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Multinational Corporations. What in the World?. A firm that operates in more than one country Headquarters in one country and branch plants in several other countries Ie. Microsoft Canada - Software, services and solutions. Motorola Canada - Wireless hardware products.

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Presentation Transcript

What in the world
What in the World?

  • A firm that operates in more than one country

  • Headquarters in one country and branch plants in several other countries

    Ie. Microsoft Canada - Software, services and solutions.

    Motorola Canada - Wireless hardware products.

    Primus Telecommunications Canada - Voice, data/Internet and VoIP solutions.

    Xerox Canada - Document imaging equipment.


Why?

Improve profitability

  • Access to cheaper raw materials & labour = lower operating costs

  • Tax concessions or development grants

  • Geographic diversification

    - market & political instability (country A) =

    market & political instability (country B)


Always a benefit
Always a benefit?

  • Wealth and mobility = strong political influence in host country

    Strict environmental laws =

  • Shut down & move

  • Political pressure to change laws/special exemptions


Definitions
Definitions

  • Outsourcing - business obtains services or products used in manufacturing from an outside (often overseas) supplier or manufacturer in order to cut costs.

    Ie?


Definitions cont
Definitions cont.

  • Push Production - manufacturers of products decide what to produce, how much to produce and the price of the product.

  • Pull Production - retailers determine what the manufacturer will produce, how much to produce and the price of the product.


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