Examples of Multinational Enterprises in the following topics:
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- ., an SME (small and medium enterprise) refers to an organization with 500 employees or less, while an MNE (multinational enterprise) refers to a global organization with a much larger operational scope.
- MNEs (multinational enterprises) may employ a more structured strategic management model due to its size, scope of operations, and need to encompass stakeholder views and requirements.
- SMEs (small and medium enterprises) may employ an entrepreneurial approach due to its comparatively smaller size and scope of operations and limited access to resources.
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- A multinational corporation is a company incorporates itself in one country and operates in one or more foreign countries.For example, British Petroleum, General Electric, Toshiba, and Wal-Mart are multinational corporations with extensive business activities that span across the globe.Sometimes financial analysts use the term, multinational enterprise because a government could form a joint venture with a corporation, and the definition of an enterprise implies a broader meaning.
- A multinational enterprise's goal is to earn profits.Therefore, they enter the international markets and foreign countries in the pursuit of profits.Every international enterprise has a choice.It could export to another country or relocate production outside their home country.For instance, many U.S. corporations relocated manufacturing outside the United States, althoughthe U.S. suffers from a high unemployment rate since the beginning of the Great Recession.
- Thus, companies can develop new products and services, and compete with other companies.Furthermore, a multinational enterprise could tailor its goods and services toaccommodate different cultures and tastes.Finally, multinational corporations need access to capital because international activities require financing.Hence, a country must allow the free movement of money, and corporations are free to issue more stock, bonds, or receive bank loans without government interference.Consequently, a firm has twelve reasons to relocate production to another country, rather than to export.
- Reason 3: An enterprise that moves its factories to a foreign country automatically avoids trade restrictions, like tariffs and import quotas.Government does not apply trade restrictions to products and services produced within a country.
- Multinational enterprises are more complicated than businesses that remain in their home country.First, the businesses transfer resources, such as machines, equipment, and labor between different countries.Next, they ship products and services to other countries.Consequently, companies need excellent management in logistics, and specialists who monitors a country's different laws and regulations.Second, international enterprises are exposed to exchange rate risks and credit risks.Thus, a company's profit can quickly change due to fluctuations in currency exchange rates, or a company cannot get credit to finance operations in a specific country.Finally, enterprises have other exposures, such as country risk.For example, when Hugo Chavez became president of Venezuela, his government began nationalizing companies.Any international enterprise in Venezuela can experience the seizure of its assetswithout compensation.
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- A multinational corporation (MNC) is a business enterprise that manages production or delivers services in more than one country.
- A multinational corporation (MNC) or multinational enterprise (MNE) is a corporate enterprise that manages production or delivers services in more than one country.
- Multinational corporations can have a powerful influence in local economies, and even the world economy.
- These patents often allow multinational corporations to exercise a monopoly in the local economy, preventing local enterprises from developing.
- Because of their size, multinational corporations can also have a significant impact on government policy through the threat of market withdrawal.
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- A multinational corporation (MNC) or multinational enterprise (MNE) is a corporation registered in more than one country or has operations in more than one country.
- The first multinational corporation was the Dutch East India Company, founded March 20, 1602.
- Multinational corporations are important factors in the processes of globalization.
- Many economists argue that in countries with comparatively low labor costs and weak environmental and social protection, multinationals actually bring about a "race to the top."
- While multinationals will see a low tax burden or low labor costs as an element of comparative advantage, MNC profits are tied to operational efficiency, which includes a high degree of standardization.
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- By expanding to a broader consumer base, these firms can take advantage of scale economies (cost advantages that an enterprise obtains due to expansion) and learning-curve effects because they are able to mass-produce a standard product that can be exported (providing that demand is greater than the costs involved).
- The map identifies GDP (nominal) in different countries;countries with higher GDPs offer high consumer spending opportunities for multinational enterprises.
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- This definition outlines the role of enterprises as active partners in the communities in which they operate, rather than the more traditional view of enterprise as a separate, self-regulating, profit-making entity.
- The successful multinational enterprises of the coming century will be those that find the unique balance between financial objectives and CSR.
- UN Norms on the Responsibilities of Transnational Corporations and Other Business Enterprises with Regard to Human Rights.
- ILO (International Labor Organization) and its Tripartite Declaration focuses on the "social aspects of the activities of multinational enterprises, including employment creation in the developing countries" (Governing Body of International Labor Office, 204th session).
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- Enterprises take advantage of the cheap labor force.
- Multinational enterprises can use eight strategies to minimize political and country risk, which are:
- Strategy 1: A multinational company can use fronting loans to reduce its transfer risk.
- Unfortunately, terrorists can attack multinational enterprises in any country because terrorists associate them with their home country.
- Violent riots and protests erupted in Greece, Spain, and the Middle East in 2011 as protestors and rioters destroyed property and assets of multinational enterprises.
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- The U.S. government often defines small and medium-sized businesses (SMBs, also referred to as small and medium-sized enterprises, or SMEs) as firms with fewer than 500 employees.
- By addressing a need left unmet or innovating more rapidly than large multinational corporations, small businesses are able to carve out new niches for themselves.
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- Just as an industrial enterprise might seek to boost profits by becoming bigger and more efficient, many American farms have gotten larger and larger and have consolidated their operations to become leaner as well.
- In fact, American agriculture increasingly has become an "agribusiness," a term created to reflect the big, corporate nature of many farm enterprises in the modern U.S. economy.
- Agribusiness includes a variety of farm businesses and structures, from small, one-family corporations to huge conglomerates or multinational firms that own large tracts of land or that produce goods and materials used by farmers.
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- the U.S. is capitalist society, it operates an economic system where both the government and private enterprise direct the economy.
- In other words, the U.S. government combines free enterprise with a progressive income tax, and at times, steps in to support and protect American industry from competition from overseas.
- Although multinational firms can still conduct business profitably, political instability within countries negatively affects marketing strategies.
- Because of the risk of expropriation, multinational firms are at the mercy of foreign governments, which are sometimes unstable and can change the laws they enforce at any point to meet their needs.