mnc
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Written by:
Hector C
Date added:
August 15, 2016
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A
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11).
According to Ferdows (1997), the reasons behind formation of MNCs include:
? reduce direct and indirect costs;
? reduce capital costs;
? reduce taxes;
? reduce logistics costs;
? overcome tariff barriers;
? provide better customer service;
? spread foreign exchange risks;
? build alternative supply sources;
? preempt potential competitors;
? learn from local suppliers, foreign customers, foreign competitors, and foreign research centers; and
? attract talent globally...
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In the first major research project on multinational corporations at Harvard in the late 1960s, a multinational was defined as a firm that had production facilities in several countries, a definition which became standard in the early international management literature (Ghoshal and Westney,1993).As the world starts to globalize, it is accompanied by criticism of the current forms of globalization, which are feared to be overly corporate-led...
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