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    Multinational Enterprise (Mnes)

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    Mohd Haiqal
    Multinational enterprises (MNEs) are organizations that own or control production of goods or services in countries outside their home country. They engage in international business activities like importing/exporting, foreign investment, contract manufacturing, and opening foreign facilities. Major MNEs include companies from the US, Japan, Europe, and other regions. While MNEs provide benefits like jobs and competition, they can also displace local industries and exploit resources and consumers in host countries.

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    Multinational Enterprise (Mnes)

    Uploaded by

    Mohd Haiqal
    13 views16 pages
    Multinational enterprises (MNEs) are organizations that own or control production of goods or services in countries outside their home country. They engage in international business activities like importing/exporting, foreign investment, contract manufacturing, and opening foreign facilities. Major MNEs include companies from the US, Japan, Europe, and other regions. While MNEs provide benefits like jobs and competition, they can also displace local industries and exploit resources and consumers in host countries.

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    MNE

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    MNEs Present

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    Multinational enterprises (MNEs) are organizations that own or control production of goods or services in countries outside their home country. They engage in international business activities like importing/exporting, foreign investment, contract manufacturing, and opening foreign facilities. Major MNEs include companies from the US, Japan, Europe, and other regions. While MNEs provide benefits like jobs and competition, they can also displace local industries and exploit resources and consumers in host countries.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    13 views16 pages

    Multinational Enterprise (Mnes)

    Uploaded by

    Mohd Haiqal
    Multinational enterprises (MNEs) are organizations that own or control production of goods or services in countries outside their home country. They engage in international business activities like importing/exporting, foreign investment, contract manufacturing, and opening foreign facilities. Major MNEs include companies from the US, Japan, Europe, and other regions. While MNEs provide benefits like jobs and competition, they can also displace local industries and exploit resources and consumers in host countries.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 16

    MULTINATIONAL

    ENTERPRISE
    (MNEs)
    MOHAMMAD HAIQAL BIN MOHD HASSIM
    AINA FARAHIN BT MOHD NAZARUDDIN
    FAROS FAIZDNOR BT ROSLAN
    NURUL HANNANI BT YUSOFF
    KHALILAH ZAINOL ABIDIN

    2013942049
    2013951897

    2014635928
    2014805614
    2014834634

    WHAT IS MULTINATIONAL
    ENTERPRISE ?

    A multinational corporation (MNC) or multinational enterprise is an


    organization that owns or controls production of goods or services in one or
    more countries other than their home country.
    It can also be referred as an international corporation.
    Importing and exporting goods and services.

    Making significant investments in a foreign country.

    Buying and selling licenses in foreign markets.


    Engaging in contract manufacturingpermitting a local manufacturer in a foreign

    country to
    produce their products.
    Opening manufacturing facilities or assembly operations in foreign countries.

    Most U.S. and Japanese companies are multinationals.


    Ford, General Motors, IBM, Honda and Mitsubishi.
    Nestle and Shell Oil are two examples of European
    multinational.

    APPLE

    Is an American
    Multinational
    corporation that
    is based in
    California.

    Designs,
    develops, and
    sells electronics,
    computer
    software and
    personal
    computers.

    Apple went
    international in
    2008 until
    present.

    478 APPLE retail


    stores in 17
    countries

    Create
    new jobs
    for the
    people

    Company
    economy
    boosts up
    & top in
    the world

    Good
    Exampl
    es from
    Apple

    Promotes
    heavy
    competitio
    n

    CHARACTERISTIC OF MNE'S
    Large scale operation
    It performs large scale business operation by investing a huge capital.
    Advance technology
    Advancement in modern science and technology is one of the features of

    a multinational company.
    International operation
    It performs production and distribution activities at the international level

    through its branches or subsidiaries.

    CHARACTERISTIC OF MNE'S
    Efficient management
    Its has the capacity to hire professional by paying high remuneration.
    Productive organization
    They produce goods and services of a specific nature both in the parent

    company and the subsidiary companies in various countries.


    Monopolistic market
    The use of latest technology, own trade mark, goodwill, along with better

    distribution system and promotional network are the main components of


    multinational companies.

    ADVANTAGES OF MNES
    Cheaper Labour

    Multinational enterprises get to operate in countries where labor is not as expensive.


    Multinationals can set up their offices in several countries where demand for their services
    and products are high while cheaper labor is available.

    Broader Market Base

    By opening establishments or offices in several countries, multinationals increase their


    chances of reaching out to customers on a global scale. Increasing accessibility to wider
    geographical regions allows the MNEs to have a larger pool of potential customers and help
    them in expanding, growing at a faster pace as compared to others.

    Tax Cuts

    Many countries offer reduced taxes on exports and imports in order to increase their foreign

    ADVANTAGES OF MNES

    Job Opportunity

    When international companies set up branches in other countries, employees and


    members of the team are locals. That said, more people are given employment
    opportunities especially in developing countries.

    Consumer Benefits

    A multinational enterprise that benefits from both low production costs and low
    taxes should be able to make increased profits while reducing prices, which
    benefits consumers. The company may also have access to knowledge and skills
    in multiple countries that could help it produce better products.

    DISADVANTAGES OF MNE
    DISPLACEMENT OF
    LOCAL INDUSTRIES

    Local industries cannot


    compete with MNE
    MNE produce goods &
    services at a larger scale
    by using modern
    technology.

    OUTFLOW OF CAPITAL
    Invest capital to manage
    working capital
    to
    earn max profit.
    As a result, more money
    will flow out from the
    country in terms of
    dividend decreases
    foreign exchange reserve
    of the country.

    ECONOMIC
    EXPLOITATION
    MNE utilizes raw
    materials & labor force of
    the host country at a
    cheaper price and
    charges a high price for
    the finished products.

    CONSUMER
    EXPLOITATION

    INEQUALITY
    TO STAFF
    - MNE enjoys monopoly
    in the market.
    - They capture the
    market

    - MNE appoints staff


    both from the
    parent country and
    the host country.

    by using various
    techniques for
    maintain
    brand image.

    - Thus, they charge any


    price for the products &
    exploit customers by
    charging a huge price.

    - MNE treats the


    local employees as
    second grade
    citizens by providing
    minimum
    remuneration &
    allowances.

    THE GROWTH OF MNEs


    Foreign
    direct
    Investm
    ent

    Technolo
    gies &
    marketin
    g
    innovati
    on

    Citizens
    better
    life

    Foreign
    Direct
    Investm
    ent (FDI)

    The open up in regulatory barriers, to foreign


    investment, better transportation &
    communication - International company find it
    easier to invest.
    Helping the host countrys economy grow as well
    FDI increase steadily over the year from 19%
    total flows to 30% within 4 years period.

    Technolo
    gies &
    marketin
    g
    innovati
    on

    Internal technical created from resources within the


    company where requires spending machinery where
    imported from parents country to host country.
    Consistent high quality and low prices can keep the rate of
    growth high for a long time.
    In marketing, Innovate to cater the taste, cultural & needs
    of the citizen in the host country.
    Different than marketing strategies in the parents country.

    Citizens
    better
    lifestyle

    Offers thousands of job employment to the resident of the host country


    reduces unemployment

    Offers skills & an opportunity to grow within the company itself.

    Good & services brought make it affordable & possible for the citizen
    to bought. Eg: Toyota, Nissan, IKEA

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