The document is an assignment submitted by Abraham Ayom Ayom, a third year student at Cavendish University Uganda, for the module International Business. The assignment addresses the role of multinational enterprises in the economic development of developing countries, discussing both their positive and negative impacts. Positively, multinationals can generate jobs and income, transfer skills and technology, and contribute tax revenue. However, they may also employ expatriate managers, use capital-intensive production inappropriate for developing countries, engage in tax avoidance, and exert undue influence on governments.
WHAT IS INTERNATIONAL BUSINESS?
Advantages of International Business:
Dis-Advantages of International Business:
5 kinds of International best Business:
Foreign direct investment (fdi).
FOREIGN DIRECT INVESTMENT EXPLAINED IN one MINUTE
Imports @ Exports
1. BENEFITS THAT MNCS BRING TO HOST NATIONS
a. Improvement in the standard of living
b. Employment and economic growth in overseas countries
2. POTENTIAL NEGATIVE IMPACT
a. Influence on foreign governments to gain concession
b. Exploitation of labour in developing countries
i. Implementation of working practices which would be unacceptable in their home country
ii. Sale of unsafe products to consumers
c. Use of unsustainable resources and the degradation of the local environment
d. Cultural Imperialism
e. Footloose Capitalism
3. CONTROLLING MNCs
a. Pressure groups and public opinion
b. Internet
c. Self-Regulation
d. Political Constraints
e. Legal or constraints
f. Competition policy
WHAT IS INTERNATIONAL BUSINESS?
Advantages of International Business:
Dis-Advantages of International Business:
5 kinds of International best Business:
Foreign direct investment (fdi).
FOREIGN DIRECT INVESTMENT EXPLAINED IN one MINUTE
Imports @ Exports
1. BENEFITS THAT MNCS BRING TO HOST NATIONS
a. Improvement in the standard of living
b. Employment and economic growth in overseas countries
2. POTENTIAL NEGATIVE IMPACT
a. Influence on foreign governments to gain concession
b. Exploitation of labour in developing countries
i. Implementation of working practices which would be unacceptable in their home country
ii. Sale of unsafe products to consumers
c. Use of unsustainable resources and the degradation of the local environment
d. Cultural Imperialism
e. Footloose Capitalism
3. CONTROLLING MNCs
a. Pressure groups and public opinion
b. Internet
c. Self-Regulation
d. Political Constraints
e. Legal or constraints
f. Competition policy
This is the subtopic of Professional Ethics and defines MNC, Classified MNC, History and Evolution, Structure, SWOT Analysis, Reason, MNCs In India and other.
International Business - How MNC keep local company at bay...Hurriya Saeed rana
What is MNC & MNE?
Definition & History
Characteristics of MNC
Reasons for becoming MNC
Advantages of MNC
Disadvantages of MNC for Home Country
How local companies keep MNC at bay?
In this presentation, we will discuss role of MNCs in global economy, their merits and demerits, how to globalize a business by transforming the organizational structures according to international standards.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
This is the subtopic of Professional Ethics and defines MNC, Classified MNC, History and Evolution, Structure, SWOT Analysis, Reason, MNCs In India and other.
International Business - How MNC keep local company at bay...Hurriya Saeed rana
What is MNC & MNE?
Definition & History
Characteristics of MNC
Reasons for becoming MNC
Advantages of MNC
Disadvantages of MNC for Home Country
How local companies keep MNC at bay?
In this presentation, we will discuss role of MNCs in global economy, their merits and demerits, how to globalize a business by transforming the organizational structures according to international standards.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
Introduction of strategy,Levels,Meaning of International Business, Multinational corporations,advantages of Home country &host country, Challenges of Internationalbusiness
Generating Maximum Productivity of an Industry through In House Entrepreneurshipiosrjce
This paper describes a suitable technique for brand building in smaller markets without
compromising larger markets. This technique deploys the utility of entrepreneurship at various levels of an
operating industry. This technique is highly beneficial for developing and under developed economy because it
will create more jobs, generate more revenues and the most important thing about this technique is that it will
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Senior Seminar in Business Administration BUS 499Internation.docxklinda1
Senior Seminar in Business Administration
BUS 499
International Strategy
Hitt, M.A., Ireland, R.D., & Hoskisson, R.E. (2009). BUS499: Strategic management: Competitiveness and globalization, concepts and cases: 2009 custom edition (8th ed.). Mason, OH: South-Western Cengage Learning.
Welcome to Senior Seminar in Business Administration.
In this lesson we will discuss International Strategy.
Please go to the next slide.
Objectives
Upon completion of this lesson, you will be able to:
Identify various levels and types of strategy in a firm
Upon completion of this lesson, you will be able to:
Identify various levels and types of strategy in a firm.
Please go to the next slide.
Supporting Topics
Identifying international opportunities: incentives to use an international strategy
International strategies
Environmental trends
Choice of international entry mode
Strategic competitive outcomes
Risks in an international environment
In order to achieve this objective, the following supporting topics will be covered:
Identifying international opportunities: incentives to use an international strategy;
International strategies;
Environmental trends;
Choice of international entry mode;
Strategic competitive outcomes; and
Risks in an international environment.
Please go to the next slide.
Overview
International strategy
Demand develops in other countries
Secure needed resources
An international strategy is a strategy through which the firm sells its goods or services outside its domestic market. One of the primary reasons for implementing an international strategy is that international markets yield potential new opportunities.
Typically, a firm discovers an innovation in its home-country market, especially in an advanced economy such as that of the United States. Often demand for the product then develops in other countries, and exports are provided by domestic operations. Increased demand in foreign countries justifies making investments in foreign operations, especially to fend off foreign competitors.
Another traditional motive for firms to become multinational is to secure needed resources. Key supplies of raw material, especially minerals and energy, are important in some industries. Other industries, such as clothing, electronics, watch making, and many others, have moved portions of their operations to foreign locations in pursuit of lower production costs.
Please go to the next slide.
Overview, continued
Increased market size
Return on investment
Economies of scale and learning
Location advantages
When international strategies are successful, firms can derive four basic benefits:
Increased market size;
Greater returns on major capital investments or on investments in new products and processes;
Greater economies of scale, scope, or learning; and
A competitive advantage through location.
Firms can expand the size of their potential market by moving into international markets.
The primary reason for investing in inter.
competition for those seeking employment in international business can be fierce, so participating in a formal educational program tailored specifically to the needs of international businesses may give employees an edge over the competition.
InstructionsWrite a paper about the International Monetary Syste.docxvanesaburnand
Instructions
Write a paper about the International Monetary System that addresses each of the following issues:
· Define the International Monetary System and outline the history of the system.
· Describe and provide examples of what is meant by “currency regimes,” and define selected types of regimes and form an argument for selecting fixed exchange rate and arguments for selecting flexible exchange rates.
· Describe and define the creation of the Euro and discuss the benefits as well as the problems associated with the creation of this currency.
Support your paper with at least five (5) resources. In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included. Your paper should demonstrate thoughtful consideration of the ideas and concepts that are presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards.
Length: 5-7 pages (not including title and reference pages).
Eiteman, D., Stonehill, M., & Moffett, M. (2016). Multinational business finance. Boston, MA: Prentice-Hall.
Read Chapters 1, 2
This is a major resource, however, I think the assignment can be accomplished without it. I can’t seem to be able to download the book.
The global company's challenge.
Authors:
Dewhurst, Martin1
Harris, Jonathan2
Heywood, Suzanne
Aquila, Kate
Source:
McKinsey Quarterly. 2012, Issue 3, p76-80. 5p.
Document Type:
Article
Subject Terms:
*International business enterprises
*Emerging markets
*Economies of scale
*Contracting out
*Risk management in business
*Business models
*Executives
*Financial leverage
*Globalization
*Research & development
Developing countries
Company/Entity:
International Monetary Fund DUNS Number: 069275188
Aditya Birla Management Corp. Pvt. Ltd.
International Business Machines Corp. DUNS Number: 001368083 Ticker: IBM
NAICS/Industry Codes:
919110 International and other extra-territorial public administration
928120 International Affairs
541712 Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
541711 Research and Development in Biotechnology
Abstract:
The article focuses on the management of risks, costs, and strategies by international businesses in emerging markets. It states that the International Monetary Fund reported that the ten fastest-growing economies after 2012 will all be in developing countries. It mentions that technology company International Business Machines expects by 2015 to earn 30 percent of revenues in emerging markets compared to 17 percent in 2009, while Indian multinational conglomerate Aditya Birla Group earns over half of its revenue outside India and has operations in 40 nations. It talks about the benefit of economies of scale in shared services enjoyed by large global companies and comments that the ability to outsource business services and manufacturing is benefiting local busine.
Abouk Ayom Area
Approximate size of the area
Abouk Ayom, is one of the area with two payam under Manloor County of Tonj State of South Sudan. The area is located in former warrap state in Bahr el Ghazal region and it borders Wau state to the West, Pagol County of Tonj State to the South, Kerik County of Tonj State to the East, Warrap County of Tonj State to North East and Pankot payam of Manloor County to the North. Abouk had an estimated area of 817 km². Its location lies approximately 555 kiometers (345 miles), by road, northwest of Juba City. The area is an ancestral home to the Dinka people of Rek
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Learn how to use Binance Savings to expand your bitcoin holdings. Discover how to maximize your earnings on one of the most reliable cryptocurrency exchange platforms, as well as how to earn interest on your cryptocurrency holdings and the various savings choices available.
Building Your Employer Brand with Social MediaLuanWise
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Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
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Understanding User Needs and Satisfying ThemAggregage
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We know we want to create products which our customers find to be valuable. Whether we label it as customer-centric or product-led depends on how long we've been doing product management. There are three challenges we face when doing this. The obvious challenge is figuring out what our users need; the non-obvious challenges are in creating a shared understanding of those needs and in sensing if what we're doing is meeting those needs.
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The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
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This session provided an update as to the latest valuation data in the UK and then delved into a discussion on the upcoming election and the impacts on valuation. We finished, as always with a Q&A
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Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
Bba 225 2nd course work for international business abraham ayom
1. CAVENDISH UNIVERSITY UGANDA
Student Name:
Abraham Ayom Ayom
Course:
BBA – Generic
Student ID:
02/00315/123532
Lecturer:
Hilary SSerubidde
Module:
International Business
Module Code:
BBA 225
Year of Study
3rd year, 1st Semester
Assignment Number:
Two (2) Second Assignment
Session
Long Distance Program
Date Issued:
29th September 2012
Due Date:
30th October 2012
Assignment Brief:
2nd Assignment coursework question
Q1. Access the role of multi-National enterprises (MNE) in the economic development of developing countries.
Positive and Negative?
Guide to Students
1.
2.
3.
4.
5.
Maximum 10 pages word processed
Use Times New Roman
Font Size should be 12
1.5 Spacing
For referencing purposes use the Harvard AuthorDate System
Instructions to Students
1.
2.
3.
4.
5.
This form must be attached to the front of your
assignment
The assignment must be handed in without fail by the
due date
Ensure that the submission form is date stamped at
reception when you hand it in
Late submission will not be accepted unless with
prior agreement with the course Lecturer/Tutor
All assessable assignments must be word processed
1 Presented by Abraham Ayom Ayom, email: abraham.ayom@yahoo.com, or Tel: +211 927 034 102
2nd course for International Business
2. Table of Contents
•
•
•
•
•
Introduction -----------------------------------------------------------------------------------------2
Multinational enterprises(MNE)----------------------------------------------------------------2
Positive and Negative roles for Multinational enterprises in Economic development
of developing countries----------------------------------------------------------------------------3
Conclusion-------------------------------------------------------------------------------------------5
Referees-----------------------------------------------------------------------------------------------5
Introduction
A multinational enterprise is a firm that has productive capacity in a number of countries. The
profit and income flows that they generate are part of the foreign capital flows moving between
countries. As countries adopt more open outward oriented approaches to economic growth and
development the role of multinational enterprises (MNE) or transnational corporations become
more important. As local markets throughout the world are being deregulated and liberalized
foreign firms are looking to locate part of the production process in other countries where there
are cost advantages. These might be cheaper sources of labor, raw materials and components or
have preferential government regulation. Although LDCs may present high levels of risk they
also present the potential for higher levels of profit. Many LDCs with growing economies and
increasing incomes may provide future growth markets.
Many development economists are concerned with role of the MNEs in low income countries
and identify a number of problems associated with foreign direct investment. Equally other
economists and politicians argue that MNE activity can drive growth and development. The true
answer is that probably the arguments put by both sides are applicable in certain countries with
certain MNEs at certain times.
Multinational Enterprises (MNE)
Multinational enterprise (MNE) is a company that takes a global approach to foreign markets and
production or one with operations in more than one country and it headquarter in one country. It
is willing to consider considering market and production locations anywhere in the world. An
MNE is often called multinational corporation (MNC), Multinational Corporation (MNC) or
transactional company (TNC).
MNE is used in a global approach
MNC is used in International business arena
TNC is used by United Nations
2 Presented by Abraham Ayom Ayom, email: abraham.ayom@yahoo.com, or Tel: +211 927 034 102
2nd course for International Business
3. The roles for Multinational enterprises both positive and negative roles in economic
development of developing countries
Positive Roles
Let us consider the arguments from both sides. Firstly, from those who maintain the importance
of foreign direct investment as part of the engine necessary for economic growth?
A MNE investing in an area may result in a significant injection into the local economy.
This may provide jobs directly or through the growth of local ancillary businesses such as banks
and insurance. It might initiate a multiplier process generating more income as newly employed
workers spend their wages on consumption.
MNEs may provide training and education for employees thus creating a higher skilled
labor force. These skills may be transferred to other areas of the host country. Often
management and entrepreneurial skills learned from MNEs are an important source of human
capital.
MNEs will contribute tax revenue to the government and other revenues if they purchase
existing national assets as in the case in Zambia through the privatization process.
Create wealth and jobs around the world. Inward investment by multinationals offer much
needed foreign currency for developing economies. They also create jobs and help raise
expectations of what is possible.
Their size and scale of operation enables them to benefit from economies of scale enabling
lower average costs and prices for consumers. This is particularly important in industries with
very high fixed costs, such as car manufacture and airlines.
Large profits can be used for research & development. For example, oil exploration is costly
and risky; this could only be undertaken by a large firm with significant profit and resources. It is
similar for drug manufacturers.
Ensure minimum standards. The success of multinationals is often because consumers like to
buy goods and services where they can rely on minimum standards. I.e. if you visit any country
you know that the Starbucks coffee shop will give something you are fairly familiar with. It may
not be the best coffee in the district, but it won’t be the worst. People like the security of
knowing what to expect.
The opportunities for developing economies are significant as well. Through the application
of capital, technology, and a range of skills, multinational companies' overseas investments have
created positive economic value in host countries, across different industries and within different
policy regimes
3 Presented by Abraham Ayom Ayom, email: abraham.ayom@yahoo.com, or Tel: +211 927 034 102
2nd course for International Business
4. In the light of these important/benefit roles, there are also negative roles/ problems and concerns
associated with MNEs?
Negative Roles
The Negative roles/Problems of Multinational Enterprises
The MNE may employ largely expatriate managers ensuring that incomes generated are
maintained within a relatively small group of people. The attraction for the MNE may be the
large supply of cheap manual labor who they can employ at low wages. This may contribute to a
widening of the income distribution. It will also not lead to the transfer of management skills.
MNE investment in LDCs often involves the use of capital intensive production methods.
Given that many LDCs are often endowed with potentially large low wage labor forces and have
high level of unemployment this might be considered inappropriate technology. More labor
intensive production methods might be a more appropriate option for alleviating poverty and
aiding development. Any resulting growth might be considered anti-developmental.
MNEs engage in transfer pricing where they shift production between countries so as to
benefit from lower tax arrangements in certain countries. By doing this they can minimize their
tax burden and the tax revenue of national governments.
As many MNEs are very large and have considerable power they can exert influence on
governments to gain preferential tax concessions and subsidies and grants.
Companies are often interested in profit at the expense of the consumer. Multinational
companies often have monopoly power which enables them to make excess profit. For example,
Shell made profits of £14bn last year
Their market dominance makes it difficult for local small firms to thrive. For example, it is
argued that big supermarkets are squeezing the margins of local corner shops leading to less
diversity.
In developing economies, big multinationals can use their economies of scale to push local
firms out of business.
In the pursuit of profit, multinational companies often contribute to pollution and use of nonrenewable resources which is putting the environment under threat.
MNCs have been criticised for using ‘slave labour’ – workers who are paid a pittance by
Western standards
Conclusion
4 Presented by Abraham Ayom Ayom, email: abraham.ayom@yahoo.com, or Tel: +211 927 034 102
2nd course for International Business
5. Multinational company enterprises investment in the developing world opens up new horizons
for economic development and for company strategy. The McKinsey Global Institute's latest
report shows that the overall economic impact of multinational investment on developing
economies has been overwhelmingly positive despite the persistence of policies that lead to
negative, unintended consequences. Companies are also seeing substantial benefits but have only
started to capture the large cost savings and revenue gains possible from operating in these
markets.
Outward oriented economists maintain that the cycles of poverty will not be broken from within
the domestic economy. The level of investment needed to raise productivity and incomes is not
possible. Thus foreign direct investment through the MNE activity is essential.
Reference
John Daniels University of Miami, Lee H.Radebaugh Brigham Young University, & Daniel
P.Sullivan University of Delaware, International Business environments and operation, 11
Education( Multinational Enterprises, Multinational corporation or Transnational corporation)
http://www.economicshelp.org/blog/538/economics/multinational-corporations-good-or-bad/
The roles for Multinational enterprises
http://www.bized.co.uk/virtual/dc/copper/theory/th18.htm
The roles for Multinational enterprises
http://www.mckinsey.com/insights/mgi/research/productivity_competitiveness_and_growth/new
_horizons_for_multinational_company_investment
5 Presented by Abraham Ayom Ayom, email: abraham.ayom@yahoo.com, or Tel: +211 927 034 102
2nd course for International Business
6. Multinational company enterprises investment in the developing world opens up new horizons
for economic development and for company strategy. The McKinsey Global Institute's latest
report shows that the overall economic impact of multinational investment on developing
economies has been overwhelmingly positive despite the persistence of policies that lead to
negative, unintended consequences. Companies are also seeing substantial benefits but have only
started to capture the large cost savings and revenue gains possible from operating in these
markets.
Outward oriented economists maintain that the cycles of poverty will not be broken from within
the domestic economy. The level of investment needed to raise productivity and incomes is not
possible. Thus foreign direct investment through the MNE activity is essential.
Reference
John Daniels University of Miami, Lee H.Radebaugh Brigham Young University, & Daniel
P.Sullivan University of Delaware, International Business environments and operation, 11
Education( Multinational Enterprises, Multinational corporation or Transnational corporation)
http://www.economicshelp.org/blog/538/economics/multinational-corporations-good-or-bad/
The roles for Multinational enterprises
http://www.bized.co.uk/virtual/dc/copper/theory/th18.htm
The roles for Multinational enterprises
http://www.mckinsey.com/insights/mgi/research/productivity_competitiveness_and_growth/new
_horizons_for_multinational_company_investment
5 Presented by Abraham Ayom Ayom, email: abraham.ayom@yahoo.com, or Tel: +211 927 034 102
2nd course for International Business