Why is it important to know the factors affecting management and goals of multinational corporations?

Expert Solution

Dynamics of international business environment are driven by complex combinations of these factors. As such, it is always important to consider the implications of country-specific investment climate when making operational & strategic decisions for a multinational corporation.

Political Factors

Political factors concern government policies, laws and administrative orientations of different countries & regional economic blocks. The political factors form the basis for regulating international trade with respect to tariffs, quotas and technical standards.

b.)Economic Factors

Rates of economic growth influence levels of demand for your goods or services in international markets. However, economic growth rates can be high in some countries and low in others.

c.)Technological Factors

The availability of technological infrastructure & technical capacities determine prosperity of a multinational corporation in host countries.

d.)Social Factors

Demographic factors such as religion & culture affect the types, quality, functional features and demand levels of your products in international markets. Cultures attach different meanings to time, objects, names, colour and attitudes.

ekkarill92 answered 1 year ago

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