Mitsubishi Swot Analysis

1.0. INTRODUCTION
A multinational corporation (MNC) is a corporation that accomplishes manufacturing of a product or a service delivery in more than one country. Another name for it is International Corporation. The International Labor organization (ILO) has stated that MNC has it’s headquarter in one country that is the mother country and functions in some other countries as they do have offices and factories centralized there. Big multinational corporations have accounts that beat those of some small countries. Example of these corporations is Mitsubishi Motors. So in the following report we are going to discuss why companies want to expand globally including the currency exchange exposures and finally factors that complicate this expansions

Different currency denominations this is because multinational corporations are functioning in many countries so their cash flows are denominated in different currencies. As an example a subordinate of Mitsubishi Motors in Malaysia, the cash flow for the process there is denominated in Malaysian Ringgit and not in Japanese Yenn. This is the case although Mitsubishi Motors is originally a Japanese company. Because the subordinates in different countries operate in, with different currency denominations, in the case of Mitsubishi Motor that has hundreds of foreign subordinates, conversation rate enquiry is needed (Amin Noordin et al, 2003, p.292). Money conversion rate enquiry is an essential deliberation especially at the time of preparing Mitsubishi Motors consolidated financial statements. Mitsubishi Motor mentioned previously that they combine their financial statement when the managers at all the headquarters (in Japan) of the corporation combine the different financial statements from its different foreign subordinates in order to decide the firm’s overall yearly productivity or profit

Legal differences, the differences in those two sides for numerous countries in which a multinational corporation can cause a substantial problem when it tries to have a standardized actions among all its foreign subordinates. An example is the differences in waste/left-overs therapy law between countries, have held up multinational corporations from having the freedom to take on the same method of disposing manufacturing waste among all countries it operates at. At countries where the waste therapy law is stricter, high agreement is needed in order to prevent any form of legal activities in opposition to multinationals. In some countries the multinational usually spend more money in building waste therapy facilities. These developed waste therapy facilities will help the corporations to fulfil the strict waste therapy law. Other than this, countries where the steward government does not provide importance to manufacturing waste, the multinational corporations would decrease their spending in waste therapy activities without opposing any substantial lawful