What is a Multinational Company? For IB | A Level| IGCSE Business Studies | Edu Ignites|

What is a Multinational Company?
What is a Multinational Company? For IB | A Level| IGCSE Business Studies | Edu Ignites|
#MultinationalCompanies #IBBusinessManagement #EduIgnites

These companies have benefited greatly from the freedom offered by globalization. They just do not sell goods in more than one country. But they produce, and sell goods, and services in more than one country.
Welcome to our You tube channel. In this video, we are discussing Multinational Companies!
These are business organisations, that have headquarters in one country, but offices, production facilities, assembly plants in other countries. In other words, multinational companies are those with factories, plants, production, and service operations in more than one country.
A company may start in one country, and will spread to other foreign countries, expanding their investments. Thus, a national company becomes a multinational company. The significance of this type of company is that, though it spreads to many other countries, there will be a centralized management system, and the main decisions will always be taken by the home company. The other foreign corporations will be subsidiaries of the home company. But the big question is, why do firms, expand their operations overseas.
Reasons may include:
1. To expand into different market areas to spread risks.
2. To avoid trade barriers.
3. To stay nearer the market to reduce transportation costs. And,
4. To take advantage of lower-wage costs, abundant supply of raw materials, availability of good infrastructure, and government support.
Multinational companies can have both positive and negative impacts on the host country. Some of these include;
Multinational companies with their huge investment can boost the domestic economy by providing jobs, creating demand for local suppliers, and paying taxes to the government.
Along with the investments, these multinational companies also bring in new technology, and business ideas. These will help develop the skills of the employees of host country.
The consumers of host country will benefit from more choices of products, and also these companies also build, infrastructure like roads, schools for employee’s children, hospital and garden.
However,
Multinationals usually are big, and their scale of business is large enough to gain economies of scale, and operate efficiently and hence, local businesses may be forced out of business. Though they create jobs for the host country, mostly they are unskilled and low paid. MNCs also send back profits to the home country and also there is a threat to cultural identity.
In conclusion,
MNCs are business organizations, operate in more than one country.
These are believed to be highly beneficial for developing countries, in terms of bringing employment opportunities, management skills, latest technologies, and innovative ideas. In return, some MNCs get government support. Thus, MNCs play an important role in developing an entrepreneurial ecosystem in developing countries.
Students, make a list of at least five multinational companies operating in your country, and, write a short report on how these companies are helpful to at least three stakeholders.
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Thank you!
Key words
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MNCs, mualtinational companies, home country, host country, edu ignites, business bites podcast episode, RK, IB business management, IGCSE business studies, A Level Business,

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Acknowledgement of resources:

IGCSE Business Studies 3rd edition By Kareen Borrington and P Stimpson.Published by Hodder Education.

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[anshsaipratapsingh]

A multinational company is a corporate organisation that owns or controls production of goods and services in at least one country other than its home country. The company first starts at small scale and then at large scale at international levels . The 5 multinational companies are : Microsoft, Nestle, coca- cola, PepsiCo and IBM. The three advantage of Multinational companies are : Outsourcing, Tax avoidance and Employment of skilled labour’s .

[rashmidaryani]

Multinational companies are those business organisations that operates in many different countries at the same time. They are first started in 1 country and then are spread around in many other countries in the world. The reasons behind becoming a multinational is; Expansion, Avoid trade barrier, become closer to the markets, more supply of raw material as well as lower wage costs, good infrastructures as well as government support. Although their main purpose is for themselves, it also helps the other countries by higher employment rate, economic growth, more tax to the government, new technology and ideas.

[lintaluice]

Yeah well explained but why don't you explain more. To be honest this topic needs at least 15 minutes, specially to illustrate the whole thing. But at the end it's a great video and thanks.