Advantages and disadvantages of big family essay sample
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Multinational companies are companies who have huge business operations and they operate in more than one country. Multinational companies are headquartered in home country and they operate business from host countries.
In most cases, the home country is a developed country and the host country is a developing nation. Multinational companies act locally but think globally Edwards, Marginson and Ferner Multinational companies can act in different kind of business environments. The host country may be endowed with many benefits by the multinational companies. However, multinational companies bring with them relaxed code of ethical conduct that exploits the needs of the developing nations, instead of providing a support important for economic and social development of the nation Kobrin When a multinational company makes investment in the host country, the ratio of investment has the likelihood of increasing.
Hence, governments with an intention of attracting more foreign investment offers incentives to firms, offers grants and tax breaks. The advantages of the multinational companies may be enumerated as follows:. Activities related to research and development: host countries lack in research and development areas. Expenses on the research and development areas are important for the promotion of technology. Multinational companies have greater ability for research and development activities in comparison to host countries.
Because of their capability of advanced search and development, multinational companies have the capability of surviving in the international market Marano and Kostova Additionally, multinational companies help the host country in the development of new products and also help in reducing the operational and labour cost of the country. Entry of multinational companies in a host country helps in changing the social and political structure of the country. Therefore, this makes the resources available to the host country for their economic exploitation Hoskisson et al.
Product Innovation: Multinational companies have a strong research and development department that help in the development of new product.
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Development of new product leads to diversification of products. The opportunities that are related to product are greater as compared to national companies Biersteker Superiority of Market: Multinational companies have a security of brand reputation and this is why they face fewer issues in selling their products by adapting to an effective advertising and sales promotion methods Campbell, Eden and Miller Financial Superiority: Multinational companies have the capability to create funds in one country and use the funds in another country.
Multinational companies have good financial resources as compared to host countries. Multinational companies have easier admission to capital markets Javorcik Technological Superiority: Because of technological superiority of the multinational companies the host companies help in the development of technological field of the company.
The multinational company have the power to produce goods having international quality and standard Lu et al. The following disadvantages are faced by the multinational companies:. Loss of sovereignty: Multinational companies do not take the national policies seriously. They tend to disregard the national priorities of the country and protect their own interests. Therefore, there is continuous threat to the host country for protection of their sovereignty and liberty.
This ultimately leads to loss of sovereignty to the people of the host country Kostova et al. Competition: For market promotion and development multinational companies have big budgets.
They provide competition to domestic countries and this makes them gain monopoly power. However, this can be a disadvantage as the small companies will not get proper chance of securing their position in the market Lamare et al. Outflow of resource: The multinational company uses the resources of the host companies in the form of dividend of profits, licenses or management of other services.
The continuous use of such resources may lead to drainage of resources in the host company Ramondo, Rappoport and Ruhl Inappropriate Technology: The use of technology by the multinational company may either be out of date or too advanced for the host country to follow. The local people may not receive proper training for this leading to unemployment Ruggie Economic exploitation: multinational companies are guided by a motive of profit. They often tend to exploit the host countries to make the most out of their host country.
Multinational companies may offer low pay wages to local people and they can charge high price of their products to make use of their customers Cooke Socio cultural Evils: the multinational companies promote the values of their home country and this may include dress, food and life styles. In this case the local cultures wickedness comes into picture.
This increases the gap between the rich and the poor as there is increase in the overall unemployment of the country. It is always seen that multinational companies lack responsibility towards the host country Dyreng et al. Cuervo-Cazurra, A. Governments as owners: State-owned multinational companies. Dunning, J.
Location and the multinational enterprise: a neglected factor?.
Palgrave Macmillan UK. Dyreng, S. The effect of tax and nontax country characteristics on the global equity supply chains of US multinationals.
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Edwards, T. Geppert, M. Industrial relations in European hypermarkets: Home and host country influences. European Journal of Industrial Relations, p. Getting nightmare regarding pending chemistry assignment? Then it is high time you consider hiring chemistry assignment help service of MyAssigemnthelp. We at MyAssignmenthelp. For us, students' need is foremost, and we work round the clock to offer science, humanities and commerce assignment help.
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Advantages And Disadvantages Of Multinational Companies
In science segment, we have gained popularity with biology assignment help. Introduction The regulation and proper operation of any company or corporation is completely dependent on the nature and manner in which the directors and other office bearers of the company perform their functions.
This is so, because even though a company has a separate legal entity and it has its independent existence distinct from its members, nevertheless the company operates through its directors and office bearers and as such it is very i Employment Law Explain the constitutional basis for the Fair Work Act Cth with reference to the Australian Constitution and discuss the relationship with Australian common law, with reference to the National Employment Standards.
The Fair Work Act, is a labour welfare legislation aimed at improving the relations between employees and employers so that productive workplace relations can be formulated which would further help in pro John was an architect and was employed by a small firm in the Melbourne CBD. He worked part-time. On his days off, he enjoyed designing and printing T-shirts.
He started designing and printing T-shirts in August , when his friend introduced him to the hobby. He printed T- shirts when he had the time and kept them for himself or gave them as gifts for family members for special occasions.
As an architect, John had excellent design skills. Question 1 The International business law is concerned with the rights of business with each other and with international organizations. Domestic law is within the state and it concern with the rights of business within the state Bartone, The domestic and international business law is very differing in mainly two aspects first of all the law making process and the enforcement.
International law is an ever expanding field that controls Introduction Capital punishment is punishing of a person by the state as a discipline for wrongdoing.
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Law violations that can bring about capital punishment are known as capital wrongdoings or capital offenses. It get utilized as a part of social orders all through history as an approach to rebuff wrongdoing and smother political dispute. In many spots that practice the death penalty today, capital punishment is saved as discipline for It is too easy to create or access your own library, just enter your email and make your search easy.
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Highly recommend. GOT IT. Margaret Lyttleton 4. Advantages of Multinational companies on Host country: Multinational companies are companies who have huge business operations and they operate in more than one country. The advantages of the multinational companies may be enumerated as follows: Activities related to research and development: host countries lack in research and development areas.
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