Multinational Corporations To understand the benefits and drawbacks of being a multinational corporation.

Multinational Corporations

To understand the benefits and drawbacks of being a multinational corporation

Multination Corporation -

Any business that is headquartered in one nation, but carries on business in one or more foreign countries

The Global Economy

Following WWII the global economy began to grow quickly

The Global Economy

Following WWII the global economy began to grow quicklyBusinesses like IBM, Ford, General Electric, began to build plants in foreign countries

Why be multinational?

1) avoid high costs of American labor


1) avoid high costs of American labor2) avoid quotas and tariffs


1) avoid high costs of American labor2) avoid quotas and tariffs3) To expand market size


1) avoid high costs of American labor2) avoid quotas and tariffs3) To expand market size

Today, there are more than 10,000 multinational corporations, with 90,000 subsidiaries

Organization of Multinational Corp.

Parent corporations that have numerous small companies under their control (subsidiaries)http://www.pepsico.com/Brands.html

Organization of Multinational Corp.

Parent corporations that have numerous small companies under their control (subsidiaries)Joint Ventures involve mergers between two large companies

Benefits of being Multinational

Benefits the people of that region


Benefits the people of that regionLabor, taxes, development



Corporations benefit through:Cheaper land



Corporations benefit through:Cheaper landCheaper labor



Corporations benefit through:Cheaper landCheaper laborMay be closer to natural resources



Corporations benefit through:Cheaper landCheaper laborMay be closer to natural resourcesBeat Tariffs


May benefit the world by bringing nations together, creating a better understanding of other nations

Harms of Multinational Corporations

Loss of US jobs


Loss of US jobsTax losses for US


Loss of US jobsTax losses for USEnvironmental concerns


Loss of US jobsTax losses for USEnvironmental concernsDamage to other American businesses through multinationals underselling

Multinational Corporations To understand the benefits and drawbacks of being a multinational corporation.

Documents

multinational corporationsto

high costs of american

cheaper landcheaper

american businesses

cheaper landbenefits

parent corporations

numerous small companies

usenvironmental concernsdamage