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In: Business and Management

Submitted By emilyy1
Words 300
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• Define multinational enterprise (MNE)
• Identify various operations modes in internationalisation
• Understand the changing global environment- Chapters 1 and 11

Implications of the increasing presence of Multinationals: easy to change the world

What is Multinational Enterprise (transnational)?
Any business that have productive activities in 2 or more countries Research, marketing, manufacture Broader definition: any firm that engages in international trade and investment

Multinationals are rootless cosmopolitans (- more of a mindset or mentalit?

Headquarters- represents the distribution of the world economy.
Reasons to become international
Decisions, risks that come with it
Significance of multinational corporation:

Not all MNE are equal:
United Nations trans nationality index – measure of multinational-ness
• Size/resources
• Geographical scope/ diversification
• Experience: process of internationalisation management attitude and structure
• Degree of control over foreign operaitons
• Total sales/assets and employment

Single macro-environment- more countries added to equation = different kinds of environemtns that are made up of the elements
Different countries varies- understanding

Interface of different countries

Role of MNE
• Provide standard products
• Facilitates the convergence of consumer tastes: eg Apple
• Main actor of global production
• Facilitates global trade of intermediate and finished goods (between subsidiaries and between headquarters and subsidiaries)
• Influence local players and firms (supplier, distributors, employees) with global standard and value

Becoming MNE:
Expansion strategy
Gradual process sequential process (slower process, ikea)
There is a decline in the domestic market
Internationalisation is an evolutionary process over time as firms expand their geographical reach and mindsets.

• There is a range of international business operations, i.e. means of servicing foreign markets, which firms may choose.
• Firms often use multiple modes simultaneously.
• The choice of a particular mode depends on the firm and market characteristics (i.e. internal/external conditions).

Inward (servicing domestic customers through transactions with foreign firms) vs outward (servicing customers in foreign markets).

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