Multinational Corporations, Their Challenges And Successes

2096 words - 8 pages

Multinational Corporation Defined
A multinational corporation is an organization headquartered in one nation that that has operations in one or several foreign nations to leverage additional market penetration (Luthans & Doh, 2012). By entering into the global market organizations essentially enter into the threshold of a multinational corporation (MNC). This paper will provide an explanation of globalization, the primary challenges of multinational management, and discuss two separate case studies and their challenges and successes.
Increasing globalization
Global expansion has developed a tactical imperative for nearly all large organizations and MNC managers have a great deal on their hands in developing, monitoring and changing these strategies. Becoming international is an important factor in assisting organizations in becoming globally competitive. Globalization has become a prevalent spectacle over the past two decades. This is the case and it is not a surprise at this day and age to discover world brands in distant locations throughout of the globe. As indicated by Booton (2011), “Peoria, Ill.-based Caterpillar plans to export partially assembled mini excavator base units to a facility in Europe for final assembly, which it says will improve delivery times to its customers across the pond” (para. 5). Caterpillar has made this decision to support mining across the globe and to support mining in remote locations in China.
Why globalization
As described by Czinkota and Ronkainen (2010), “globalization reflects a business orientation based on the belief that the world is becoming more homogeneous and that distinctions between national markets are not only fading but, for some products, will eventually disappear” (p. 184). In some cases this requires a domestic organization to develop into a global market to survive. By entering into the global market they essentially enter into the threshold of a MNC. According to the United Nations Conference on Trade and Development (UNCTAD), there are greater than 50,000 organizations across the globe that meet the requirements as MNCs (as cited in Aguilera & Flores, 2007).
As many have argued, there are some negative impacts from not encompassing globalization and being solely regional. In a regionalized system, monopolies can develop along with economies that can essentially deteriorate (Sim, n.d.). Being global opens up more opportunities for an organization. They also become more open to economic growth as the world is frequently changing and new opportunities arise. Economic growth is equally important to both rich and poor nations as economic growth creates a nation’s monetary strength and security (Reddy & Vyas, 2004).
Development of globalization
International trade and direct investments have become progressively significant in the world’s economy (Griffin & Pustay, 2010). There are several elements that have contributed to the development of globalization. ...

Find Another Essay On Multinational Corporations, Their Challenges and Successes

Globalization and the rise of multinational corporations and branding

1448 words - 6 pages Globalization and the rise of multinational corporations and brandingA further, crucial aspect of globalization is the nature and power of multinational corporations. Such companies now account for over 33 per cent of world output, and 66 per cent of world trade (Gray 1999: 62). Significantly, something like a quarter of world trade occurs within multinational corporations (op. cit). This last point is well illustrated by the operations of car

Corporations and their Environmental Impact Essay

1240 words - 5 pages Kayla Gann English 101 Professor Detiberus 6 April 2014 Corporations and their Environmental Impact About fifteen thousand airplanes service almost ten thousand airports and function over routes more or less fifteen million kilometer in the entire length. Greater than two billion travelers flew on the world's aircrafts for business travel and vacation, and well in surplus of a second of the value of the earth man-made exports were conveyed by

Multinational Corporations and the Destruction of the Family

1563 words - 6 pages rates to rival their gains. Multinational Corporations wield incredible amounts of political and economic clout, clout that allows them to manipulate a region without fear of recourse on the part of the localities in which they reside. The gains of corporations with respect to political and economic status are often accompanied by the withering of political and economic status on the part of indigenous populations and local labor forces

Multinational Corporations in China and Local Human Capital Development

2215 words - 9 pages relationship and discuss the extent to which the Chinese parties in this relationship have actually accrued the benefits that they expect to receive. In particular, a large part of the expected benefit is to come from the transfer of best management practices by the foreign multinational corporations to Chinese firms, thereby developing the human capital of China. I will look to the recruiting practices of MNC’s in China to assess this level of benefit

Secondary Talented and Gifted Programming: Challenges and Successes

1755 words - 7 pages programming occurs within their district. All districts have the challenge of providing effective programming for their TAG students. At the secondary level, this challenge is especially large considering the shifting resources, the structure of secondary schools, and teacher training. Despite this challenge, some secondary schools have found a way to offer effective programming for their TAG students. Acknowledging and overcoming the challenges facing

Chief Executive Officer Roles and Their Effects on Large Corporations

2052 words - 8 pages Chief Executive Officer Roles and Their Effects on Large Corporations The Chief Executive Officer is responsible for the success or failure of the company. They are responsible for the operations, marketing, strategy, financing, and the creation of company culture, human resources, hiring, firing, and compliance with safety regulations, sales, etc.This all falls on the CEO’s shoulders. The CEO’s main function is to set a strategy, vision and

'Economic risk has shifted from the government and corporations to workers and their families.'

1250 words - 5 pages the job market and the balancing of work and family--the responsibility for economic risk has shifted from the government and corporations to workers and their families.Some of this shift has been deliberate. Witness the steady cutbacks in workplace health insurance, and corporations' movements away from offering traditional guaranteed pensions in favor of offering "defined-contribution plans" that place the investment risk on workers. Yet a

How are leisure corporations adapting their products to accommodate a growing and more diversified global leisure demand? Support your discussion

1434 words - 6 pages In this essay I am going to look at the different aspects of leisure and how the corporations are adapting their products due to the global leisure demand. With the UK being an online mature market and having strong online retail sales of £12.3 billion (2011) and growing at a rate of 4.3% CAGR, I will focus on different emerging economies such as the BRIC countries and concentrate on how this has been supported by leisure corporations and how

How does gender and/or sexuality condition influence parenting? What challenges do parents face by virtue of their gender and/or sexual identities?

926 words - 4 pages and it becomes this never-ending cycle of placing males superior to females. With that being said, I think that a person’s gender and sexuality both strongly influence how parents teach their children to perceive and practice their own gender and sexuality. Gender is structured. According to Lorber he states that, “gender divides work in a home and in economic production, legitimates those in authority, and organize sexuality and emotional life

"Journeys, irrespective of their form, usually present challenges and barriers that have to be met before a final goal is reached." Do you agree?

1148 words - 5 pages Most journeys regardless of their physical, emotional or even psychological nature present challenges and barriers which must be overcome before the goal or purpose behind the journey is reached. These challenges and barriers are both obstacles which we must surpass and signposts which mark the progress of our travels. They can take any form from physical tests of courage to psychological disorders that impede the journeyers from their paths

NPOs and Challenges in their Continuity

841 words - 4 pages The number of noncommercial organizations has increased within the last decades (Pope et al, 2009). This has LED to a a lot of competitive surroundings for NPOs and their continuity. several NPOs face resource insufficiency in variable degrees and proportions (Balabanis et al., 1997). Competition for the donors’ market looks to possess heightened in recent years thanks to some factors: the decrease in funding from the general public sector, a

Similar Essays

International Factors And Multinational Corporations Essay

1741 words - 7 pages Regional Trade Agreements and Global trade liberalization are common terms that are used to analyze different market structures in the market. According to international economics, RTAs (Regional Trading Agreements) are the agreements in which members give each another privileged treatment with respect to the extent by which the trade barriers have been established. On the other side, Global Trade liberalization is a general term referring to

Indian Multinational Corporations And Corporate Social Responsibilities

2257 words - 9 pages ), MNEs (Multinational Enterprises) and global corporations. The Term multinational corporation is most commonly used in business and academic circles. We too follow the same trend. Corporate social responsibility is about seriously considering the impact of the company’s decision and actions upon the environment and the society. The dependence of any business on its social and ecological environment is so comprehensive that the very existences

Globalization And The Development Of Multinational Corporations

909 words - 4 pages We all know that globalization leads to the development of multinational corporations which corporations or enterprises manage the production and delivery of their products in more than one country. It is an important factor of globalization that it makes more competition in the local market. This can lead to the higher quality products that the consumers in the local market can benefit. And it also creates more job opportunities for local

Multinational Companies And Their Policies Essay

1791 words - 7 pages be providing an example of how a company was unable to manage and organize their human resource management and as a result; led to a huge impact on the performance and awareness of the company to the world. This not only affected the performance of the organization but also affected the way customers and stakeholders perceived the brand or the company. Multinational Companies and their policies Poor working conditions have been present