Multinational Corporation

QUESTIONS

1. What is a MNC and Explain the Concept?

Multinational Corporation (MNC) is a enterprise that manages production or delivers services in more than one country can also be referred to as an international corporation.

2. Mention the 3 types of Organization in MNC?

Subsidiaries

Joint Ventures Companies

Franchise Holders

3. Mention the 3 types of MNC Structure?

Horizontally integrated multinational corporations.

Vertically integrated multinational corporations.

Diversified multinational corporations.

4. What is the meaning of the words SWOT Analysis and mention just one example of each?

Strengths, Weaknesses, Opportunities, Threats.

EXAMPLE

5. Mention 3 reasons for the establishment of MNC?

To increase market share.

To secure a cheaper distribution and labour.

Employment and Health & Safety Legislations in other countries may be more relaxed.

6. Mention 2 advantage of MNC?

Host country: Transfer of technology, capital and Innovation

Increase in the investment level and thus, the income and employment in the host country.

Home country: Acquisition of raw materials from abroad.

Technology and management expertise acquired from competing in global markets.

7. Mention 2 disadvantage of MNC?

Trade restrictions imposed by local governments and Lost of Jobs

8. Mention 2 challenges that Mexico is facing regarding MNC?

Small Domestic markets in Mexico VS International expansion.

Communication in Multinational Companies must be in English and not in Spanish.

9. In which way MNC are helping Mexico?

Global culture for employees, Training and Learning, Technology – especial concept of working with better technologies, Cheap Labor and Government Grants.

10. Mention 3 of the Countries with more MNC around the World?

United States, Japan, China.

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