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

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

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

4. 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

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

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

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

8. 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

9. Organization of Multinational Corp. Parent corporations that have numerous small companies under their control (subsidiaries) http://www.pepsico.com/Brands.html

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

11. Benefits of being Multinational Benefits the people of that region

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

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

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

15. 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

16. 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

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

18. Harms of Multinational Corporations Loss of US jobs

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

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

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