17. Multinational Corporations & Government Relationships

17. Multinational Corporations & Government Relationships

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17. Multinational Corporations and Government Relationships (also known as Transnational, Global, International, or Worldwide) Multinational Corporations 0. Organizations engaged in doing business in foreign countries 0. Not always incorporated or private 1. Can be a cooperative 2. Can be a private company 3. Can be a state-owned entity 1. Must perform one or more of the following functions for foreign operations 4. Designing 5. Producing 6. Marketing 7. Staffing 8. Financing 2. Stages of development 9. Exports to foreign countries. (Earliest stage) 10. Establishes sales organizations abroad. 11. Licenses use of patents and technology to foreign firms 12. Establishes foreign manufacturing facilities, keeps product design, marketing and finance functions at home office. 13. Gives foreign production facilities substantial autonomy but still reserves some important decisions for the home office. 14. Decentralizes authority throughout the company so that functions at home and abroad are done by executives from different countries. MNC’s do not always function smoothly. The Daimler-Chrysler merger experienced severe difficulties in blending the different cultures of the two merged corporations. True Multinationals 0. Staff think using a global context 1. comfortable with different cultures 2. accept best practices easily 3. status is determined by merit, not nationality 4. have a truly global mindset 5. display border-less thinking 6. can become exceedingly powerful Multinational Corporations: Economic Power
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This note was uploaded on 03/26/2009 for the course BA 4307 taught by Professor Ritchey during the Spring '09 term at University of Texas at Dallas, Richardson.

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17. Multinational Corporations & Government Relationships

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