Managing the Multinational Firm Research Paper Example | Topics and Well Written Essays - 3000 words

Managing the Multinational Firm - Research Paper Example A good example of this is bankrolling a retreat for legislators while threatening to relocate. Daniels, Sullivan & Radebaugh (2006). Multinational corporations are able to affect the lives of the ordinary citizens through, among other things their products and employment policies. Daniels, Sullivan & Radebaugh (2006). Their preference for employing workers under contract rather than permanent terms, for instance, has led to the emergence of 'permanent casuals', individuals employed under contract terms for their entire productive lives. Also multinationals are no longer the preserve of the industrialized west. They are emerging from the less developed nations and spreading their reach worldwide. The bulk of material in this paper has been sourced from written references and covers companies in different countries and operating environments. The paper will look at the obstacles and consequences of a company having a presence in several countries. It will also study the people factor a s reflected in cultural differences and work ethic. The question of administering operations both local and overseas and competitive advantage is also considered. Daniels, Sullivan & Radebaugh (2006). As a manager of a multinational company I one has access to huge sums of money due to economies of sale and access to a very large market. The manager can also raise capital on international equity market. This enables the company to invest heavily in research development capital goods and employee development. Daniels, Sullivan & Radebaugh (2006). These will in turn lead to further increase in revenue. Innovations will lead to an improvement in living standard in countries where the multinational has a presence. The multinational will also create employment through growth of support industries to supply the multinational with raw materials. The multinational will also boost foreign exchange reserves in the home country generated by exports. With its presence alone the multinational will raise the bar for national producers and force them to raise he standards of their goods. Daniels, Sullivan & Radebaugh (2006). Multinational corporation also purchase local firms by way of investment exposing their goods to a wilder market and profiting the original entrepreneur e.g. Google's purchase of you tube multinational companies also boost trade as most world trade is between companies in the process they facilitate spread of technology and also act as a conduct for local firms to get their goods onto the international market. Daniels, Sullivan & Radebaugh (2006). Multinational firms also provide technological know how, same of which requires large capital investment. The sums involved may be out reach a government but quite reasonable for a multinational company. They may also have the technology and simple pass it on. By investing in other countries they are able to capitalize on the knowledge gained and test it more thoroughly in different scenarios other than those already a encounter. Daniels, Sullivan & Radebaugh (2006). Reputable multinationals can also allow private individuals or small business to benefit from their size reputation and accumulated expenses agreements.