Essay
The Rise of MNCs
- Institution
- University Of South Africa (Unisa)
This document is here to help and give you guidance on how to answer your essay question
[Show more]
Seller
Follow
Content preview
IPC2602 Assignment 1THE RISE in MNCs
Table of Content
1. Introduction…………………………………………………………………...…....2
2. Introduction ………………………………………………………………………..3
3. The dominance of large MNCs……………………………...............................3
4. The accumulation of wealth……………………………………………………....4
5. The division between the rich and poor……...................................................4
6. The division of labor and multi-centered production.......................................5
7. The increased influence of the MNCs…………...............………….………….5
8. The increased influence of the MNCs…………...............………….….………6
9. Effects of Covid-19 pandemic on MNCs……………….………….……………6
10. Conclusion………………………………………………………………………….7
11. Reference list………………………………………………………………….……8
12. Reference list ………………………………………………………………………9
1
, IPC2602 Assignment 1
Introduction.
Firms have taken their businesses to the international level where they have exposure
to more resources, markets and customers. The internationalisation of business has
caused various trends to emerge. This paper will discuss the trends in the rise of
multinational corporations.
Transnational coordination of production has arisen due to the rise of multinational
corporations (Jstor.org, 2021). At the international level, there exists coordination of
sales-marketing decisions and production decisions. Operations and processes at the
global level are usually managed by the parent company since all the firms are
integrated. The firms at the global level owe their allegiance only to their parent
company and not any other country. Labour at the international level is also coordinated
(Jstor.org, 2021). The number of employees and staff to be hired for various operations
is decided by the parent company. Decision-making is centralized and no firm at the
global level is able to make decisions on their own.
Government coordination has boosted the operation of firms in several countries
(Jstor.org, 2021). Firms located in foreign nations are a source of revenue to the nation
through payment of taxes. With respect to that, governments provide suitable business
environments for foreign firms by removing barriers and restrictions, allowing for smooth
business operations. The foreign firms also create employment for the locals, thus
uplifting their living standards and as a result, enhancing their GDP.
According to Kok et al (2020: 57), Gilpin (1987:231), defines Multinational Corporations
as "a firm that owns and manages economic units in two or more counties." This means
that a company has many stores or offices in different countries but their head office is
located in one specific country. Kok et al (2020: 57), goes on to say that Smith et al
(2011:72) called the rise of the multinational companies corporate globalisation, he went
on to say that "ownership and control of the economic activity has increasingly moved
away from government control and into the hands of a relatively small group of parent
2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller yandheyanatasha. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R100,00. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53022 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy summaries for 14 years now