International-Business-Dr-R-Chandran-E-book

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International Business- Dr. R. Chandran
7.MULTINATIONAL CORPORATIONS
The world is my playground; Playing is my duty. No barriers or
obstacle is known to me. Let me play everywhere and anywhere and
at any time.
Going and performing in any part of the world is fundamental
principle of an MNC.
Learning value:
On going through the chapter, reader will
1. Understand the concept of MNCs.
2. Role of Head-Quarters and subsidiaries in the current scenario.
3. Basic philosophy of MNCs.
4. Risk analysis of MNCs.
5. Criticism of MNCs and few illustrations.
THE CONCEPT
If we ask any employee of a multinational company in a developing country,
he is proud of his status, sense of achievement and affluence as compared to
his peers. The system, style, technology and working style elevate his
position little higher than others.
What is Multinational Corporation?
“The multinational is a business unit which operates simultaneously in
different parts of the world. In some cases the manufacturing unit may be in
one country, while the marketing and investment may be in other countries.
In other cases all the business operations are carried out in different
countries, with the strategic head quarters in any part of the world.” For
example, the Manhattan based company, Colgate Palmolive Inc., which
manufactures and markets dental care, health care, hair care and skin care
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