A transnational corporation is a very powerful actor with a significant foreign direct investment and physical operations in two or more countries. While these corporations have always existed in the world economy, they have become even larger over the past few decades, leaving many to wonder if they are gaining too much power. As with any powerful entity, people have begun to ponder whether these corporations are villains or heroes in the world economy. For some like consumers, companies, and host-country/world economies, the global corporations are heroes. While for others, like workers in poor countries, the environment, and local businesses, they are villains.
Even, we can say that DataClear is kind of the monopolist in the U.S. market. DataClear has the change to grow in the U.S. market without much risk, as they already know the market, they build their own networks, and with product diversification and development they can reduce the risks and increase their profits. However, there are some chances that while they focus in domestic market, their international competitors grow strong in international market and make it difficult for them to grow internationally. Moreover, DataClear can build a joint venture with a U.S. based company with international experience and existing sales channels overseas. This way DataClear can have something, which is better than
We support the statement ‘Monopolies have led to the success of many economies in the world, and therefore, they should be maintained by government if they want their economies to continue enjoying economic growth and prosperity’. This is because monopolies are large in size, they benefit from economies of scale and are able to generate a huge amount of profit- larger than other market structures. With this money, they can invest in research & development, improving their existing products and creating new ones. Moreover, monopolies have a great impact on a country’s economy. Two very large monopolies that positively impacted the United States economy is Standard oil and Steel Company.
One of the advantages that those company that practices the organization structure is the production rate of the company increases. This is due to the systematic organization structure that prevent any hindrace affecting the company work force. For example, when there is a problem in the lower departments, they can easily relay the problem to the high-ups with ease. Hence, the problem can be rectify quickly. The second advantage is it can allow companies to expand their business internationally.
CHEMICO would have wider avenues for borrowing funds. They can issue debentures, sell shares and financing institutions prefer lending to companies. Always having sufficient funding helps the company to produce at a lower cost thus increasing profits and guaranteeing the future success of the business. Task 1: b- A public limited company you can recognise by seeing ‘plc’ or ‘Inc.’ after the company’s name. It is usually formed for very large businesses as it has access to substantial funds for expansion or future plans.
They go to countries with strong economic growth and the countries whose government is considerate about environment. And HSBC also aims for merger with subsidiaries all around the globe for better growth of the company. With this success they make the most out of it. Major Competitors: The three main competitors of HSBC are Barclays, Citigroup and The Royal Bank of Scotland Group. Their competitors are based on customers, employees, growth and profitability.
Market development can be used by a star business unit. Market development is a corporate strategy which large firms implement when seeking to dominate the market, by introducing their products and services into new geographical locations. Rather than limit operations to a single location, the firm may pursue additional business in various local or international locations. Wal-Mart is a star business unit that has implemented and utilized a successful market development strategy which has resulted in it becoming the world’s largest discount retailer. Wal-Mart sought global expansions and retail market domination because it successfully saturated the United States market, it wanted to supply global customers and capitalize on rapid market growth in discount retailing.
The multinational corporations The multinational corporation is a worldwide corporation that has many operations in more than one country other than its home one, where it’s headquartered or managed. These companies’ main objectives are to increase market share and reduce cost of production in order to maintain more profit. The multinational corporation has the ability to affect the host countries in their economic and political situation positively and negatively. The main advantages of the multinational companies in the host countries are that they increase the investments in these countries. Because of their need to a large number of work forces, Multinational corporations are a dynamic force
This could easily increase the chances of success for the franchise. On the other hand, franchising reduces the risk of failure for the company’s owner as the franchisee usually shoulders majority of responsibilities including financial and operations issues. Therefore, the franchisor will only carry a minor part of liability. As a result, franchising is one of the best idea for business that want to grow into their full potential and enter the international market. As it can easily generate serious profits.
Industrial free zones on CPEC route will link all parts of Pakistan and there will be more trade locally and internationally. Economic Development: China Pakistan Economic Corridor will boost up economy of Pakistan towards revival of its industry and to advance economic interests. Pakistan will attract top economies of the world and foreign investments will come to Pakistan. CPEC will not only benefit the national economy of Pakistan but it will benefit the economics of people at basic level as well. Balanced environment in South Asia: Pakistan will come out of US influence and will act independently.