Essays on Mnes

Multinational Enterprise and Foreign Production Multinational firms exist because of certain economic advantages that enable it to be profitable by producing a good or service in a foreign country. It is important to understand the difference between Vertical expansion and Horizontal expansion of a multinational firm in order to understand the underlying principles of their economic activities. Vertical expansion happens when a firm finds assets in a foreign country it wishes to pursue. These assets can be either in the form of natural resources or other raw materials that it can use for inputs in its own production or ...

MNE is a company, operating in two or more countries, conducting research there and having a multinational (decentralized) production, management and ownership of the capital. When moving the part of MNE production abroad, there is a replacement of the foreign exchange with international production of subsidiaries (Drucker). In this case, international trade, firstly, is taking on new forms of intra-firm trade, and secondly, stimulates the further evolution of the already existing forms of intra-industry trade. Intra-firm trade. It is inherent purely for a MNEs and occurs through the parent company import of products of its subsidiaries and parent company ...

A Case Study of UPS’ expansion strategy in India

  United Parcel Service or UPS is one of the best courier service companies in the world. Founded in 1907 it has grown into a $36 b company through the expansion of its operation in more than 200 countries all over the world. UPS has emerged as one of the largest package delivery companies in the global market and competes with FedEx and DHL in supply chain management activities. UPS extended its operations to South East Asia as a strategy to counter the recession and India offered a lucrative opportunity with a growing market (Arthaud -Day M. L. et al; ...

Introduction

Beginning the early 1990s, the number of multinational corporations has risen steadily as a result of globalization. This reason has caused organizations to realize the need for international human resource management as a determinant of success. International training and development is a tool that multinational enterprises (MNEs) are using to improve the quality of services that their employees provide. The main aim of training is to improve work skills and behaviors that an organization employee has in the current circumstances. On the other hand development is aimed at increasing working abilities with respect to a future task or job, ...

Abstract:

Many multinational enterprises (MNEs) are under pressure to offer more value to their consumers, as well as, make profits while facing steep competition. The cost of operations and productions of any organization directly determines the organization’s success. Offshoring or moving headquarters overseas allows organizations to move its business operations and functions to a different country (DiMattia, 2004). Many major MNE are often underutilized even though they have incredible knowledge resources. The main reason is that often the knowledge required within one part of the organization exists within that organization but the access to that information by those who ...