1. Identify the benefits and disadvantages of MNC's.
Answer:
There are various advantages and the disadvantageos the multinational companies the host country. The main advantages are
as fallows
1.They are the source of income for the state government as it collects lots of the tax from them.
2.The seccand advantage is that it peovides enployement uppertunties to the local people and living standard of the people will increase.
3.It also trains the local people and the skill, effency, confidence of the local people will increase resulting the increase in the skilled manpower for the country.
4. Local people can use the goods of the international standard in the cheap price.
5. There will be the utilization of the local resources.
6. The ruputation of the country's product will increase in the international market.
There are certain disadvantages of the multinational companies t o the host country. Which are stated below.
1. there may be the over exploitation of the resources(natural.human)
2. There may be the collapsing in the national companies due to the over influence if the multinaitoal companies.
3 These companies may influence in the internal affaiers of the country if the government policy is poor, so as to increase their monopoly.
2. Identify one MNC company and describe its operation.
Answer:
The Company Intelligence Service includes multinational company profiles and site networks; competitive intelligence covering sales volume, employee size, market share, ownership structure, foreign direct investment and project activity, and analysis of latest company developments. The service can be customised according to your geographic or sectoral requirements, and can be taken in conjunction with your choice of the Industry Services (see industry links to the left).
The Company Intelligence Service is used by business development teams, and by corporate analysts and strategists for benchmarking and competitive analysis. The end-user relies on data accuracy, which is why company profiles are systematically researched each year at source, by a combination of web, email and telephone validation. In addition, company updates and new company profiles and executive appointments are added to the database daily through continuous desk research.
3. Describe how the parent control/coordinates with its subsidiaries in other countries or region.
Answer:
A transnational, or multinational, corporation has its headquarters in one country and operates wholly or partially owned subsidiaries in one or more other countries. The subsidiaries report to the central headquarters. The growth in the number and size of transnational corporations since the 1950s has generated controversy because of their economic and political power and the mobility and complexity of their operations. Some critics argue that transnational corporations exhibit no loyalty to the countries in which they are incorporated but act solely in their own best interests.
U.S. corporations have various motives for establishing a corporate presence in other countries. One possible motive is a desire for growth. A corporation may have reached a plateau meeting domestic demands and anticipate little additional growth. A new foreign market might provide opportunities for new growth.
4. How is IT maximized or used by this MNC?
Answer:
Another concern with transnational corporations is their ability to use foreign subsidiaries to minimize their tax liability. The Internal Revenue Service (IRS) must analyze the movement of goods and services between a transnational company's domestic and foreign operations and then assess whether the transfer price that was assigned on paper to each transaction was fair. IRS studies indicate that U.S. transnational corporations have an incentive to set their transfer prices so as to shift income away from the United States and its higher corporate tax rates and to shift deductible expenses into the United States. Foreign-owned corporations doing business in the United States have a similar incentive. Critics argue that these tax incentives also motivate U.S. transnational corporations to move plants and jobs overseas
5. WHat were the weaknesses/problems encountered by this MNC from its environment and global setup?
Cite your reference
http://www.askmehelpdesk.com/international-business/multinational-companies-88808.html
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