Question

In: Economics

Pick an example of a multi-national enterprise and list some of the benefits they face from...

Pick an example of a multi-national enterprise and list some of the benefits they face from operating across international boundaries as well as some drawbacks that may exist (there are some). Please be specific in your example and how the benefits and drawbacks pertain to it.

Solutions

Expert Solution

Multinational enterprises are the ones that operate in many countries setting up its several branches and offices .These enterprises have several pros and cons in their business and it is evident in many ways . Lets take Google as an example and assess its Advantages advantages and disadvantages being a multinational enterprise , advantages include 1) huge assets are amassed owing to number of branches set up in mostly developing nations like India,south Africa,Latin American countries.2)Google provides employment to many people in as many as 50 countries thus reducing the unemployment​ in those countries so several tax reductions will be allowed by the government for its operations.3)Google has broad market base as it's the most popular search engine of the day which makes it a global enterprise. It's disadvantages include 1) Reports say Google has become a disadvantage to local enterprises ,for example no search engine has been developed owing to the popularity of Google 2)workers in many countries have to adjust their timings in order to cope with company's timings which affect their health adversely owing to night- shifts .3)Google has been hit by remarks saying that the company uses its profits in its native country and doesn't invest in host countries there by centralising the development.


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