Multinational Enterprises Overview

Companies operating in multiple countries, influencing globalization and international economic integration.

Operating in various countries to access diverse markets and minimize risks, like Coca-Cola.

Engaging in trade, investment, and production across borders, leveraging cost/resource differences.

Some MNEs centralize decision-making, while others empower subsidiaries with autonomy.

Operating in multiple industries to reduce risks, like Samsung in electronics, shipbuilding, and finance.

Sharing technology, skills, and best practices across countries, boosting global innovation.

Controlling production stages across countries, like sourcing materials, manufacturing, and distribution.

Producing the same goods/services in multiple countries for local markets.

Operating in unrelated industries across countries to diversify risks.

Promoting interdependence through trade, investment, and technology transfer.

A company that operates in multiple countries, conducting business and managing resources across national borders.

The organizational structure of an MNE where subsidiaries focus on specific stages of production and supply chains.

The organizational structure of an MNE where subsidiaries primarily engage in similar activities across different countries.

The network of production and distribution that spans multiple countries and involves different companies.

The process of MNEs investing in productive assets in foreign countries.

MNEs leverage their global reach to influence local markets and policies.

MNEs face challenges such as navigating diverse regulations, tax systems, and cultural differences across countries.

MNEs contribute to economic growth by creating jobs, transferring technology, and promoting innovation.

MNEs might exploit workers, natural resources, and local economies for their own gain, leading to ethical concerns.

A diversified MNE with operations across various industries, reducing risks by spreading investments.