Question

Consider the following statement: ‘In a global world, multinational enterprises should not waste their time and money localising their products and services for different international markets’. In 500-600 words, to what extent do you agree or disagree with the statement and why? Provide evidence and examples.

Answer 1

Multinational enterprises (MNE) are usually a large company registered in a country that produces or sells goods or services in different countries. Two important features of MNE is their size and the fact that their global activities are controlled by the parent company.

Import and export of goods and services
Make major investments abroad
Buy and sell licenses in foreign markets
Engage in contract production - Allow local producers abroad to produce their own products
Opening of manufacturing facilities or installation operations abroad.
MNEs can benefit from their global presence in different ways. First, MNEs can benefit from economies of scale by allocating decentralization and development and advertising costs to their global sales by concentrating global purchasing power on suppliers and leveraging their technical knowledge and management. They are worldwide with minimal additional costs. In addition, MNEs can use their global presence to take advantage of the workforce reduction services offered in specific developing countries and to access special R&D opportunities living in advanced countries.

The issue of the ethical constraints and the multinational corporate behavior law, given that they are effective "stateless" participants, is one of the most pressing global socio-economic issues that have come to an end 20th century.

The most promising idea for analyzing the limits of public governance in relation to modern corporations is the concept of "stateless corporation." At least as early as 1991 in the Business Week, the concept of 1993 was theoretically clear that a strategic strategy for defining stateless corporations had analytical tools at the intersection of demographic analysis and transportation research. This intersection is known as logistics management and describes the importance of rapidly increasing global resource mobility. In the long history of multinational corporation analysis, we have about a quarter of a century in stateless corporations - corporations that meet the real needs of raw materials worldwide and produce and customize products for the country.

One of the first multinational business organizations was the East India Company, founded in 1601.

The characteristics of multinational companies are:

In general, there is a national strength of large companies as a major institution in terms of foreign direct investment or acquiring local enterprises, establishing subsidiaries or branches in many countries.
Normally, there is a comprehensive decision-making system and the highest decision-making center, each subsidiary or branch has its own decision-making body in accordance with their different characteristics and decision-making processes, but its decisions must be Highest Solutions - Production Center;
MNCs are seeking worldwide markets and appropriate layouts of professional production with fixed-point products for sale in order to maximize profits;
Due to the economic and technical rigidity, rapid transmission of information and funding for rapid cross-border transfers, multinational companies are becoming more competitive in the world.
Many large multinational companies have a monopoly in some areas due to their economic, technical and production power or advantages.

For example, China has demanded partnerships with local companies or special approval for certain types of foreign investment, though some restrictions have been eased in 2019.