multinational corporations to understand the benefits and drawbacks of being a multinational...

Multinational Corporations

To understand the benefits and drawbacks of being a multinational corporation

Multination Corporation -

Any business that is headquartered in one nation, but carries on business in one or more foreign countries

The Global Economy

Following WWII the global economy began to grow quickly

The Global Economy

Following WWII the global economy began to grow quicklyBusinesses like IBM, Ford, General Electric, began to build plants in foreign countries

Why be multinational?

1) avoid high costs of American labor

Why be multinational?

1) avoid high costs of American labor2) avoid quotas and tariffs

Why be multinational?

1) avoid high costs of American labor2) avoid quotas and tariffs3) To expand market size

Why be multinational?

1) avoid high costs of American labor2) avoid quotas and tariffs3) To expand market size

Today, there are more than 10,000 multinational corporations, with 90,000 subsidiaries

Organization of Multinational Corp.

Parent corporations that have numerous small companies under their control (subsidiaries)http://www.pepsico.com/Brands.html

Organization of Multinational Corp.

Parent corporations that have numerous small companies under their control (subsidiaries)Joint Ventures involve mergers between two large companies

Benefits of being Multinational

Benefits the people of that region

Benefits of being Multinational

Benefits the people of that regionLabor, taxes, development

Benefits of being Multinational

Benefits the people of that regionLabor, taxes, development

Corporations benefit through:Cheaper land

Benefits of being Multinational

Benefits the people of that regionLabor, taxes, development

Corporations benefit through:Cheaper landCheaper labor

Benefits of being Multinational

Benefits the people of that regionLabor, taxes, development

Corporations benefit through:Cheaper landCheaper laborMay be closer to natural resources

Benefits of being Multinational

Benefits the people of that regionLabor, taxes, development

Corporations benefit through:Cheaper landCheaper laborMay be closer to natural resourcesBeat Tariffs

Benefits of being Multinational

May benefit the world by bringing nations together, creating a better understanding of other nations

Harms of Multinational Corporations

Loss of US jobs

Harms of Multinational Corporations

Loss of US jobsTax losses for US

Harms of Multinational Corporations

Loss of US jobsTax losses for USEnvironmental concerns

Harms of Multinational Corporations

Loss of US jobsTax losses for USEnvironmental concernsDamage to other American businesses through multinationals underselling