Question

Select one known Caribbean Multi National Corporation (MNC). Consider the different theories that may explain the emergence of this MNC and identify the theory that you think is most responsible for the emergence of the MNC that you have selected.

Answer 1

MNCs are increasingly being discussed in international business circles, both academically and professionally, but there is no agreement on the definition of MNCs. Even theoretical frameworks present different theories for understanding the MNC structure, such as the structure of the John MNC, the structure of international classification, the structure of the distribution, the product distribution, the global matrix structure. In addition, various organizational models for understanding MNCs, such as multi-organizational models, international models, international organizations and transnational organizations, are considered.

Restricting the discussion to the purpose of the study, it is necessary to address the key definitions of MNCs. MNC is a business venture that supports FDI (the country it owns or has a registered office) and has added value in more than one country. MNCs can also be viewed as private entities organized through the expansion of interdependencies in more than one geographical area. Not only MNCs are economic organizations that develop from a local background and spread across borders.