This document discusses multinational corporations. It defines a multinational corporation as a company that manages production or provides services in multiple countries, with headquarters in one home country and operations in several host countries. The document outlines types of multinational corporations and discusses some of their advantages like access to new consumers and labor, as well as challenges they face such as different legal, political, and cultural environments in foreign markets. Examples of issues multinational corporations deal with are multiple tax jurisdictions and adapting to local cultural beliefs and values. The document concludes with questions for discussion and a list of references for further information.

1. Vasilisa Viktorova
Sofia Kononova
Anastasia Slabodkina
Diana Abaidullina
Gr.5202

2. o What is multinational corporation?
o Types of multinational corporations
o Advantages & disadvantages
o Legal, political & cultural issues
o Examples of multinational
corporations
o Questions
o References

3.  A multi national corporation (MNC) or enterprise
(MNE), is a corporation or an enterprise that manages
production or delivers services in more than one country.
 A corporation that has its management headquarters in
one country, known as the home country, and operates in
several other countries, known as host countries.

4.  They say that out of the 100 largest
economies in the world, 51 are
multinational corporations...
 Actually this is 37, only 5 of
which will be in the top 50.

6. • Access to Consumers
• Access to Labor
• Laws
•Taxes and Other Costs

7. MNCs are subject to multiple tax
jurisdictions, they must pay taxes to
several countries
Territorial Tax Jurisdiction – the government taxes income
that is earned on the national territory ( in Russia, tax rate is
20%)
National Tax Jurisdiction: both domestic and foreign
source income of national companies are subject to
income tax. ( ex.: USA – tax rate 35%)

8.  Market withdrawal
 Lobbying

9. Each culture has its own beliefs and values.
 To be successful in these foreign countries
- multinational companies must be able
to recognize and adapt to the differences.

11. Q
&
A

12.  What is National Tax Jurisdiction?
 In Russia, tax rate is 20% or 30%?
 Which company has failed while entering a
new market and why?
 How to identify a multinational corporation?
 Name the types of multinational corporations

13.  http://www.roche-duffay.ru/articles/taxation.htm
 http://www.globalissues.org/issue/50/corporations
 http://www.enterpriseethics.org/Portals/0/PDFs/good_business_c
hapter_13.pdf
 http://www.deloitte.com/view/en_NZ/nz/services/tax-
services/be021397a5e8c310VgnVCM2000003356f70aRCRD.htm
 Harvard Business School: Globalization Feature - Why Being
Multinational Is No Longer Enough
 National Bureau of Economic Research: Effects of Multinational
Company Investments
 U.S. Small Business Administration: Exporting & Importing
 http://corporate.walmart.com/our-story/our-business/i
 http://en.academic.ru/dic.nsf/enwiki/138412#Companies
 http://www.referenceforbusiness.com/management/Mar-No

14. Thanks for
your
attention!