Why do companies become multinational corporations essay
Utilities that provide water, natural gas, or electricity are all examples of entities designed to take advantage of economies of scale. For example, imagine what the costs are for the consumer. How and why do companies become multinational corporations? The availability of cheap production factors. This can be explained with the Factor Endowment Theory. Different factors of production are produced or available in different intensities in different cities. For example, India and China have huge labor reserves and Germany has: 3. Managing global teams. Another challenge of international business is managing employees who live all over the world. When you're trying to function as a team, it can be difficult to keep that in mind. Globalization is the process of expanding the reach of the global market for both businesses and consumers to purchase products and services from different countries. While some people believe that it also has a negative effect. Opinion - I agree that globalization is the reason multinational companies can expand their reach. If there is one belief that strongly unites critics of multinationals today, it is that they exploit workers in poor countries. Ire has been aroused by the assumption that he is rich and has deep pockets. India's multinational companies have the potential to bring dynamism to our development trajectory, complement the efforts of local companies and thereby take the country to the high echelons of growth with inclusivity. With many positive qualities, such as a huge amount of resources and knowledge of multiple markets,