Essays on Multinational Firms

Introduction

Donaldson’s algorithm is a critical analysis and confirmatory avenue that provides a guideline for cases where multinational companies and corporations are faced with corporate responsibility dilemma. The problem stems out as a result of the differences between the home country norms and ethics and those of the host country (Schlegelmilch, 1998). Donaldson designed the algorithm to aid the multinational corporations in deciding whether or not it if sound and ethical to conform to the prevailing norms in the host country. The assignment seeks to analyze two business practices and the conditions that the multinational firms are subject to ...

Deciding Which Market to Enter

A case study of Taco Bells Introduction A company with objectives of entering into new markets must implement strategic decisions on the type of market and the entry mode. Typically, global business enterprises enter new markets through exportation, obtaining market licenses, the formation of joint ventures, or sole venture entry (Keegan, 1989). Any of these entry modes require a firm to commit some resources to succeed in the market entry. Thus, initial strategic decisions as to the category of the market and appropriate entry mode are essential. High competition, industrial organization, and international market imperfections tend to impede the ...

Question 1: What is the North American Free Trade Agreement? Has this trade agreement impacted (positively or negatively) the United States and more specifically the state of Georgia? Provide specific examples and a rationale for your response. The North American Free Trade Agreement (NAFTA) was a document used to create a trilateral trade bloc. Canada, Mexico, and the U.S. joined together, effective January 1, 1994, to for a free trade area that unified North America (Alexander, 1993). The NAFTA agreement was designed to create a “comprehensive structure” for trade and for investment among the three principle North American powers, ...

International Business & Global Logistics

International Business & Global Logistics This paper deals with the North American Free Trade Agreement, such notions as state capitalism and guarded globalization, functioning of the multinational corporations and the major cultural dimensions.

The North American Free Trade Agreement, established in 1994, created free trade zones that are the largest in the world. The North American Free Trade Agreement was aimed at economic growth of such countries as Mexico, the United States of America and Canada. After the agreement came into effect, the wealth of families, workers, manufacturers and thus the prosperity of countries has been increased greatly (“North American ...

Multinational Enterprise and Foreign Production Multinational firms exist because of certain economic advantages that enable it to be profitable by producing a good or service in a foreign country. It is important to understand the difference between Vertical expansion and Horizontal expansion of a multinational firm in order to understand the underlying principles of their economic activities. Vertical expansion happens when a firm finds assets in a foreign country it wishes to pursue. These assets can be either in the form of natural resources or other raw materials that it can use for inputs in its own production or ...

Bargaining power can be defined as the ability to identify parameters in a negotiation, gain accommodations from other negotiating side, and tip the result of mediation to the preferred alternative (Dong, Zou & Taylor 101). Multinational Corporation, on the other hand, is a company with assets spanning over to other foreign countries besides its country of origin. These companies operate factories and offices in different countries with global activities controlled from a centralized location, mostly a headquarter. The ownership of these corporations is sometimes private. Some states form companies or seek shares in multinationals that are used to make foreign ...

Income Inequality between Countries

Introduction This paper asserts that the income inequality between developed and developing countries increases over time. Developing countries will not be able to catch up with developed countries because of differences in technological advancement. Technology has a bearing on the nature of output and skills that a country has for its production. Therefore, developed countries will produce technologically advanced products such as computers because they have both the resource endowment of both physical and human capital in those sectors. On the contrary, developing countries that have abundant unskilled labor will supply unskilled labor intensive goods and agricultural goods that ...

“Successful international firms frequently introduce standardized products covering most market needs, thereby replacing many specialized products"

Introduction The globalization and internationalization has increased the concerns of international business and international marketing. The firms have been involved in developing themselves into the Multinational Corporations (MNCs) rather than local and national firm. It has resulted in various MNCs across the world such as Coca Cola, McDonalds, Pepsi Co., KFC, Wall Mart, Zara, Unilever, Nestle etc. Marketing strategy is defined as the development of the decisions for the resource allocation, relationship of the company with the investors and the timings for the actions. With the growth in the internationalization, the management of the companies is now more concerned ...

Question one

When multinational enterprises invest in any foreign country, they should consider the legal compensation laws of that country. The compensation practices differ from one country to another. Multinational firms should understand these foreign country compensation practices so that, when they invest in any country, they are able to carry out the compensation practice according to the law of that country.Multinational firms have their own compensation procedure and are also guided by the international policies of human resource management. The study of a foreign country’s compensation laws helps the firms to harmonize the three aspects of compensation. It also helps ...