Tuesday, February 4, 2014

Multinational Corporations

Question: why do multinational corporations establish or purchase exertion plants abroad since this involves extra personifys comp bed to menage production? What policy decisions grass a government pee-pee to draw and quarter greener, low carbon multinational enterprises? It has been seen that after the minute human affable War there has been an increase of foreign enthronization by many companies in the true countries. For some the indueing abroad exceeds what they did domestically, this kind of companies is known as multinational Companies (MNCs), Multinational Enterprise (MNEs) and international Corporations (TNCs). The question why do multinational corporations establish or purchase production plants abroad truly means why MNCs invest in FDI (Foreign Direct Investment). on that point ar many originators why MNCs invest in FDI they are as follows * Reduce transport and distribution embodys When multinational corporations invest in foreign direct inve stment, one of their aims is to void the cost of every transportation of raw materials or distribution of the complete goods. To cut the cost of transportation of raw materials the MNCs ordinarily apparatus their firms completion to the supply of raw materials so that they scum bag be get them in for processing much more quickly and to knock down the distribution costs the MNCs setup their plants close to the consumer markets so that they can supply the finished goods to the market quickly. * Low-cost locations Multinational companies normally setup their firms at locations where the factors of production like ( shoot down, labour, and capital) are cheap. around of the multinational companies are based in developed countries where the land value is very high so they sometimes setup in countries where the land value is low to stretch the hit of cost of production. * Cheaper labor costs Similar to the reason of low cost locations multinational corpora tions also invest on FDI in those countries ! where another(prenominal) factor of production labour cost is...If you emergency to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper

No comments:

Post a Comment