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Multinational Corporation

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JDT TDJ

on 8 November 2013

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Transcript of Multinational Corporation

Multinational Corporation
What is a multinationcal corp?
A multinational corporation is a business that operates in severel different countries and operates as if there aren't any borders. As a result, the gobal marketplace is their place of business. A multinational business could have their headquarters in the U.S, it's material sources from Russia, and their retail stores in France. A few examples of multinational corporations are Starbucks, Toyota, and Square Enix.
Toyota Logo
Starbucks Logo
Squarer Enix Logo
What are the advantages
of a multinational corp?
Advantages
-Founders, and CEOs, etc. tend to become very wealthy
-Multinational Corporations can take advantage
of the benefits of each country they operate in
(resources)
-Can save money in the long run
-May not have to pay as much for labour
workers depending on country
that they are in
Multinational and
Public Corporations
Disadvantages
-A disadvantage of starting a multinational corporation is that it will probably take a VERY long time to start up, longer than a normal corporation
-Small shareholders do not typically have a large influence on company matters
-It will take a long time to start up as a corporation and start off in new countries
-Limited liability
-Can transfer ownership easily
-You can't get a starter boost from things like franchiser brand names, you have to do it by yourself
By: Thomas, William, Victor, Victor T
Manufactures in Africa, South America, Australia, Europe, and Asia (52 countries)
Has franchisees in North America, Asia, and Europe, totalling at 62 countries
Has headquarters in Japan,
and England as a smaller branch
Other Facts about Multi Corps
-Many multinational corporations aren't operating ethically, and manufacturing in some countries just to pay labour workers less. This is a disadvantage to the country, but not the company itself
Public Corporations
What is a public corporation?
A public corporation is basically a normal corporation that generates money by selling shares on the stock exchange. The person who owns the most shares has control of the business, but everybody who owns a share will technically be an owner. Public corporation shares can tell you how much the corporation is actually worth. An example of a public corporation is Research In Motion, the creators of the blackberry
Research in Motion's logo.
Share price: $13.01 as of March 8, 2013, 10:30am
Blackberry Phones
-Multinational corporations usually benefit countries that host them by offering extra jobs, new technology, training, higher GDP, etc.
-Certain multinational corporations are powerful enough to bribe/pressure governments into giving into their demands. A common corporation bribe would be that they would take their business (and thus the benefits aswell) to a different country
Advantages
-Successful company founders can typically sell most of their shares for millions of dollars
-Transfer of ownership is very easy
-Limited liability
-Any investments in shares can be resold to make back as much money as possible lost if you are an owner while the company value drops
-Merchanting opportunity (buy shares during a good period and sell them when the company value rises)
-Can easily access shares to receive a dividend
-If publicly traded, chances are that your dividend will be larger due to multinational corp. typically having large audiences
-Founders, presidents, major shareholders, etc. typically become very wealthy
-Major shareholders have a lot of say in how the business is run
-Major shareholders have a lot of say in the company
Disadvantages
-People without many shares don't have as very much say in the company
-It is not as costly to start up as a multinational corporation, but still very costly
-Takes a lot of time to get started. Not as much as multinational corporations because you don't have to set up in different countries
-Tough to get recognized unless you have something revolutionary (blackberry) which you typically have to come up with alone
-Profits are split
-You follow under the board
of directors (unless you are one)
-Profits are split
-Communication/transport methods are cut down because of travel distance
-Have a boss, unless you are the main share holder+board of directors
-Easy to communicate from HQ to industries
Time for a comparison
What's the Same?
What does a multinational corporation have that a public corporation doesn't?
What does a public corporation have that a multinational one doesn't?
-Larger audience in more countries
-Takes a while to communicate
-Have to ship resources (in some cases)
-Can save more money in the long run
-Usually a better dividend
because we have a larger audience
-Can take advantage of benefits that
a single country might not have, but
multiple might have
-Might not have to pay
some workers as much
-Sometimes unethical
-Not always publicly traded
Good
Bad
Good
Bad
-Can always sell shares easily because it's always publicly traded
In conclusion, public and multinational corporations can be very similar.
Good
Bad
-Work under a
board of directions

-Start off without any
aid (no brand recognition)

-Costs a lot of
money and time

-Profits are split
-Needs something
special to do good because audience is limited to 1 country
-Transfer of ownership
is very easy

-Merchanting opportunity
-Important players in
business tend to become wealthy

-Everybody can easily access shares
to receive a quick and easy dividend
-Not many shares = not much say
-A lot of shares = a lot of say
-Limited liability
-Powerful enough to
bribe governments
-Offers thousands of
jobs/opportunities to many countries
Full transcript