Monday, 14 January 2013

Multinational Companies

A multinational company is a business that has operations in more than one country.
Exporting goods to many countries doesn't make your company a multinational company.
A multinational company must have production, sales or facilities in more than a country.

Similar to international trade, companies have several reasons why they want to become a multinational company.

However, there are impacts which will affect the host country and home country of the multinational company.
Impacts on the host country are such as:
Most of the impacts on the host country are positive, except for the fact that it doesn't earn profit. All the profit goes to the home country.

On the other hand, impacts on the home country are such as:

Although there are both positive and negative impacts on both the host country and home country, there are still many multinational companies in the world today.
In Malaysia itself, there are many such as Apple, Intel, Cisco, etc.

2 comments:

  1. A very good informative and helpful discussion on Opportunity Cost. i liked to have more such post on same pitch with different topics

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  2. Great and very informative.. I was looking for Business Study Notes, and found your post, very informative and useful. I'm a student of MBA.

    ReplyDelete