host countries; (5) transfers resources but does not trade such resources; and (6) manages not its local subsidiaries but the nationals or people from the host country. Maheshwari (2006, p.52) notably provides several examples of MNCs such as Goodyear, Pepsi, and Nestle Corporations. These multinational corporations function and operate in numerous nation-states -- particularly those so-called Third World nations such as Indonesia -- as their host countries. Many of the MNC’s home countries are highly industrialized nations of which the United States is highly prominent.
Multinational corporation fundamentally originates from a humble beginning, so to speak: firms. When firms firmly decide to become multinational corporations, there are necessary factors that they systematically fill-up or comply with. Maheshwari (2006, p.53) strongly argues that the underlying reason why certain firms become multinational corporations is because of their desire for vertical expansion. It implies that these firms wanted to substantially expand their business enterprise from production towards distribution. In setting up subsidiaries in other nation-states, these firms -- which ultimately become multinational corporations -- greatly endeavor either to accumulate raw materials from the resources of their host countries or to acquire global markets for the distribution or sale of their capital, goods, and/or services (Maheshwari, 2006).
First, firms pursue an expansion business in order to acquire raw materials from countries whose natural resources are exceedingly abundant. ...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(The Role of Multinational Corporations Essay Example | Topics and Well Written Essays - 2000 words, n.d.)
The Role of Multinational Corporations Essay Example | Topics and Well Written Essays - 2000 words. Retrieved from https://studentshare.org/macro-microeconomics/1574853-the-role-of-multinational-corporations-in-developing-economies
(The Role of Multinational Corporations Essay Example | Topics and Well Written Essays - 2000 Words)
The Role of Multinational Corporations Essay Example | Topics and Well Written Essays - 2000 Words. https://studentshare.org/macro-microeconomics/1574853-the-role-of-multinational-corporations-in-developing-economies.
“The Role of Multinational Corporations Essay Example | Topics and Well Written Essays - 2000 Words”. https://studentshare.org/macro-microeconomics/1574853-the-role-of-multinational-corporations-in-developing-economies.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Role of Multinational Corporations

Multinational corporations

...without a critical understanding of the notion of democracy. The assumption of unequal gains from globalization has led to many demonstrations and opposition. Below is a short summary of the causes of unequal gains: Inequalities in the terms of trade the price earned by a country's exports as a ratio of the price paid out for its imports The role of multinational corporations or enterprises (MNCs/MNEs) Repatriation of profits Freedom to relocate if a subsidiary is relative less profitable Intra firm trade and manipulation of transfer (internal) prices; tax avoidance Monopoly power/profits Variability in productivity gains from FDI is related to: Demonstration effects One-off gains...
12 Pages (3000 words) Essay

Multinational Corporations

...Running Head: Role and Behaviors of Multinational corporations Role and Behaviors of Multinational corporations Name: Course: College: Tutor: Date: Multinational corporations refer to business entities with operations in many countries. The headquarters of a multinational corporation are normally located in one country whereas the facilities are based in other countries. This model enables the company to enjoy the full advantages of incorporating in a certain locality and also the ability the cost production advantage i.e. the ability to produce the goods and services at lower costs. An example of Multinational Corporation is the Coca cola Company which is the largest...
2 Pages (500 words) Essay

Multinational Corporations

... the role they have played in making this world a more uniform and cosmopolitan place. Strict laws and acts enacted by major powers of the world have attempted to attenuate monopolistic activities and unethical practices of such corporations. They have triggered a healthy competition worldwide and emergence of large corporations from the third world countries is becoming a reality in modern times. Such corporations are now under continuous media glare which does not desist from highlighting any unethical practices, if used, and to set them right with the help of pertinent and competent regulatory authorities and organizations of the world. References: 1. Article (2008),Economics Help,Multinational Corporations: Good or Bad...
4 Pages (1000 words) Essay

Comparison of Leading Womens Role in Portrait of Teresa and Salt of Sea

... Number] Comparison of leading Women’s role in Portrait of Teresa and Salt of Sea Every society has different values,traditions and perceptions regarding the role of women that fit within their historical, cultural and social contexts. The cinema being an important cultural institution and reflector of social values tends to depict the role of women in movies to refer their current status as well as to motivate them playing a non traditional role for some specified purposes. In the movies “Portrait of Teresa” and “Salt of the earth” also, the directors Pastor Vega and Herbert Biberman have presented the roles of women in quite encouraging manner to show the women’s potential of playing a revolutionary and defining role in setting up trends...
7 Pages (1750 words) Case Study

Communication Role at the Workplace

Internal communication in any organization has been found to play a significant role in regard to role achievement in any business venture. When the internal communication department closely works with the top management, it has been found that job satisfaction levels rise which in effect translates to higher individual and group output from the workers (HRM guide, 2009). It is the role of the internal communication department to ensure that the strategic organizational direction is passed on to all employees and followed as planned so as to guarantee the achievement of intended outcomes.
With the current developments towards globalization, knowledge availability has become more readily available and the economy has approache...
9 Pages (2250 words) Assignment

Multinational Capital Investment in Ruritania

The main risk factors with an emphasis on financial issues, which are important for this decision, are examined in this report. Further, the main financial factors to be considered before making the decision are discussed based on investment appraisal techniques. The next section examines the available evidence on the risk factors and estimation for international investment. In section 3, these factors are examined for the country studied here. In section4, the financial issues to be considered based on investment appraisal techniques are discussed. In section5, appropriate recommendations are made regarding the investment decision for the case presented here.

According to Nagy (1984), the main risks in multinational ca...
8 Pages (2000 words) Case Study

The Trends in the Steel Industry and How It May Impact Nucor Corporations Strategy

The whole organization at Nucor’s revolves around the laid principles and focus on reinforcing to the extent that the organization is known for its culture and quality. Simultaneous quality checks and adherence are also as important building a strong culture for the organizations.

Nucor Corporation has always tried to challenge itself for further progress and to keep abreast of the industry of steel business.

Let us look at the trends observed in the business of the steel industry. The trend in the steel industry is very dynamic and always impacted by internal and extraneous factors. For almost 50 years the United States of America reigned in the industry of steel production, almost half of the entire p...
8 Pages (2000 words) Case Study

Evaluation of the Role of Human Networks in Knowledge Creation and Knowledge Sharing Within Patni

The extensive literature review has been undertaken to justify the actions of Patni and to appreciate its initiatives that enhance employee participation. The steps taken by this Indian IT giant in institutionalizing organizational learning have been discussed largely from the perspective of human resource management and it has also been discussed as to how knowledge generation takes place within the organization.

This report will aim at critically evaluating the role of human networks in knowledge creation and knowledge sharing within Patni Computer Systems Ltd. (Patni). For this purpose, an extensive literature review will be undertaken and various theories pertaining to human resource management will be made use of....
6 Pages (1500 words) Case Study

Employee Commitment in Multinational Organisations

In essence, employee commitment means loyalty to the employer and is one of the aspects that signify successful employee relations. The employer must be ready to reciprocate the commitment of employees for satisfaction in the workplace to be accomplished. This paper presents a critical assessment of some issues which may arise for the management researcher investigating the extent of employee commitment in a large multinational organization. It focuses on some of the factors that affect employee commitment in multinational organizations such as employee satisfaction, retention, career ladders, job security, employment relations, cultural diversity and empowerment of the human resources.
Employee satisfaction is a significant...
8 Pages (2000 words) Essay

What Makes Role Play Essential in Kid's Development

Grown-ups habitually recognize, directly after meeting someone, what form of communication is about to take place, and what the limitations restricting the communication will be (Sutton-Smith & Ariel, 2002). Because role-play conversation takes place in a fantasy, staged world, it is less hampered by physical and social reality.
Between the ages of 5 and 7, children gain a broad array of social and cognitive abilities (Amsel & Byrnes, 2002). Psychologists have discovered that these are formative years for the growth of mind theories, the growth of the ability to construct and represent stories, the growth of social cognition, the growth of the personality, the growth of advanced fantasy play, and the growth of intersu...
9 Pages (2250 words) Case Study

The Role of Human Resource Management

Positivism is a scientific method of inquiry-based on facts rather than on opinions and attitudes. In positivism, there is a belief that the world exists externally and that the objective method of measurement should be used. This implies that only knowledge that is measurable is “valid” and hence the epistemology of positivism is connected with quantitative methods of research. Interpretivism is the qualitative approach through which it is possible to understand the subjective reality. Through interpretivism, it would be possible to make sense of the data collected and achieve the goals of the research.

Any research is a methodical study on a particular subject, which uses facts and figures. The research st...
10 Pages (2500 words) Assignment

Challenges Faced by International Media Corporations Operating in China

Considering Geert Hofstede’s cultural dimensions, China exhibits a low ranking in individualism meaning that they observe a collectivist culture dictated by the communist rule (Hofsted, 1996). In this type of society, loyalty is considered to be of great importance, a factor that has made it difficult for foreign companies to invest freely in the country. This essay is a critical evaluation of challenges that international media corporations operating in the country face.

The attempts by foreign investments to penetrate China’s market have proven futile in the past especially due to the conservative nature of the inhabitants. China is a strict country when it comes to culture and cultural interaction. For ex...
7 Pages (1750 words) Coursework

The Role and Features of Stem Cells

Most criticized is research involving human embryonic stem cells. Most opposition to stem cell research is mainly on moral and religious issues. Most controversies on stem cell research exist, attributed to myths and misconceptions regarding stem cell research. Misconceptions are arising due to the biased nature of reporting from the media as well as an error that results especially when reporters are not conversant with facts on stem cell research. This paper is in favor of stem cell research due to the reasons listed below. The important role it will play in cancer treatment, regenerative medicine, repair of destroyed organs, in cure of killer diseases such as leukemia, Alzheimer’s, diabetes treatment, correction of develo...
6 Pages (1500 words) Coursework

The Role of Multinational Corporations in Conflict in Sierra Leone

... of the lapsed structures of governance and at times, deliberately in cohort with other active organs, funded and sustained the links between the slave and murder zones, that is, Sierra Leone’s mineral regions and the largely European market. Additionally, it will purpose shed light on how such extractive sector firms and in particular multinational corporations can commit to greater standards of good governance. Research objectives 1. To examine the role of multinational corporations in the growth and development of diamond-and by extension natural resource-industry in Sierra Leone 2. To examine the role of multinational corporations in the conflict in, Sierra Leone between 1991-2002 Research hypothesis Multinational Corporations have...
6 Pages (1500 words) Research Paper
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 Essay on topic The Role of Multinational Corporations for FREE!

Contact Us