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

MULTINATIONAL CORPORATIONS AND THEIR CONSEQUENCES FOR THE INTERNATIONAL ECONOMY - Research Paper Example

Comments (0) Cite this document
Summary
It bolstered the entry of the open information and open trade where commodities and services are exchanged via multinational corporations. Throughout history, this open…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.6% of users find it useful
MULTINATIONAL CORPORATIONS AND THEIR CONSEQUENCES FOR THE INTERNATIONAL ECONOMY
Read TextPreview

Extract of sample "MULTINATIONAL CORPORATIONS AND THEIR CONSEQUENCES FOR THE INTERNATIONAL ECONOMY"

Download file to see previous pages A Multinational Corporation (MNC) is an enterprise engages in Foreign Direct Investment (FDI) which possesses or built facilities, operates and controls value-added undertakings in many countries. A firm is considered an MNC when 25% of its production and services output came from external through trading and services as well as infuse capital, technology, and managerial expertise to undertake production in foreign countries (Spero & Hart, 1997).
Economists posit that a company is considered multinational when it has nurtured a number of affiliates or has subsidiaries in other countries; operate in an array of services and operations globally; gather high rate or percentile of assets, revenues, or profits; its human capital, stockholders, and administrators composed of varied nationalities, and their offshore operations are extensive, ambitious, and inclusive of manufacturing, research and developments (Spero et.al.1997, p 117). Often, the subsidiary company got financial and supervisory support from its parent company or may undertake joint venture in the operations. The financial transfer is called by economists as Foreign Direct Investment (FDI) which is aimed at controlling some offshore assets and when it invests capital to a subsidiary in other nation by purchasing an enterprise or by feeding capital to commence a new operation (Spero et.al.1997). Sometimes, MNCs does portfolio investment by buying stock or bonds from a national corporation (Spero et.al.1997).
Many MNCs are engaged in extractive industries, manufacturing of technology, banking and finance, and the like, but in its corporate management, they are distinct in their technological capacity, corporate structure and the nature of products and services they introduced to the market (Spero et.al.,1997). Their characteristics illustrate that their profit sometimes is more that the gross domestic product (GDP) in almost 170 nations (Spero et.al.1987, p. 119) because they ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“MULTINATIONAL CORPORATIONS AND THEIR CONSEQUENCES FOR THE Research Paper”, n.d.)
Retrieved from https://studentshare.org/miscellaneous/1585596-multinational-corporations-and-their-consequences-for-the-international-economy
(MULTINATIONAL CORPORATIONS AND THEIR CONSEQUENCES FOR THE Research Paper)
https://studentshare.org/miscellaneous/1585596-multinational-corporations-and-their-consequences-for-the-international-economy.
“MULTINATIONAL CORPORATIONS AND THEIR CONSEQUENCES FOR THE Research Paper”, n.d. https://studentshare.org/miscellaneous/1585596-multinational-corporations-and-their-consequences-for-the-international-economy.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF MULTINATIONAL CORPORATIONS AND THEIR CONSEQUENCES FOR THE INTERNATIONAL ECONOMY

Multinational Corporations

...in their technology so that competition between them is fair. Monopoly is another factor that has affected the local industries a great deal. Due to the fact that these foreign companies are very large, they produce large amounts of products. They take over the market in the host countries thus suppressing the local industries. With this regard, multinational corporations are a barrier o the growth of small businesses in the host nation. Controlling local economy MNCs have the advantage of having the freedom to shift anytime they want to mew locations. This gives them an advantage of exerting pressure to the host countries when they are confronted and fear loses. These...
7 Pages(1750 words)Essay

Multinational Corporations and Their Consequences for the International Economy

...Multinational Corporations and their Consequences for the International Economy Introduction A major component of the structural transformation in the international economy in recent years has been the expansion, globally, of foreign direct investment (FDI) and merchandize trade. The expansion of these elements, particularly FDI, has surpassed the intensification of production. Consequently, the overall outcome is an ever more mutually dependent international corporation. Only since the past decade did the world witness massive volumes of FDI crossing...
9 Pages(2250 words)Essay

Emergence of Nanotechnology in Electrical Engineering

3 Pages(750 words)Essay

Multinational corporations and sweatshops

...Multinational Corporations and Sweatshops Introduction Today industrialized countries have favored contracting out ofproduction to the suppliers in the third world countries. By doing this, the industrialized countries have contributed to international division of labor. For instance, globalization of production in apparel and footwear companies such as Reebok and Nike has led to international division of labor. Here, the two companies major in product designing and marketing but rely on a number of contractors to build shoes and sew clothes that suit their specifications. One of the chief expectations by the two companies is high quality goods. In addition, they expect...
6 Pages(1500 words)Essay

Trade Liberalisation And Issues For Multinational Corporations

...with the profit incentive, distorts the allocation of resources, raises prices, decreases output and reduces aggregate welfare" Competition is another issue that arises out of multinational entry into new foreign markets. As trade policies liberalises and restrictions lowers, more and more corporations become willing to enter and expand into these potential markets. Apart from foreign firms, the already strengthened local companies also take part in business battle. Glass, Kosteas and Saggi (1999, p140) illuminate that "multinationals [are] seen as agents that increase competition in the host economy, transfer modern technology, and help achieve a more efficient...
10 Pages(2500 words)Essay

Multinational corporations

...Globalization "Human societies across the globe have established progressively closer contacts over many centuries, but recently the pace has dramatically increased. Jet airplanes, cheap telephone service, email, computers, huge oceangoing vessels, instant capital flows, all these have made the world more interdependent than ever. Multinational corporations manufacture products in many countries and sell to consumers around the world. Money, technology and raw materials move ever more swiftly across national borders. Along with products and finances, ideas and cultures circulate more freely. As a result, laws, economies, and social movements are forming at the international level. Many politicians, academics, and journalists treat... ...
12 Pages(3000 words)Essay

Multinational Corporations

...beverage manufacturing company in the world. The company has been in existence since 1892 and manufactures, distributes and markets non-alcoholic beverages and syrups globally. The company is in over 220 countries and has more than one million employees. Multinational corporations are provides an important force for the dynamics of the world economy. For instance, the Coca cola Company has been a driving force for the developing world economy as far as jobs creation is concerned Chong(1983,p.130). In global context, Coca Cola Company exhibits certain roles and behaviours.The Multinational corporations are involved in social...
2 Pages(500 words)Essay

What is the evidence that multinational/transnational corporations pose a threat to state sovereignty

...Running Header: Multinational/Transnational Threatens Sovereignty Questioning If Multinational/Transnational Corporations Poses a Threat to State Sovereignty Name Institution 26 April 2006 Introduction The question if International Corporations poses a threat to State Sovereignty is currently a very hotly debated issue internationally. Governments, social organisations and regional leaders are increasingly troubled by the growing presence of multinational corporations, especially those in poor developing nations. Allegations against these profit seeking corporations include destructive competition and...
6 Pages(1500 words)Essay

Multinational Corporations

.... Multinational Corporations have now become an integral part of the international society. Whether these multinational giants are beneficial or damaging to the society as such is a question which is debatable. There are opinions for and against the multinationals depending upon one’ perspective and social position in this world. We shall discuss the impact of multinational corporations in detail and present views for and against them in the following paragraphs. One major factor to be considered when one talks about multinationals is that most of them are from the developed countries like the USA,...
4 Pages(1000 words)Essay

Multinational Corporations

.... More than 50% of the respondents rated multinational corporations at more than average score in harming the economy. In conclusion, it may be argued that multinational corporations are causing harm to the economy, but also have some positive contributions to the economy such as reduction of unemployment rates and increase in income. References list Billet, B. L. (1991). Investment behavior of multinational corporations in developing areas: Comparing the development assistance committee, Japanese, and American corporations. New Brunswick, N.J., U.S.A: Transaction...
2 Pages(500 words)Essay
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 CORPORATIONS AND THEIR CONSEQUENCES FOR THE INTERNATIONAL ECONOMY for FREE!

Contact Us