ADMS 1000 Lecture Notes - Lecture 8: Import Quota, North American Free Trade Agreement, Multinational Corporation
whitebuffalo5917706 and 39630 others unlocked
12
ADMS 1000 Full Course Notes
Verified Note
12 documents
Document Summary
And becomes global when scattered across the world: direct investment in foreign operations (fdi, purchase of physical assets or an amount of share ownership in a company from another country to gain a measure of management control. Global businesses business that engages directly in some form of international business activity, including importing, exporting etc. Multinational corporation - a business that has direct investments in a least two different countries is specifically. Benefits of multinational corporation: encourage economic development, offer management expertise. Introduce new technologies: provide financial support, create employment, encourage international trade, bring countries closer together, facilitate global cooperation. Risks of multinational corporation: mncs have no allegiance to the host country, profits are returned to the home country, decision making can be highly centralized, mncs can be difficult to control. Involves the purchase, sale, or exchange of goods or services across countries.