Mne the conduits of globalization
The conduits of globalization
Most MNEs have a home base in triad countries.
I/ THE NATURE OF THE MULTINATIONAL ENTERPRISE
Starting point = see what constitute NON a multinational firm: * Headquartered in one country and produce and market all the G&S in that one country. (lesser exposure to international risk usually through importation) * Headquartered and produce in the same country but export some of their output. (greater exposure to international risk as need to take cultural difference into account in marketing)
MULTINATIONALS = firm invest in value-adding activities outside domestic market or start exercising control over such activities outside its domestic market. control (at least 2 countries), ownership production, power to co-ordinate, engage in FDI.
No matter the size. Not only ownership but also control more firms can be considered as MNE.
Just general, wide-ranging, framework definition difficulty to capture diversity (of ownership, geo localization, structures, organizational forms) of MNE.
Majorly MNE industries = motor vehicles, petroleum, electrical and electronic equipment, pharmaceutical, telecom’, electricity, gas, water.
Ranking by sales = petroleum = 4th position
Top 100 MNE include 7 from developing countries.
II/ MOTIVATING FACTORS FOR MNES
* Resource-seeking investment invest to acquire resources that are unobtainable or only available at much higher cost in home country. primary products, agro goods, mineral and raw materials. Most of the outputs from investment = exported. FDI enables oil companies to secure their downstream activities (refinery..) located outside the country of extraction. Other resources = cheap un-/semi/skilled good for investors from country with high labor costs. +location-bound resource-seeking investments mainly tourism and construction = resources or attributes that are immobile.
* Market-seeking investment invest in a