Multinational Corporations To understand the benefits and drawbacks of being a multinational corporation

Multination Corporation - Any business that is headquartered in one nation, but carries on business in one or more foreign countries

The Global Economy Following WWII the global economy began to grow quickly

The Global Economy Following WWII the global economy began to grow quickly Businesses like IBM, Ford, General Electric, began to build plants in foreign countries

Why be multinational? 1) avoid high costs of American labor

Why be multinational? 1) avoid high costs of American labor 2) avoid quotas and tariffs

Why be multinational? 1) avoid high costs of American labor 2) avoid quotas and tariffs 3) To expand market size

Why be multinational? 1) avoid high costs of American labor 2) avoid quotas and tariffs 3) To expand market size Today, there are more than 10,000 multinational corporations, with 90,000 subsidiaries

Organization of Multinational Corp. Parent corporations that have numerous small companies under their control (subsidiaries)

Organization of Multinational Corp. Parent corporations that have numerous small companies under their control (subsidiaries) Joint Ventures involve mergers between two large companies

Benefits of being Multinational Benefits the people of that region

Benefits of being Multinational Benefits the people of that region Labor, taxes, development

Benefits of being Multinational Benefits the people of that region Labor, taxes, development Corporations benefit through: Cheaper land

Benefits of being Multinational Benefits the people of that region Labor, taxes, development Corporations benefit through: Cheaper land Cheaper labor

Benefits of being Multinational Benefits the people of that region Labor, taxes, development Corporations benefit through: Cheaper land Cheaper labor May be closer to natural resources

Benefits of being Multinational Benefits the people of that region Labor, taxes, development Corporations benefit through: Cheaper land Cheaper labor May be closer to natural resources Beat Tariffs

Benefits of being Multinational May benefit the world by bringing nations together, creating a better understanding of other nations

Harms of Multinational Corporations Loss of US jobs

Harms of Multinational Corporations Loss of US jobs Tax losses for US

Harms of Multinational Corporations Loss of US jobs Tax losses for US Environmental concerns

Harms of Multinational Corporations Loss of US jobs Tax losses for US Environmental concerns Damage to other American businesses through multinationals underselling