International Business Mnc Essay

IntroductionMulti National Corporation engages in domestic and exotic product development. Sometimes the phalanx country has a product (labor, ingredient, part, etc) that is high-minded or less embodyly than producing it in the home country consequently establishing a multinational Corporation is a win-win for the host country as far as supply, demand, labor and cost. Many corporations currently engage in Multinational Enterprise and be undefeated in their efforts. Having cable enterprisees that argon lively in MNC truly creates a global business community where vulgar interests and product development are core to the invites of the customer, business and win foreign economies with jobs, businesses and exporting goods. Country Economic system Political environment Legal environment Technological China miscellaneous economy socialist economy Complex regulations Japan Mixed economy Capitalism Complexity France Mixed economy Capitalist/ lovingist ComplexityEthical sy stem Social responsibility indicators Cultural dimension Confucianism Laws & regulations CollectivismLaws & regulations Collectivism Laws & regulations CollectivismProduct, assembly line Plan and Foreign Direct Investment (FDI)Acai berry is native to of import and South America and the plant is a great anti-oxidant that can be used for several purposes. My company, rude(a) Beauty, has partnered with Acai palm tree companies in Belize to run the product and guard manufacturing warehouses located in Belize. This foreign call investing offers a win-win situation for all of the companies mired. We have chosen the downstream unsloped FDI as a means to partner with Acai palm tree farms and companies in Belize. The home country is the U. S. and although the product is non sold in Belize nonwithstanding it is distributed in other countries such as the United States, Brazil, France, England, China, Japan, and Qatar.There are multiple payoffs of an FDI as show in the ownership, l ocation, and internalization (OLI) framework (Peng, 2011). spirit the framework I understand that ownership allows for possession and leveraging of resources, judge and other added components to allow a competitive mart. The Location component mark offs that we are close to our main ingredient with the product, that we are able to have labor, ingredients and manufacturing at the lowest cost available while providing a boost to the host countries local economy and creating global competition. We are in several countries which return internalization and we have intellectual property rights over all of our products, processes and business plan.We protect our businesses by knowing our dissemination risks and safeguarding against them as much as possible. Since we know our dissemination risks we are able to safeguard against direct competitors that may branch out from local distributors. We also are aware of market imperfections and do our best through our internationalistic legal team to rub abreast of international trade, business and government regulations. We also have safeguards against agglomeration collectible to the international craze over the Acai berry, plant and trees. We do this through our crush clauses which state other companies can non be located within a veritable distance, city, or space as ours in host countries.Natural Beauty, Inc. understands the intricacies of business and politics, especially within an international structure. We are in no modal value operating as a monopoly or radical imperialist (Peng, 2011) business. We opine in free market and working with our host country partners to ensure that each of them are maximizing their capacity and invested in the good and work provided by our joint venture. It is important that the FDIs benefits outweigh the costs and it is truly a win-win for all parties mixed. Cost and Benefits of FDIAs we can only imagine, there are benefits and costs to both the host and the home countries in volved in Multinational Corporation. The benefits for Belize are the capital inflow, technology, management and job creation. The other countries of distribution have the same benefits that boost local knowledge, economy and globalization. The costs for the host countries are personnel casualty of sovereignty, capital outflow, and competition. The largest benefit is creation of jobs and expanded knowledge. The largest cost is loss of sovereignty. The benefits for the host countries must outweigh the costs and only the local governments and direct companies involved can project overtime which is more beneficial for them.The benefits for the Natural Beauty in the U.S. are earnings, exports, and contracting from abroad whereas the costs are capital outflow and job loss. The latter can be sort of devastating if the proper precautions and business plans are not in ordinate in addition to being aware of local/international politics. even job loss here means possible savings in salary /wages in other host countries where the earning are not as high which saves the company money. The largest benefits are earnings and learning from abroad. The largest cost is job loss and the political climate around American companies that maneuver their businesses abroad (remember NAFTA). Another threat is that local business can learn your process and then become your largest competitor and they have the home theater advantage. This is known as the contagion effect (Peng, 2011).We recognize that FDIs can be complex and must be mutually beneficial for all parties involved and therefore we make a conscientious effort to recognize the need for location advantages, licensing and outsourcing knowledge/expertise and understanding of constraints (political and business in pose to be successful). Future of MNCThe future of Multinational Enterprise is contingent upon aline understanding of global communities and global business. Understanding that free market, consciousness and inter national trade laws will dictate most of the business efforts and establishments. Many companies are already engaging in MNC successfully (BMW, Coca Cola, etc) and those interested in exploring this option should create several case studies looking at the successful and not so successful efforts in this realm to learn from them. I think that host MNC countries participating in FDI should be careful not to lose their power and prestige in the name of partnering for monetary gain. It is clean for smaller less powerful countries to get lost in the MNC FDI advantage for the sake of job creation and boosting local economy however not at the cost of their culture, citizens and green space (for those working with rainforest communities or those with precious agriculture). The future of MNC can be bright when all parties involved are up front and conscious about maintaining and win-win business.ReferencesPeng, M., (2011). Global. 1st mutation Mason, OH, Cengage Learning www.alibaba.com//C N/technological-environment.htmlLuthans, F., & Doh, J. P. (2012). International management Culture, strategy, and behavior (8th ed.). Boston, MA McGraw-Hill.