International Administration and Multinational Corporations.

It focuses on how international companies operate in host countries, and

concentrates on management problems related to the flow of people, goods and money
to improve management in situations that influence the crossing of national borders.
Environmental factors that affect domestic companies are more decisive for
international corporations operating in foreign countries.

Managers of international companies face many factors other than those of

nations; they must interact with different employees, education and culture, and they
also face other value systems; They also face different legal, political and economic
conditions, so it is understandable that these environments influence the way
management and business functions are developed.

Actions carried out by these companies (Multinational Corporations CMN)

Among the actions carried out by these companies is the transfer of Technology, goods
and services with which they interact with the host country.

Advantages of Multinationals

1.- they can take advantage of business opportunities in very different countries

2.-they can raise money for their operations around the world.

3.- They have greater access to natural resources and materials that may not be
available to national companies.

4.- produce products by reducing costs (cheaper labor)

Nature and purpose of international companies

 The study of international management focuses on the way international
companies operate in host countries, and concentrates on management problems
related to the flow of people, goods and money to improve management in situations
that include the crossing of national borders. Environmental factors that affect domestic
companies are usually more decisive for international corporations operating in foreign
countries.

Even though companies have long operated on an international scale,

international companies have gained greater visibility and importance as a result of the
growth of multinational corporations. International companies carry out transactions
across national borders, which include the transfer of goods, services, technology,
management knowledge and capital to other countries.

International companies in their beginnings adapted a theocentric perspective;

That is, the orientation of its foreign operations was based on that of the company
monthly.

The polycentric attitude, for its part, is based on the notion that it is better to grant a high
degree of freedom,

The royal centric attitude favors the integration of people from overseas operations on a
regional basis.

Geocentric: This means that the regionally centric organization favors the integration of
overseas operations personnel on a regional basis. This means that the entire
organization is conceived as an interdependent system that operates in many countries.

Unifying effects
 Unifying influences appear when the parent company provides and shares
technical and administrative knowledge, thereby helping the local company in the
development of human and material resources; Furthermore, both partners may find it
advantageous to integrate into a global organizational structure. Whatever the
interaction, organizational policies must provide equity and generate benefits for the
headquarters and the local company; Only then can long-lasting relationships be
expected.

Potential conflicts

Many factors can cause conflicts between the parent company and the host
country:

 Nationalistic interest can affect the benefits obtained through cooperation.

 Sociocultural differences.
 It can maintain such a strong economic effect in a host country.

Multinational corporations

Multinational corporations are headquartered in one country, but operate in many

others. Fortune magazine identifies the 500 largest global companies each year, and
the top 10 by revenue in 2010 were:

1. Wal-Mart Stores. 6. Japan Post Holdings.

2. Royal Dutch Shell. 7. Sinopec.
3. Exxon Mobil. 8. State Grid.
4. British Petroleum (BP). 9. AXA.
5. Toyota Motor. 10. China National Petroleum

Advantages of multinationals

Multinational corporations have advantages over nationally oriented companies:

it is obvious that they can take advantage of business opportunities in very different
countries; also, raise money for its operations around the world; In addition, they benefit
because they can establish production facilities in countries where their products are
produced more profitably and efficiently.

The advantages of multinational operations must be weighed against the

challenges and risks associated with operating in foreign environments. One problem is
the growing nationalism of many countries. A few years ago, developing countries
lacked managerial and marketing skills, as well as technical skills; Consequently, they
welcomed multinational corporations; but the situation has changed and they are quickly
acquiring these skills.

Challenges of multinationals

These companies become, in some cases, exploiters of the countries in which

they are established, since they are often located in countries in which the salaries of
the workers are low, which makes the costs of the products lower. .

From multinational corporations to global or transnational corporations

Operating in different countries or establishing manufacturing plants is not

enough to be competitive in the world market, one must change towards the global, or
transnational, corporation, which views the entire world as a single market and assumes
that the corporation also has to adapt to needs. national and even local.

Alliances between countries and economic blocks

At one point countries in a given region competed with each other (and still do),
the difference is that today they form regional alliances, so entire regions compete with
each other. Examples are the European Union, the North American Free Trade
Agreement (NAFTA), the Association of Southeast Asian Nations (ASEAN) and
Mercosur.

European Union

The year 1992 marked the end of the first stage of European economic ties in
Europe. In that year, the European Community program generated radical changes in
economic power, which some saw as a New Europe and others, especially those
outside, as a power that could pose serious challenges to other countries, including the
United States. So North American and Asian countries prepared to compete effectively
against the New Europe and created NAFTA and ASEAN, respectively. The original
European Community (that of 1992, which later became the European Union) consisted
of 12 member nations: Belgium, Denmark, France, Germany, Greece, Ireland, Italy,
Luxembourg, the Netherlands, Portugal, Spain and the United Kingdom. Kingdom,
which in 1995 was extended to include Austria, Finland and Sweden. Cyprus, the Czech
Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Slovakia and Slovenia
have since been admitted.

North American Free Trade Agreement

In 1994, NAFTA came into force. This treaty contains agreements between the
United States, Canada and Mexico, and since then trade between these countries has
increased enormously. The objectives of the treaty were to eliminate trade barriers and
facilitate the cross-border transit of goods and services, promote fair trade, increase
investment opportunities, protect intellectual property, contribute to the resolution of
disputes and generate opportunities to improve profits. of the agreement.

India's role in the global economy

In 1947 India became independent from British rule and only three years later
approved a new constitution. From a geographical point of view, it is the seventh largest
country, but the second in population after China. Unlike this one, it is a democracy with
more than 1.1 billion people and the second largest workforce: place no. 12 in the world
economy.