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