1 / 8

Understanding Multinational Companies and Global Business Strategies

A Multinational Company (MNC) operates in multiple countries, with its home base in one nation while conducting business abroad. While MNCs can offer cheaper goods and career opportunities, there are downsides, including the potential for economic dominance that can leave host countries dependent on them. Companies can enter global markets through franchising, licensing, or joint ventures. Key international organizations like the IMF, World Bank, and WTO play crucial roles in promoting economic cooperation, aiding development, and facilitating trade agreements.

zlata
Télécharger la présentation

Understanding Multinational Companies and Global Business Strategies

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. POB 1.03 Part 3 Understand business in the global marketplace.

  2. What is a Multinational Company? • Multinational Company (MNC) is an organization that does business in several countries • The parent company is in the home country and does business activities in the host country. • Pros: cheaper goods and career opportunities • Cons: may become an economic power; host may depend on the MNC for jobs & products

  3. International Business Strategies • Global Strategy: selling the same product and using the same marketing strategy worldwide • Multinational Strategy: treats each country market differently

  4. Entry Modes into the Global Marketplace • Franchising • Licensing • Joint Venture

  5. Franchising • Franchising is the right to use a company name or business process in a specific way. • Usually involves selling a product or service. • Example: McDonalds, KFC

  6. Licensing • Licensing is selling the right to use some intangible property for a fee or royalty • Production process, trade mark or brand name

  7. Joint Venture • A Joint Venture is an agreement between 2 or more companies to share a business project • Popular in manufacturing

  8. Major International Trade Organizations • International Monetary Fund • 150 member nations; helps to promote economic cooperation; keeps orderly system of trade and exchange rates • World Bank • Formed in 1944; gives economic aid to less developed countries • World Trade Organization (WTO) • Formed in 1995 to promote trade; over 150 countries; settles disputes and enforces free trade agreements

More Related