1.Question#1:Identify the benifits and disadvantages of MNC"s
Answer:Benifits of MNC
1.gaining a strong fothold into the international market
2.low cost locations
3.cheaper labor costs
4.cheaper raw materials and distribution costs
5.taking advantage of the many tax breaks offered by foreign countries
6.access to new technologies and methods
7.Availability of government grants.
Disadvantages
1.trade restrictions imposed at the government-level
2.taxes or tariff imposed on imports from other countries
3.Limited quantities(quotas) of imports
4.Effective management of globally dispersed organization
5.loss of jobs
6.loss of tax revenue
7.flexibility of operation is redused in a foreign political system and thus causes
instability.
8.competitive advantages of multinationals over domestic firms.
2.Question#2.Identify one MNC company and describe its operation.
Answer:MANPOWER INC.,first multinational corporation to receive licence to provide permanent employment services in Vietnam.Manpower inc..delivers one stop employment services solution to Vietnam creating job prospect, increased flexibility and effeciency.They are looking to set a new standard ia Asia employment services industry and they intend to become the recruitment partner of choice for those working in Asia's most dynamic emerging economy.Manpower Inc. is a world leader in the employment services industry, creating and delivering services that enable its clients to win in the changing world of work.The focus of Manpower work is on raising their totl workplace, enabling clients to concentrate on thier core business activities.
3.Question#3.Describe how the parent control/coordinates with its subsidaries in other countries or region.
Answer:Parent company that owns enough voting stock is another form to control management and operations by influencing or electing its board of directors.In a parent company, a company such as the one above starts up another corporation(subsidiary corporation).The reason is to limit the liability of share holders.If parent own several subsidiaries,and one of them gets into difficulty,it can closer down without upsetting the operations of the other subsidiaries.Selling one operation as a subsidiary is also easier because it is financially self-contained.Individuals own shares .In Parent>Parent owns shares in each subsidiary.Parent company tends to control its subsidiaries that do not sell goods to local markets in which goods are made.
4. Question#4:How is IT maximize or used by this MNC?
Answer:It helps to understand the relationship between networks and performance in foreign investment.Provide information that contribute to reaching objectives.
5Question#5.What were the weaknesses/problems encountered by this MNC from its environment and global set-up?
Answer: Weaknesses or problems encountered by this MNC from its environment and global set up is there is restriction of their trade at the government level ,effective management of globally dispersed organization .
References:www.reuters.com
http://www.investorsworld.com/
wiki answer.com
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