Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.
Compose a 2000 words assignment on multinational firms are a force for progress. Needs to be plagiarism free!
Compose a 2000 words assignment on multinational firms are a force for progress. Needs to be plagiarism free! Some examples of multinational companies are Coca Cola, Toyota, Honda, Ford and British American Tobacco. Many multinationals have a massive amount of turnovers that they have the capacity to manufacture goods comparable to the gross domestic product of some smaller developing countries.
The question is that why do firms opt to become multinationals, this is important as almost none of them began its initial operations as a multinational. Firstly, growth into different geographic locations in an attempt to keep away from protectionist policies, and secondly, since the world is becoming a global village these firms are likely to benefit. If a multinational is producing in a specific country, it can avoid the tariffs and quotas levied by that country. This is possible by registering in the respective country directly and by benefiting from policies of most countries that favor the establishment of domestic industrial units as opposed to imported products.
Another aspect of globalization is the improved transportation networks that have facilitated speedy transactions and movement of goods. Improvement in communication infrastructure has also resulted in many breakthroughs for the possibility of multinational operations. Multinational corporations (MNCs) have strong bargaining power with the governments of the respective countries where they operate. If a government changes policies and or does not provide adequate incentives to these corporations they can threaten shut-down of operations and quite comfortably transfer their production machinery and operations to countries that provide a favorable environment for their operation.
“As multinational corporations function across borders, business managers have admitted that the increasing globalization of the world economy has allowed these firms greater access to broader consumer markets and delivery networks, as well as organize production and trade transactions within financial clusters or networks involving cross border in-house and out-house relationships” (Eiteman, pp.32-37, 1995). Proximity to local markets is one factor that .provides MNCs with an opportunity to benefit from operating in other countries.
