Multinational companies

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  • Publicado : 10 de noviembre de 2011
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Essay plan

1. Origin and evolution of multinational corporations.

a. power and influence in the global economy with the evolution of the multinationals companies.

2. Location of multinational

a. Advantages and disadvantages of where multinational companies are located

3. Role of multinationals

a. Benefits for Multinational Enterprises
b. Representing the multinationalinvestment abroad

4. Power of multinational corporations.

a. Growth of these businesses today
b. The power currently accounts for multinational companies.

5. The pros and cons of multinational companies to the world

a. Pros and benefits that multinationals companies cause to the world
b. Cons that multinational companies cause to the world.

6. Conclusion

7. Bibliography.Multinational companies are industrial companies, commercial or financial that are present in different countries, multinational companies are those that are not only established in its country of origin but also represent other countries for its business activities both sale and purchase and production in countries where they have established.
Multinationals are able to expand production and otheroperations around the world and to mobilize a country's industrial plants to another. The mergers and alliances between them, allow them to reach a growing power and influence in the global economy. According to Eldridge, G (2010). The modern multinational direct investment came to U.S. in Europe in the fifties and sixties of the twentieth century. This phenomenon became global when he joined European andJapanese companies. Today in emerging countries like China. India, Mexico, Brazil and Southeast Asia have also emerged various multinationals.

Most multinationals belong to allied countries where they have a number of important subsidiaries and concentrate most of the investments.
However, in recent years have mushroomed their investments in less developed countries, attracted by an abundantlabor and cheap, very favorable tax treatment and legislation permissive or non-existent health and safety or environmental protection.
The less developed countries where they settle multinationals benefit from their investment and create employment. In these spaces, their workers receive lower wages than they would receive if they play the same task in a developed country, but higher than thoseof companies in the area. For these reasons, these countries often compete to be hosting the factories of these companies by offering tax benefits primarily.

The extent of the globalization of the economy since the late twentieth century has allowed the consolidation of multinational companies. In the early twentieth century, the world has about 85,000 multinational companies with more than900,000 affiliates and 54 million direct employees. These figures do not stop growing. Since 1983, economic growth of these companies has been the largest in its history, as they have benefited from the fall of bans on trade and foreign investment, and lower costs of transport and communications.
The advantages of these business organizations are: the benefit they derive from differences in pricesand wages between countries that are installed and the countries that target the products, the tax savings through complicated marketing strategies; proximity to potential customers, and obtain first-hand information on the activities of its closest competitors. Although in recent years multinational companies have also emerged in emerging countries, the largest yet still belong mainly to theU.S., UK, Japan, Germany and France The economic power of these multinationals is highly concentrated. The 100 most important companies among the approximately 85,000 multinationals account for 13% of workers and 14% of global sales. A company like General Motors has an income similar to the production of Denmark addition, multinationals are responsible for most of the investments made abroad and...
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