Price wars are getting intensified in the automobile sector in recent times and hence the profit percentages of the automakers are coming down drastically.Governments in different countries have already formulated implemented (“The Impact Of Globalization On The Multinational Corporations Essay”, n.d.) The Impact Of Globalization On The Multinational Corporations Essay.
Foreign Direct investment or FDI is encouraged by all countries as part of their economic reformation activities.
All these favourable business climates are helping MNCs in operating cross culturally at present.
American market was saturated for Starbucks and they were looking for opportunities in global market.
“While Starbucks was very successful in its domestic market, the leaders of the company knew they would have to exploit globalization and expand the company to foreign markets to fully utilize the potential that the company had.
Company-operated and runs their own private armies, utilizing military power and ultimately taking over administrative functions of India.
This example forces each developing country to think whether one should invite Multinational companies or not.
One of the greatest example in front of the world is of East India Company.
On one hand, the company existed a dynamic profit-making entity and on the other hand existed under the control of the British government.
Multinational Companies Essay – Some developing countries invite large multinational companies to open offices and factories in order to help their economy.
However, others feel that foreign companies should be shut out and instead the government should help local companies to contribute to economic growth. Some people believe that developing countries invite Multinational companies for improving the economy of the nation while others are on the view that instead of them, the government should help local companies for their contribution to the economic growth of the nation.