Multinational Companies in Operation: Major

Activities

 To take advantage of business opportunities in other geographic areas.

• Result of a competitive advantage held by a company.
• This edge can be the result of technology, lower costs, location, or availability of
natural resources

 Adapting to different societies.

• Social and cultural influences along with political and legal concerns
• EX: Change in country’s tax law, the result could mean lower profits.
Characteristics of Multinational Companies

 Worldwide Market View

 Standardized Product
 Culturally-Sensitive Hiring
 International and local Perspective
Concerns About Multinational Companies

More Jobs, products, services, and even improve roads created by the MNC.

 MNC’s economic power can make a host country dependent.

 MNC could start to influence and even control the country’s

politics.