Introduction

Multi National Corporation engages in domestic and foreign merchandise development. Sometimes the host state has a merchandise ( labour. ingredient. portion. etc ) that is rare or less dearly-won than bring forthing it in the place state ; hence set uping a Multinational Corporation is a win-win for the host state every bit far as supply. demand. labour and cost. Many corporations presently engage in Multinational Enterprise and are successful in their attempts. Having concerns that are active in MNC genuinely creates a planetary concern community where common involvements and merchandise development are nucleus to the demands of the client. concern and hike foreign economic systems with occupations. concerns and exporting goods. Country Economic system Political environment Legal environment Technological China Mixed economic system Socialism Complex ordinances Japan Mixed economic system Capitalism Complexity France Mixed economic system Capitalist/Socialist Complexity

Ethical system Social duty indexs Cultural dimension Confucianism Laws & A ; ordinances Collectivism

Laws & A ; ordinances Collectivism Laws & A ; ordinances Collectivism

Product. Business Plan and Foreign Direct Investment ( FDI )

Acai berry is native to Central and South America and the works is a great anti-oxidant that can be used for several intents. My company. Natural Beauty. has partnered with Acai palm tree companies in Belize to supply the merchandise and have fabricating warehouses located in Belize. This foreign direct investing offers a win-win state of affairs for all of the companies involved. We have chosen the downstream perpendicular FDI as a means to spouse with Acai palm tree farms and companies in Belize. The place state is the U. S. and although the merchandise is non sold in Belize nevertheless it is distributed in other states such as the United States. Brazil. France. England. China. Japan. and Qatar.

There are multiple advantages of an FDI as show in the ownership. location. and internalisation ( OLI ) model ( Peng. 2011 ) . Understanding the model I understand that ownership allows for ownership and leverage of resources. value and other added constituents to let a competitory market. The Location constituent ensures that we are close to our chief ingredient with the merchandise. that we are able to hold labour. ingredients and fabrication at the lowest cost available while supplying a encouragement to the host states local economic system and making planetary competition. We are in several states which provide internalisation and we have rational belongings rights over all of our merchandises. procedures and concern program.

We protect our concerns by cognizing our airing hazards and safeguarding against them every bit much as possible. Since we know our airing hazards we are able to safeguard against direct rivals that may ramify out from local distributers. We besides are cognizant of market imperfectnesss and make our best through our international legal squad to remain abreast of international trade. concern and authorities ordinances. We besides have precautions against agglomeration due to the international fad over the Acai berry. works and trees. We do this through our contract clauses which province other companies can non be located within a certain distance. metropolis. or infinite as ours in host states.

Natural Beauty. Inc. understands the elaboratenesss of concern and political relations. particularly within an international construction. We are in no manner runing as a monopoly or extremist imperialist ( Peng. 2011 ) concern. We believe in free market and working with our host state spouses to guarantee that each of them are maximising their capacity and invested in the good and services provided by our joint venture. It is of import that the FDIs benefits outweigh the costs and it is genuinely a win-win for all parties involved. Cost and Benefits of FDI

As we can merely conceive of. there are benefits and costs to both the host and the place states involved in Multinational Corporation. The benefits for Belize are the capital influx. engineering. direction and occupation creative activity. The other states of distribution have the same benefits that boost local cognition. economic system and globalisation. The costs for the host states are loss of sovereignty. capital escape. and competition. The largest benefit is creative activity of occupations and expanded cognition. The largest cost is loss of sovereignty. The benefits for the host states must outweigh the costs and merely the local authoritiess and direct companies involved can project overtime which is more good for them.

The benefits for the Natural Beauty in the U. S. are net incomes. exports. and larning from abroad whereas the costs are capital escape and occupation loss. The latter can be rather lay waste toing if the proper safeguards and concern programs are non in topographic point in add-on to being cognizant of local/international political relations. However occupation loss here means possible nest eggs in salary/wages in other host states where the earning are non as high which saves the company money. The largest benefits are net incomes and larning from abroad. The largest cost is occupation loss and the political clime around American companies that take their concerns abroad ( retrieve NAFTA ) . Another menace is that local concern can larn your procedure and so go your largest rival and they have the “home field” advantage. This is known as the contagious disease consequence ( Peng. 2011 ) .

We recognize that FDIs can be complex and must be reciprocally good for all parties involved and therefore we make a painstaking attempt to acknowledge the demand for location advantages. licensing and outsourcing knowledge/expertise and apprehension of restraints ( political and concern in order to be successful ) . Future of MNC

The hereafter of Multinational Enterprise is contingent upon true apprehension of planetary communities and planetary concern. Understanding that free market. consciousness and international trade Torahs will order most of the concern attempts and constitutions. Many companies are already prosecuting in MNC successfully ( BMW. Coca Cola. etc ) and those interested in researching this option should make several instance surveies looking at the successful and non so successful attempts in this kingdom to larn from them. I think that host MNC states take parting in FDI should be careful non to lose their power and prestigiousness in the name of partnering for pecuniary addition. It is easy for smaller less powerful states to acquire lost in the MNC FDI advantage for the interest of occupation creative activity and hiking local economic system ; nevertheless non at the cost of their civilization. citizens and green infinite ( for those working with rainforest communities or those with cherished agribusiness ) . The hereafter of MNC can be bright when all parties involved are up front and witting about keeping and win-win concern.

Mentions
Peng. M. . ( 2011 ) . Global. 1st Edition ; Mason. OH. Cengage Learning World Wide Web. alibaba. com/…/CN/technological-environment. hypertext markup language
Luthans. F. . & A ; Doh. J. P. ( 2012 ) . International direction: Culture. scheme. and behaviour ( 8th ed. ) . Boston. MA: McGraw-Hill.