Multinational Corporations
Globalization has a considerable effect on the way businesses are being carried out. With the tremendous growth spurred by technology and development of new business models, we see an increasing instance of corporate outsourcing. This shift is observed in the manufacturing sector also as many multinational corporations are relocating their production centers to offshore locations that offer cheap labor and material costs. The result is the loss of thousands of jobs to foreign countries. The NAFTA agreement has furthered this trend towards offshore manufacturing. The manufacturing sector which employed more than 19 million in 1979 now employs only 14 million, indicating a huge fall.[Clyde Weiss].While increased productivity due to technology may be ascribed to part of this decline, there are also significant concerns about the impact of closure of local manufacturing plants and their relocation overseas. Let us have a brief overview of this emerging practice and the implications for the developing as well as the developed countries.
There is definitely a drastic shift in the manufacturing sector with an increasing number of profitable companies moving their manufacturing plants to cost effective locations in the developing nations. China and India, among other Asian countries, are the major destinations for U.S. And European multinational corporations. While India has received a bulk of it in the service sector, China has attracted huge FDI in the manufacturing sector. Since the early 1990's the FDI in China has been at a steady growth rate, largely helped by the increasing number of U.S. companies shifting their manufacturing plants to the industrial eastern China. As a measure of Chinese competitive force in the market, Mr. Dan Kuhns, president of Selflock Screw Products states, "Wal -Mart buys $12 billion worth of Chinese products a year. If it were a country, it would be China's eighth-largest trade partner" [Walt Shepperd ] It is not surprising, then,...
These shortages decrease the company's competitive position in the U.S., but even more so abroad. Within the international setting, one additional strategic aspect is represented by the relatively low position of the retailer. While it is the undisputable leader of the American retailing industry, within the international arena, Wal-Mart's international position is rather weak. The company had previously attempted to penetrate the European market, but had failed. The most eloquent case
However, if people were to fight in order to put across their principles they would have almost certainly had more to win out of the exploit. Instead, they ended up with no job and longing for the miserable derisory salaries they earned from working for Disney. It is obvious that developing countries need to be assisted in ways meant to help people understand their rights and the value of
Multi-National Report on Ford Motor Company: Ford Motor Company is a worldwide company that operates in both the Automotive and Financial Services sectors with its major operations being to build up, devise, produce and service cars and trucks. While Ford's automotive sector basically sells vehicles under various brand names such as Ford, Volvo, Mercury and Lincoln, the financial services sector provide several automotive financing products both through and to automotive dealers.
The United States government did a number of things to prop up failing/failed companies to the detriment of the United States deficit and through the enabling of companies that were clearly doing wrong. However, they did so because NOT doing so would have been much, much worse. A company like AIG or General Motors falling into the abyss (the latter in particular) would have probably damaged the United States automotive
Corporate Conduct Global corporations are often difficult to control because they operate in various countries throughout the world. As such actions that may be illegal in some countries are perfectly legal in others. Furthermore law enforcement officials and governments do not have the power to enforce laws that are outside of their jurisdictions. These issues call into question the effectiveness mechanisms that exist to control global corporate conduct. The purpose of
companies today, especially multinational corporations (MNCs), have acknowledged that their responsibilities and activities are not just restricted to creating shareholder value, but also extend to addressing direct stakeholders' demands (i.e. employees and customers) as well as taking into account the effect their operations have on the environment and the community. Organizations have readily accepted, and many have even supported, the belief that Corporate Social Responsibility (CSR) should be demonstrated
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